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

  1. 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

  2. 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.

  3. Thanks for sharing post.

  4. 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…

  5. 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?

  6. 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.

  7. Is it possible to convert an OPC in to a Proprietorship comapny?

  8. 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?

  9. How to start a car rent company in LLP. With LLP is it possible to open branches across south india. Thanks in advance

  10. Hi,
    Superb Article, Really i like this article, lot of information is there. Thanks for sharing about company registration.

  11. 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.

  12. 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.

  13. hi madam,
    thank you for your blog.. can you tell me, whether i can start two private limited companies in the same address?

  14. 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

  15. 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

  16. 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.

  17. 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.

  18. It’s really good blog article.

  19. 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.

  20. 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.

  21. 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 ?

  22. 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?

  23. 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.

  24. 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.

  25. 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.

  26. 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.

  27. 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.

  28. 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?

  29. 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.

  30. 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..

  31. 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.

  32. 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

  33. 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.

  34. 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)

  35. 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 ] ?

  36. 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

  37. Can a foreigner register a company in India online ? Sitting in his/her own country?

  38. 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

  39. 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

  40. 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?

  41. 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?

  42. 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.

  43. 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.

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

  45. 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.

  46. 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.

  47. i want to change the name of firm on my shop act license…can i do it ?

  48. 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.

  49. 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.

  50. 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?

  51. 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

  52. 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

  53. 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?

  54. 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.

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

  56. 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.

  57. 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.

  58. 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.

  59. 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.

  60. 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.

  61. 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.

  62. 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

  63. 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?

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

  65. 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.

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

  67. 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?

  68. Dear mam’

    Is the shop act license and propritership firm ragistretion is same

  69. 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

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

  71. 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.

  72. 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.

  73. 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 ?

  74. 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.

  75. 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

  76. 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

  77. 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

  78. 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

  79. 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…

  80. 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.

  81. 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

  82. Hi,

    Please tell me the legal procedure for opening a acting school

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

  84. 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.

  85. 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.

  86. Very Nice Article

  87. hi
    Im setting up my small scale business in India.
    and i need Your help in some quires.

    i want to apply for one person company. i saw what documents i need. about TAN and PAN card. Which type of TAN/PAN card I need for Register One Person Company. I mean Individual, Company Or my name , Company name…
    can you plz explain PAN and TAN card process

    • The person resident in India for more than 182 days in India in previous calender year can set up One Person company as per new Companies Act. If you are complying this condition then you can open OPC in India. Since OPC is a legal entity, shall be required to obtain PAN TAN in its own name and not in the name of an individual.

  88. Hi,
    I live in US and I am trying to open a business of importing goods from India to US with my Indian partner. Pls help me the following issues:
    1) Which form of entity is best suited for the my business.
    2) What r the procedures for it.
    3) Can I do it from here.
    4) How long does it take to register n start the business.
    5) Also if u could assist us in it.
    Ur help will be greatly appreciated…

    • Sorry for the late reply.
      Yes you can set up LLP / Pvt. ltd, even though our are staying outside India, because in both the case, the other partner must be present in India. Normally it would take maximum 20-30 days to incorporate LLP/ Pvt Ltd in India

  89. Hello Mam,

    Thank you very much for such informative blog. It helped me a lot to understand things. But my query is I wanted to start software development company in india. My clients are foreigner. They have also their company in Paris. First they wanted me to register myself as independent worked in india and then later they wanted to start their branch here and I will be director of it. So I wanted to know how all these can be possible?

    • Sorry for delayed reply. the parent company can form Private Limited company and you can be one of the directors of Indian Private ltd. Even Foreigner can become directors of Indian company along with you. Please go through my blog link” Step by Step Process of forming company in India”.

  90. Dear respected Maam,
    Greetings. I am having a Trust. But I am interested to form another non profit company under the Company Act 1959. Would u plz guide me. and I wish your cell No so i could talk with you detail

    • If you wish to form Section 8 company under Companies Act 2013, then you need to follow below procedure

      1. Making DIN 1 application for 2 Indian Directors (Rs.500 for each DIN application)
      2. Digital Signature Certificate Class II-two years (USB token) for two directors
      3. Filing Form INC-1 (Name application of the company & Approval)
      4. Filing Form RD-1 (Issue of licence under Section 8 –New association)
      5. Filing Form INC-7, INC-22 and DIR-12
      6. Memorandum and articles of association
      7. Stamp duty to be paid on memorandum and articles

      You can incorporate company either with share capital or without share capital. Accordingly the registration fees would change. As per New Companies Act 2013, an advertisement to be given in newspaper and then Form RD-1 to be filed to Registrar.

  91. Hi,
    I want to start a Dry Fruit Wholesale shop (Or better say a Packaged Dry Fruit Supplier Company).
    Should I have to go through the process of Company Name Registration,then registering for PAN and TAN. Kindly suggest. Currently I do not have proper place but a small space is available for it.
    Also we are two people who are willing to start this. Kindly let me know the fee and other details.
    Thanks & Regards

    • You may start Limited liability partnership with two minimum partners where there is no restriction of putting Rs. 1 lakh capital.

      • Hi Ma’m,

        I checked the details of LLP. It requires minimum two partners as well as two designated partners.
        My question on this is, as we are only two person willing to be partners in this LLP. But is it compulsory to have these two designated partners? Can’t we as a partner may also register ourselves as designated partners.
        If not, then in case of profit sharing, is there will be sharing of profit among Designated Partners also?
        Kindly suggest.

  92. Hello Madam,

    we want to change our company name, can you please guide me with the procedure and the cost for the same.

    Regards,
    Ashu

  93. Great web site…very informative
    Ma’m I am an indian classical dancer and actor and wish to start my own company. however to avail of funding under the csr programs of corporates, wherein the company funding me would get tax benefits etc,Please guide if i should compulsorilt register as a trust .Can a foundation suffice. Or is it ok to be just a company for eg XYZ DANCE THEATRE TRUST or XYZ Dance theatre Foundation or XYZ DAnce Theatre Company.
    Your advice will be appreciated.Thank you

  94. My Frient is having his own Shop act Laicense registered with his PAN & TAN no.

    Now he wants to give partnership in same shop. what is procedure to change his old ownership & register the same on the name of both of us.

    Please guide..

  95. hello mam,

    thanks for valuable information. i have a query. i want to register a Pvt Ltd company in delhi. actually i am running a job consultancy and want to work in software development also. so my question is-
    1). can i work for both (placement & sw development) with one registered company
    2). for online company registration will i need any CA.
    3). can i change my company address in future & if yes then how many times.
    4). could you please send me step of online company registration.

    thanks & regards,
    satish agrawal

    • Yes you can work for both placement and sw development with on registered company. yes you will need CA. Yes you can change company address in future. Please call me if you need advise and help for registration.

  96. Hi Madam,

    I have registered IT company in South africa.
    I wanted to form a company in india in the same name but i have checked the name is already in use. is there any way to get the same name or little change in the name is possible to get please advise.

    Thanks & Kind Regards,
    Aravind

    • If the parent company is registered in South Africa and you want to retain the same name, you can apply with that same name provided the activity of your company shall be different from the existing company name. Then it is possible. You will then provide certificate of registration of parent company, board resolution for use of same name and no objection letter to the Registrar of Companies.

  97. hello mam, me and my partner have planned to open a DANCE COMPANY and i want information on how to register its name and the related info about the fees and the procedure?

    waiting for ur reply eagerly 🙂

  98. Hi,
    I have a private limited software company. Right now we are 2 directors in the company. Now we are getting funding from an investor. What is the legal process to get funding and register the investment in our firm ?

    Thanks,
    Sweta

  99. Thankyou, for wonderful informative article!

    I’m having a doubt.

    If I want to start a social networking site as Facebook or Linkedin, what is that I have to form Partnership firm/LLP or Pvt company?

    Also, is there any restriction such as

    Partnership firm can do business only in a specific region they have registered?

    Please shed some light!

    • Whether to choose firm/ LLP/company will depend upon amount of investment and partners. So first of all decide the number of person who will invest and role of each person. Partnership firm can do business in other region as well.

  100. Dear Meenal,

    I would like to appreciate you for this informative article . I also have a query, hope you have a solution for mine too.

    I am 3D Visualiser and I would like to start my own Interior designing business( a small firm) in Bangalore but I am not a certified interior designer. I would like to know if I am eligible to establish an Interior designing firm without Interior designer certification.

  101. Dear Madam ,

    I have few doubts requiring some clarification.

    This regarding the issue on submission of DIN Appln for DIN;

    My friend one NRE and his NRE wife from TVM now in Dubai wishing to form a Private Company want to submit DIN application in the latest Form DIR 3 .

    Copies of Pass Port ,copies of utility bill/adhar card/ Voters ID/ Ration card /bank statement as the case may be towards address proof , and an affidavit in latest form DIR 4 are informed / required to be attached .

    Which address ,the permanent address in native or the temporary address in Dubai or both are required to be shown in the Form?

    In the affidavit in the second line , after the wording ,” resident of …………. ,here by confirm ..” , how the address to be shown ?

    is it like , showing “the address in native ” and showing as ” presently resident of …… Dubai address ” in between the space in the Form or any one address in native /Dubai.

    Is the the affidavit Form DIR 4 ( feel it as the latest from ) dully filled up required to be got attested the Indian Embassy.

