Company Incorporation Compliance

Company incorporation is the process through which a new company is legally formed and recognized as a distinct legal entity under the law. This process involves various compliance requirements to ensure that the company meets all legal and regulatory obligations. Below is a detailed overview of the company incorporation compliance, including the requirements, processes, and associated costs.

Compliance Details


    • Objective: To obtain a Certificate of Incorporation and a Permanent Account Number (PAN) / Tax Deduction and Collection Account Number (TAN) for the newly formed company.
    • Types of Companies:
    • 1.Private Limited Company

    1. Public Limited Company

    1. One Person Company (OPC)
    2. Limited Liability Partnership (LLP)
 
    1. Key Requirements:

    1. Memorandum of Association (MOA): This document defines the company’s objectives, the scope of its activities, and its relationship with shareholders.

    1. Articles of Association (AOA): This document outlines the internal rules and regulations for the company’s governance, including the rights and responsibilities of its members.

    1. Director Identification Number (DIN): A unique identification number for each director of the company, which must be obtained before incorporation.

    1. Digital Signature Certificate (DSC): This is required for the electronic submission of documents to the Ministry of Corporate Affairs (MCA).

    1. Registered Office Address: Proof of the registered office address is required, which can include utility bills or rental agreements.

    1. Identity and Address Proof of Directors: Documents such as PAN, Aadhaar, passport, voter ID, or driving license to verify the identity and address of the directors.

  1. Incorporation Process:
    1. Step 1: Name Reservation: The first step is to select and reserve a unique name for the company using the RUN (Reserve Unique Name) facility on the MCA portal.

    1. Step 2: Prepare and File Documents: Draft the MOA, AOA, and other required forms (such as INC-7, DIR-12, and AGI) for filing with the ROC (Registrar of Companies).

    1. Step 3: Obtain DIN and DSC: Ensure all directors have valid DINs and obtain DSCs for electronic filings.

    1. Step 4: Pay Registration Fees: Pay the necessary registration fees, which vary based on the type of company and authorized capital.

    1. Step 5: Submit Forms: Submit all documents electronically via the MCA portal.

    1. Step 6: ROC Verification: The ROC will review the application and documents submitted. If everything is in order, they will approve the incorporation.

    1. Step 7: Obtain Certificate of Incorporation: Upon approval, the ROC issues a Certificate of Incorporation, which marks the legal existence of the company.

    1. Timeline: The incorporation process typically takes 7 to 15 working days, depending on the accuracy of documents and timely responses from the ROC.

    1. Charges:

    1. Service Fees: ₹5,000 – ₹15,000, depending on the complexity and specific requirements of the incorporation.

    1. Government Fees: Additional government fees based on the authorized capital of the company.

Conclusion

Company incorporation compliance is a fundamental step in establishing a business in India. Adhering to the legal requirements and ensuring that all necessary documentation is submitted accurately is crucial for a smooth incorporation process. Engaging professionals experienced in corporate compliance can greatly assist in navigating the complexities of the incorporation process and ensuring compliance with all legal obligations