Company Formation in India
The process of company formation involves several legal and regulatory requirements-
Company formation in India is a well-regulated process that involves various legal and administrative steps. It is important to follow the correct procedure to ensure that the company is legally recognized and can operate smoothly.
- Choose type of Company
- Obtain a direct identification Number (DIN)
- Obtain a digital signature certificate
- Choose a unique name for your company
- Prepare the Memorandum of Association (MOA) and Articles of Association (AOA)
- File the incorporation documents with the Registrar of Companies (ROC)
- Obtain a Certificate of Incorporation
- Obtain necessary registrations
- Open a bank account
- Comply with other legal requirements
A minimum of two directors are required to form a private limited company and three directors for a public limited company. For an LLP, there must be at least two designated partners.
There is no minimum share capital requirement to form a company in India. However, the company must have a paid-up capital of at least INR 1 lakh (approximately USD 1,350) for a private limited company and INR 5 lakh (approximately USD 6,750) for a public limited company.
Yes, foreign nationals or entities can register a company in India. However, they must comply with certain rules and regulations and obtain necessary approvals from regulatory bodies such as the Reserve Bank of India (RBI).
A company in India is subject to various taxes such as corporate tax, dividend distribution tax, and indirect taxes such as GST. It is recommended to seek the assistance of a professional to understand the tax implications and comply with the applicable laws.
