*** Updated as on 27th April, 2013 ***
Commonly asked questions related to Company Formation in India. The questions mostly relate to the Private Limited Company.
Things to consider while starting a business
Private Limited Formation Procedure
Check Proposed Company Name Availability
Q1. As an individual can I form/register a Private Limited company?
Ans: Yes, if you are a person of Indian origin or a NRI (Non-resident Indian) / PIO (Person of Indian Origin) /OCI (Overseas Citizenship of India), are eligible to form a Company in India. Also if you are a Foreign national/foreign company, you can also form a company. Note : To start a Private limited company minimum 2 directors are required.
Q2. In order to fulfill the requirements of minimum 2 Directors (in case of Private Limited Company), can i introduce my spouse/relative as my business partner?
Ans: Yes
Q3. I would like to start a Software services company. I do not have a big setup/office. Can I register such a Company?
Ans: Yes, you can register a Private limited company to start the business even if you do not have a big setup/office. After formation of a company you will have to obtain shop act licence, PAN and TAN in the name of the company.
Q4. What is a PAN & TAN
Ans: PAN : Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued by Income Tax Department. The PAN is mandatory for any Company. It is issued in the Name of the Company.
TAN : Every deductor is required to obtain a unique identification number called TAN (Tax Deduction Account Number) from Income Tax department. It is a ten digit alpha numeric number. This number has to be quoted by the deductor in every correspondence related to TDS (Tax Deducted at Source).
Q5. I would like to incorporate a Private Limited company. I have decided a name of the same but I do not have sufficient funds to complete the whole process. For the time being can i just register my company’s name & complete the remaining process after few months? Actually I am afraid that the name which I have planned may not be available after some time.
Ans: Yes initially you can just register your company’s name and within 60 days (i.e. from the date of receipt of the name approval letter from Registrar of Companies), you can proceed with further formalities.
Q6. I have an idea to start a Consulting firm (Private limited). Can i just register it now & start functioning after 1 or 2 years?
Ans: Yes, you can just register a Private limited company now and start functioning after 1 or 2 years. But as the company is registered under Companies Act,1956, you will need to comply with the provisions of the Companies Act. It means you have to get Balance sheet and Profit and Loss Account prepared from the Chartered Accountant and the 1st Annual General Meeting shall be held in the first financial year & the subsequent meetings for the next year
Q7. I would like to start a company in Pune but all my residential proofs belong to the state outside Maharashtra. To start with, I am planning for a Small office/house on a rental basis. Would the rental agreement suffice for registration?
Ans: If you want to start a company in Pune, the address of the company should belong to Pune only and not of the place situated outside Maharashtra. In your case, initially you can show your rental office/home as a registered address of the company & for that the rental agreement is sufficient as an address proof.
Q8. How much duration it takes to form a Private limited company?
Ans: Under normal circumstances, once all the relevant documents are submitted with respective Registrar of Companies (RoC), a company can start it’s operations within 20/25 days. In case there are any rejections(with respect to name etc.) or other queries raised by RoC, then it may get delayed.
Q9. What is minimum and maximum number of directors a company can have?
Ans: In case of Public company, minimum directors are three and in case of Private limited company it is two. Maximum Directors in case of public is twelve and in case of Private limited company, is prescribed by Articles of Association.
Q10. Can I start a business immediately after submission of all the documents with Registrar of companies?
Ans: No. One can start the business operations only after receipt of certificate of incorporation in case of a Private limited company and only after receipt of certificate of commencement of business in case of a Public company.
Q11. How much Government (Statutory) fees do i need to pay in order to form a Private limited company?
Ans: In case of Private limited company or Public company, the government fee is based upon the Authorized / Nominal Capital of the company and the fee structure is provided by the government on http://www.mca.gov.in. Refer to the Fee Calculator
Q12. Can i introduce a foreign national as a Director ? What are the legal aspects involved/documents required?
Ans: Yes, a foreign national can become a Director of any company registered in India provided he/she has to apply for Director Identification Number from the Government of India.
