{"id":25058,"date":"2021-01-28T16:54:12","date_gmt":"2021-01-28T11:24:12","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=25058"},"modified":"2021-04-20T15:22:27","modified_gmt":"2021-04-20T09:52:27","slug":"procedure-for-company-formation-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/procedure-for-company-formation-in-india\/","title":{"rendered":"What Is The Procedure For Company Formation In India?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">A Private limited company is one of the popular and widely\nadopted business forms in India. The Company Act 2013 is a sole regulator of privately\nheld entities in India.<\/p>\n\n\n\n<p>Process for company formation in India has been simplified by the Ministry of Corporate Affairs under the ongoing initiative such as \u201cEase of doing business\u201d.&nbsp;MCA has inculcated a new web-based form viz SPICe+ for the applicants seeking company formation under Company Act, 2013. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-company-formation-in-india\/#Minimum_Eligibility_Criteria_for_Registering_an_Entity_as_a_Private_Limited_Firm\" >Minimum\nEligibility Criteria for Registering an Entity as a Private Limited Firm<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-company-formation-in-india\/#Procedural_Instructions_for_Company_formation_under_Company_Act_2013\" >Procedural\nInstructions for Company formation under Company Act 2013&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-company-formation-in-india\/#Check_List_Required_for_Documents_Applicable_for_Company_Formation_in_India\" >Check\nList Required for Documents Applicable for Company Formation in India&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-company-formation-in-india\/#Conclusion\" >Conclusion&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Minimum_Eligibility_Criteria_for_Registering_an_Entity_as_a_Private_Limited_Firm\"><\/span>Minimum\nEligibility Criteria for Registering an Entity as a Private Limited Firm<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>At least two shareholders are required to establish a <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>private limited company in India<\/strong><\/a>. However, the maximum limit in this regard can go up to 200, as per the guidelines of the <em><strong>Company Act, 2013<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>. <\/p>\n\n\n\n<p>In a state of financial crisis, the shareholders of the private\nlimited company are not liable to compensate for such a loss. That means their\nassets remain safe regardless of the financial standing of the company.&nbsp;<\/p>\n\n\n\n<p>As per Company Act, 2013,&nbsp;the private limited company is liable to appoint a minimum of 2 directors to oversee its operations. The upper limit in this regard, as the said act, is capped at 15- meaning a maximum of 15 directors can exist in a privately-held entity.&nbsp;An eligible candidate from abroad can also be appointed as a director in a private limited company.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/procedure-for-registration-of-private-limited-company-india\/\">Private Limited Company Registration Procedure in India<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedural_Instructions_for_Company_formation_under_Company_Act_2013\"><\/span>Procedural\nInstructions for Company formation under Company Act 2013&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>On 15th Feb 2020, the Ministry of Corporate Affairs (aka MCA) introduced the new web-based form known as SPICe+ for company formation under the Company Act 2013. The SPICe+ form consolidates two sections, which are as follows:&nbsp;<\/p>\n\n\n\n<ol><li><strong><em>PART A: Name Reservation for new companies.<\/em><\/strong><em><\/em><\/li><li><strong><em>PART B: Encloses the string of the following\nservices:<\/em><\/strong><em><\/em><\/li><\/ol>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Procedural-Instructions-for-Company-formation-under-Company-Act-2013.png\" alt=\"Procedural Instructions for Company formation under Company Act 2013\" class=\"wp-image-25108\" width=\"478\" height=\"484\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Procedural-Instructions-for-Company-formation-under-Company-Act-2013.png 985w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Procedural-Instructions-for-Company-formation-under-Company-Act-2013-296x300.png 296w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Procedural-Instructions-for-Company-formation-under-Company-Act-2013-768x780.png 768w\" sizes=\"(max-width: 478px) 100vw, 478px\" \/><\/figure><\/div>\n\n\n\n<p>The process of company formation starts with the name\nreservation on MCA\u2019s website. To fulfill such a requirement, you need to make\nsure to follow the underneath instructions carefully.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Part A of SPICE+ Form<\/h3>\n\n\n\n<ul><li>First, open the official website of the Ministry of Corporate affairs and then log in to the same website:-<\/li><li>On the home page, select \u201cMCA services\u201d &gt; SPICe+ option.<\/li><li>As soon as the new windows appear on your screen, tap on the \u201cNew Application\u201d and fill up the underneath options&nbsp;<ul><li><em>Type of the company<\/em><\/li><li><em>Class of company<\/em><\/li><li><em>Category of company<\/em><\/li><li><em>Sub-Category of company<\/em><\/li><li><em>Main division of industrial activity of the company<\/em><\/li><li><em>Description of the main division.<\/em><\/li><\/ul><\/li><li>Enter the two proposed names for your company.&nbsp;<\/li><li>After selecting the option \u201cAuto Check\u201d, the portal will start\nexamining the input data.<\/li><li>After opting for the Auto Check option, the portal shall\ninitiate the verification process by leveraging its database for the name availability.