HOW MUCH DOES IT COST TO REGISTER A COMPANY?

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register a company?

In India, registration of a company is governed by the Companies Act 2013 which is done under the Ministry of Corporate Affairs (MCA).

The cost of registering a company differs depending upon different kinds of companies and other factors and can be ascertained with the help of company registration consultant in Delhi or elsewhere.

As per section 403 of the Companies Act 2013, the documents and information that are required to be filed with registrar of companies for registering a company shall be submitted within the specified time and with payment of prescribed fees.

GOVERNMENT FEES TO BE PAID FOR REGISTERING SMALL COMPANIES AND ONE PERSON COMPANY

• The cost of registering company having nominal share capital within Rs. 1000000 is Rs. 2000.
• The cost of registering company having nominal share capital more than Rs. 1000000 but less than Rs. 5000000 is Rs. 200 for every Rs. 10000 or part thereof nominal capital.
• The cost of registering company with nominal share capital more than Rs. 5000000 but less than Rs. 1 crore is Rs. 156000 but Rs. 100 will be added for every Rs 10000 thereof.
• The cost of registering company with nominal share capital more than Rs. 1 crore is Rs. 206000 wherein Rs. 75 will be added for every Rs. 10000 thereof subject to maximum of Rs. 250 crore.

GOVERNMENT FEES TO BE PAID FOR REGISTERING COMPANIES OTHER THAN ONE PERSON COMPANIES AND SMALL COMPANIES including private company registration in Delhi

• When the nominal share capital of a company is within Rs. 100000, the cost for registering a company shall be Rs. 5000
• When the nominal share capital of a company more than Rs. 100000 but less than Rs. 500000, the cost shall be Rs. 400 for every Rs. 10000 thereof
• When the normal share capital is more than Rs. 500000 but less than Rs. 5000000, the registration cost shall be Rs. 300 for every Rs. 10000 thereof
• When the nominal share capital is between Rs. 5000000 and Rs. 1 crore, Rs. 100 for every Rs. 10000 thereof shall be paid
• When the nominal share capital is more than 1 crore, cost of registration shall be Rs. 75 for every Rs. 10000 and thereof.

COST INCURRED FOR REGISTERING COMPANIES WITH NO SHARE CAPITAL and private company registration in Delhi with no share capital

• Cost for registering companies having members within 20 as stated in its AoA is Rs. 2000
• Cost for registering companies whose members are more than 20 is Rs. 5000
• Company having members more than 200 but is not stated to be unlimited, cost of registering such company shall be Rs. 5000 plus an additional fee of Rs. 10 for every member after first 200
• Cost for registering a company whose members are unlimited is Rs. 10000

FEES FOR SUBMITTING OR REGISTERING THE DOCUMENTS WITH REGISTRAR

– For companies with share capital-

• The registration charge for a company whose nominal share capital is within Rs. 100000 is Rs. 200
• The registration fees for an organization whose share capital is more than Rs. 100000 but less than Rs. 500000 is Rs. 300
• Company having share capital more than Rs. 500000 but less than Rs. 2500000, registration charge for such company will be Rs. 400
• Registration fee for company whose share capital is between Rs. 2500000 to Rs. 1 crore is Rs. 500
• Registration fee for company with share capital more than 1 crore is Rs. 600

– For companies without share capital, online company registration fee is Rs. 200.

For registration of reports as per section 385 of the Companies Act 2013, charge of Rs. 6000 is to be paid for each form. Similarly, charges for removal of name of company from the register of companies under section 248(2) shall be Rs. 5000.

Also, there are separate charges or fees to be paid for late filing of forms and any other information can be ascertained with the help of company registration consultant in Delhi or elsewhere.

HOW DO I INCORPORATE OPC?

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As per 2(62) of companies act, 2013 ‘One Person Company’ is a company that has only one person as its member and only require one director.

Paid up share capital of an OPC shall not exceed Rs. 50 lakhs and its average annual turnover of immediately preceding three consecutive financial years should not exceed Rs. 2 crores. If the given limit of share capital and average annual turnover exceeds, OPC has to mandatorily convert itself into a private or public company.

