526 thoughts on “Commonly asked questions/FAQ’s on Company Formation Procedure in India

  1. HI Meenal,

    Your bolg really helps a lot of Startup Enthusiasts to clear a lot of doubts they have. I have few too, hope you reply (as I mailed you quite long time back though your blog mentions to leave a comment than email queiries). Here they are (regarding a PVt Ltd Company Registration).

    1. Company Registration Address: Does MCA Accept Virtual Office Address for Company REgistration (as company lease deal would require company name and company registration requires Lease Deal, like a catch 22 situation), unless if the address can be registered on one of the Directors which is then transferred in Company’s name and updated accordingly. I do understand we can take general rental and then change accordingly, but my query is specific to “Virtual Office” (where in the Service Provider provides a Physical Address and also manages Mail and Phone Communications on behalf of the Client).

    2. Transfer of Company Registration Address (Outside of states):

    As the first 60-90 days of Startup Registration and formation are purely Legal, Infrastructural and procedural processes, can a Company be registered in a state (in the current home state as I am in) and then after 2 months be transferred to the actual State where I would want to setup operations. Or is there any “WAIT” Time before Company Registered address can be changed before complete Company Formation
    3. One of my Directors is currently an NRI, and ofcourse knowing that DIN can be obtained, but the MoA and AoA require physical signature as well, as per my understanding or am I wrong?

    Appreciate your reply at your convenience.

    thankyou, Raja.

    • Thank you for your comment. 1) While submitting e-form 22, virtual office address can be shown and registered as registered office address of proposed company. Normally the owner of virtual office can provide service agreement, utility bill as well. Please check with your end.
      2) Either you can show residence address as registered office address initially and later on shift to actual place where you wish or you can submit e-form INC 7 with correspondence address and after incorporation of company, submit e-form INC-22 alongwith address proofs, NOC and utility bill. As per Section 12 of Companies Act, 2013, the address shall be registered within 30 days of incorporation of company.

  2. Ms.Meena, for group companies, is it mandatory to prepare MOA and AOA individually. For Example if one plans to start four companies under one singly group , is it necessary to prepare MOA and AOA indiviually. Kindly reply

  3. Mam
    First thanks for nice blog,
    2nd i have question that i want to register a private limited company but i dont have 1 lakh now for authorized capital,does i have to show to govt. and if yes,can i use it after showing?
    Thank you

    • While incorporation of Private ltd company, you will have to show minimum Authorised Capital of Rs. 1 lakh in Memorandum of Association and not in Bank account of company. Only registration fees and stamp duty have to be paid on amount of authorised capital while incorporation. After formation of company, the first subscribers of Memorandum of Association shall be required to deposit / pay minimum paid up capital in company’s bank account.

      E.g. if the company’s authorised capital is Rs. 5 lakh and paid up capital is also Rs. 1 lakh, amount of stamp duty and registration fees would be paid on Rs. 5 lakh while incorporation and subscribers will actually deposit Rs. 1 lakh (total) in the company’s bank account within 2 months after incorporation.

  4. Hello Ms. Abhyankar

    Your blog is very informative.

    I hold a OCI status,basically from Telengana, but Live in UK. I intend to start a company with other Director and completed INC-29 online. All relevant documents are ready. The problem is I do not have a PAN yet and my OCI number is not getting validated on line. Its not allowing me to submit online. In such case, how to submit the form?
    Any help would be appreciated



    • If any individual is not having pan then he has to submit undertaking in the format provided as per Company Incorporation Rules. the format is as below

      I………………………………..(name) …………………………….. son of ………………………………….(father’s name)……………………………………….. citizen of ……………………………..(nationality)……………………… having passport no……………………………… declare as under
      (i) That I am not required under the provisions of Income Tax Act, 1961 to obtain lncome Tax Permanent Account Number [PAN];
      (ii) That in view of the above I have not been issued any PAN; and
      (iii) That I undertake to furnish to the Registrar of Companies (mention jurisdiction) details of my PAN as soon as a Permanent Account Number is issued to me.

      Date: (Signature)

  5. I have the following 2 Questions –

    To start a Business :
    1. What is to be done First : Obtaining a Trade License or Forming a Company ?

    2. From where do I get the List of Company Types / Trading License Type [ Exhaustive List ] ?

  6. Can a single NRI person do business in India in a One Person Pvt Ltd concern and what is the procedure for creating the same

  7. NRI and his wife starts a soft ware company he brings in amount through his NRO account in INdia to invests in the company floated by him. what are the legal obligations under FEMA / RBI he needs to be follow. kindly let me know

    • NRI when remits amount through NRO account, the company would report advance remittance to RBI to within 30 days and then file FCGPR within 30 days from date of allotment of shares to NRI

  8. Hi,
    its really a great FAQ forum for the beginner.
    I have few question:
    1. If i register my company with LPP, can i keep my company name as xxx….pvt.Ltd?
    2.for any company, is it mandatory to have finance audit with CA?
    3. is there any minimum amount transaction (profit/gain…5 Lacs) is required to go for #2.
    4. if the company is having TIN, is it mandatory to submit advance tax every month?

