Registration rules vary for businesses depending on the nature of the company. According to New Companies Act of 2013, an entrepreneur can form two types of companies i.e. Private Company and Public Company.
Guidelines for Pvt. Ltd company-
- Minimum two shareholders are necessary
- Two directors required
- The Company’s Act restricts the membership of any private company to 50 excluding past and present employees who are already members.
- Shareholders and directors cannot transfer their share.
- Shares are not open to general public for buying
Guidelines for Public company-
- There is no strict rule on its membership however minimum 3 directors and 7 shareholders are required to form a public company
- The shares are freely transferable
- General public can buy shares
- Minimum share capital is required to be of 5 lacs worth
Procedure for registering a Private Ltd Company:
- Firstly, as an entrepreneur you have to give a few preferences for names for your company but the number of preference should exceed more than four. Also, the name should not resemble any company registered and should not violate the provisions of Emblems and names (prevention of improper use) Act of 1950.
- You have to apply to the respective ROC to make sure for the availability of name in e-Form1 A of General Rules and Forms. The charge is Rs 500/- .
- Once the name is approved, within six months you can apply for the registration of your new company through e-forms 1, 18 and 32.
- The next step would be to organize for the drafting of the Memorandum and Articles of Association by your advocate and also screening and printing the same by ROC.
- You have to organize for the stamping of the same Memorandum and Articles.
- Next thing you have to do is to get the Memorandum hand signed by minimum two members, include their fathers’ names, addresses, occupations and the shares they hold in your company. One witness would be required for this.
- Payment of registration and e-filing.
- The documents that would be required during the registration are given below-
- Memorandum of Association (duly stamped) and a duplicate copy.
- Articles of Association (duly stamped) and a duplicate copy.
- The agreement, if any, which the company proposes to enter into with any individual for appointment as its managing or whole time director or manager.
- A copy of the agreement, if any, referred to in the articles.
- A power of attorney, if any (with prescribed stamps).
- A copy of the letter of the Registrar of Companies indicating the availability of the proper name.
- e-Form No. 1 (duly stamped) for inclusion of the Company.
- e-Form No. 18, if desired for change of situation of registered office.
- e-Form No. 18, e-Form No. 32 and e-Form No 32Addendum is required if desired for Particulars of appointment of managing director, directors, manager and secretary and the changes among them or consent of candidate to act as a managing director or director or manager or secretary of a company and / or undertaking to take and pay for qualification shares
- Proof of payment of prescribed registration and filing fee.
- The name of the members to the Memorandum and Articles should be the same people whose names are there in the original application for names (e-form 1A). If this is not the case then ROC will not register your company until and unless, the names got re-validated with new members as applicants by paying another Rs 500/-as fee.
If the register is satisfied with the requirements assembled by you, you will be issued the Certificate of Incorporation from ROC. The date that is mentioned in the certificate would be the date of the registration for your company.
Procedure for registering a Public Company:
Along with the steps taken by a Private company, a Public one has to follow below process:
- A Public Company has to attain a Certificate of Commencement for Business before they can start their business.