These days, most people want to start business in India. From
foreign nationals to NRIs to Indian residents, many people are
looking at investing their money in India. There are two reasons
behind this trend. One is because the Indian economy is growing at
a fast pace and in the near future it has potential to grow more.
The other reason is because India is a diversified country and
hence it is the most favoured location for doing business. Being a
diversified country, India offers different routes of investment to
The most suitable for of entity for carrying out business in
India would be to form a private limited company. The formation of
a private limited company takes approximately 12-15 working days
after receipt of the necessary documents.
In this article, we will discuss the procedure of forming a
private limited company in India.
The minimum requirement to start a private limited company:
Identify the directors of the company
(minimum of 2 directors should be present and maximum of 8 is
Minimum 2 shareholders
Minimum capital of the company should
be INR 1,00,000/-
DIN (Directors Identification Number)
for both directors. If you do not have one, you can apply for it
Digital signature of all
Reservation of the name of the
company (You can submit 5-6 names in the order of which you prefer.
Based on availability, you get your company name)
Apply for incorporation of
Consent from subscriber to
Preparation of documents such as
Memorandum of Association.
Filling documents with
Liaison with the authorities and
Proof of registered address
NOC from the owner of the
Getting final certificate of
The most important step in forming a
private limited company is applying for DIN. Only directors that do
not have this need to apply. They need to submit the form to the
central government with a fee of rupees1500 per director.
Obtaining digital signatures is the
next step. The director has to apply for the digital signature
certificate. This is necessary to file company registration
Submit 5-6 preferred names for your
company in order of the most preferred. Check for name
Apply for name availability to the
Once the name has been approved, you
need to apply for incorporation of the company. For this, you will
have to prepare a Memorandum of Association that details company
operation and list of directors.
Once it is approved, make at least 10
copies of Certificate of Incorporation and Memorandum of
Association and have it in a booklet form.
You will then have to fill various
forms in the ROC.
You will have to submit proof of
registered address (pan card, voters id)
Filling fees for final documents
Other government expenses
If the registrar is satisfied with
all the requirements that have been compiled by the company, they
will issue certificate of incorporation. The date mentioned on the
certificate is the date of incorporation of the company.
Lastly, you can open a current bank
account in any leading bank to carry out your operations.
Therefore, formation of a private limited company is not that
difficult as it seems. If you lack the expertise to do it on your
own, you can always take the advice and assistance of
professionals. Roughly, formation cost of a company should be INR
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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The Hon'ble High Court of Bombay has held that where a Scheme of Amalgamation is executed between two companies registered in two different states [...], then the said two orders are two independent instruments.
The Ministry of Corporate Affairs notified on June 5, 2015 that certain provisions of the Companies Act, 2013 shall not apply to private limited companies or shall apply with such exceptions or modifications as directed in the notification.
Whilst trade and barter have existed since early times, the modern practice of forming business relationships through the means of contract has come into existence only since the industrial revolution in the West.
The Supreme Court in Central Bureau of Investigation, Bank Securities and Fraud Cell and Others v. Ramesh Gelli and Others has held officers of private banks to be public servants under Prevention of Corruption Act, 1988.
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