Accuprosys - Company Incorporation - PowerPoint PPT Presentation

About This Presentation
Title:

Accuprosys - Company Incorporation

Description:

In order to be incorporated as a private limited company, a business should have at least two directors and a minimum paid up capital of Rs. 1 lakh. The forms along with stamped and signed memorandum and articles, agreements, company name availability letter along with registration fee are then to be submitted to the ROC. The Certificate of incorporation has to be collected. – PowerPoint PPT presentation

Number of Views:37
Slides: 28
Provided by: accu6030
Category:

less

Transcript and Presenter's Notes

Title: Accuprosys - Company Incorporation


1
(No Transcript)
2
Getting Your Company Incorporated The 101 of
Company Incorporation
  • A roundup of the basic things every business
    owner should know if he is considering
    incorporation or is completely ignorant about it.

3
You are running a successful startup or online
business and an acquaintance walks up and asks
you if your business is incorporated?
  • That isnt exactly true.
  • You rattle on debating that incorporation of a
    company requires tons of paperwork and cash and
    that these outweigh the benefits of incorporation.

4
Company Incorporation The Whats and the Whys
5
  • Why should I get my company incorporated?
  • What kinds of incorporations exist in India?
  • What are the different kinds of companies?

6
Wait!
7
What you need to know first is what exactly is
business incorporation?
  • Incorporation of a company is the process of
    creating a new structure for the business wherein
    it becomes a legal entity recognized by law.
  • What this means is that it can be treated as a
    separate entity from the shareholders and
    founders, because of which the liability of its
    shareholders is reduced.
  • Incorporation is beneficial for the long term
    growth and expansion for a business.

8
Under section 12 of the Companies Act, 1956, in
India, seven or more (or two or more depending on
the type of company) individuals can come
together to form an incorporated company for a
legal purpose.
  • Limited by shares
  • By guarantee, or could be
  • an unlimited company
  • The company could either be

9
Benefiting from Incorporation
10
  • The incorporation of a company removes personal
    liabilities from the directors, founders and
    shareholders.
  • Therefore, their personal assets are not at risk
    and only the company assets are used to clear
    debts at times of crises.
  • Incorporated companies are taken more seriously
    by customers, suppliers and prospective workers.

11
The ownership of the business becomes
transferable and the tax liability is also
reduced.
  • The company will continue to remain even when the
    directors and members change.
  • It is also advantageous for those seeking
    financial assistance from banks and other such
    financial institutions.
  • While sole traders have to pay income tax,
    incorporated companies have to pay corporation
    tax and enjoy a range of tax deductible costs and
    allowances.

12
As companies can make valid contracts with its
directors and shareholders, an individual owning
a company can also be an
At the same time!
13
The benefits of incorporation are different for
private and public limited companies.
  • Different company categories (public limited,
    private limited, part IX, section 25 company and
    producer company) have different procedures for
    incorporation.

14
Minimum Requirements for Incorporation
15
  • In the case of private limited company,
  • For public limited companies,
  • There should be a minimum of two directors and a
    minimum paid up capital of Rs. 1 lakh.
  • Private limited companies raise capital through
    private deposits and placement of shares.
  • There should at least be seven subscribers, three
    directors and a minimum paid up capital of Rs. 5
    lakhs.
  • Public limited companies raise capital from the
    public through public deposits and issuing of
    shares.

16
Steps for Incorporating a CompanyGuidelines of
the Ministry of Corporate Affairs, Government of
India
17
Step 1
  • Before subscribing for incorporation, a minimum
    of one and a maximum of six names should be
    listed in order of preference for the company.
  • The names should be indicative of the companys
    objectives.
  • The names should not resemble that of another
    registered company and should also not violate
    the provisions of names and emblems as described
    in the Prevention of Improper Use Act, 1950.
  • The name availability can be checked on the
    portal at the link http//www.mca.gov.in/DCAPortal
    Web/dca/MyMCALogin.do?methodsetDefaultPropertymo
    de16.

18
Step 2
  • To ascertain the name availability, applicants
    should apply to the concerned Registrar of
    Companies (RoC) by filling the electronic form
    eForm1.
  • This is done by logging into the portal. A
    digital signature and fee of Rs. 500/- has to be
    paid along with the form.
  • If a name is not approved, the applicant has to
    apply for another name using the same
    application.

19
Step 3
  • The applicant has to apply for the registration
    of the company after the name has been approved.
  • This is to be done by filling forms Declaration
    of compliance (Form-1), Notice of situation of
    registered office of the company (Form-18) and
    Particulars of the Director's, Manager or
    Secretary (Form-32) within 60 days on the
    portal.
  • Mandatory documents have to be uploaded along
    with these forms.
  • Digital signature and registration fee is
    required to be paid along with the applications.

20
Step 4
  • After the forms have been submitted, the
    applicant has to arrange for drafting of articles
    of association by the solicitors and the
    memorandum, and get them vetted by the RoC.
  • These have to be printed and stamped with
    appropriate stamp duty.

21
Step 5
  • At least two subscribers need to sign the
    memorandum and articles in their own hand,
    providing their fathers name, occupation,
    address and the number of shares subscribed for,
    and witnessed by at least one person.
  • The memorandum and article should be dated after
    the stamping date.

22
Step 7
Step 6
  • A hard copy of the memorandum and articles is to
    be sent to the RoC.
  • After the application has been processed,
    applicants have to collect their Certificate of
    Incorporation from RoC and their Corporate
    Identity is generated.

23
Step 7
  • After the application has been processed,
    applicants have to collect their Certificate of
    Incorporation from RoC and their Corporate
    Identity is generated.

24
Public limited companies have to follow
additional steps.
  • For this, they have to file a declaration in
    eForm 20 with the statement in lieu of the
    prospectus (schedule III) or file a declaration
    in eForm 19 with the prospectus (schedule II).
  • They need to obtain the Commencement of Business
    Certificate after incorporation of the company.

25
Part IX companies need to fill eForm 1 and then
eForm 18, eForm 32, eForm 37 and eForm 39
separately or simultaneously.
26
Centre for Innovation and EntrepreneurshipC-4,
IIT-H Foundation, Gachibowli, Hyderabad961840275
1, 9000600247
  • Reach us atprabha_at_accuprosys.com
    simplify_at_accuprosys.com anuradha_at_accuprosys.com 
    For more details, please visit
    www.accuprosys.com

27
(No Transcript)
Write a Comment
User Comments (0)
About PowerShow.com