    Thanks ,
    CMA Raman Pushpakumar

  102. Dear Mam,

    1. I would like to start a company with issuing shares to the public. what are the procedures.

    2. To transfer a company ownership,name and change buissiness to another sector or starting a new one is better.

    • please read CHAPTER III-PROSPECTUS AND ALLOTMENT OF SECURITIES-PART I.—Public offer,PART II.—Private placement of Companies Act, 2013.
      Now as per New Companies Act 2013, the private limited also issue rights shares or bonus shares to public, please follow Chapter II.

  103. Thanks for beautiful informative blog!

    I have query.

    I am a private service employee as of now but wishes to start my own business.

    I am looking different possibilities and options but as of now I am not sure about the type of work I am going to do.

    Can I open a company as of now and start by operations later? As well as decide later by type of work?

    Is there any way I can register some generic company as of now?

  104. Hello Ma’am,

    thanks for the great information,

    my question is, can single company have 2 nature of business? For example, if i want to setup a pvt. company can i run it as IT and BPO together? I would be thankful if i can get the procedure of doing same or is this same as normal company formation?

    thank you.
    Ajay

    • It would more depend upon whether the company will carry on IT related services and BPO will be ancillary objects. Then you can set up company under one Pvt. Ltd. But if the major business will be BPO, then you may need to set different company for BPO and IT.

  105. Hi Meenal

    First of all, this is a great blog very informative. Keep up the good work.

    I have a query for you. I am the owner of a house in Bangalore which is on rent for the past 5 months. Can i register a Private Limited Company on the same address? If yes, will there be any legal issues in the future?

    Awaiting your response. Thanks.

  106. My company is based in Pune, we are planing to provide services in Goa. We wont be having any address in Goa. What Registrations, will I have to do to start the services in Goa?

  107. Whether foreign nationals can form a fully owned private company in India (not an OPC) without being a director in the said company?

    If it is possible then who shall apply for DIN and who shall apply for DSC because promoter (proposed share holder) shall apply for the name and sign in FORM INC 1?
    please help

    • yes Foreign national can form a fully owned private limited company without being a director. As per Chapter IX and Section 149 of Companies Act 2013 every company shall have at least one director who has stayed in India for a total period of not less than one hundred and eighty-two days in the previous calendar year. This compliance is to be fulfilled every year. Therefore you may need one director who is resident of India.

  108. Dear Meenal,

    Thank you for such a great informative blog, I also gone through comments on your blog and they helped me a lot to clear many doubts in my mind.

    Apart from that I have still few questions which I am not able to find answers. Can you please help into that?

    I am software engineer. I wanted to start my own company in india. But I am not able to understand

    Type of Company:
    a. Section 8 company
    b. Part I company (Chapter XXI)
    c. Producer Company
    d. New Company(others)

    How should I open a foreign company here in india?

    • Please refer Section 2 of new Companies Act 2013 and you will get the definitions of all concept such as Section 8 company, Part I, producer company, foreign company. if you need more clarity please call me, I will guide you to select the suitable option.

  109. Hello Madam !

    I have been planning to start a new LLP, My services would be :
    1) Website Development.
    2) Software Development.
    3) and Software Training.

    Should I have TAN and TIN no. for this ?

  110. Hi,
    i am in process of registering a new company, hence i would like to know the difference in govt beneficiaries in registering with a man or women. Is there any special beneficiaries if registered in by a women.
    Merci,
    Kalaichitra.P

  111. ASWDear Madam,
    I am NRI. I want to start a business in Bangalore. Please email the details.

  112. Dear Madam.

    This is Mr. Sun from South Korea.
    I would like to ask following questions for the company formation.

    As a foreign construction company, we would like to execute construction project for around 1year in India.

    For the project, we will supply some equipments from korea and implement the construction work with local sub-contractor.

    In this case, it there any establishment of the company under law of india.
    Based on my knowledge, some country has a PO(PROJECT OFFICE) which only allow the company to execute this project.
    With this PO, the PO should be closed after completion of the contracted works.

    Please explain whether this kind of company is existed in India under law or not.

    Or Please inform me of what kind of company formation we have to register.

    Awaiting for your kind response.

  113. Hi.. Thanks for providing valuable information.

    I belong to AP and planning register company in Karnataka. Will the state government incentives will play key role for start up enterpreneurs like me when forming company.I would like to know the pros and cons if any.

    Thanks..

  114. Thanks for such an informative blog, this made many of my doubts clear. One doubt is still there:
    Mam I’m going to start a broadband business and for that I will be required to register a pvt ltd company. Can I raise bank loan of 8 lakh for equipment and devices when my authorised capital is still 1 Lakh. If its even allowed what are the consequences of that.

    Thanks a Ton

  115. SABSE PAHLE AAPKO KOTI KOTI DHANYABAD, BHAGWAN KAREIN AAP AISE HI JEEVAN MEIN AAGE BADHTI RAHEIN, LOGO KI SEVA KARTI RAHEIN AUR SAATH HI SAATH AAPKI SARI MANOKAMNAYEIN BHI PURI HOTI RAHEIN (MAY GOD BLESS YOU FOR PROVIDING KNOWLEDGE TO PUBLIC BY YOUR ALL EFFORTS AND HARD WORK).

    I WANT TO REGISTER A PRIVATE LIMITED COMPANY (YOUR HEARTY WELCOME IF YOUR TEAM CONTACT ME).

    I WANT TO KNOW ABOUT, IS SOLE PROPRIETOR SHEEP CAN CONDUCT ITS BUSINESSES ALL OVER INDIA ?

    I WANT KNOW ONE MORE ABOUT, WHAT WILL THE PROCEDURE AND DOCUMENTATION IF I GO FOR OPC REGISTRATION ?
    ARE BOTH SAME OPC AND PVT. LTD. COMPANY WITH TWO DIRECTORS ?
    THANK YOU VERY MUCH,
    PLEASE CONTACT, FOR FURTHER…….

    • Thanks for your comment.
      Please refer my blog to know step by step procedure / formation procedure to register Private Limited company. For OPC i.e. Once Person Company, one DIN and DSC of director is required because one director and member can form OPC. you need to file form INC-1 and 2 with ROC.

  116. Hi Madam,

    Can a employee of a pvt limited company become a director/start a new private limited company. Should he be resigned first from the parent company and then start a new pvt limited company.Could you please clarify.

    Bhaskar

  117. Hi Meenal,

    If we register LLP, can we do business with Pvt.Ltd and Public.Ltd across India and abroad.

    Thanks you
    Saddiq

  118. Hi, First of all thank you for providing so many valuable information.
    I have a question regarding office for online business operations. I’ve registered my firm (sole proprietor) in Uttarakhand but I want to operate from Delhi as most of the manufacturing is done in Delhi. The product are sold at online marketplaces like amazon, flipkart only and in near future I’ll start my own e-commerce website. So do I need to register my firm office in Delhi also?? And I do not have a actual office in Delhi, I operate from a residential apartment. All the products are sold online only.. Please provide some information on this.
    Thank You

  119. Dear All,
    I would like start a Fire & Safety equipment services. what will the business starting process & which document are required.

  120. hi, i need to know every small detail on how to start up an advertising company in bangalore. starting from the registration, licensing.. etc. ty 🙂

  121. Hi Meenal..thanks for the valuable information.
    I wanted to ask that is there a time limit in the new Companies Act, within which you have to open a bank account after company registration with a deposit equal to share value ?

    • The New Companies Act has not specified any limit to open bank account, but as per Section 56(4) of the new Companies Act 2013 every company shall deliver the certificates of all securities allotted, transferred or transmitted within a period of two months from the date of incorporation in case of subscribers to the memorandum.

  122. HI MADAM
    WE (i and my hus)ARE PLANNING TO STARTUP AN INTERIOR DESIGN FIRM ON OUR FIRST FLOOR OF MY HOME. WHETER WE HAVE TO REGISTER THIS AS SOLO PROPERIOROSHIP? WHETER WILL THIS GO UNDER MSME?

  123. I have registered a private limited company but I had not paid the incorporation fees (based on authorised capital of company)
    since the form INC-7 dosn’t contain the fees for incorporation.
    Please guide me how to pay such fees.

  124. Hi Mam,

    Firstly Nice Bolg.
    Secondly i cam e across it while in am in a situation i needed certain help from advisor like you. I bought a company from others and the Company Directors were not the same people who were managing it. now i got to know these things as i was not aware of them earlier, now i wanted to get the ownership transffered to me from their name what can i do in this case. I have the Documents with me which talk about they selling every part and parcel of the company to me .. These docs are signed by the people who were managing them .. can i calim the company on my name with these documents.

    • For transfer of ownership, you can ask previous shareholders to transfer the shares to new members. One the share capital will be transferred to new members, the ownership will automatically be with new members. Please download share transfer form from mca.gov.in or refer Companies Act 2013.

  125. Hi Mam,

    I have a service oriented Pvt Ltd company which I have not audited or filed any return from last two years. My query is can I continue like this for coming 2/3 years as well as my company haven’t seen any profit or income as of now. Also please suggest will it be a good option to close the company as of now (please suggest the approx cost for closing a 1 lac rs pvt ltd company) and run it as a sole proprietorship.

    Please help!