PROCEDURE FOR OPC INCORPORATION IN INDIA-

1) For incorporation of company in India, the only member of OPC has to obtain its digital signature.
2) After obtaining digital signature, application for reservation of a name shall be made in form RUN (reserve unique name) along with fee of Rs. 1000 as per rule 9 of the companies (incorporation) rules, 2014.
Allotted name shall be valid for 20 days.
3) Ones the name is allotted, form INC. 32 (SPICe) shall be filed with the ROC along with following documents-
• Declaration made by professional in INC. 8
• Declaration made by the member in form INC. 9
• Consent of director in form DIR 2
• Self attested copy of PAN of the member
• Self attested copy of driving license/ passport/ voter ID card of the member
• No objection certificate from the owner of proposed registered office along with utility bill and ownership proof.
• Signed form INC 3
4) Form SPICe MOA and SPICe AOA shall be filed with registrar for OPC INCORPORATION
5) After all the forms are duly filed and requirements are fulfilled, ROC will issue a certificate of incorporation in form no. INC 11.

PRELIMINARY CONDITIONS FOR INCORPORATING OPC-

– A natural person who is an Indian citizen and resident in India can only be a member and nominee of an OPC
– A natural person cannot be a member and nominee of more than one OPC.
– Minor can neither be the member or nominee in OPC nor can hold any interest in such OPC.
– OPC can never be incorporated or converted into a company under section 8 of the companies act, 2013.
– No OPC can carry out non-banking financial investment activities including investment in securities of anybody corporate.
– Conversion of OPC into any other kind of company is not possible unless 2 years are passed from date of incorporation or if it falls under the mandatory conversion criteria.
– It is mandatory for every OPC to include word ‘OPC’ in brackets after the name of the company.
It is to be noted that for incorporation of company in India, OPC is not required to hold annual general meeting. But it should hold 2 board meetings during a calendar year and gap between such meetings shall not be more than 90 days.

HOW TO REGISTER A COMPANY IN INDIA

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HOW TO REGISTER A COMPANY IN INDIA

A company is a separate legal entity incorporated for a lawful purpose with perpetual succession.

Section 7 of the companies act, 2013 provides how to register company in India.

Procedure for incorporating company in India-

1) Filing e-application for reservation of a name
2) Draft and sign memorandum of association and articles of association of the company and submit it to ROC
3) Consent of persons to be nominated as directors of the company
4) Submit ‘statutory declaration of compliance’ and other documents
5) Payment of fees and amount of stamp duty
6) Obtaining certificate of incorporation from ROC duly signed by registrar
7)Filing of declaration of address of registered office

Important requirements for how to register company in India-

1. FILING OF DOCUMENTS WITH REGISTRAR

For the purpose of registration of a company, following documents and information must be filed with ROC within whose jurisdiction the proposed registered office of the company is to be situated-
• Memorandum of Association and Article of Association of the company duly signed by all the subscribers to memorandum of the company
• Declaration made by the person engaged in the formation of the company and the person named in Articles of the company, that all the requirements of companies act and its rules in respect of registration and matters precedent or incidental thereto have been complied with
• Declaration by subscribers to the memorandum and from the first directors of the company, stating that-
–  He is not convicted of any offence in relation to promotion, formation or management of any company, or
–  He has not found guilty of any fraud or misfeasance or any breach of duty in any company during last five years
–  And all the documents filed with the registrar for incorporation of the company are correct and complete and to true to the best of his knowledge and belief
• Correspondence address till the registered office is established
• Particulars of every subscriber to the memorandum of the company along with proof of identity and in case of subscriber being a body corporate, such particulars as may be prescribed.
• Particulars of the first directors as mentioned in the articles of the company including the proof of identity.
• Particulars of interests of persons mentioned as first directors in the articles of the company in other firms or body corporate along with their consent to act as directors of the company

2. ISSUANCE OF CERTIFICATE OF INCORORATION

On the basis of documents and information filed with the registrar, registrar shall register all the documents and information in its register and issue a certificate of incorporation in prescribed form. Certificate of incorporation is a proof that company is incorporated under companies act, 2013 and is an answer to how to register company in India

3. ALLOTMENT OF CORPORATE IDENTITY NUMBER

Corporate identity number (CIN) is a distinct identity for the company. CIN is allotted to the company on and from the date mentioned in the certificate of incorporation giving company an unique identity

4. MAINTENANCE OF COPY OF ALL DOCUMENTS AND INFORMATION

The company shall maintain and preserve all the documents and information filed with the registrar at its registered office till its dissolution.

