An enterprise that produces, buys, or sells products or services in exchange for cash is thought of as a company. In straightforward words, corporations/firm is a mode of doing business. Company registration means that lawfully obtaining the right to try and do business. In India, registration of the company is additionally referred to as the formation of business or incorporation of the company. Every company requires a set of documents for it to be registered. Today we will discuss Essential Documents Required For Formation Of Company.
The Registrar of corporations (ROC) is a workplace underneath the Indian Ministry of company Affairs that deals with the administration of the businesses Act 1956 and Corporations Act, 2013. There are presently twenty-two Registrars of firms (ROC) in operation from offices altogether major states of India. Some states, like Maharashtra and Tamil Nadu, have 2 ROCs each. Section 609 of the businesses Act, 1956 tasks the ROCs with the first duty of registering corporations and LLPs floated within the various states and, therefore, the union territories underneath their administration.
AIMS AND OBJECTIVES:
The aim of this project is to gather information on essential documents required for the formation of the company
There are many objectives for this project. Major few objectives are given below.
- To understand what is a company
- To know how to register a corporation in India
- To understand the need for registration of corporations in India
- To know which are the essential documents required for registration of a corporation in India
- To ascertain any doubt regarding the process of registration of a corporation in India
- To understand the process of registration of the corporation thoroughly
METHOD AND METHODOLOGY:
The method used to gather the required information on the project is an internet survey method. The Internet has extensive information on this subject. It has a vast collection of data regarding essential documents required for the formation of the company. The survey has unveiled information about the process of registration of a company in India. The main points covered are given below.
- What is the company and registration of a company?
- The process of registration of a corporation in India
- The documents required for the registration of the firms
- The need for registration of the corporations/firms
DETAIL REPORT OF PROJECT:
- What is the company and registration of a company?
A company, abbreviated as co., could be a legal entity created from an association of individuals, be they natural, legal, or a combination of each, for carrying on an advertisement or industrialization. Company members share a standard purpose and unite to focus their numerous skills and organize their put together out there skills or resources to attain specific, declared goals. Firms take numerous forms, such as voluntary associations, which can embody non-profit-making organizations, etc.
A company or association of persons may be created at law as a legal person, so the corporate in it will settle for financial obligation for civil responsibility and taxation incurred as members perform (or fail to discharge) their duty among the in public declared “birth certificate” or revealed policy.
Companies as legal persons might associate and register themselves put together as different firms – usually called a corporate group. Once a corporation closes, it should need a “death certificate” to avoid any legal obligations.
Registration is the method by that a corporation files needed documents with the Securities and Exchange Commission (SEC), particularization the particulars of a planned public giving. A corporation issue shares should reveal essential facts and elaborated data concerning its business throughout the registration method, together with an outline of its business and assets, an outline of the safety being offered and therefore the any details of the giving, an outline and names of the company’s management, and therefore the company’s monetary statements, that are certified by associate bourgeois, operating severally of the corporate.
- The process of registration of a corporation in India.
Following is the method for registering a corporation in India:
- Getting Digital Signature Certificate (DSC) from MCA
Step one is to appeal for the digital signatures of the directors, additionally known as DSC. DSC is an e-signature to assist you in completing the new company registration online. It usually takes a pair of days to get DSC once submitting the documents. The Information Technology Act, 2000, has provisions to be used of Digital Signatures on the documents submitted in electronic type to make sure the safety and legitimacy of the documents filed electronically. This is the safe and original way to submit a document electronically. As such, all filings done by the companies/LLPs underneath the MCA21 e-Governance program are needed to be filed victimization Digital Signatures by the person authorized to sign the documents.
- Prepare INC-29
- Director’s identification number (DIN number)
- Name consent
- Memorandum and Articles of association (moa & AOA)
- Registered workplace verification
- Appointment letters and declaration
- Filing INC-29
One of these documents are prepared, we’ve got to file the forms for company formation once that we tend to get the certificate of incorporation.
- The issue of Incorporation Certificate
Once you get the certificate of incorporation, we tend to get the pan range at the side of it and that we will open the bank account.
- The documents required for the registration of the corporations
PAN Card copy of the planned administrators of the corporate is needed for Company Registration. PAN or Permanent Account number could be a distinctive identification issued by the Department of tax in India. It’s necessary for administrators who are Indian Nationals to submit PAN throughout the incorporation method.
Note: The Ministry of Company Affairs employs the name on the PAN Card for all matters concerning the corporate. Hence, just in case of the mistake within the name mentioned within the PAN Card or name amendment because of the wedding or the other reason, the PAN Card should be 1st modified.
Additionally, to the PAN Card copy, the planned Director should submit an address proof. The address proof submitted should have the name of the Director, as mentioned within the PAN Card, and, therefore, the most current address of the Director. Further, the document should conjointly not be older than two months. The subsequent documents are acceptable address proof for Indian Nationals such as Passport, Election Card or Voter card, Ration Card, Driving License, Electricity Bill, Telephone Bill, and Aadhaar Card.