  126. I have a company which I did not audited or filed any return for last two years. Now my question is can I continue like this for say upto 4 years as my company has no profit no such income. Also suggest me, will it be suitable for me to now close this company( please prove the approx cost for closing it) and run the business as sole proprietorship as of now.
    Please help!!!

    • Once the company is incorporated under Companies Act 2013, it need to comply the provisions of company law. In case of default, the annual forms shall be filed with additional fees. Eventhough the company has no income or profit, the company still remain as active, by filing all annual forms with the Registrar.

  127. I WANT TO LAUNCH A WEBSITE FOR AGRICULTURL PURPOSE,BUT THERE IS NO COMMERCIAL IDEA ON THIS SITE. AND I WANT TO START AN AGRICULTURAL COMPANY, AND AM NOT READY FOR IT NOW. BUT THE SITE IS READY. CAN I REGISTER MY COMPANY AND MAKE IT AS A OWNER OF THE WEBSITE. IS THERE ANY SPECIAL PROCEDURES AND COST FOR OPENING AGRICULTURAL COMPANY?

    • If you are planning to start the company, then either you can register One Person Company i.e. OPC (require one person as member)/ private Limited ( require two members) under the Companies Act 2013 or have proprietorship firm registered under the Bombay Shop and Establishment Act. Since i am not aware in which city you wish to register the company, you can register OPC or Private Limited company

  128. I started a private limited company with a relative as partner an year back. with shareholding pattern 51-49 with me having 49% shares. We both have also acted as directors of the company since.

    The relations with my business partner are sour but since I have put in a lot of effort to get the company up and running. I would not like to lose out on profits now.

    I would like to move on to other business making my wife a director on my behalf. She started working for the company a couple of months back.

    Further we both have been drawing salaries from the company for our respective work.

    My queries are:-
    1) Will there be any liabilities on me as shareholder of the company?

    2) Can my wife become a director? She had co-signed some loan documents for her own last private limited company which are now in recovery due to business failure.

    3) Will her older company issues affect my current company in any way due to her being made director in my company?

    4) lastly, can us drawing two salaries come under any illegality under taxation. We are both qualified people working for the company. I will be taking a consultation fee and she will be drawing a proper salary?

    Please can you help me?

  129. Dear Madam,
    I am planning to start a Tea/Coffee shop in pune and will employ 2-3 persons initially. This is a proprietorship firm. Before selling the Tea/Coffee what are all the things I need to do? Can you please explain this.

  130. madam, me and my brother going to start a taxi\cab service in delhi like meeru cab, quick cab, easy cab but on very small scale could you guide the procedure please and any other legal information.

  131. your blog is very helpfull. Got loads of info in forming a start up.

    Still I have some questions!!

    I’m all set to open a venture renewable energy sector. I have an investor and want to involve my friend as a partner. Our organisation will provide consultancy services as well as system integration (EPC) services.

    Now please guide me about the minimum cost to start an LLP in india?

    Also please let me know your professional charges for the consulting services in company formation.

    • Thanks for your comment. To start LLP in India, you need to have minimum two partners and there is no restrictions to have minimum amount of capital. But it should not be less than zero. Please call me to discuss.

  132. Hi madam,

    I am swaroop and i am from hyderabad. I like to open an educational society which approaches schools and conduct Quiz’s and grand tests on General knowledge, maths, science and also on cultural events and also provide certificates, prizes for the students. I wanted it to go as a non-profit organisation but i have no idea of how to start and where to start. Kindly give me suggestion which will be help ful for me.

    Regards,

    Swaroop

  133. Very very helpful. I convey my thanks to you creating this blog.

  134. Hi Meenal,

    Very helpful and Informative. Even a layman can easily understand the things to be followed. Thank you for such informative blog.

  135. Hello Madam, i really appreciate your initiative to interact with the professionals, and i thank you for the same. i would like to know from you that where do i get Form INC-8,9 & 10, which are Compulsory attachments to e-form INC-7….i am unable to get it on MCA website.
    please help and advise me over the same..

  136. Thanks! Your blog is really useful.

  137. An Indian Subsidiary has been incorporated on 1st November, 2013, thereafter till date Subscription amount haven’t been received.
    What is the time limit for receiving Subscription money???

    • The Companies Act has not provided time limit for deposit of share application money. But as per the definition of Private and public limited company, the minimum paid up capital shall be Rs. 1 lakh and Rs. 5 lakh, therefore it has to be brought before the end of 1st financial year. Otherwise it will be default. In your case if the Company was incorporated on 01.11.2013, the body corporate should has to remit subscription money on or before 31.03.2014.

  138. Dear Madam,
    your bolg is very useful
    I am verymuch thankful to you for this,

    Madam can you keep download link on your Blog, of forms releted to Fac. Act, / formats / list of lisioning releted to I/R & other usefull information in PDF File. It will be also very helpful to all.
    Thanks,
    Anil

  139. Thanks for the information. I have a query regarding the registered office address. The registered office is on my mother’s name who is not a director in the company. In case I wind up the company, will the house be safe?

  140. Mam , I have filed form 5 to increase the authorised share capital of a private limited company .In filing the form i have entered date of passing ordinary resolution 20-03-2013 instead of 20-03-2014 and due to this I have paid extra fees of around 10000 . Is refund possible in this case ????
    My all other details and attachments are correct ……

    • If Form 5 is not yet approved, then I would advise you to visit nearest Registered office of the company with explanation in writing. Also you can lodge a complaint on MCA 21. ROC will raise query if the date on Form 5 showing 20.03.2013 but the attachment shows 20.03.2014 and ask you to re submit the form. Regarding refund, once you raise query on MCA 21, you will get proper answer.

  141. Mam I have filed form 5 for a private limited company to increase the authorised share capital and due to mistake I have entered date of passing ordinary resolution 20-03-2013 instead of 20-03-2014 and for this i have paid extra payment in the form of interest
    my all attachments are correct
    is refund possible in this case ??
    What is the procedure to get refund?

    • There is no procedure of correcting the form 5. you can visit Registrar of companies and inform about the mistake and they will ask you to resubmit the form, bu I don’t think you will get refund amount.

  142. MADAM, FIRST OF ALL THANKS FOR YOUR VALUABLE ARTICLE.

    MAM, WE ARE SETTING UP PVT LTD COMPANY WITH TWO DIRECTORS (1 INDIAN AND 1 FROM UKRAIN) INITIAL CAPITAL 100000 (70000 FROM Ukrain partner and 30000 from indian ) madam as we are estimating our expenditures ..they are much ( like we have to pay 200000 p.m. as rent and other 100000 p.m. other exp. , initial furniture would cost to rs 200000 )
    so how all funding will be done by ukrain partner.. Is der any legal rule under any law. will any permission be required for this? how he will deposit take in money in company bank account from ukrain?

    • Whether the permission from Reserve Bank India will be required or not is depending upon the nature of business of an Indian company.
      The Ukrain shareholder will remit amount via wire transfer to company’s bank account.

      • Madam, Thanks for your reply , pls advise how we may find that what nature is required RBI approval or not..

        And our nature of business is consultation services in relation to move to Ukrain from India for study Purpose and vice versa

        • The nature of business is consultation services in relation to training and study, it will fall under automatic route and no prior approval of RBI shall be required if there is any foreign investment in the company. There are two routes available one is automatic and other is approval route. Please refer FDI policy to know the sector wise information.

  143. First of all thanks for your blog, it is really informative ..

    We have started a private limited company ( date of incorporation is on : 08/12/2010) having 3 directors and we filed the company documents from 08/12/2010 to 31/3/2012 four months before… and we could not file the documents of the financial year 01/04/2012 – 31/03/2013 till now ( auditing process is going on)…

    Mam, could you please tell me , is last day of filing the documents without penalty is over or not? If it is over when was the last date? and how much penalty we need to pay?

    One more thing, please advise when will file the current financial year (01/04/2013 to 31/03/2014) documents without penalty?

  144. Mam, I am very new and confused. what is first requirement to start a company. Can i do it by myself. first it require a rental agreement or DIN

  145. Mam i hav uploaded Form 1,18 and 32. Mca sent a notice asking for resubmission.The reason is ” Form 32 – Executive Directors selected, no reference in AOA.” what is the remedy for this?

  146. Madam,
    Thanks for your informative blog. I want to clarify:
    In public limited Company which is having less than 5 crores Capital, a Company Secretary is appointed.( Though it was not compulsory). Form 32 is also not filed. My Question is in what Capacity or authority, the appointed CS can sign documents or do any other Acts

    Or I should say his area of work.

    Thanks & Regds
    Naresh

  147. Madam,

    Two doubts.

    1) I like to start Pvt Ltd company with my brother. I am working abroad (Qatar) and brother doing business in Kerala. Do i need to get any consulate approval for any documents. We both have PAN Card.

    2) We plan to do fresh products trade like fruits and vegetables all items exempted from Tax. Do we need submit return and need to pay anything or need to keep any records of transaction and payments.

    • If you would like to be director of proposed company, you should apply for Director Identification number. For this you have to obtain attestation on identity proof and address proof, affidavit from an Indian Consulate, Foreign public notary since you are residing outside India.

  148. Thanks for the great blog Meenal. Encouraged me to think about starting my own venture. Will take your services if decide to setup my own business.

    If I start a company with my mother as another director, how much i have to pay annually if the company doesn’t do any work for some time, lets say, a couple of years.