Q13. Should NRI (Non Resident Indian) have a Digital Signature or should use Indian resident for Digital signature?
Ans: NRI can apply for Digital Signature Certificate.
Q14. I would like to form a company with some specific name which I have already decided. How can I check if that name is available or not ? What are the RoC norms for the possible names?
Ans: Before making application to Registrar of Companies (RoC), an applicant can check for the proposed Name availability on the MCA Website Check Name Availability. One can also check if the proposed name doesn’t conflict with the already registered trademark on the http://ipindia.nic.in Website Check Trademark.
Q15. I would like to dissolve/wind up, my Private limited company, what are the different options available?
Ans: You may opt for one of the following options
(1) Winding up by the court
(2) Voluntary winding up
i. Members – Voluntary winding up
ii.Creditors – Voluntary winding up.
(3) Winding up subject to supervision of the court
(4) Fast Track Exit Mode (Check MCA Website for more details)
Q16. I reside outside Pune/Maharashtra/India , can i opt your services ?
Ans: Surely you can. Since all the MCA/RoC procedures are online, you can send all the documents through Internet. The Confidentiality of all the documents (physical as well as in electronic format) is assured.
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Got any more Questions? Just ask & will reply on a case basis…
Comments are most welcome!!
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Legal Disclaimer:
This is a great blog of help to everyone. I have a query.
if there exists a registered company since 2016, and it has no operations but does have a valid registered office and PAN card, does it have to get a shops and establishment and GST License?
Thank you in advance
Yes
Good day. Please, may you guide me, if the formation of company is rejected (including 2 re-submissions) what steps need to be taken?when and how is it possible to file a new application for the formation of the company? As well as what changes need to be made in MoA and other documents,besides changing the name of the company.
After rejection of SPICE form, an applicant can file fresh name application with same name or different name and file incorporation documents within 2 months from date of name application.
Thanks for sharing post.
Thank you!!
Hello Ma’am,
I have a query regarding company incorporation instate of Goa under GOa ROC
In this case 3 dr’s from are from Goa & 1 from Mumbai.
as i m doing incorporation form Mumbai, Declaration by PCs will be from Mumbai?
Now my doubt is that how much amount stamppaper is required for INc-9 & affidavit & declaration is required from Goa, a si m not aware about goa stamp duty on inc-9 ?
and can i take 100 rs, stamp paper for inc-8 & inc- 9 anf affidavit cum declaration by PCS & 1dr from mumbai ?
Please advise
Thanks in advanced…
Director shall pay stamp duty as per State from where they are currently located. Now for SPICE form, INC-8 is not required.
hello mam, i am director of a construction company and want to start another company. I already have DIN . So is it necessary for new registration of DIN number for my new company ? I mean can i use same DIN for 2 companies?
Yes you can use same DIN for two companies. Government does not permit to use duplicate DIN for same person
Hello Mam,
I wanted to incorporate a company with 2 foreign directors(OCI) and one resident director. Now the question is that the Overseas Citizen is present in India so what should I do now.
Whether to get the apostille of AOA and MOA done in his country of residence or file E-MOA and E-AOA?
Please help
From 01.02.17, filing of incorporation with minimum 7 members shall be made through SPICE form only along with e-form MOA e-form AOA.
In case foreign subscriber is in India for incorporation purpose, he can digitally sign MOA AOA , attach his passport copy, business visa, immegration page of passport as an evidence that he is in India on date of filing forms with Government. I don’t think apostil MOA AOA shall be required because if he is in India, he can submit his business visa.
Is it possible to convert an OPC in to a Proprietorship comapny?
AS per my knowledge and opinion, it will not be possible.
Meenal – Really nice blog. I am planning for a Salon services and IT services business..
Can I create one private limited company which can take care of both? Or need to create 2 different companies?
I would advise you to create two different companies for two different objects .
How to start a car rent company in LLP. With LLP is it possible to open branches across south india. Thanks in advance
Yes
Hi,
Superb Article, Really i like this article, lot of information is there. Thanks for sharing about company registration.