  9. Hi Meenal,

    Thank for the valuable information published in your blog. I have a couple of questions regarding the formation of a Private Limited Company. We are 3 members and recently registered a company as all 3 of us being the Directors of the company. We have received our Certificate if Incorporation on 6th April 2015. We have also completed the appointment of the Auditor, got the company PAN card and also opened the company bank account.

    Now the problem is that we do not have enough funds at this moment to keep the 1 lakh share towards the directors contribution in the bank account.

    The questions are:

    1. What is the time frame within which we need to deposit this share capital.

    2. Is there a way we can show the share capital in company asset rather than cash deposit in the bank account.

    3. If we fail to deposit the shares in cash within the specified time limit then will our incorporation certificate will be cancelled.

    4. Can we do business without getting / applying for the comencement of business certificate.

    Please help us with your valuable comments regarding this situation.

    • As per Companies Act 2013, the share certificates shall be delivered within 2 months from the date of incorporation. Therefore the subscribers have to deposit share application money asap with company’s bank account.
      As per Companies ( Amendment )Act 2015, the Government has omitted e-form 21 ( commencement of business) therefore there is no requirement to file e-form 21. You can commence business without getting or applying for the commencement of business certificate. Hence there is no time limit now when to deposit the money. But it would be advisable to deposit it to initiate the business and incur expenditure.

  10. where could we get MOA and AOA format ?

    • If you are incorporating company and filing form INC-7 then please refer Schedule I, Table A, B, C,D and E for MOA and Table F, G, H, I and J for AOA.
      if you are incorporating company and filing INC-29 then you can refer MOA AOA Template which are available in INC-29 help instructions on MCA site in Download e-form section.

  11. All of directors need to get the DIN including foreigners ?

  12. Good noon Mam
    I appreciate your Bog, its a great referral for a beginner.
    We are floating a Pvt. Ltd. company.
    How can we file INC 30 & 31 as they are not available on MCA website or anywhere else.
    Should we convert the PDF of rules and use the word document as attachments ?
    Will this work ?

    Thank you in advance.

    • As per my knowledge , the Government has provided INC-30 and INC-31 in template format which is available in INC-29 help instructions. You may attach format as per INC-30 and INC-31 to INC-29 since this is not yet available as e-form.

  13. Is there any condition that pvt ltd company should have min 7 employees. I want to start soft firm So which one should i prefer Enterprises or pvt ltd

    • There is no condition that Pvt. Ltd company should have minimum 7 employees. There is condition of minimum 2 members. Which option would be better enterprises or private limited, would depend upon the amount of capital, number of partners.

  14. GM Meenal,

    Thanks for the above information. I am planning to start software company with my spouse name. I don’t have set proper set-up now. Could you please let me know how much fees is required to register a company. Could you please help us to register a company with all the formalities? If yes, then what will be the total cost required to register a company, including your fees? Thank you.

  15. Hello madam,
    Firstly I would like to thank you for such an informative and popular blog.
    I have a doubt regarding the registration process of a pvt ltd company that whether we need to submit the share capital of 1 lac at the time of registration or we can have a 60 day probation period as we just want the name to be registered and we will start actual functioning after some time.

    • Yes, after making name application, within 60 days the name is reserved for registration. But i would like to advise you that please wait till end of 1st May, 2015 because New Integrated Companies Incorporation Form – INC-29 would be made available for filing w.e.f 1st May 2015 wherein you can make name application, registration in the same form.

  16. Hey Ma’am

    What is the Penalty for non filing of Annual Return of LLP?
    If it is 100 Rs per day, then what about the provision which contains Rs 25000 min to designated partner on non filing of the return?

  17. Hi,

    I want to understand if I being a qualified CS could form a LLP with a qualified CA for practice purpose.

    Kindly let me know if above mentioned is possible or alternate way out.


  18. Hi Madam
    I want to open a pvt ltd company but i don’t understand the concept of share capital
    This amount is deposited in which account and how to use it
    And when this amount will return
    it is compalsary to hire CA for small pvt company
    Please mam give me the detail

    You please explain it

  19. I have been reading your blog and it has been very helpful. I have one question now- My company was incorporated in the second week of March. We are in the process of opening the bank account etc now and have not started operations yet ( will do this only next financial year) Will I need to do any filing this year?

  20. Mam first of all many many thanx to u For sharing Valuable Information…….
    My query is :-
    March end is going on. so should I register IT company in march or i should do it in next month i.e. April? And which thing to do first shop act license reg or company name registration. Also please read my article on blog ” Post incorporation formalities or procedure after registration of company.