Additionally to the address proof, residential proof should be submitted throughout the incorporation of the corporate to validate the present address of the Director. As applicable for address proof, the residential proof should conjointly contain the name of the Director, as mentioned within the PAN Card, and should not be older than two months. The subsequent documents are acceptable residential proof: Bank Statement, Electricity Bill, Telephone Bill.
Registered workplace Proof:
In addition to providing identity, address, and residential address for the administrators, proof should be provided to validate the registered workplace address of the corporate. The subsequent documents should be submitted as proof of a registered workplace throughout the corporate registration method or at intervals thirty days of incorporation of the corporate. The registered document of the title of the premises of the registered workplace within the name of the company; OR
The notarized copy of lease/rent agreement within the name of the corporate alongside a replica of rent paid receipt not older than one month;
In addition to the on top of, the subsequent should even be provided as proof of registered office:
The authorization from the owner (Name mentioned within the Electricity Bill or Gas Bill or Water Bill or land tax Receipt or Sale Deed) to use the premises by the corporation as its registered workplace. This can be typically brought up as NOC from Landlord, AND Proof of any utility service like telephone, gas, electricity, etc. portrayal of the address of the premises within the name of the owner or document, that isn’t older than two months.
Shareholder: Indian National or Foreign National
The identity and address proof as careful within the article should be submitted for all the shareholders of the corporate (i.e., subscribers to the memo of Association (MOA) and Articles of Association (AOA).
Shareholder: company Entity or Artificial Judicial Person
In case one in all the stockholder or subscriber to the ratite bird and AOA could be a company Entity (Company, LLP, etc.,), the Certificate of Incorporation of the Body Company should be hooked up alongside the resolution glided by the Body Company to subscribe the shares of the corporate beneath incorporation. In addition to the on top of proofs and documents, a variety of documents like INC-9, MOA, and AOA would be written by knowledgeable. These legal documents created specifically for the incorporation should be signed and notarized by the promoters of the corporate.
Cost And Time Required For Various Registrations:
- Private limited company: cost=rs.6,299 and time: 15 days
- Limited liability company: cost=rs.3,999 and time: 20 days
- One person company: cost=rs.4,799 and time: 15 days
- Section 8 company(NGO): cost=rs.17,999 and time: 30 days
- Public limited company: cost=rs.19,999 and time: 30 days
- The need for registration of the company
- It protects from personal liability for business risks and losses.
- It makes you look serious and attracts a lot of customers.
- It creates a higher image and quality within the market.
- Easier to induce bank credit and investment from investors.
- It creates religion in workers and straightforward to draw in the proficient workforce.
- It is super convenient to exit or sell the business, thanks to less documentation and value.
ANALYSIS OF DATA:
Companies should currently file all needed data electronically. Thus it may be accessible to the general public a lot of quickly. Corporations should additionally file a prospectus that provides an outline of the company’s share, providing, as well as the scale, what the funds raised, are going to be used for, and get in touch with data for the corporate. A red herring is that the 1st providing document that a security institution should issue. The ultimate prospectus contains finalized data, as well as the precise range of shares/certificates issued and precise, providing value that is written when the deal has been created effectively.
Not everyone operating for a securities dealer or broker or an investment bank should be registered to conduct business. However, the necessities are rigorous, by necessity. If you’re brooding about mercantilism securities or operating for an investment bank as a career, it’s best to ascertain with the relevant authorities in your jurisdiction to make sure that you simply have complied with all relevant laws governing the sale of securities.
To conclude my findings, I am doing this project because very few people know about it. This project is more of an awareness for the general public on registration of the company. The company is brought into existence once the Registrar of Companies (Registrar) problems the certificate of incorporation. The memoranda of the Association confirm the subscribers’ intention to create an organization and become members of that company on the formation and are in an exceedingly prescribed format.
A corporation is made by delivering a charter document known as the articles of incorporation to the suitable state authority and paying the acceptable fees. The Articles of Incorporation may be a leased document mandated by statute. This is often a public document that will be simply accessed by anyone.
The discussion revealed:
- The importance of registration of the company.
- The need for registration of the company
- The procedure and documents required
- The time and cost of the whole process of registration of the company
- Information about how documents need to be up to date when it comes to registration.
There are a few opinions and suggestions by family and friends whom I discussed my project findings with; they are given below:
- There should be some kind of awareness program regarding this topic
- Every business person should know the process of registration of the company
- It should be made compulsory by the govt. of India
- It should be a more efficient and convenient process
My profound gratitude to all the faculty members of the Department, for their timely assistance and encouragement throughout my research work.
I duly acknowledge the encouragement and support from the research scholars in the department, and all my colleagues and friends.
It gives me immense pleasure to take the opportunity to all the people who are directly or indirectly involved in the completion of my project based on Essential Documents Required For Formation Of Company.
With deep reverence, I offer my deepest gratitude _____, without whom this project could not have been fulfilled.
Lastly, I thank Almighty, my parents, family members, friends, and teachers for their constant encouragement and support, without which this project would not be possible.
Name of School/College
BIBLIOGRAPHY / REFERENCE: