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

  1. 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

  2. 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.

  3. 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.

  4. 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 ?

  5. 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.

  6. 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

  7. 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

  8. 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

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