Registering a company can be a challenging task if one doesn’t know about the procedures, provisions, and rules for company registration. Here we list down FAQs Company Registration procedures bring with them.
Read: Company Incorporation Procedure
What is a company?
The Companies Act, 2013 defines companies as an association of individuals which is registered under the said act.
Who is the regulatory authority for overseeing companies and their registration procedures?
The Ministry of Corporate Affairs, MCA, is the regulatory authorities related to companies and their registration procedures.
What are the salient features of the Companies Act, 2013?
The salient features of the Companies Act, 2013 are as follows
- The concept of One Person Company
- Restriction on Acceptance of Deposits
- Compulsory Appointment of one Woman Director
- Compliance with Corporate Social Responsibility (CSR)
- Provisions related to Private Placement
What are the different types of companies you can incorporate in India?
Here are the different types of companies according to the Companies Act:-
- Private Limited Company
- One Person Company (Provision added in Companies Act,2013)
- Public Limited Company
- Limited Liability Partnership
- Non-Profit Organization
How to incorporate a Company in India?
The Ministry of Corporate Affairs (MCA) has introduced features for One-Day Company Incorporation with SPICe.
Therefore, to incorporate any company in India under the Companies Act, 2013 following steps have to be taken.
- Acquire Digital Signature Certificate (DSC) of proposed directors/ shareholders
- File for name approval.
- File SPICe form (INC-32) with e-MoA(INC-33) and e-AoA(INC-34)
The new SPICe forms(INC-32) have provisions for the following:
- Obtaining DIN (Director Identification Number )
- Name Reservation of Company
- PAN Application
- TAN Number
NOTE: e-Form SPICe INC-32 cannot be used for registration of an LLP. LLPs are governed by LLP Act, 2008 and hence outside the jurisdiction of Companies Act, 2013.
INC-32 forms can be used for incorporation of Private Limited Company, Public Limited Company and One Person Company and all other institutions governed by Companies Act, 2013 such as NBFC.
What is a Private Limited Company?
A private limited company is an organization which is held privately for small businesses. Privately held means that the shares of the company are not tradable to the general public. A private limited company needs a minimum of 2 directors/shareholders and can have a maximum of 200 shareholders. Private Limited Company Registration can be done via the INC-32, SPICe forms.
Read More: FAQs Private Limited Company Registration
What is a Digital Signature and Digital Signature Certificate (DSC)?
Digital Signature is a digital code created for the purpose of attaching them on documents and proving an equal authority of a handwritten signature. Digital Signature Certificate (DSC) confirms the authenticity of the digital signature.
What are MoA and AoA?
MoA has specifications for the name, aims, objectives, registered office address, the clause regarding limited liability, minimum paid-up capital and share capital of a Company. Basically, MoA describes the relationship of the company with the outside world.
AoA basically consists of the documents necessary for company registration. Together, filed with the MoA, they are called the constitution of the company.
What is DIN?
DIN stands for Director Identification Number. It is an identification number issued to the directors of the company by the Ministry of Corporate Affairs(MCA) in accordance with sections with 266G and 266A of the Companies Act.
What is a Limited Liability Partnership(LLP)?
An LLP or a Limited Liability Partnership is an organization governed by the LLP Act, 2008. LLPs basically combine the flexibility of a partnership firm and the operational efficiency of a company at low compliance costs. LLPs are body corporate implying they are a separate legal entity from it’s owners/ shareholders.
How to incorporate an LLP in India?
LLPs are governed by the LLP Act, 2008 and hence e-form SPICe(INC-32) cannot be used for filing of LLP registration. Hence, we list down the basic steps for LLP registration.
- Obtain Digital Signature Certificate(DSC)
- Apply for DIN
- Name Reservation with Form 1
- File for incorporation with Form 2
- File Limited Liability Partnership (LLP) Agreement with Form 3
What is DPIN?
DPIN stands for Designated Partner Identification Number. It is basically a number issued by the Ministry of Corporate Affairs to distinctly identify the directors/ partners in a Limited Liability Partnership(LLP). It is the equivalent of DIN in Private Limited Companies. This was a provision for LLPs to identify partners of an LLP, but now partners have to apply for DIN.
What is One Person Company?
One Person Companies or OPC for short are the newest type of companies introduced in the Companies Act, 2013. One Person Company gives individuals the capacity to start a business and act as a sole director as well as a shareholder. It is generally viewed as a hybrid between the sole proprietorship and company structures combining their best traits to enable entrepreneurs in India.
One Person Companies can be registered with the SPICe INC-32 forms.
What are NBFCs?
NBFC OR Non Banking Financial Companies are basically financial isntitutions which help provide credit facilities and loan to the general population. NBFCs are companies registered under the Companies Act, 2013 and hence can be incorporated with e-form SPICe(INC-32). NBFCs are regulated by RBI and are a legally separate entity from banks.
What is the Authorized Capital ?
Authorized Capital is the maximum amount of share capital a company is allowed to issue to it’s shareholders as per constitution of the company. A portion of the share capital remains unissued in most cases.
What is Paid-up Capital?
Paid up capital is the amount of money shareholders recieve after fully paying for their purchased shares. This does not include shares for which a bid has been put have not been purchased yet.
Can directors use resendtial address as regisstered office address?
YES! Directors can use any resendital address as office address provided they can furnish valid documents of utilities and NOC (No Objection Certificate) from owner of the residence.
Still confused as to what to do about your company registration procedure? Call in the expert help of our team at LegalRaasta where we help provide easy and smooth processing of company registration procedures. We also specialize in taxation filing like ITR (Income Tax Return ) as well as GST registration and GST return.
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