Thank you for comment.
I want to start a company where I can sale some spices and coffee , so as what would I register? and how will I register?
You can register your business as sole proprietorship firm in the beginning and then as business will grow , think about formation of company. If you want to register proprietorship firm you can apply for shop act licence with Government as state wise.
hello mam,
I have sole proprietor ship business. I am operating in many states and have different TIN numbers in each states.
Now I want to convert proprietorship into pvt lmt company. I want to know what is the status of different branch offices in different states in case of private limited company. Is any additional requirement required to be full filled in case of branch offices.
If you want to convert proprietorship firm into private limited company, then you can show your business address as registered address of company. Regarding other branch, you can show them as head office.
hi madam,
thank you for your blog.. can you tell me, whether i can start two private limited companies in the same address?
Yes, the previous company shall provide NOC to new company for using the same office address.
Dear Mam,
Your blogs are quite helpful. I have a query please do help me out in that !!
My Query is Can buy back of shares be done in favour of assets ? when we issued shares to one of our shareholder he gave us land & building in favour of that so now we have to buy back those shares which are less than 10% of the paid up capital so is it possible that we buy back those shares and return him the same land & building ??
Best Regards
CS Abhaya Khanwalkar
Buy back of shares against land and building is not possible.
ok Mam thanks a lot
Thank you
Hey,
It’s really amazing Q & A of company registration. first time, i heard about that one person also can register his company in pvt. ltd in India.
Thanks
Anubhav
Yes one person can incorporate Private ltd in India.
Hello Meenal,
I have taken up distribution of homemade food,pickles and sweets from 2 suppliers, one from Goa and the other is from Bombay. I reside at Vasai . what is the procedure i need to follow. Are there any legal formalities involved. Both the suppliers are homemakers. Need advice.
I would advise you to registered your business as distributor as sole proprietorship firm in the beginning and when it will grow, you can think to form LLP.
Hi Madam, I am on the process of private ltd company formation from Kerala. Doing this through an online portal. One Director is NRI[UAE] and another one from Kerala itself. Both are ladies. Now I submitted the forms attested from Indian Embassy in UAE for NRI Director. Stamp papers send from Kerala. Forms INC10,9 and dir2 etc send by Indian embassy attestation. Now they are asking for Kerala attestation as the stamp paper bought from Kerala. Can you please guide me in a correct way. Or how can you help me to solve this correctly? Your advise will be highly appreciable.
Since both the subscribers are resident outside India, Attestation from an Indian Embassy on INC-9, INC-10 and DIR-2 would be sufficient. No need to purchase stamp paper of India.
It’s really good blog article.
Thank you for your comment.
I am US citizen having an OCI (Overseas Citizen of India) card. I need to setup a sole proprietorship entity in India. I have few IT projects projects in hand & few are likely to be procured in near future. All these projects needs to be executed in India. I will be hiring a team of IT professionals here in India & will setup a small office initially.
I have the following documents as my proof of identity.
1. US Passport.
2. OCI (Overseas Citizen of India) card.
3. PAN card.
4. International driving license.
Following are my queries.
1. Can I setup a sole proprietorship entity in India? If Yes What all documents are required to setup the same.
2. Is there any special approval which needs to taken from any Govt body or Reserve Bank of India.
3. Need to open a current account in the bank. What all documents will be required to open a bank account.
If above scenario is not possible how is it possible to setup an entity to start my work in India.
Regards Rohit Khera
1. I think you can set up sole proprietorship entity in India. you need to submit your pan card, address proof of place where you want to form it, name board of name of business, NOC from an owner.
2. No need to take any approval.
3. Please check with the bank for documents.
Hello,
A private limited company requires 2 directors one of which must be an indian resident.
Now the conditions for an indian resident are:
a) Stay of more than 182 days in the last year
OR
b) Stay of more than 60 days in the last 4 years?
Is that correct? Who does this verification and how?
Is there any additional documentation required for this verification?
