Procedure Of Company Formation In India
Many people, be it foreign nationals or NRIs, prefer to open business in India. The reason behind people investing their money has to be the growing Indian economy with the potential to do wonders in the near future and the other reason would be the diversified nature of the country that enables people to invest their capital in different ways. Due to these factors, India has become the most desirable and favorable destination to set up a business.
Before the company formation in India, entrepreneurs have to take into consideration various aspects to open a company in India. The most crucial aspect which is also responsible for the success of the company is selecting a suitable business structure.
A private limited company is the most preferred form of entity for many entrepreneurs out there due to the number of advantages attached to it.
Today, we are going to talk about the procedure of company formation in India:-
- Select one suitable name for your company depending on the business goals and objectives of your setup in India. While you choose a name make sure that it is not similar to any other company already in work and also does not give any improper name to your company which violates the prevention of improper use act, 1950.
- Form 1(Declaration of compliance), Form 18(Notice of situation of the registered office of the company) and Form 32 ( Particulars of the Director’s, Manager or Secretary) have to be filled by the entrepreneur to proceed with the process of company formation in India. It has to be done within 60 days of the name approval of the company.
- Acquire a Director Identification Number (DIN) for your company. It is a unique 8 digit number allocated by the Central Government to the director of the company. It has lifetime validity. Through this number, information of the directors is recorded. It is a special identification number that is allotted to new directors in a new company by filling SPICe Form, DIR-3 form has to be filled by the person who aspires to become a director of an already existing company. All these forms are filed digitally and further uploaded on the MCA21 Portal.
- Under the Information Technology Act, 2000 Digital Signature Certificate is acquired to assure the security and assurance of the documents filed online, the online form is signed digitally. It requires 2 days to acquire DSC in India. A digital signature usually is valid for a year or two after which it has to be renewed again.
- An incorporation certificate is provided by the Ministry of Corporate Affairs and is obtained as proof of the constitution of the company. You will receive the certificate on the mail id provided along with the other documents. Acquiring a certificate for incorporation is the last step of the company formation procedure in India.
We, at DBPL, make sure that all these registration processes are conducted appropriately to set up a company in India and all the legalities and formalities stay on top of the priority list.