    • I appreciate your question. It would be advisable to do registration of company/ LLP in the new Financial year. i.e. in April instead of March, which will be beneficial for from filing of return as per Income tax point of view.

  21. Can I be the director or shareholder of two different private limited companies?

  22. I have a LLP company. during incorporation, the franking date was set after the registration date due to which the same is rejected by ROC. kindly suggest corrective measures.

  23. is there any rule in company act that the meeting of the company to be held in other office compare to our registered office is it legal that we can held our meetings in another office except our registered office

    • The company can hold board meeting at other place than registered office of company. The general meeting cannot be held out of India. It can be held place other than registered office of company but for this the approval of member shall be obtained.

  24. Hi Ma’am,
    We are a call centre, and i wanted to know if there can be any designation between chairman and ceo. someone who is above ceo but below chairman?

    I really need an insight in this matter. and your advice will really give us that line of sight.

    thank you,


  25. Dear Ma’am

    Our company had two subscriber to memorandum agreeing to take 9999 and 1 share respectively.

    But we received all funds from one shareholder and allotted all shares to it. subsequently one share was transferred to second subscriber.

    Now the bank has raised a query that all shares has to be allotted to both subscribers at the first allotment.

    Please help

    • The company has two subscribers, the first allotment shall be made to two subscribers. Then after making entry of members in the Register of Member, the company shall file form MGT-6 with register of companies for beneficial interest. Now after reading your query please submit revise board resolution.

  26. Hi mam we are floating a section 8 company and got the name approval for the same. While applying for RD 01 iam supposed to attach INC 12, which i was said to fill the form manually.since iam unable to use the prefill button in the form inc12 plz do let me know the procedure to file RD 01 along with the respective attachments.

  27. Dear Mam,

    I was doing a business, Transporting of rise, fruits from one state to another state.

    I was not really having any documents regarding purchase or selling.

    Now I would like to do this business in a professional way. By registering a company, Which will allow me to buy product from some were in India and sell another place. Without any issues while transport.

    Please advise me the correct way to do. How much will be the basic investment I need to show and overall procedure.

    Thanks and Regards

    • You may register your proprietorship firm if you want to invest less.
      otherwise you can register your own One person private limited company. You can check more details on my blog- step by step process of registration of OPC Private limited.

  28. Hi mam,

    What procedure is involved for conversion of Partnership Firm into Company as per New Act? As per section 366 the form URC-1 is there but it is tedious job.

    If New Co. take over this Firm then what will be the effect on VAT, S. Tax registration? Can we contu. the same registration no. for the Company also?


  29. Hello Madam,
    3 of us want to register a Private company. So we 3 will be subscribers. I know that minimum 2 directors are required for form a pvt company. We are planning to hire 2 directors for the new company. My questions is as per the new 2013 act, Is it mandate that one of the director (or both directors) should be also a subscriber/promoter for the company?

  30. madam very informative articles. thank you
    can same set of directors start different private limited companies.

  31. Hello mam,

    I want to start my two businesses:

    1st is based on commission provided by companies on diverting the traffic to their websites on making purchase at their. Is it necessary to register a company for this type of job and if required then which is the right way for doing so?

    And 2nd is all about E-Commerce website. So what I’ve to do? And which type of company should I register for starting an E-Commerce Business? Mam, please give a guidance.

    Thanks mam in advance.

    • If only one person is involved then you can form One Person company (OPC) Pvt. Ltd company (minimum requirement is :- one member, one director and Rs. 1 lakh capital). Based upon your business and investment you can select the type of business to be established. For more details please call me.

  32. Hello Meenal,
    your blog is very helpful for start ups.
    Thank you for sharing your expertise.

  33. Dear Mam,
    I have a product coming from China & I would like to start trading business for India market and for export also. Which type of company / firm I should register for it?

  34. Dear mam’

    Is the shop act license and propritership firm ragistretion is same

  35. Hey, Great FAQ answers, it solved some of my doubts! Thanks

    I am an engineering undergrad and I have recently started a small healthy food startup, with no partners and I haven’t registered or obtained food licence yet. I am operating from home and hence no office address either.
    I was advised by many to get these things as the business progresses.
    I’m in talks with a couple of people who are interested to fund my venture (most probably in exchange of company shares),
    I want to register now. I have not much capital nor many team members, but business has started significantly well.
    What should I do now (since I have started without obtaining license)? And what type of registration should I go for- sole proprietorship or One Person Company or what? License first or registration first?

    It’ll be great if you could help!

    • Whether to go for proprietorship firm or OPC all will depend upon amount of initial investment. In case of proprietorship firm, there is no capital restriction, but in case of OPC, minimum capital required after incorporation is Rs. 1 lakh.
      Hence please think and then decide

  36. Can any one became a witness of subscribers to MOA and AOA?
    Is it mandatory that witness has to be a “Professional”?