Stay of more than 182 days in the previous calendar year , this condition shall be fulfilled. The professional who would be engaged in filing incorporation or any other form like appointment of director, must verify this condition. Director is also responsible to provide correct document and furnish right information to the Government.
Hi Mam
In a LLP, there are four partners (three- Desginated partners , 1- partner), total contribution is rs.6,00,000. Mr.A is contributing rs.3,00,000 , while the others are rs.1,00,000 each. While filing FORM 11, is it mandatory for Mr.A to sign digitally in FORM 11 or can it be done by the other two designated partners ?
Any two designated partners can sign form 11 digitally.
is it necessary to open a different bank account for new start up as a private limited company? or directors account is sufficient for it?
Separate account is required to be open in the name of company.
Hey Meenal, usually people trust on setting up the 2 director norm with their spouse. I don’t think it’s bad as it can save you from future accidents with the partner, but to get a company running in real life with awesome revenue generation, one must look for a qualified partner instead of picking up the spouse. What do you think?
Yes, I agree with you. Normally people are interested to keep second director and member as his spouse or relative to avoid future complications. But for running the business, it is advisable to have practical experience. So one can choose about this thing depending upon the situation.
Hi Meenal!
my foreigner friend want to start an IT company in pune.my queries are…
1)Is it mandatory to have indian partner in the company?
2) what is better establishing a branch of foreign company or start a new company?
3)is DIN mandatory?
1) Yes, as per new Companies Act 2013, every company shall have one Indian resident director if others are NRIs.
2) Depending upon investment in India, you may choose the option.
3) For every Director approved DIN is necessary and which is required before incorporation process.
Dear Mam,
I would like to start a Research Lab,
What are the essential Registrations required with the Govt.
I dont want to register it as Pvt, Can i register it as Sole Proprietor?
If so , what are the necessary procedures to be done.
Yes you can register sole proprietorship firm.
Yes you can register sole proprietorship firm by applying for shop act licence.
Dear Madam,
We have changed name of our pvt ltd company and got incorporation form MCA on 02.03.2016. Now how much time we can the bank account in old name.
If we want to run the old account3 more months will there be any problem in MCA or Auditing. Please advice.
After change of name of company, you will be required to inform such change to Income tax department, Bank.
Hi Mam,
I got my company formed in february 2015 and opened the current account also. But did do any business transaction last year. Do I need to file ITR for the same.
If Yes please guide how much would be penalty for the same.
You need to file Income tax return every year when the company is active.
for registering a business, we need a rental agreement. Since the company is still non-existent, can the agreement in the name of the individual?
Before incorporation, the rent agreement can be between owner and proposed company wherein the director of proposed company sign an agreement.
Good after noon madam
I want to convert my sole propepriatership firm of pharma into private limited company ….
Madam kindly suggest the procedure ….
My tin number and DL number will be same or it will need changed ……
The procedure of conversion of firm into Pvt Limited will be same as incorporation of Pvt. Ltd. While submitting name application, NOC from proprietor, IT challan, document such as VAT/ TIN copies needs to be submitted.
Hello I wanted to register one priprietor ship firm but the name of company what i have decided it is already showing in master data so shall i change some words like solutions, enterprises..etc.. please advise..
There is no name search facility available if someone is registering business as proprietorship.
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.
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
Yes
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.
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
Regards
Ganesh
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
Undertaking
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)
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 ] ?
First is to form company and then to obtain trade licence.
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
NRI cannot register OPC. As per Companies Act 2013, the person who wants to form OPC as director and member shall be present in India for more than 182 days of previous calender year.
Can a foreigner register a company in India online ? Sitting in his/her own country?
Yes Foreigner can register company in India by submitting documents duly notarised from home country.
A NRI AND HIS WIFE FORM A PRIVATE LIMITED CO., IN INDIA AND BRINGS IN FUNDS THROUGH HIS NRO ACCOUNT. WHAT ARE THE FORMALITIES HE NEED TO FOLLOW UNDER FEMA AND RBI
The company in which you and your wife are subscribers of shares, it will file advance report to RBI within 30 days, issue shares within 180 days from date of receipt of funds towards equity shares.