5. FURNISHING OF FALSE OR INCORRECT INFORMATION OR SUPPRESSION OF MATERIAL FACT, IF ANY:

If any person furnish false or incorrect information or document or suppresses any material information in relation to the registration of the company, of which he is aware of, he shall be liable for fraud under section 447 of the companies act, 2013 and should know how to register company in India

6. COMPANIES ALREADY INCORPORATED BY FURNISHING ANY FALSE OR INCORRECT INFORMATION OR REPRSENTING OR SUPPRESSING ANY MATERIAL FACT:

If after the incorporation of the company, it is proved that the company has been registered by furnishing any false or incorrect information or through suppression or representation of material fact in the documents, the promoters and the persons named as first directors of the company and the persons making declaration shall be liable for fraud under section 447 of the companies act, 2013.

7. ORDER OF TRIBUNAL

If a company has been incorporated by furnishing false or incorrect information or representation or suppression of any material fact in the documents filed for registration of the company, the tribunal may on the basis of application made to it shall-
– Pass such orders as it may think fit for the management of the company and for changing memorandum and articles of the company, or
– Direct that liability of members shall be unlimited, or
– Directly removing the name of the company from register of companies, or
– Pass an order for winding of company, or
– Pass such order as it may deem fit on being satisfied of the situation

Provided that, the company shall given reasonable opportunity of being heard regarding the matter and tribunal shall take into account the transactions entered by the company including any obligations or contract or payment of liability.

Therefore, now we know how to register company in India

What are the documents required for private limited company?

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private company limited

The Companies Act, 2013 makes it mandatory for every private company in India to be registered in order to commence its business. The registration or incorporation of a private limited company is the process by which an entity comprising of 7 or more persons be registered by the Registrar of Companies. The registration of the company shall be done according to the procedure laid down in the Companies Act. Following is the list of documents required for private limited company registration.

Documents required by the Director-

The first step of the registration process is to obtain Director Identification Number (DIN). To obtain DIN, the following documents are required by the director of the private limited company.

1. An identity proof (pan card) is required. The identity proof must include the name of the applicant, applicant’s father’s name, his date of birth etc.
2. Foreign national applicants are required to submit a copy of their passport as an identity proof.
3. The directors of the private limited company are required to submit proof of their residence. Following documents can be submitted as proof of residence:
● Passport
● Voter Identity Card
● Driving License
● Ration card
● Electricity Bill
● Telephone Bill
● Bank Account Statement

All the above mentioned documents required for private limited company registration shall be in the name of the applicant and not older than one month.

4. A high resolution passport size photograph of the applicant in JPEG format must be submitted.

The applicant shall-self attest the copies of the aforementioned documents. The copies shall also be scanned and sent to the concerned authority via email.

Memorandum of Association and Articles of Association

The Companies Act requires formation of the Memorandum of Association and Articles of Association of the private limited company that is to be registered. The Memorandum and articles of association should be duly signed by all the subscribers of the memorandum and shall include their name, address, description and occupation.

Affidavit

An affidavit from each director of the company and its subscriber must be submitted to the Registrar. The affidavit shall state that the director or subscriber

1. Has not been convicted of any offence relating to the promotion, formation or management of any previous company.
2. Hasn’t been found guilty of any fraud or misfeasance or breach of duty to any company under the Companies Act for the last 5 years.
3. That all the documents filed with the Registrar are true and correct to the best belief and knowledge of the person signing the affidavit.

Declaration by a professional

Registration of a private limited company also requires submission of a declaration in the prescribed format by an advocate, chartered accountant or company secretary in practice. It shall state that all the requirements and rules for the registration of the company have been complied with. The declaration shall also be signed by the director, manager or secretary of the company.

Correspondence address for company’s office

At the time of applying for registration of a private limited company, a correspondence address of the company should be submitted till the time the registered office is established.

Particulars of subscribers

Each subscriber to the coma shall submit such documents that contains his particulars such as name, surname, residential address, nationality, date of birth, place of birth, education qualification, email id, and phone number.

The subscriber is also required to submit
1. Identity proof
It is compulsory to submit PAN card as identity proof. Along with this, any one of the following documents can be submitted:
● Voter’s identity card
● Passport copy
● Driving License copy
● Unique Identification Number (UIN)

2. Proof of Residence
3. Proof of Nationality
4. Signature and passport size photograph
5. If the subscriber is a body corporate, then the name of the body corporate, registered office address and Corporate Identity Number should be submitted.

All the above-mentioned documents are required for private limited company registration in India. It should be attached to the SPICe form and submitted to the Registrar of Companies.

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