What is the procedure for company incorporation?

Have a great startup idea in mind and want to frame it into a legal business? Then remember that to run any business in India, it must be incorporated as per the new Companies Act 2013. But now, the question can be about the procedure and documents. It is the reason why people usually search for professional help forcompany incorporation services in Delhi and other regions of the country. Let’s discuss the process so that you have complete knowledge before company registration.

Reserve company name through offline way

The foremost step to start company incorporation is by setting up the identification. For this, one needs to reserve the name of the company. One can check if the name that they want is available for registration on the official website of the Ministry of Corporate Affairs (MCA). One can provide 2 options for the name with their preferential order and follow all naming conventions. Once the MCA approves the name, the applicant has a time period of 20 days to fulfill all the formalities.

SPICe+ procedure to incorporate company

On 23^rdFebrurary 2020, SPICe+ and linked forms were introduced  to replace the existing SPICe form. Now you can apply through this form via online mode. The steps are:

1. Login to MCA portal & click on SPICe+
2. In case, if it’s your first attempt then choose “New Application”. If you want to review your submitted application by clicking on the existing application.
3. When you click on the new application option, you will see Part A of SPICe+ form. It contains fields which are related to name reservation of the company. These attributes will include type, class, category, sub-category, main division of industrial activity of the company. Fill them all.
4. Click on Auto-check button and enable the first level automatic inspectopmpf the proposed name as per name rules.
5. After completing this part A, you can submit for name reservation or proceed for incorporation.
6. Click on “Proceed for Incoporation” option to move to Part B which will contain various sections with separate checkpoints.
7. Enter details like company’s address, details of directors, capital structure of the company, PAN & TAN, etc.
8. Upload all documents required for the submission of the application
9. Check all the checkboxes to confirm all declarations.
10. Click on the auto-verification and once it’s done, then proceed with “submit”.
11. After submission, you will get an acknowledgement.
12. Thereafter, you can download your application PDF of SPICe+ (part B) for affixing DSC. Moreover fill all the linked form like Agile-pro, SPICe+ MOA/SPICe+ AOA, and URC-1.

3 important factors for company name approval

• The name should be unique
• It shouldn’t be offensive
• It shouldn’t mislead people that it is associated with the government.

Attain digital signature certificate

A digital signature is like a digital key and contains all the important information about the signatory. It may include name, email, contact number, etc.

Apply for Director Identification Number (DIN)

DIN helps in uniquely identifying the rectors of the company. After the approval of DIN, one can file the corporation documents under Registrar form- DIR-3. It may take around 7 days for DIN approval. But one can file for the company incorporation before DIN approval by paying an additional fee.

• Write your Memorandum of Association (MoA)

According to section -4 (6) of the Companies Act 2013, MoA should be in the format as per the prescribed in tables A, B, C, D, and E (Schedule 1). It will mention all the information about the organization, operations, objectives, abilities, and people involved in the management, like stakeholders and directors.

• Write detailed Articles of Association (AOA)

This document must mention all the operations, the process of election of directors, and other associated information.

Once your company is incorporated, you will get a certificate. The procedure is online, and you don’t need to visit anywhere. If you still have any doubt and want more information or professional help, then you can contact Inside Tax. We offer company incorporation services in Delhi and other parts of the country. So contact us and get your incorporation certificate as soon as possible.