Registration and Incorporation of a Company in Delhi

October 31, 2017 | Author: | Posted in Business

Company registration refers to the process of registering a company with Ministry of corporate affairs. The rules regarding the process of obtaining company registration in Delhi has been specified in company incorporation rules 2014. A person aspiring to become an entrepreneur has the multiple options like the private limited company, public limited company, one person company and limited liability partnership. It is not mandatory to obtain registration of the company. However it is always to obtain company registration.

Benefits of company registration

Following are the benefits associated with company registration-

  • It helps to make the incorporated company a separate legal entity which limits the liabilities of the member.
  • It helps the company to create a brand image in the minds of people.
  • Registering a company ensure the perpetual succession of the company. Thus the life of the company does not end with the end of life of members.
  • It helps to reduce the tax liability of the individual members.

Documents required for registering a private limited company in Delhi are as follows

  • Copy of Pan Card
  • Copy of Voter Id card/ Driving License
  • Copy of address proof (Electricity bill, phone Bill documents should not be older than 2 months)
  • Photographs of Director’s

Procedure for registering a private limited company in Delhi is as follows-

Step-1-Applying for DIN (Director’s Identification Number)

To start the procedure of registration every director of the company is required to obtain their Director’s identification number. In order to obtain a DIN the director’s needs to file an electronic Form DIN-1 that is available on the Official site of the ministry of corporate affairs.

  • The applicant is required to register himself on MCA Website and have a login id. Further, the applicant shall upload the filled form by clicking to electronic Form upload button on MCA website and should pay applicable fees.
  • As soon as the DIN will get generated the director is required to intimate the company about the same using Form DIN-2.
  • Further, proposed company should intimate the Registrar of Corporate (ROC) about all director’s DIN through DIN-3 Form.

 Step 2: Obtaining Digital Signature Certificate (DSC):

As per information act 2000, the documents submitted electronically shall contain a valid digital signature on. This provision is made in order to ensure safe submission of the required documents electronically. The digital signature certificate should be acquired by only those agencies which are appointed by the controller of certification agencies (CCA). One should not use DSC given by any other agency which is not approved and it’s illegal to use others DSC as yours or the false one.

The Digital signatures can be acquired from these government listed agencies like TCS, IDBRT, MTNL, SAFESCRYPT, NIC, nCODE Solutions etc.

Step 3: Creating the new registration account on MCA Portal

To facilitate the procedure of incorporation it is crucial to acquire the registered user account on MCA Portal for filing an e-Form, for online fee payment, for different transactions as registered and business user. Creating an account is totally free of cost.

Step 4: Filing of electronic forms

Through this step the applicant is required to file electronic forms relating to incorporating company name, registering the office address or notice of situation of office and notice for appointment of company directors, manager and secretary also regarding the take and pay for their qualification shares. The forms for these purposes are as follows-

  1. Form-1: Through this form, an application for availability or change of a company name shall be made. The applicant is enabled to provide minimum four and maximum six names for the name of the proposed company. The name chosen must be unique and shall not resemble with the name of any existing company in India.
  2. Form-18: This form is for notice of the situation of a new company office or change of situation of previously registered office.
  3. Form-32: Through this form notice for appointment of new Directors, Managers and Secretary shall be submitted.

Step-4 -Drafting Memorandum of Association and Article of Association

The MOA and AOA of the proposed company shall be drafted.

Memorandum of Association– Memorandum of association is a document which defines the relationship of the shareholders with the company. It basically contains the objectives and powers of the company.

Articles of association– They are the bye-laws which define the relationship of the company with outsiders. Information such as the total number of members, share capital, rules for a meeting of the company, voting power of members must be included in the Articles of Association.

Step-5- Certificate of incorporation

After the careful scrutiny of the application and document submitted the MCA may grant the certificate of incorporation to the proposed company. Further, the applicant will receive a confirmation email regarding the application for incorporation of a new company, and the status of the form will get changed to Approved.

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