Company Incorporation/Formation in India

Company Incorporation/Formation in India

29 January 2016 • Kamini Goyal

Yes, a non-resident can incorporate a Company in India. But every Company shall have at least one Resident Director.

Resident Director means a director who has stayed in India for a total period of not less than 182 days in the previous calendar year.

2.      What are the basic requirements to incorporate a Private Company by Non-Resident?

3.      What are the First Information / initial documents required for incorporating a Company?

1. Directors:
   • A person is required to apply for Director Identification Number (DIN). DIN is a unique identification number for Director for which application can be made at the time of incorporation.
   • Requirement of Digital Signature Certificate: – It is an electronic document that is required for filing of e-forms.
   • Details of Directors such as director name, their date of birth, nationality and E-mail ID.

    

2. For Digital Signature and DIN :
   • Personal details, occupational details and educational qualifications.
   • Photo Id Proof and Address Proof (e.g. Passport, Driving License, PAN, Voters ID card etc).

    

3. Name Availability:
   • Proposed name and the object details of the proposed Company to be incorporated.

    

4. Incorporation:
   • Residential Proof-Bank/ Electricity Bill/ Telephone Bill/ Mobile Bill.
   • Principal Documents of the Company, like MoA and AoA.
   • For Registered Office
     • The registered document of the title of the premises of the registered office in the name of the Company;
     • Copy of lease/rent agreement in the name of Company, in case the premises are occupied on basis of lease/rental agreement.
     • The proof of evidence like telephone, gas, electricity bill depicting the address of the premises in the name of the owner or document, as the case may be.
   • Foreign Identity Proof, address proof and other documents of foreign origin of Director.

Note: The above documents are required to be notarized or apostilled in case of Non Residents.

4.      What is the procedure for incorporating a Company?

 Incorporation in India involves the following steps:

• Applying for DIN by the Directors.
• Name Availability for the proposed Company. Maximum six names can be proposed under this process.
• Drafting of Memorandum and Articles of Association. These are the charter documents of a Company.

Memorandum of Association:-It is a document that regulates the Company’s external activities and contains the Company’s Name, Objects, Registered Office address, Liability, Capital and details of the subscribers.

Articles of Association set out the rules for internal running and deals with the internal matters of the Company.

•  Filing of Incorporation documents.

5.      Is there any easier and faster procedure for incorporating a company in India?

Recently, Government of India came up with an innovative way to make the incorporation procedure easier. It has introduced new Form INC-29 (Application for Incorporation) which has substituted five different forms. Thus incorporation has become a lot simpler and easier. Application for DIN of Directors can be made through the same Form. Thus, a Company can be incorporated only in one step:-

• Filing Form INC-29

Final Certificate of Incorporation shall be granted then.