    • Thanks for the comments. Even though the company is not active for some years, you will have to file annual return and balance sheet for the end of financial year with ROC. The amount of ROC fees would depend upon the amount of authorised capital.

  149. Dear Madem,

    how can i change my email address @ ROC??. i want to change email address given at the time of registration.

  150. I am an indian living in US from last 2 years. I want to start a tech startup (website). What kind of registration do I need in order to form a company (preferably online process so that I dont need to visit India for same)

    Note: I am currently a salaried person

  151. A pvt. ltd. company name was obtained metioning 4 proposed subscribers. 2 of them are Indian citizens living in India and the other two are Indian citizens living in 2 different continents and holding OCI.

    Ques: 1. Can i form the private co. with only the resident Indians as the subscribers and directors. Later on the other two can be appointed as directors since obtaining signed Memo Articles from all of them on the same page can be very time consuming.

    Ques 2: What RBI regulations and guidelines are there to issue shares to foreign Directors.

  152. As private LTD company can have minimum two directors. Do they have same powers or can we give one director more authorities than other?

    • yes normally the directors have same powers as specified in the Companies Act 1956. But the company can determine the powers of directors based upon work experience, time and efforts involved in daily operation in the business of the company.

  153. I am looking for buying an existing Trust. How to get information for the same?
    Can you help?

  154. 1) Procedure for getting Company Name change on MCA ?
    2) After change of name director of company want to add new director & they want to give their share to newly add director ?
    3) Pls send latest MOA/ AOA? Transfer deed Format as per new Co. Act 2013.

    I know little bit that first of all we have to Change company name by passing Reso an Fill Form -18 & then transfer share to newly director by Transfer deeed and Newly director will give cheque to Old Directors.

  155. Hello Madam,

    I’m Mahesh from Bangalore. Me along with my friends planning to start a business. We have decided to start a Cloth business i.e ready made Male/Female dresses. I would like to know the process to start. What all registrations are required for such a setup and what will be the cost for these registrations, how much time will it take for registrations.

    Also, I am working. Please let me know if I can register the shop in my name and start the business. Will there be any issue as I’m working and parellely starting a business, is it legal?

    Thanks,
    Mahesh

  156. Hi, just wanted to know whether someone who is the Managing Director of a private limited company… can he/she take up a job as well elsewhere?

    What about in the case of not for profit company 25?

    • Regarding private limited company, the Company law is not strict about the compliance as per appointment, remuneration of Managing Director is concerned. He can be appointed as employee in any other organisation.

  157. Hallo mam,
    i started formation of private limited Company .
    i got the DIN numbers and dsc.then my agent applied for company name he misspelled the words in name. and that misspelled name got approved.
    we did not started the rest of the process yet.is it possible that we apply for a new name and left the existing? or we have to submit the name change request?

    • Since the name is approved and the name was wrongly spelled while making name application with ROC, you will have to make fresh name application. You cannot change the name while the incorporation process. Either you can make fresh name application or change the name after incorporation of company.

  158. We r making local vodeo’s & audio album and want to register our small production company in himachal what is its procesdure.Kindly help

    • If you would like to register your own business with one person, you can register it as sole proprietorship firm. If it would involve investment from two people, then you have an option to form LLP or Private Limited company. To know more about LLP and Pvt. ltd I would request you to please visit my blog for step by step procedure of formation. If you have more questions please call me.

      • Hello Madam,

        I am planning to start a ecommerce site where I will be offering services to customers and the customers will be charged through the payment gateway. I am planning to start this as a sole proprietorship.

        1) Please advise if the shop and act licence is still required as there will be no physical shop. This will be operated from home. 2) What are the documents required for shop act licence in this case, if it is required. 3) Also if in case that shop act license is required, can I get the shop act license + sole proprietorship registration at my Pune home address , while I operate my ecommerce business from another state in India. 4) What will be the de-merits in this case – will I have to keep coming to Pune frequently for documentation, extension of licenses etc ?

        Kindly let me know please.

        • Yes shop act licence shall be required for starting proprietorship firm. pan card copy of proprietor, Address proof of place and no objection letter from an owner shall be required. For every shop (if offices are located at different places), separate licence is required.

  159. As a OCI ( foreigner of indian origin) can I and my spouse together open a company and can I register agricultural land in my company’s name,
    Is Tea Estate considered as Agricultural land
    Thanks
    Nisa

  160. Whether OCI (Overseas Citizenship of India) can become Director in Indian pvt ltd company? if yes, can we take DIN No. on Indian resident address? and further to above we can pay salary to OCI (Overseas Citizenship of India) viz.-a-viz proposed director of Indian pvt ltd company?

  161. Dear madam,

    Please clarify. Shall we open pvt ltd company on below mentioned main objectives under one company name,

    1.agriculture development (which terms include s inter Alia land acqisation and development, irregation,crop cultivation, plantation,horticulture,forestry,animal husbandry and alied activities such as dairy,poultry,fishery,aqua culture and floriculture)

    2.industrial devlopment (which terms include inter alia,Argo-processing , mining and quaring utilites (including water ,power and renewable sources of energy), manufacturing ,(includes handicrafts, construction, trade and distribution , transport and services of all kinds)

    3.market linkage development (which terms include ,inter alia provison of inputs for and marketing of out put of agricultural and industrial development activities including facilities for storage ,trading and transport for such inputs and outputs)

    4.Habitat development (which terms include inter alia , purchase ,constuction up graduation ,extension and modification of buildings and infrastructure for residential ,agricultural, co Mercial or industrial purpose).

    I am eager to waiting your replay please do the needful,

    Regards,

    Gopikrishna

  162. HI Meenal,

    We have registered a Company as Partership firm to sell various products under Home and Kitchen, Health and Nutrition, Kids products on various ecommerce sites like eBay, Snapdeal etc. We would like to operate from Home itself and dispatch the orders as soon as we get the orders online. Could you let us know as what all Registrations are required to move further.

    • Since your partnership firm is formed to sell various products, then first of all you will need Shop and Establishment Act Licence ( especially in Maharashtra), PAN CARD of partnership firm, bank account. VAT registration.

  163. Thanks for the helpful blog Madam,

    I have query please clarify, how to transfer shares in between directors in a private ltd Company?

  164. Hello and thanks for your helpful weblog.I’m Kathy from Iran.I want to register an engineering company in Pune as I was student there last three years.I want to com with tourist visa and apply directly from there.But I don’t know what documents they would ask me to offer them and what I need to translate to English language here.Thank you

  165. Hi,
    Its a really useful website. I appreciate your effort put towards answering our queries.
    I have one query about educational institute.
    Say, I want to open up an engineering college.
    Do I need to register it as a firm or Pvt ltd. or any company registration needed at all?

    Kindly provide some insight on this. Thanks in advance

  166. Excellent job done up to date position is highlighted

  167. Hi,
    Thanks for such a informative blog… Actually we, a group of 5-6 friends from IT industry, want to start our own company with our own design and developed software products. Initially we want to run it on partnership basis (start as a part time alongwith our job) and in the long term will go for pvt ltd.
    we have finalised our company and product name and also hv cross checked that there’s no such other company/ product exists. Could you please guide me for the same. I have already gone thru the MCA site and cm to know the steps like to register DIN nd so on…

  168. Dear Madam,

    Please give the detail process of change in Promoter at the time of incorporation of private limited company…

    Avinash

    • If there is any change in promoters at the time of incorporation of the private limited company, while filing e-form 1 (incorporation document) please submit No objection certificate from the existing promoters.

  169. Hi Meenal,

    First of all great blog, very helpfull.

    1)I want to know if there is a process to get registration details of a partnership firm? If yes, can you please mention the process.

    2) Is it mandatory to register the partnership firm?

    3) If the firm has TIN/VAT/CST no what details can be obtained from that number?

    Thanks in advance.

  170. respected mam,
    i want to start import and sell goods but i dont know what are the exect legal permission i must have to take from our great country,i have read from articles first i have to make a company,yeah i want as private ltd and thn apply for iec{import export certificate}.ok
    but is this neccesery to have a head office registered and can i operate this from home,coz this company will be small n the business too,second thing is that what are the rules to follow for price index

  171. Respected Mam,
    I am Doctor of Ayurveda i have completed MBA in marketing and HR Management,I want to start small business wich is related with dealing of Raw Herbal drug.I want to start my own i am ready for.Starting this business.I want to know details in forming firm or what ever.At this moment of life what should i do should i take proprietorship or should form company.Now i dont know the future of all but i want to make base by which i will be deal in correct way in herbal import export and herbal trade.So what will be better for me in coming yrs i also want to do diff things in under one compny name so what will be better for me.

    Regards

    Dr.Abhijit

  172. Dear Madam,
    I and my friend are planning to start a software development company and are in doubt to what to stat with as we will be working our from home and at moment wont pe possible to setup a office
    1. should we start with properitory firm and then as we go change to a company.
    2. what are the tax liability difference between a comapny and a propritory firm.
    3. in case of any problem what will be the liability on the owner of the firm.

    • 1. You can start proprietorship firm and then convert into Private limited company.
      2. The tax liability is different in both the cases. It is as per slab rates mentioned by the Income tax department in case of Proprietorship firm and in case of company it is 30%. The proprietor shall be liable for tax and in case of company, the company shall pay tax.
      3. In case of any problem, the owner will be sole responsible for the liability.