  37. Me. Meenal I would like to open a LLP with 80 partners
    the objective is
    investing in stock market..
    I need to know
    is it possible to start a LLP for only investment in stock market.

  38. Dear mam
    I have wholesale drug selling licence with the name of trio pharma I am manufacturing goods on this licence name .on all purchase and sale bill i am using same name I have TAN no also. but I want to register a pharmaceutical company with other name and promote my product what is the procedure for that

    • You have option to register either proprietorship firm or partnership firm or Limited liability partnersh firm or if the company’s investment will be big, you can register private limited company. So depending upon the nature of activity, the amount of capital and number of people to set up company, you can decide.

  39. Hello Mam,

    After incorporation of private limited company, share capital money ( Rs, 1 lakh)deposited in bank account can be utilised for regular expenditure of company or any provisions in companies act 2013 for investment of share capital money ?

  40. Dear Madam,

    I have a company (Pvt. Limited) registered 1 month back.

    I want to know the procedure to convert this company to a subsidiary of an US based company.

    Could you please get back with the procedure/steps to do so.


    • To make subsidiary of US based company, the existing shareholders will transfer shares to US based company. Hence there will be transfer of shares from resident to non resident and Provision of company law as well as Foreign Exchange Management Act to be complied with.

  41. Hi Ma’am,

    I have tried to register a comany name however the one we wanted did not get selected and the name we had given dsnt exist anywhere so we dont know why it didnt get selected, so what can we do to get the name we want selected by roc. i am frm west bengal… ur advise will be needed. thank u

  42. Hi Maam,
    I am planning to start a Trust for a social cause. Please can you provide me the detailed procedure to form a Trust under Companies Act, 2013.


  43. Dear Madam,

    I have a query about my LLP formation which I have already applied for. This application is getting rejected (5times) and coming for resubmission at the stage of Name and Object approval. The basic object of my LLP would be to Pool money from around 50 partners and trade in stock markets to earn profit out of it. But this is getting rejected for the reason mentioned in last rejection notice is “[Moderated] Holdings Ltd already exists and also LLP cannot have ‘holdings’ as part of the name as it is indicative of the NBFC and LLP are barred from doing such business and also the objects require the in principle approval of the concerned regulatory authorities (check Col 7).” The name given previously was [Moderated] Holdings LLP. Also names like [Moderated] Shares LLP, [Moderated] Stocks LLP, [Moderated] Capital LLP have all got rejected. Kindly guide me how to proceed with this. We dont have any intention of raising funds through any other means except through partner contribution.


    Raghupathi Bhat

    i am from u.p. and i want to start my retail shop for mens wear and also incense.(agarbatti ) manufacturing in small scale and want to sell via my own brands name ..could u plz tell me the procedure for registration and what step should i take first bcz i m not aware of government laws .
    thank you

  45. hello ma’am greetings…I want to register a firm in jaipur(Rajasthan) but i belong to Shahjahanpur(up) which is a very small town and that’s why i want to use the address of one of my friend as a head office. May i use that address and if i can, then is there any risk for my friend’s family in future due to my firm…

  46. Many thanks for the informative posts. I will appreciate if you can answer my query:

    I am running web consultancy from home as freelancer and I do not have enough fund to open office at this time. Also since me and my wife are sufficient to start up initially, Can I use apartment in residential complex as office? I understand this might have some legal complication as the residential apartment does not have commercial tax.

    Also can I use the rental agreement of apartment (in the name of company) as a proof of address to open bank account in company’s name.

  47. Hi First of all thanks for providing valuable information.

    I have a question – planning to start a online business operation as seller in bangalore. The product i might import from china or get it in whole sale locally and will be sold at a online market place like Flipkart, ebay etc. The Business i want to start in a partnership basis.

    Q1 – What kind of company i need to register? is it LLP?
    Q2 – List of licences i need to procure.
    Q3 – do you provide end to end service in procuring the above listed Q1 & Q2.

    Appreciate your help here.

  48. Hi,

    Please tell me the legal procedure for opening a acting school

  49. is “Registration of companies” and “incorporation of company” same term

  50. i have started a poultry farm of about 15000 broiler live chickens. so i need to register for a company as i am basically a farmer, so should i need to pay tax? as there is a wave of for the farmers. And i need to register my farm as private ltd. so what is the proceedure, as i went through the complete details about this web site i got struck for my poultry farm of ht registration as company partners asked me to get register for the contract services so suggest me a good way!@!!

    • if you are still thinking to open private limited company then with one person you can incorporate One person company. if you more partners, you can start with LLP or depending upon capital, private limited company.

  51. Hi Madam,

    we had a partnership firm and my partner wants to quit my question is can i change partner and company name with same TIN no and PAN no of our existing Firm.

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