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

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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

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

  7. 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.

  8. 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

  9. 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.

  10. 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.

  11. 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 ?

  12. 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.

  13. 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

  14. 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

  15. 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

  16. 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

  17. 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

  18. Hi,

    Please tell me the legal procedure for opening a acting school

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

  20. 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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