Company incorporation

The word incorporation means combination, fusion, merger and the word company means business, corporation and enterprise. Company incorporation is the formal way of declaring the details about the company. The details will include the full name of the company and the officers of the company. A company can be formed as either private limited company or public limited company. The procedure for incorporation is same.  In both cases the minimum number of stakeholders and directors are required. It is possible that the stakeholders and director can be the same person.

We will help in finding out the minimum requirements if you are opening either a private limited company or public limited company. This page will give you all the essential resources for starting a company in India.

Following are the steps that are common for forming either a private limited company or public limited company:

  1. Get the Direct Identification Number (DIN) and Digital Signature Certificates (DSC) for each director.
  2. Check out for the name is already available for your company by searching on the net. You can select six names for the proposed company. Then apply for the name availability of the proposed company to the ROC (Registrar of the Companies) with the recommended fees.
  3. Once you get the name of your company by ROC, it will remain valid for six months. In case you do not incorporate the proposed company within six months, you can renew the name of the company by paying the recommended fee to the ROC.

In addition to all the above said things you will need the following documents once you get the name approval by ROC of your company. These are:

  • Memorandum of Association (MOA)
  • Articles of Association (AOA)
  • Form 32
  • Form 18
  • Letter of authority/Power of Attorney (POA)

Following are the further steps ahead once you get the name of the company. These are as follows:

  • DD in favour of ROC for the recommended fee for registration.
  • Get MOA and AOA duly stamped before sending to the ROC.
  • Once you send all the documents to the ROC it will check the authenticity of the documents.
  • If ROC gets satisfied it will give a green signal i.e. the ROC will issue the certificate of incorporation. Your company will commence from the date of certificate.

Following are the differences between a Private Limited company and Public Limited Company

Requirements of a Private Limited Company

  • Minimum two shareholders
  • Minimum two directors
  • Minimum share capital – INR 100,000

Requirements of Public limited Company

  • Minimum seven shareholders
  • Minimum three directors
  • Minimum share capital – INR 500,000

Besides this, a company can also be formed as a non-profit organisation/non-government organisation. These organisations work in the growth of a selected area. This selected area could be education, art etc. This doesn’t mean that the company will not earn the profits. Whatever profits a non-profit organisation earns will be spend on the growth of the area they have chosen. The profit will not get distributed among the owners of the company. An NGO can be both a private limited company and public limited company.