And since we are talking about incorporation for companies for the first time entrepreneurs, we’ll be talking about Private Limited and Limited Liability Partnership here. For other types, you may like visit the website of MCA or consult a professional who can help.
It is worth to note here that a Partnership Firm and a Sole Proprietorship do not qualify as a Company, as it doesn’t involve registration. However, these companies are permissible to conduct business in India as per the law applicable to it.
Since the registration process for the incorporation of a company in India is being filed online, the digital signature of any of the promoters have to be obtained to encrypt the uploaded documents. Encrypting a document using DSC is similar to self-attestation of documents by a promoter manually.
Each of the promoters or partners designated to incorporate a company should obtain DIN or DPIN. The application for DIN shall be filed in the prescribed format named as DIR-3.
On receipt of the DSC and DIN or DPIN, the companies can file INC-1 and an LLP can file e-Form-1 to register its name. The selection of name for a company should be as per the Naming guidelines. Six names of choice have to be given for approval along with sufficient documents encrypted with DSC and can be uploaded in the MCA portal.
Following the name approval, the promoters can now move to the next phase of incorporating the Company. The process of filing incorporation application involves much process including drafting of Memorandum of Association and Articles of Association. Along with the MoA & AoA and desired documents, the application should be submitted to RoC in the prescribed format as mandated by the Act.
Memorandum of Association and Articles of Association are the legal documents that have to be prepared. The document states almost everything about the company including company name, address, the name of the directors, paid up capital and information about the distribution of share among directors.
As a Private Limited Company is concerned, it can start its business soon after the receipt of the certificate of Incorporation. However, a Public Limited Company requires passing through many regulatory approvals and an LLP requires filing LLP agreement to commence its business.
On receipt of the certificate of Incorporation, the company will have to register with the Registrar of Companies within 30 days of the incorporation.