The most suitable form of entity for carrying out business in India with a long term objective would be to form a Private Limited Company, by making investment through the equity shares in the Company. The basic Requirement for a private Limited Company in India is as follows:-
Minimum Two Directors (One should be resident in India)
Minimum Two Shareholders
Under the current rules and regulations the registration of the company in India is easy and hassle free. The steps for incorporation of Company in India are as under:
Application for Director Identification number (DIN) and Digital signature certificate (DSC). It can be obtained by way of filing necessary application alongwith following documents to the Government Nominated Agencies:-
Passport size photograph
A affidavit to be signed by the applicant
Search for the name availability
On the basis of the proposed objective of the company, it is required to search from ministry of the corporate affairs, whether intended name is available for registration or already register by someone. In name approval form a promoters is required to give six names in order of their preference. The applicant need to file INC-1 for obtaining the name approval from the office of the Registrar of Companies of the respective state where the registered office of the company is going to be located.
Drafting of the incorporation documents
On receipt of the name approval letter from the ROC, the incorporation documents like Memorandum of Association ( MOA) & Articles of Association ( AOA), Form INC 9, Form INC 10 etc are required to be drafted. The MOA and AOA are charter documents of the company . Therefore, these documents should be drafted with due diligence and by a professional having in depth knowledge of the business and Applicable Indian Rules & Regulations. The MOA states the main and incidental or ancillary objects of the proposed company. It also states the authorized share capital of the proposed company and the names of its promoters. The AOA contain the rules and procedures for the routine conduct of the proposed company. It also states the names of its first / permanent directors of the proposed Company.
Filling of the application for incorporation of the company.
Once the above documents are ready and executed by the proposed promoter and shareholder of the company , these need to be filed with ROC alongwith requisite fee as applicable time to time.
Online verification of the documents.
If the Registrar is satisfied about the authenticity of the documents so filed by the applicant, the Registrar issue certificate of incorporation online and send hard copy of the same to the Registered Office of the company as mentioned in the application form.