      • Hi thanks for your replay ,

        have followup questions with regards to the law and contract .
        where can i read the laws and rules reguarding the propritory firm,

        and i can implement different set of rules and laws for different types of projects.

        also how can we limit the liabiality on the company and the owner.

        also is it possible to set contract terms to such as the ‘in case of any problems and discripencies the liabiality is limited to the amount paid to the company.’

  173. Hi great blog and information but have following questions.

    i and my friend are planning to start a software development company currently we only 2 of are there and we plan to work from home only and take projects online or through reference.

    what step should we follow and many details mentioned are for small bussiness with ffew employee.

  174. Dear madam first of all let me thank you and appreciate you for all the information that you are providing for a young entreprenuers like me, may god give you all the strength. coming to me dear madam i am basically from Bangalore, karnataka presently i am doing a honey business that is i procure honey from the wholesalers of different parts of karnataka and repack them and selling it to my known people (family and friends) i would now like to establish it in a bigger way along with my friend with my own brand what are formalities that i need to undergo for this please help me through my email

    • Thanks for your comment.
      If you would like to register trading in honey business on your own, you can register proprietorship firm initially. Later on you can convert it into the Private Limited company.

  175. i HAD GET THE NAME APPROVAL ON 23/10/2013 ,WHETHER COMPANY SHOULD BE INCORPORATED COMPULSORY BEFORE 22/12/2013 (I,E SIXTY DAYS FROM NAME APPROVAL) OR WE CAN SEND FORM 1,18, &32 BEFORE 22/12/2013 IT ENHALF ,SUPPOSE ROC ASK ANY QURIES MEANS AFTER 22/12/2013 WE CAN ABLE TO RESUBMIT THE FORMS 1,18 & 32 .

  176. Mam,

    I have registered a pvt. company, a software company doing only a offshore development. What are licenses need to take ? Give some guidance

  177. hi,
    We want to form an e-commerce company in delhi,
    which will sell goods in delhi ncr(3 states delhi,Up & haryana) please let us know the procedure to form a company whic can sell goods in all states.

  178. This blog is very informative and helpful for anyone looking to start a business. I appreciate your help.

    I am starting a business (sole proprietorship firm) of healthy meal salads in Mumbai and have some questions about it. The distribution model is like this: I serve my products in corporate office canteens. They (office) provide me with a little space in their canteen where I put up a stall for a day or just for few hours during lunch and sell my products to their employees. Since, making salads only involves chopping and mixing, I do not require a central kitchen or a space to prepare. And so I use the space at their office canteen. There is no contract signed with them since it’s not an everyday affair.

    1. Do I need to have a physical office space in order to register the company? Or is it possible to only have a virtual presence through a website? I am currently operating from home and do not require an office at this stage.

    2. Can I apply for a shops and establishment license without a permanent physical business address?

    3. I am creating a website soon. If I want to take orders through a website, and supply meal salad to people, what kind of registration and licenses are required?

    Would love to know your thoughts and opinions about this. Thanks!

    • 1. You will need a physical office space. It is possible to have a virtual office.
      2. Without having physical business address, you cannot apply for Shop and Establishment licence.
      3.You shall need to apply for VAT.

  179. I want to start my own design firm in Pune which will provide Product and Communication design services to other companies or individuals as per their requirement.
    I have not hired any one and don’t have a office as i can provide design service from my home and for other requirements I normally outsource it to other people.I also want to take up projects in states outside Maharashtra .

    Do I need to have a partner for registering my company? Do I need a shop act license or any other registration? What is the process of getting a TIN or DIN number? Do i need to have a office or I can work from home and then later rent a office?

    • For registration of Private limited company needs minimum two directors and shareholders. After registration, you will need shop act licence, PAN TAN. You can work from home and rent a office later.

  180. hello Minal ,

    its really wonderful to see people like you helping out those who are struggling to start new ventures . I am verymuch thankful to you for this ,your blog /replies are really helpful . please keep doing this .

    i hope you wont mind to answer my queries .
    1 . can you please convey me documents/procedure for proprietry frm reg in grampanchayat area in maharashtra .
    2 .as I understood ,shop act license is not required for grampanchyat limits . do you have any format ready with you for taking permission from gram panchyayat (NOC).
    3 . as my nature of bussiness is wholesale dealing in grains ,pulses,oil seeds (so far no formal license has been opted ) . along with this now I am planning to start agri processing of grains/oil seeds. does this require addtional licneses/permits from FDA ?
    so in brief i want to register as :
    – wholesale dealer of grains,pulses,oil seeds AND
    – agro processors
    could you please brief me in detail procedure and documents required for my needs above ?

    thanks
    vinay shinde

    • In Maharashtra for establishment of any business you need to make application for shop act, if the place of business is situated outside the corporation limits, then shop act registration is not necessary. You will have to check what documents are needed for getting certificate from Gram Panchayat. I would also advise you to visit nearest FDA office who will help you to provide you FDA licence.

  181. One of my client invested Rs.5 lakh in indian company out of Rs.5 lakh Rs.3 lakh transfered from NRO account. The Resdential status of investor was NRI. is this investment treated as FDI? Is my client has to follow all the FEMA guildlines?

  182. Hi madam,

    We would like to open our pvt ltd company in Bangalore, we offering services in Modular furniture’s and Interiors to office and home. Weather I can able to create both company’s by single name. I mean furniture & Interior.

    • Yes, you can make one application for name of Private Limited for doing business in modular furniture and interior to office and home.

  183. Dear Madam,
    Iam planning to start a small restaurant. Its going to be a Propretiary concern. Should it still be registered as a company? Could you please guide the procedure.

    Many thanks.

  184. Hello Meenal,
    I would like to start up an Electronic retail store and I was wondering if could help me out with the procedure involved starting from the paper works, registration, laws and regulations for the firm. It will be a great help if you can provide me the above information. thank you 🙂

  185. Hi….thanks for such an informative blog…wanted to ask whether a person who already has a DIN & now wants to incorporate a new pvt. ltd Company…. so can he proceed with name availability application without applying for fresh DIN and without the DIN of other proposed director. In other words can 1 person with an already existing DIN can alone apply for name availability application?

    • A person having approved DIN can proceed with name application without applying for fresh DIN. But for registration process, minimum two DIN of individuals are required. One person cannot alone apply for name availability application.

  186. Hello Mam,

    Since ROC has rejected my company’s name, when should I resubmit my new revised name using the same e-form? Is there any stipulated time duration only after which I need to re-apply? Or shall I resubmit immediately?

    Kindly help me.. Thanks in advance.

  187. Dear Madam,

    Firstly thank you for helping and encouraging the young entrepreneurs of India.

    All your blogs are truly helpful.

    I am currently residing outside India from more than 6 years and I would like to start real estate firm along with my friend who is currently residing in India.

    I got to know that as a NRI, I cannot be a partner of any firm or a company that is involved in real estate business.

    Can I nominate my father as the partner of the firm along with my friend when registering the firm and fund my father to invest in the firm on behalf of me.

    Can I use the money that I transferred to India via normal banking channels to fund my father?

    Is it legal as per RBI & Exchange Control norms?

    Thank you very much for your time and consideration.

    • Appreciate your comments.
      Yes your understanding is correct, as per FDI norms NRI can not invest into real estate business.
      Regarding money transfer via bank, I would suggest you to check with the respective bank only.
      Thanks.

  188. Hello Madam,
    thanks for this it really helps !
    Mam I want to register a software company in Madhya Pradesh.Do I need some minimum number of employees to register a company?

  189. Madam, i want to start pharma as a distributor in karnataka in low budget, and what are the necessery requirements and documenets should i have to follow

    Thanks & Regards
    Murigeppa J

    • Besides obtaining certificate of registration as private limited company, you may need FDA licence ( i.e. Food and Drug Administration Act) to engage in pharma

  190. Can I form a company offering services in 4 specialized areas (eg. software, hospitality, logistics and real estate) or do I need to create individual companies from legal perspective? I have got a 2bhk apartment in Kochi. Is it legally permitted to register a company at an apartment within a building society? Thank you

    • You will have to register four companies separately because the main object of the four such companies is different. You can register company in apartment only you have to submit proof of ownership to the ROC.

  191. Hello mam..
    for opening a online shopping website,do we require to register the company..

    • You may register proprietorship firm, if you would like to open a online shopping website, instead of registering company.

  192. Dear Madam,

    I am an NRI, I would like to register my private limited company in chennai as myself and my wife are its directors. As we bothe are living abroad, what are the procedures to register. Kindly explain step by step and required documents.

  193. Hi mam,
    I’m planning to start a separate venture and I wish to use the land property which is owned by my father who’s already running a company. Is there any rule to compulsorily pay some rent for this property even though it belongs to my father? And should I need to enter into any rental agreement with them which would be required for company’s registration and all?
    FYI: My father will become one of the directors for my new venture.. Kindly clarify on this. Thanks in advance…

    • If you wish to use the land property as address of proposed company, where the place is owned by your father, please submit proof of ownership- Index II, Electricity /water tax bill of property and obtain no permission from your father. It would be advisable if you can enter into a lease agreement between company and your father after company’s registration and then company can pay office rent to your father.