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
Hi Meenal,
This is a great blog and thank you for putting this up! I would like to know that can a company be incorporated just to invest in stocks, shares and bonds in the market? Also would it get classified as an NBFC and require RBI compliances?
Yes company can be formed just for the object of investment in stock, shares and bonds and it will be treated as NBFC and RBI compliance will apply.
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?
1. If you want to register LLP, then the name shall end with “LLP” and not with “Private Limited”.
2. For limited company, appointment of statutory auditor is mandatory.
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.
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.
All of directors need to get the DIN including foreigners ?
Yes
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.
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.
i want to change the name of firm on my shop act license…can i do it ?
yes
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.
Please call me.
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.
Regards
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.
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?
yes penalty will be Rs. 100 per day till default continues.
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.
Regards
Ashish
no
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
Yes it is compulsory to appoint CA as statutory auditor.
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?
You can close first financial year in the next year.
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.
Can I be the director or shareholder of two different private limited companies?
Yes
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.
Please submit the LLP agreement fresh, after doing franking.
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.
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,
regards,
Abhimanyu.
In Company law, there is no specific organisational hierarchy. You may decide the position as per role of that person in your company.
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.
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.
Please fill up the details physically in form INC-12 and attach to form RD 01
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
G.Babukiran
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.
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?
Regards,
Rashmi
Partnership firm can be converted into Pvt. ltd by submitting INC-1, INC-7, DIR-12 and INC-22 with ROC. I don’t think VAT S.TAx registration number will remain the same.
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?
yes
madam very informative articles. thank you
can same set of directors start different private limited companies.
Thanks for your comment. yes, same directors can start different private limited companies
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.
Hello Meenal,
your blog is very helpful for start ups.
Thank you for sharing your expertise.
Thanks for comment
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?
Depending upon investment in the business, you can decide to register Private Limited company
Dear mam’
Is the shop act license and propritership firm ragistretion is same
yes
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
Can any one became a witness of subscribers to MOA and AOA?
Is it mandatory that witness has to be a “Professional”?
it is not mandatory that witness has to be a professional. Friend, relative can be witness.
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.
In LLP there is no concept as shares. The partners invest into capital of LLP. Therefore I think, for stock market investment, please form Public Ltd.
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.
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 ?
There is no separate provision in Companies Act 2013 for investment of share capital money. The shareholders can use share application money for regular expenditure of company.
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.
Thanks,
Shankar.
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.
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
For name application, you need to check name availability on MCA site. If the name is available or it does no exist anywhere you can apply for name registration.
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.
Regards,
Madhu
Please refer Section 8 of New Companies Act 2013 to register Non Profit company and Incorporation Rules, an applicant is required to file DIR-3 for two directors, INC-1 ( name application), RD-1( application to Regional Director for issue of licence), Inc-7 ( incorporation), DIR-12 ( appointment of first directors) and INC-22( Location of registered address of company).
Please Can You Guide me Regarding Procedure .
I want To Start My Own Company .
Please call me.
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.
Regards,
Raghupathi Bhat
I would advise to approach registrar of companies where you have filed name application.
Thanks for you time madam, I really appreciate it.
Thanks
HELLO MAM
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
You may apply for proprietorship firm. In Maharashtra state, shop act licence will be required for proprietorship firm,please check in UP what will be needed.
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…
you can decide to have office at your friends address.
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.
yes if you don’t have objection, you can use home address as office address. For rental agreement as proof of address, please take permission of owner.
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.
Thanks
Kiran
yes you can choose to apply for LLP because it is legal entity.
Hi,
Please tell me the legal procedure for opening a acting school
you may apply for proprietorship firm or partnership firm and depending upon amount of capital, you may choose for LLP or Private ltd.
is “Registration of companies” and “incorporation of company” same term
yes
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.
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.
Yes