The rules for the establishment of both public and private companies are set down under the Companies Act of 1956. The most popularly used corporate form is the limited company, unlimited companies are comparatively uncommon. A company is formed by registering the Memorandum and Articles of Association with the State Registrar of Companies of the state in which the head office will be established.

Incorporating a Company- Approval of Name

The primary step in the formation of a company is the approval of the name by the Registrar of Companies (ROC) in the State/Union Territory, where the company will have its Registered Office. The approval is given if some conditions are met: for example, the name of the company should be unique. Also, the last words in the name should be “Private Ltd.” in the case of a private company and “Limited” in the case of a Public Company. In the application you are required to list at least four suitable names of the planned company, in order of preference.

The ROC usually informs the applicant within 7 days from the date of submission of the application, about the availability of the names applied for. Once a name gets approved, it remains valid for a period of six months, within which time Memorandum of Association and Articles of Association along with miscellaneous documents should be filed. After getting a name approval, it generally takes approx. 2-3 weeks to incorporate a company depending on where it is registered.

Memorandum and articles

The Memorandum of Associations and Articles of Association are the major documents to be submitted to the ROC for the purpose of incorporation of a company. The Memorandum of Association is a document that sets out the constitution of the company. Amongst others, it includes the objectives and the scope of activity of the company as well as defining the relationship of the company with the outside world.

Certificate of incorporation

After the appropriately stamped Memorandum of Association and Articles of Association, forms and documents are filed and the filing fees is paid, the ROC scrutinizes the documents and if required, instructs the authorized person to make required corrections. Then, a Certificate of Incorporation is issued by the ROC, from which date the company is established. In a week or two from the date of filling Memorandum of Association and Articles of Association to get a Certificate of Incorporation. Even though a private company can start business just after getting the certificate of incorporation, a public company has to wait for a Certificate of Commencement of Business from the ROC.

Tax Registration

Businesses responsible for income tax must get a tax identification card and PAN number from the Revenue Department. Additionally, businesses liable to withhold tax must essentially get a TAN number. Both the PAN and the TAN must be mentioned on all the return documents, and correspondence filed with the Revenue Department.

This is just a basic idea and short information about the company Registration in Indore, MP. For more details, feel free to contact us.

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