Nowadays, every person wants to start their own business and be their own boss. However, when you think of starting a company, you may have all these questions like how to start a company, what are steps in incorporation of a company, how to get CIN Number.
In this article, we will discuss the steps in incorporation of a company and all the things you need to know.
We live in a world that is very advanced in terms of technology, information, food license online and facilities. But not every person is efficient enough to adopt the changes because few changes are not easy to adopt.
Earlier incorporation was a typical task, but with the virtue of technology, now everything is available online in simple steps.
8 Steps in Incorporation of a Company
The incorporation process of companies should be followed step by step to avoid any mistakes. Whether you apply for company registration in Mumbai or in any other city in India.
Step 1: Apply for Name Approval
It is a kind of a dream of every new entrepreneur to start a business with their name, but our ministry does not agree with the same emotion.
So, the first and the foremost step is to choose a unique name for a company and let the government know about your choice of name.
After that, the government decides whether you can start a company with that name or not.
With this in mind, that user has to fill an online form available on the website of MCA in which the applicant will fill appropriate and required information. Also, including attachments and after completion, the applicant will submit the form online on the MCA website,
After approval, the reserved name shall be valid for 15 days from the date of approval.
Therefore, if you do not apply for a company within that time, the name will be unreserved.
Step 2: Preparation of Documents for incorporation of Company
After approval of name, the applicant has to prepare certain documents for incorporation of a company-
INC-9 = Declaration by first subscriber(s) and director
DIR-2 = Declaration from first directors with a copy of proof of identity and residence.
NOC from the owner of the property
Proof of Office address (Conveyance/Lease deed/Rent Agreement etc with rent receipts).
Copy of the utility bills should not be older than two months.
In case directors do not have a DIN, it is mandatory to attach proof of identity and their residential address.
All the directors should have a digital signature.
Step 3: Fill the Information in Form
After all the documents are ready, move further and fill the information in the e-form provided under the option Spice+ (INC-32) on the website of MCA.
SPICe+ (INC- 32) is a single-window form for the incorporation of a company used for multiple purposes, for example, application of DIN(up to 3 directors), application for availability of name.
There is no need to file a separate form for the first director (DIR-12), address of the registered office (INC-22), PAN & TAN and GST, IEC.
Before filling in the information, applicants must read the Do’s and Dont’s of filling out the form available on the website of MCA.
There is some limitation which has been put over the information which applicant will fill in the form.
- If a company have more than 7 directors at the time of incorporation of a company, then MOA & AOA shall be filed with INC 32 in the respective format as specified in Table A to J in Schedule I, without filing form INC 33 and INC 34 as physical attachment of MOA & AOA in e-form INC 32.
- Sometimes directors could be from other countries. Therefore, those directors will sign MOA/AOA from outside India at the time of incorporation. Also, in that case, MOA & AOA shall be filled with INC 32 in the respective format as specified in Table A to J in schedule I without filing form INC 33 and INC 34 as physical attachment of MOA & AOA in e-form INC 32.
- Central Government has provided exemptions for the ROC, but stamp duty falls under the state list. Therefore, companies incorporating with an authorized capital of Rs. 15 Lakh or below have to pay stamp duty at the time of incorporation.
- One of the limitations is that a maximum of 3 DIN (Director identification number) can be applied through the SPICE form. In case if the applicant wants to incorporate a company with more than 3 persons and does not have a DIN, then the applicant has to incorporate the company with 3 directors. Later on, have to appoint new directors after the incorporation process
- An applicant can apply for only one name at a time through the SPICE+ form. If the form came for re-submission due to the non-availability of the name, then the applicant has to propose a new name. Also, have to alter all the documents and attachments of the form with the new name.
Step 4: Preparation of MOA & AOA (Electronic or Physical )
MOA and AOA are the next important thing for a company because these documents contain every small or big piece of information about a company.
So, after filling out the e-form completely applicant has to download the e-form INC-33 (MOA) and INC-34 (AOA) from the MCA site.
After downloading the form, fill in all the required information in downloaded forms as per requirements of Table A to J of schedule I.
Next, fill out the form affix the DSC of all the executives and professionals on the subscriber sheet of the MOA & AOA.
Professional and directors have to sign the form on the same date.
Step 5: Fill in the details of PAN & TAN
Many other documents are mandatory before starting a company to make it legal in the eyes of law.
It reduces further difficulties for members of the company.
Therefore, PAN & TAN are mandatory details to mention in the incorporation form INC-32 by the applicant. The help kit of the SPICe form has a link that will help in finding out area code to file PAN & TAN.
Step 6: Fill in details of GST, IEC in AGILE- PRO
After the adoption of GST as an Indirect tax, now every new company has to have its own registered GST number to pay off this tax.
If a company wants to apply for GST or IEC, it has to select YES in the form and fill in the information otherwise, select NO.
Step 7: Submission of INC-32, 33, 34, AGILE-PRO on MCA
Then till this step applicants will have 4 forms that contain all types of information regarding subscribers, directors, and members of the company.
Now, before uploading documents as the linked form on the MCA website, make sure you check all the documents and information you have filled in.
After that, upload all four documents on the website of MCA and make payments of the same.
Step 8: Certificate of Incorporation
At the beginning of this article, I have mentioned that we will learn about how to get CIN number.
So here is the answer to that question. The CIN number is the final product you will get after following all the steps mentioned above.
Also, it is the last
Thereby, the Incorporation certificate shall be generated with CIN Number, PAN & TAN.
With this development of the online facility, it is easy for an applicant to apply for CIN number.
It made further steps in incorporation of a company easy for members and directors.
Also, providing a transparent way for a third party to carry on business with the company.
A person or company whosoever wants to do business can easily find out information about a company through CIN number.
Moreover, they can trace all aspects of the business through this 21 digits alpha-numeric unique number.
These were the 8 Steps in Incorporation of a Company. I hope now you can easily go for company registration. If you have any doubts, consult an expert for company incorporation