  194. Hi Madam ,

    I like to start business for networking product it will be for both sales and service calls . Now at startup i will use my residence address as my business address . can i do this also please guide me what are all the initial registration required its propetrship

  195. Very good blog.

    Can we open / register another company on same address in maharashtra or Karnataka?

    Thanks in advance.

    • You can register another company on same address in that case you need to submit address proof and no objection letter from an owner of place.

  196. Hello Mam,
    I want to start a software firm in Nagpur. We are two friends but didn’t have to much money. should we start first as a Proprietory firm and after 2 years should we transfer this to Pvt. Ltd.

    For the proprietory firm registration whats document required. How much amount it takes to complete all Process.

    We didnt have own Shop / Property, but still wants to start a firm (Proprietry).

    If we registered proprietry firm, and if we got more than 3 clients just like other companies. Is that any problem to get the client and support to client. Is that any problem occoured while generation purchase orders and Payment collection from client.

    Waiting for your valuable reply.

    Thanks

    Pavan

    • Yes you can start with propreitorship firm initially where there will be one person who will be treated as proprietor. later on you can convert this into Private limited company. You will get more acceptance if the business is registered as private limited company rather than firm.

  197. Hi,
    The site seems good enough for beginners who want to know about starting a company. I wante to document on the procedures on starting a company by an individual. This is an individual..not partnership as in private ltd company. Could you help?

  198. hello,madam
    my name is pritesh.
    I am having some questions….(plz may i get those answers..)
    1-basically i am going to make film production house,with my team.so what to do for it..? how can i do?
    2- register my film company, then how much time it takes?for registration
    4-After a registration if i want to listing my company share then how can i do???in this share market thing can you help me?
    5-is it have any type of share that i listed in rs.100pr share.and after 6 month all those share i purchase it back with fixe amount at Rs.150pr share??
    thank you,
    pritesh
    plz replies only on my mail id..

    • Sorry for the delayed reply. To register your film company, you will be required to register as Private Limited company with equity shares. To start it you have to invest minimum Rs. 1 Lakh. To know more details please call me.

  199. Hi!Thanks for most of the information.
    On Q6,This means it is possible to incorporate a company after tentatively in 4-6 months after Name Registration of company or one have show Annual meetings and Balance sheets for respective for the delayed years?
    ——————————————————-

    • Once the company is formed under the Companies Act 1956, it has to comply with various provisions specified in the Act. After incorporation, it should hold one Annual General meeting every year to consider and adopt Balance sheet and Profit and loss account. Hence for delayed years as well, the company should comply the annual filing provisions.

  200. Hi, I am looking to start a small business in software sector.

    I would like to know more about proprietor firm.

    Please assist me..

  201. Very Informative And Elaborated Information:
    Thank You!

    My question is on Q5 and Q6 above-

    Suppose I registered company name,and as per Q6 above I need to start functioning after 1 or 2 years:Should I need following-
    a.MoA and AoA
    b.Company/Organizational Structure-Means can I start with Two Directors and Two Shareholders only?

    1-Can I obtain DIN,DSC first and later on some period the Name Of Company?

    2-If 60 days limit exceeds,you said to file application again.Is that Company registration application or FORM1 application?What exactly?

    3-Can you say more on Individual Company Registration amendment and possibly when government will apply it in India?

    4-My overall question will be like this-
    Can I keep my company name reserved or booked till the Incorporation of company without being lost its rights i.e.Name Protection.

    5-If possible,could you please add some Topics like Trademark registration,Product Registration and IPR(Intellectual Property Rights)

    Thank You!

    • For all your questions the answer will be – once the name is approved from ROC, it is valid for 60 days i.e. you can register the company on or before 60 days from the date of receipt of name approval letter from the ROC.

  202. I want to register a software company working in pune but i want to register it in my native place which is narayangaon, tal- junnar, dist- pune. then please tell me the procedure for the same. as i came to knew that shop act card is required and will get only if company is in urban or semi-urban area (under Nagarpalika area). is it correct?

    • Yes if you would like to register proprietorship firm, you need shop act licence and it is within Municipal limits, you need shop act and outside municipal area, you need Gram Panchayat licence.

  203. We had set up a company with an authorised capital of 10 Lakhs and 1 Lakh shares.
    We wanted to initially start off with 1 lakh Paid up capital for 10K shares but in the articles submitted to MCA we have already distributed 1 lakh shares between the three directors,
    Question 1 is it necessary to pay up the complete 10 lakhs at this time only ? Question 2.How can we get the articles modified to show a fewer number of shares were subscribed too?

  204. Hi, for making pvt ltd company in INDIA with Nigerians as directors, is it necessary that their docs such as passport, photo and affidavits for DIN should be attested by notary in their home town or Indian embassy in their hometown and if it is not possible to get it done, is their any other alternative.

    • In case, the director is residing outside India, then the attached supporting documents should be attested by the Consulate of the Indian Embassy, Foreign public notary.

  205. This is the information we have been looking for. One of my client have the intention to invest in India. We will contact you soon if my client decide to perform the investment. Thanks!

  206. I want to open my new private company. so I want to registered my company.where I can registered my company and what is the cost of registration.

  207. Hello Madam, We are looking to register an online fashion Jewelry, we are currently in US for a short term assignment – would like to initiate the process to register the name we have chosen and would like to obtain export & Import license.
    Can you guide us in term of what we should do to get the name registered, license obtained.

    Thanks for your suggestion.
    Saravanan

  208. I as a director of an Indian pvt limited company want to make my residential house as the “registered office” of the company.

    Ques:- Will then my residential property be treated as company’s property or it will still remain the director’s personal property ?

    • The property would always remain as personal property of the director. The director just gives the No objection or permission to use said property or premises to the company for business purpose.

  209. I want to start a new business so please guide me about the registration

  210. Meenal, Very Informative and useful blog for the upcoming entrepreneurs, Thanks for all your post, which provided me very useful information in dealing with ROC.

    I have quick question, my company name was approved and later i have submitted form1,18,32. Now ROC rejected the name

    Now i am going to file different name through Non-STP mode and submit the documents, but my question is, what is the refund in this case, Please help me in providing what are refundable and non refundable fee if the name is rejected.

    Thanks!

    • Thanks for your comment. Regarding the question of refund, once the form is filed with the Ministry of Government, the amount paid won’t be refundable. The Government is the final authority to decide which name is to be approved or rejected.

  211. Which document to be checked for the details of registered 1) Current shareholders 2) Current Directors for pvt limited company and unlisted public limited company.

    • You can get information of current shareholders and directors of private and public (unlisted) company on Form 20 B ( Annual Return).

  212. hello madam,
    i am chandan from bangalore, i wanted to open a company that provide computer componets sales and services to small scale industries and i want to register it but m confused about the registration types. which type of registration is suitable for me a firm or pvt., ltd., ??.

    please help me

  213. I want to start my own company(consultancy) for providing manpower in BPO and Non Bpo sectors kindly suggest how to register a company with minimum investment and i either want to work alone or want to add my family member as director. kindly suggest me the easy steps for the same.

  214. Hi Meenal,

    Whether public notice is needed for incorporating a section 25 company ?

    Answers in this post are really helpful.

    Thanks.

  215. hello mam, i want to start a software development company, is there a requirement for minimum authorized capital?

  216. Hi
    Me and my friend wanted to register pvt.ltd after pvt.ltd on my names can we people eligible govt jobs/ pvt jobs in any other comapnies

  217. I WANT TO START BUSINESS REGARDING PROVIDING PROJECTS TO STUDENTS AND INDUSTRIES SO I WANT TO REGISTER PVT.LTD. IS IT ANY PROBLEM IN FUTURE JOBS IN PRIVATE SECTOR AND PUBLIC SECTOR

    • You can register private limited company with the main object of providing projects to students and industries. There won’t be problem as far as compliance is concerned.

  218. Hi all,

    I registered a firm but I want to convert that into a pvt.ltd what exactly makes difference between just a firm and pvt.ltd?

    Can someone answer this?

    Your answer would be appreciatable.

    Thank you.

  219. I want to open a small company for manufacturing. It will be single owner company. Please guide me for the following questions..
    1. Can I open a company with any Name(single owner)?
    2. How can I register my name for CST / VAT Billing?
    3. How can I open a account in a Bank whether in my name or Company name? What are the documents required?
    4. I should get PAN card in my name?
    5. What are the other registrations required?
    6. How do I do Exports?

    Please advice.

    • 1. Yes you can open company with any name provided the name shall not be similar to existing registered name ( please refer name guidelines prescribed by Ministry of Corporate Affairs).
      2. After registration of company, you can register for CST/ VAT
      3. While opening of Bank account you may need shop act licene ( if it is to be registered in Maharashtra state) , PAN , TAN of company.
      4. you can get PAN card in the name of company by filing form with Income Tax Department.
      5. You can do export if the same activity is one of the main objects of your company. For more details please call me.

  220. hello sir/medam i would like to kw i like to buy name of the company who is wind up and i really wanna buy that company name . and if i register new company than they gonna so me my registion date ..

  221. I want to start an IT company, which would make mobile apps and websites from my ideas, (like Facebook, Zomato, games, utility apps, etc) and sometimes take up client work for money, in times when we aren’t generating revenue from apps and websites of my ideas.

    How should i register my company? As both a product and services company? What would be the tax ramifications? Will I be liable for service tax every year even if I don’t actually take up any client work?

