A Company is a separate legal entity which is registered in India according to provisions mentioned under the Companies Act, 1956. First of all, the type of Business Entity has to be decided; following are the types of Business Entities available in India:
Private Limited Company
Public Limited Company
Unlimited Company
Partnership
Sole Proprietorship
The Foreign investors/Companies in India are allowed to do business in India through following entities:
Liaison Office
Representative Office
Project Office
Branch Office
Wholly owned Subsidiary Company
Joint Venture Company
Approval of Company Name by Registrar of Companies (ROC) - The preliminary requirement of formation of a Company is approval of name by the ROC of the State/UT in which the companys’ registered office will be maintained. The applicant should submit with ROC at least four names proposed for the company in order of preference. The name is usually approved within seven days from the date of submission of the application.
Memorandum and Articles of Association - These are the principal documents required for Incorporation of the company which have to be submitted within Six months from Date of Approval of name. The MOA contains the Scope and Objectives of the company, whereas AOA lays down rules and regulations for achieving those Objectives.
Certificate of Incorporation - After the duly Stamped MOA, AOA, documents and forms are filed and fees paid, the ROC scrutinizes them and if everything is found alright, issues the Certificate of Incorporation after which a private limited company can commence the business; however, a public limited company cannot do so until it obtains a Certificate of Commencement of Business from the ROC.
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