The process of company incorporation in India is same throughout the country. For a proposed company to be incorporated, the company incorporation can be done in two ways: Private Limited or Public Limited, which means these are the two types of incorporation in India. Company incorporation in India can be directed by any Indian as well as a foreigner. Both Indian and a foreigner are eligible to be shareholders for a company incorporation India. However a foreigner is expected to abide by the rules of Foreign exchange Laws of India.
Company Incorporation Process in India
Company Incorporation in India has to follow the same mandated steps which are common throughout the country for the incorporation process. The process starts with the registration of the name of the company with the ROC, which also includes the patent trademark registration. ROC being the Registrar of Companies, who after the registration of the name and trademark of the company, also is responsible for the acceptance of Memorandum and Articles of Association in addition to the other necessary documents. These documents are prescribed by the government and are mandatorily needs submission.
The stipulation of the constitution and objects of the company are done through the Memorandum of Association. And the Article of Association consists of the sets of rules and regulations of the company for the management of its affairs.
After all the documents are verified by the ROC, the company is provided by a certificate of incorporation.
E-filling is the new technique introduced in India in the year 2007 for the registration of any company for the incorporation process. The E-filling has different steps in itself to carry out the Company incorporation in India.
The basic step starts for e-filling with the attainment of a DIN (Director Identification number). All the documents during e-filling are submitted first through online and later in person.
After obtaining the DIN, the applicant also needs to submit Digital signature certificate (DSC) for all the directors. These two are the mandatory steps, and an applicant's application is not considered until these two documents are submitted. Then the step for the name and patent trademark registration needs to be carried out. The validity of the name is after approval takes a span of 6 months. After this all the documents are to be submitted in original and the essential stamps on the Memorandum and articles of association. After these process completed, and ROC's scrutiny done, the certificate of incorporation of the company is issued, which signifies the commencement of the company.