    Also, can I start the company in my parent’s home or my friend’s home? We don’t have a lot of money to pay rent for office space.

    • Sorry for the delayed reply. You can register company having business of development of product and providing services. Being service provider the company will be eligible to get service tax registration number, but the company will become liable only when its income exceeds Rs. 10 lakh during the financial year. You can start company in your parent’s home. For further details you may call me.

  222. Hi, I am an OCI (Overseas Citizen of India) and a Canadian citizen. I have family, relatives and bank account also in India. Now I am am being offered a 20% shareholding in a Private Limited company which has 3 existing shareholders/directors. I will inject cash/capital of INR 2.5 lakhs for now. I would like to know, what are the requirements in relation to approval and/or documents to be provided to achieve a smooth and valid stake of 25% in the private limited company, taken from India point of view and Canada pont of view.

    I woudl appreciate a response to my email id konepra@yahoo.com

    Thank You

    Prakash

  223. First of all I would like to say thanks for such a helpful & informative blog.
    Mam, I would like to ask one query regarding company formation.
    In last FY Mr.X was in dubai n his status was NRI. In this this year on 7 july he came back to India.Now during company formation hows his residential status will be considered.
    Plz reply…thanks….

    • Since Mr. X is NRI and came to Indian on 7th July, as per Income tax Act, if he stays in India for more than 182 days then his status will be resident in India. In your case if he came back to India for company formation, currently his status will be NRI.

  224. i want to get PAN No for my unregistered individual software company can i get it?

  225. I m krish, a B.Tech student from Kerala and me along with my friends thought of starting up a software firm . i want to register our company and read your blog about it . First and foremost thank you . I learned a lot from there .
    Question 1
    Should we register our company under ” private limited company” or is there any other choice ? i asked you this because it says , we need 2 directors(we have ) and 2 shareholders(we don’t) with minimum share capital of one lakh each !!! . we don’t have that kind of money now !!

    Questiion 2

    I really want all my friends(Five , including me ) to be in the Board of Directors , But none of them would agree to it .They want me to be the director alone and i told them a minimum of two is required , i had a hard time convincing one and she finally agreed . Now i want the the other three to be in B.O.D too. Is there any way i can add them too without their knowledge/consent.

    Question 3
    Is there any tax deduction if our B.O.D are all females [ All of us are 22 / 23 years old ]

    • Answer to your question 1 :- Yes, you can register your business as Private Ltd. Minimum requirement is two directors with Rs.1 Lakh authorised and paid up capital.
      Answer to question 2:- You can apply for registration of company with more than 2 directors. You can also add another director after incorporation as well after complying registrar of companies formalites.
      Answer to question 3:- The companies Act does not provide any special provision for females, will have to check tax provisions separately.

  226. Can a person working in private limited in India (MNC) register a compnay in his name?

    • It all depends on the existing Company Policy / NDA ( Non Disclosure agreement) since many companies do not permit to engage in any other business simultaneously when in service, since it may create conflict of interest.

      • Hi,

        As you said the an Employee who is working cannot be one of the partners in the Partnership firm as per the companies policy(conflict of interest).

        We have recently registered a company under Partnership. My husband is a Second partner for this and is working in an MNC. Request you to let me know if this can be withdrawn within a month’s time of registering this Partnership deed.

        Will there be a problem if he continues to be a sleeping partner.

        Please suggest.

        • If your husband is working partner in registered company, you may change his designation from working partner to sleeping partner. If it is a Private Limited company from Executive director to Non Executive director, in case of LLP, from designated partner to partner.

  227. What business license is needed to run online grocery retail store ? I will buy from wholesale dealer and sell it to customers, i will be using my house for storing the items temporary, are there any restrictions in doing this? Are procedures to get a business license seperate from registering a company or can it be done together ? Thanks Meenal.

    • Getting business licence is different from registering company. For registration of company it will require minimum two directors, capital Rs. 1 Lakh.

  228. helllo sir i want to start a new computer courses ,training center , in bangalore , and want to esatblish or sell branches in some of the towns in india , it includes online training to other countries students who . (like u.s , singapore and) from our software

    training center , we are two . partners ,. .

    please suggest which type of company i shall preper please advice sir ,

    thanking you in advance .

    • If you are providing training to students, for giving name to your training center, you can register LLP with minimum capital.

  229. Hi,
    Id like to know the following:
    What are the advantages of having a Pvt Ltd company over proprietorship-taxes and liability issues?
    Can I start as a proprietor and then add a director to convert or upgrade to Pvt Ltd or do i have to establish an all new entity?
    At what stage do we have to show or deposit paid up capital of 1 lakh while registering a Pvt Ltd company?
    I have stayed outside india for about two years now,to form a pvt ltd company what problem will i face to be 1 of the directors for eg i may not have a utility bill to show residence proof as that will be in my fathers name?
    Thanks.

    • Private Limited company has separate legal entity. The liability is limited in case of Pvt. and proprietor’s liability will be unlimited. Yes you can start initially firm and convert into Pvt. ltd. You have to show 1 lakh while registering Pvt Limited and deposit after incorporation. For registration of Company, you have to submit registered address proof.

  230. My brother is in Mumbai would like to open a manufacuring unit in Mumbai, since he does not have any proof there and can not support any document to open a company there. In that case Can I open a firm in hyderabad and run a unit in mumbai, if so, what are the formalities I will hv to go for? Pls help!

    • yes you can open a firm in Hyderabad and run business in Mumbai. Please check whether you need Shop act licence in Hyderabad State for registration of propreitorship firm or not? You will need to open Bank account in the name of firm.

  231. HI,

    My friend who is a french national and I an Indian citizen would like to start a E com website . We would like to register our company in Bangalore .I would like to knoe the following

    1. By registering in bangalore can we do business across the country ?
    2. Can a foreign national be a partner in an indian start up
    3.Do we form a partnership firm at first or do we go for a private Ltd company ?
    4.What are the formalities for the same

    My friend is residing in India currently on an employment visa of 1 year .She plans to quit her job inorder to be a part of this start up.

    Thank you
    4

    • yes, you can do business across the country by registering company in Bangalore. Yes Foreign national can be a partner in Indian Start up. You can go for Pvt. ltd registration directly. Please refer my blog for more details.

  232. can you please tell me what is the minimum qualification is required for opening a pvt company.

  233. Me and my friend wants to open a Pvt. Ltd. company to run a tech support business for foreign clients. Is there any difference in registering the company . What all certificate (e.g. D.O.T ) we need to take .. Please advice.

    • Sorry for the delayed reply.
      A Private Limited Company is registered with the MCA/RoC. I am not clear about your question regarding difference in registering the company. Please call me.

  234. I want to incorporate new pvt ltd. co. I obtained name in Form 1A. now for form 18 I require to address proof. can i prepare rental agreement in name of proposed company. who will sign the document form co side since form 32 also yet to be filed.

    kindly provide me a sample deed in a proposed co name

    • Instead of rental agreement in the name of proposed company, please attach electricity bill/ telephone bill / tax bill of the place of owner. Normally the ROC ask any one of these proofs.

  235. Dear Meenal,

    I am an NRI and residing in Dubai. I need to register a private limited company in India in Bhubaneswar at the earliest. I want to add my wife as second director.

    My quarry is, whether the affidavit for company incorporation can be done in Indian Embassy in Dudai instead of going and doing it before Executive Magistrate in India?

    Actually my wife is not in a position to go to India in this few months. So, if it can not be done in Dubai, I need to look for any other partner to name as Director.

    Waiting for your kind and sincere reply.

    Kind regards,

    Sanjay Patra
    Dubai

  236. My client is running into heavy losses and wants to close their company. It is a private limited company , can you please elaborate the “Dissolution- Members voluntary winding up” or whichever way you seem fruitful. Someone has suggested them to issue capital first to cover losses and then close company, but I am not convince with this method. Kindly guide

  237. Dear Meenal,

    I am an NRI and residing in Dubai. I want to register a company in India in Bhubaneswar at the earliest. I want to add my wife as 2nd director.

    My concern is, whether the affidavit can be done in Indian Embassy in Dubai instead of going to India and executing before Executive Magistrate? Actually my wife is not in a position to go to india within this few months.

    Kindly advise me as otherwise I need to see for another 2nd director, who can be present in India.

    Waiting for your kind and sincere reply.

    Thanks and regards.
    Sanjay Patra
    Dubai

  238. thank you for creating this blog. It is really very informative.

  239. Respected Madam,

    This is a very informative article and helps in detail in regards to various questions that many would have.

    I just had a very simple question. As an individual in India, can somebody own a business and also work for an organization as an employee.
    The reason I am asking this is because I knew that one PAN Number is only associated with one income source. So can the same person own a business? Is it allowed?

    Thanks and Regards
    Sambit Patnaik

    • Being an employee of one organisation, you need to check your company policy, terms and condition. If the company policy does not allow you to do business, you can invest in the business by forming company in the name of your relative.

  240. Hi, I have a question regarding digitally signing the DIN-1 form. MCA’s site FAQs on Revised DIN Process (w.e.f. 27 March’11) states that DIN-1 can be digitally signed by applicant. Please read Question 6 of link http://www.mca.gov.in/MCA21/dca/din/DIN1-4_faq1.html But, when i downloaded the DIN-1 form the category field is mandatory and does not have applicant in the dropdown. Also, when i research on internet and on this forum everyone is pointing out that only CA and others in same profession can digitally sign the DIN-1 form. Can someone please clarify this ambiguity for me? Thanks.

