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:
Obtaining Digital Signature Certificate (DSC) of the proposed directors and promoters of the Company. The following documents / information is required for acquiring DSC :
Passport size photograph
Phone No. and Email id.
Search for the name availability
An application for approval of name of the Company is to be filed in Form No. SPICE+ (PART A) with the Registrar of Companies (ROC) of the state in which the Registered Office of the proposed Company is to be situated.
Following details are required to be stated in the application:-
1. Two alternative names for the proposed company. The names of the proposed company should not be identical / similar to the name of the other company already registered in India. The name can be coined names from the objects of the proposed company, or the names of the promoters, etc. but should definitely be indicative of the main object of the company. The foreign nationals can have identical name of its parent company, subject to terms & conditions as may be imposed by the ROC.
2. Brief description of the main object.
On submitting the application, the ROC scrutinizes the same and sends the approval / objections in about 48 hours to the applicant. On fulfilling the objections, if any, raised by the ROC, a formal letter of name approval is issued. Name will be reserved for 20 days only from the date of approval of name application by the ROC
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 and various declarations 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 directors of the company, these need to be filed with ROC through E-form SPICE+ along with requisite fee as applicable time to time.
Online verification of the documents.
The Registrar of Companies on being satisfied about the documents filed and contents thereof, will issue certificate of incorporation. The certificate so issued by the ROC is conclusive proof of incorporation of the company in India under the Companies Act, 2013.