<\/li><li>Result regarding the verification process will prompt on your\nscreen as soon as the portal completes the verification process.&nbsp;<\/li><li>Click on the \u201cSave\u201d button at the bottom of the page as soon as\nyou get the approval.&nbsp;<\/li><li>Wait until the confirmation messages prompt on the screen, and\nthen hit the Submit button.&nbsp;<\/li><li>Select the \u201csubmit for name reservation\u201d option on the newly\nopen dialog box that will appear at the top of the screen.&nbsp;<\/li><li>On the subsequent window, a message\/notification will be\nprompted on your screen regarding the fee submission. Kindly note down the SRN\nas it could prove to be useful for tracking the application\u2019s status.&nbsp;<\/li><li>Tap on the \u201c<strong>Pay\nnow\u201d&nbsp;<\/strong>for the submission of the fees for name\nreservation.&nbsp;<\/li><\/ul>\n\n\n\n<p><em><strong>Once you met the prerequisite of PART A, make sure to proceed further towards the incorporation&nbsp;process i.e. Part B of the SPICe+ form.&nbsp;<\/strong><\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Part B Consolidates Various Sections regarding the check\nform.<\/h3>\n\n\n\n<p><strong><em>The detail regarding the incorporation is as follows:&nbsp;<\/em><\/strong><\/p>\n\n\n\n<ul><li>Location of the registered company&nbsp;<\/li><li>Proposed directors as well as subscribers.&nbsp;<\/li><li>Resources presented at the company\u2019s disposal.&nbsp;<\/li><li>Apply for tax registrations i.e. PAN &amp; TAN.&nbsp;<\/li><li>Leverage pre-scrutiny check. A confirmation notification\nregarding the form submission shall prompt on the screen.&nbsp;<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">PDF version of Part B SPICE+ Form<\/h4>\n\n\n\n<p>Download the PDF version of Part B for\nattaching the Digital Signature Certificate and for filing up other linked\nforms in addition to Form B. The forms linked with SPICe+ consolidates SPICe + MoA\n&amp; SPICe + AoA, AGILE-PRO, URC-1 &amp; INC-9.<\/p>\n\n\n\n<p>Applicants can easily submit the Part B of\nSPICe+ and linked form on the online portal of the Ministry of Corporate\nAffairs. A Service Request Number is generated by the portal against the fees\nsubmitted by the applicant. Upon receiving the requested fee, the application\nundergoes the evaluation for further assessment.&nbsp;<\/p>\n\n\n\n<p>In an event where the authority flagged the\napplication for viable flaws, consider resubmitting the application by\nfollowing the entire process again.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Check_List_Required_for_Documents_Applicable_for_Company_Formation_in_India\"><\/span>Check\nList Required for Documents Applicable for Company Formation in India&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The Articles of Association (AOA) &amp; Memorandum of Association (MOA).&nbsp;<\/li><li>Declaration by the directors &amp; subscribers.&nbsp;<\/li><li>A confirmation regarding the office\u2019s address.&nbsp;<\/li><li>Copy of utility bills (for the last two months)<\/li><li>Nominee\u2019s assent<\/li><li>Residential address &amp; Identity proof of the nominees &amp; subscribers.&nbsp;<\/li><li>residential address and the Identity proof of Applicants<\/li><li>The Declaration\/Resolution of the unregistered companies<\/li><\/ul>\n\n\n\n<p><strong>For AGILE-PRO:<\/strong><\/p>\n\n\n\n<ul><li>Proof regarding the principal place of business<\/li><li>Authorized Signatory\u2019s appointment proof.&nbsp;<\/li><li>Letter of Authorization or Copy of Resolution approved by the Board of Directors.<\/li><li>Appointment proof for the proposed director for GSTN.<\/li><li>Proposed Director\u2019s identification proof for a new bank account.&nbsp;<\/li><li>Proposed Director\u2019s address for opening the bank account.&nbsp;<\/li><li>Proposed Director\u2019s signature for EPFO.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the existing trends, registering an entity is certainly beneficial both in terms of tax obligations and long-term growth. The entity under the Company Act, 2013 is entitled to leverage several exclusive benefits that ensure its consistent growth. Hopefully, you would find the above-mentioned process simple and straightforward. However, if you need some expert-level advice on the company formation, kindly make your way to <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz<\/strong><\/a> \u2018s professional.&nbsp;<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/private-limited-company-incorporation-in-india\/\">Steps for Private Limited Company Incorporation In India<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Private limited company is one of the popular and widely adopted business forms in India. The Company Act 2013 is a sole regulator of privately held entities in India. Process for company formation in India has been simplified by the Ministry of Corporate Affairs under the ongoing initiative such as \u201cEase of doing business\u201d.&nbsp;MCA [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":25066,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[1477],"acf":{"service_id":"1"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":7823,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/25058"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=25058"}],"version-history":[{"count":13,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/25058\/revisions"}],"predecessor-version":[{"id":29234,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/25058\/revisions\/29234"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/25066"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=25058"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=25058"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=25058"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}