Incorporation of company in india

Wholly Owned subsidiary in India by foreign company


Guide for the establishment of the company

incorporation of the company
Establishment of the company

Company’s Incorporation

Incorporation of a company refers to the legal process by which a corporate entity or a company is born or comes into existence. A corporate company is separated from the legal entity on its own.

But These corporations can be identified with terms like INC or LIMITED or Private Limited in their names and, it had become a corporate legal entity, which has completely separated from its owners.

Let start the procedure for Company Incorporation

However, a group of seven or more people comes together to form a public company, and only two are needed to form a private company.

Here, are the following steps involved in the incorporation of the company

1. Ascertaining Name of the company

Similarly, the first step of the incorporation of the company is to choose an appropriate name. As it has identified by its name, Where it’s registered. And, it is also essential to obtain the approval of the Registrar to its proposed name. On hearing about the available name, the promoter has to decide the name for the company.

Similarly, promoters have to write an application to the Registrar Companies of the State for the company incorporation. As 500 rupees has to pay with the application. The Registrar then allows the company to adopt the name given. And, they fulfil all the legal documents formalities within a period of three months.

2. Preparation of MOA and AOA for company’s Incorporation

a. Memorandum of association

Therefore, the memorandum of association has referred to a constitution or rulebook. It describes the scope and object and the relation outside the world. It has to sign at least seven-person. if it is a public limited company. and two-person for a private limited company, And, The memorandum has to properly stamp.

b. Articles of association

Besides memorandum, the promoters will also prepare the articles of association. It is basically a document that state rules, that the internal management of the company will follow. However, it creates a contract between the company and its members.

Therefore, This article mentions the rights, duties, and liabilities of the members. And, it is equally binding on all the members of the company.

3. Preparation of Other documents for company’s Incorporation

The promoters are expected to prepare the following document at the time of incorporating the company;

  • The first step – consent of directors.
  • Second step – Notice of registered address.
  • Third step – Particulars of directors.
  • It is required to have a registered office and its information has to be filed with the registrar within 30 days.
  • The declaration has to signed by an advocate of the supreme court or high court or attorney or pleader of High Court or practicing Chartered Accountant.

4. Payment of fees

A prescribed fee has to paid to the registrar of the company during the course of incorporation. It depends on the nominal capital of shareholders of the company.

5. Company’s Incorporation certificate 

Since all the required documents has to file with the registrar, the registrar is completely satisfied, that all the documents have fulfilled by the company, which is being incorporated. And, he will register the company, and issue the certificate of incorporation.

Therefore, it is proof that all requirements of the Act have been met.

Certificate of Incorporation

6. Effect of Company’s Incorporation certificate

Hence, After the certificate of incorporation, the company becomes the legal entity and perpetual succession. This is conclusive proof of the existence of the company. Once, the certificate has issued by the company comes to the existences from the date mentioned on it.

7. Commencement of business

Therefore, A private company has not required to get a Certificate of Commencement. It is a straight way, to start the work after getting a Certificate of Incorporation. A public company has to complete certain formalities, As, it has required to get the Certificate of Commencement. before, it starts the work of incorporation.

8. Capital subscription

After, the formalities of the company’s incorporation, the next stage is to raise funds. A private limited company and the public limited company can start, the business immediately without any share capital.

A public limited company cannot commence business unless the minimum subscription in the prospectus has not subscribed. And, the allotment has to receive in cash and made properly.

Additional Information has to note

As per the Rule-16(1) of the company’s incorporation, every subscriber has to file with the registrar, at the time of incorporation.

  • Name
  • Date of Birth & Place Of birth
  • Occupation
  • PAN card number
  • Educational qualification
  • Nationality
  • Father’s/Mother’s name
  • Permanent residential address
  • Email, phone no., Fax no. (Optional)


Therefore, The Incorporation of Private Limited Company has to processed by consultation of Practising Professional. Further, the promoters and directors have to maintain the active status of the company. For the formation of the company, it includes various factors and legal documents for the purpose of incorporation. There are two main documents that play an important role at the time of incorporation, they are

  1. Memorandum of association (MOA)
  2. Articles of association (AOA)


In case of any help or assistance in filing your Company Incorporation in Chennai, Company Incorporation in Mumbai, Company Incorporation in Bangalore contact Virtual auditor support team on 9962 230 333/9513 93 9333/044- 48560333 /mail us [email protected], our team will guide through the entire process and help you comply








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