How to Start / Incorporate a Company ?

Posted by awgadmin on January 14, 2016  /   Posted in How to, Startup

Has a business idea? Ready to launch it? Thinking of starting a company? Here is the full process with the associated cost of each step, read it to know about the process and contact us at inbox@ausweg.in for any query.

Starting a company or (in technical terms) incorporating a company has two different procedures, the one which takes the least time is explained here.

This is the newly introduced comprehensive way to incorporate a company through INC 29.

Step 1:

Acquire a Digital Signature Certificate (DSC).

It enables the applicant to sign forms related to company incorporation electronically.

Cost: INR 700 to 1500
Time: 1 to 2 Days

Under INC 29, only one director (applicant) is mandatorily required to have a DSC.

Documents required: 1. Signed Form, 2. Photograph, 3. ID Proof, 4. Address Proof

Step 2:

Acquire Director Identification Number (DIN)

Cost: INR 512 + CA/CS/Lawyer’s Fee for attestation
Time: 1 Day

Under INC 29, only one director (applicant) is mandatorily required to have DIN to file the application and for two other applicants/directors/promotor DIN can be acquired through INC 29 itself. But in case you have more than 3 Directors you can’t go through INC 29, then you have to take the other way round or incorporate company with 3 directors and the other person can later join in as director.

Documents required: 1. DSC of the Director, 2. Scanned Photograph, 3. ID Proof, 4. Address Proof

Step 3

Name Finalization

Cost: Nil
Time: Depends upon you!

Under INC 29, you can provide only one proposed name of your company and have only two attempts i.e. in case you are not granted the name of your choice in the first attempt, you’ve got only one more chance, failure in that means you have to incur the cost of INC 29 again.

The name should adhere to the naming guidelines issued by MCA, majority it requires that the proposed name should not be similar or resembling to a registered company or trademark. Your consultant will help you out whether the name adhere to the naming guidelines or not.
Note: Well you should know that sometimes MCA rejects name on very stupid grounds.

Step 4

Preparation of Memorandum of Association (MoA) and Articles of Association (AoA)

Cost: Consultant’s Fee
Time: Depends

MoA, is the main charter of the company, It provides for the name of the company, capital, Office address, Business Objects, Subscribers.
A company can’t function beyond its MoA.

AoA are the bye laws of the company, this document governs the internal functioning of the company.

Both MoA & AoA are required to be signed by the applicants.

Step 5

Office Address

Cost: Nil
Time: Depends upon you

This is the registered office address of the company, it needs not to be the operating office, but it always advisable to have a commercial address.

Documents Required: 1. Rent Agreement/NOC from owner, 2. Latest Utility Bill

Step 6

Details of Other Directors

Cost: With INC 29
Time: With INC 29

You’ll need to provide the details of other persons who will be director/shareholder of the company other than the person having DIN

Documents Required: 1. ID Proof, 2. Address Proof, and 3. Copy of PAN

Step 7

INC 29

Cost: INR 5988 + INR 100 * (No. Of Directors) + Consultant’s Fee
Time: 2 to 8 Days

Affidavits & Declaration are taken from directors on stamp paper and these are notarized.

The information & documents gathered above is compiled in a single electronic form, which is then certified by a professional and submitted to MCA.

If everything is found in order, then the Certificate of Incorporation will be issued otherwise INC 29 will have to be resubmitted with the required modification (this won’t cost anything extra than the efforts, but if again it is rejected, INC 29 Fee have to be paid again).

In case, you have any query you can contact us on inbox@ausweg.in.


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