    • As per recent amendment of DIN Rules, DIN 1 application must be certified by professional like CS/ CA/CWA ( who are in Whole Time Practice), the field of an applicant in drop down option has been removed.

  241. Hi,

    I have a question regarding digitally signing the DIN-1 form. MCA’s site FAQs on Revised DIN Process (w.e.f. 27 March’11) states that DIN-1 can be digitally signed by applicant. Please read Question 6 of link http://www.mca.gov.in/MCA21/dca/din/DIN1-4_faq1.html

    But, when i downloaded the DIN-1 form the category field is mandatory and does not have applicant in the dropdown. Also, when i research on internet and on this forum everyone is pointing out that only CA and others in same profession can digitally sign the DIN-1 form. Can someone please clarify this ambiguity for me?

    Thanks.

    • As per amendment in DIN Rules, only CS/CA/CWA who are in whole time practice shall sign DIN 1 form digitally and not by an applicant.

  242. we 3 want to open 1 company of very small carpet cleanig company is it nessery to register?if yes tell me procedure

  243. whether bank account is necessary for incorporation of company in india?

    • Yes opening of Current account in the name of company is required after incorporation of company. The subscriber shall be required to deposit their subscription money in the bank account and all daily billing or payment would be made through bank. As per the provisions of the Companies Act, if the subscribers fail to deposit subscription amount the company shall be treated as “Default” company from Government point of view and the main intention of formation of Private Limited company will not serve any purpose.

  244. I am going to start a business like data entry services. For that services company registration is mandatory or not…… if it not mandatory wt will do

    • Whether to form a company with the object of data entry services, would also depend upon how many people will be involved and initial capital investment. If it is to be run by single person, then sole proprietorship will be option, if with two partners, either LLP/ Private Limited company will be option.

  245. Great info and knowledge shared by you.

    i have a friend who is a US citizen who want to invest in india to start a pvt ltd company. what will be the procedure and can he send money to my personal account for the initial expenses.
    Thanks in advance
    Vijay

  246. Hi. Thank you for your helpful blog.

    If I have power of attorney from all shareholders that fully authorized me to register a Pvt Ltd firm in free trade zone, in this case can I come to India and through a law firm services register our company without presence of other shareholders in India. Please advise.

  247. is it mendatory to register DIN,company name etc for a distributor type businessman??

    • DIN shall be registered if any individual would like to be director of company and company name shall be required when someone would like to form it.

  248. Hi Meenal, what is the criteria to open a new bank account for a new private limited company in india? Thank you for such an informative blog.

  249. One more qn, can i open an inc company( i mean a word INC after the name of the company) in india ? Thanks.

    • You cannot register INC company in India as per Name Guidelines of MCA 21. Every company which is to be registered in India should end with either Pvt. ltd or Ltd ( in case of Public company).

  250. Hi Meenal, is the DIN necessary for application of incorporation of company ?

  251. Meenal, excellent blog. A quick question, what are the different compliance to be made by a NRI promoter under companies act 1956? Thanks in advance.

    • NRI (promoter) if he is shareholder ,shall remit/ deposit his subscription money in the Current account of the company. The Company shall make allotment of shares to him within 180 days from the date of remittance. The company shall comply FDI Policy formalities.

  252. Nice Blog. Could you please tell me what are the annual filings of private limited companies to roc ?

    • Once in a year, every private limited company shall be required to file Form 23AC ( Balance sheet) 23ACA( Profit and Loss account) and Form 20B ( Annual Return) with the Registrar of Companies. Form 23AC and 23ACA shall be filed within 30 days from the date of AGM and form 20B within 60 days from the date of AGM. These are annual filings of Pvt. ltd to Registrar of Companies.

  253. Can a private ltd company give loan to a person other than shareholder?

  254. Madam, can i open a private company in my residence? Thank you.

    • The promoter can give No Objection to use the residential place to the proposed company for office purpose. The proposed company will file registered address proof as electricity / telephone/ tax bill and no objection from an owner.

  255. I have filed the form 1A for name availability of a Pvt. Ltd., and the name got approved. I have filed name of two directors say A & B but now I want to replace C as a director in place of B.
    is there any possibility to replace the director in process of incorporation if the director gives his/her NOC ?

  256. I came here through google search. Thanks for all useful information about company information.

  257. i want to form a co. for my client & i want to knw that is there is any requirement to submit any form in physical form also….because my client wants to form company in ahemdabad(gujrat) & i reside in udaipur ( rajasthan)….please clearify me in this matter.

    • All forms to register a company should be filed online in pdf format and there is no requirement to submit any physical form. This is as per the procedure of the Ministry of Corporate Affairs.

  258. i want to form a co. for my client & i want to knw that is there is any requirement to submit any form in physical form also….because my client wants to form company in ahemdabad(gujrat) & i reside in udaipur ( rajasthan)….please clearify me in this matter.
    Hope for an early response….

  259. Dear All,

    Great information shared here. I would like to know something.
    What are the documents returned to company from registrar/cs after registration soft/hard copy?

    • ROC returns soft copies from time to time after approval of name and registration of company. CS /CA will return soft copy as well as physical documents.

  260. Dear mam

    We would like to sell a Pvt ltd company and I would like to know more details on the same.
    can you please suggest me on it.
    Please send your contact details to my mail id.

    With regards
    Logesh

  261. Dear Mam,

    I came across your website just today and found it really fruitful. I am currently working as an independent contractor (content writing) for a US based company and my Boss asks me to register a company as his CPA suggests that he has to transfer funds only to an Indian company and not an individual.

    What are formalities for starting a company Mam? I do not have much funds nor a physical setting except my home to start with. This is just for the sake of his request and I am going to do the same work even after registering the company. At least for the next few months I do not have any idea to employ someone to work with me.

    Even if I am going to get new contracts in the future I wish to get it done through freelancers. So how shall I proceed with? This is just a rental home and I only have my voter ID in this address. Is it ok?

    How much it would cost for initial registration formalities? Let me know. Sorry for cornering you with too many questions.

    Thank you.

  262. mam, my name is mangala and i am in dance proffession and i am planing to register my dance group. As now a days everywhere they are asking for the reg certificate before giving us a show. Mam can you please guide me with the process and where shall i go for all the formalities .
    Awaiting your reply at the earliest as next month i am having a grand show and they need the group registration no.

    • If you wish to register your activity you can apply for Shop Act licence. If you are running this activity in Maharashtra, then shop act licence is necessary. Since i don’t know the place of registration, i cannot say which registration will be required. Please provide me place of activity.

      • i wish to register my dance group situated in bangalore. kindly help.

        awaiting your earliest reply
        Thanking you

        Regards
        Mangala

        • Have you decided on what kind of entity you would like to register i.e. Proprietorship, LLP or Private Limited?
          Please call me to discuss this. Thanks.

  263. Couple of queries:

    1) Must one avail the services of a local (geographically closer) company registration service provider (CSRP) for incorporation and subsequent corporate/legal advice? What are the disadvantages, if any, of a CSRP based in a different state?
    2) How does one go about researching and deciding on a business banker?

    • It doesn’t matter whether the Company Registration consultant is situated locally in your city or not since now all the Company Formation procedure is online (using internet).

      Following points should be considered while deciding the banker for opening the Current Account. It doesn’t matter whether it’s a Nationalised or Private/Co-operative Sector Bank.

      1. Choose the nearest convenient location – This facilitates you to do the business transactions at your convenience. Also this could be helpful in case of any emergency or in case of Internet Banking outages/downtime.

      2. Volume / Frequency of Transactions – If the business is expected to have very less transactions (Start-ups or local servicing businesses) then you could even go for any nearest co-operative bank or a private bank. If there are lots of transactions expected (Nationwide) then go for a Private Bank or a Nationalised bank as they would provide a more reliable services with a large number of branches spread across country, secured/high available Internet Banking & other miscellaneous facilities.

      3. Minimum Average Quarterly/Monthly Balance Requirements : Each bank’s policy differs with respect to the Average Quarterly Balance (AQB) or Average Monthly Balance (AMB) requirements, so need to decide on the basis of your Business requirements. If the desired balance is not maintained then some amount of non-maintenance charges are levied by the banks.

      3. Foreign Transactions i.e. inward or outward remittances – Each bank charges some amount of foreign currency payment/collection fees & also the Service tax on the conversion charges on FCY (Foreign Currency) or LCY (Local currency). The charges differs from bank to bank & may depend/change on the basis of frequency, amount & number of transactions. So based on your business needs/expectations you could check different banks.

      4. Loan requirements : Loans are made available easily with the Co-operative banks or Private Banks. Nationalised banks have a bit of stringent rules for processing the loans viz. They may ask for last 2 years balance sheet of the business. So if your business forsee any immediate loan requirements (after Company formation) you may choose Co-operative or Private Banks over the Nationalised banks.

      5. Other Miscellaneous facilities to consider : Cash credit/overdraft facility, Free Cheque book/leaves, Free transactions each month, Free NEFT/RTGS, Rebate on Annual charges if the AQB/AMB maintained exceeds some specified amount.