Company Formation


SERVICES OFFERED

We are engaged in formation/registration of the following two types of companies as per Companies Act, 1956
1. Private Limited Company.
2. Public Limited Company


DIFFERENCES BETWEEN PRIVATE LIMITED COMPANY AND PUBLIC LIMITED COMPANY


Distinction Between A Public Company And a Private Company Following are the main points of difference between a Public Company and a Private Company :-
1. Minimum Paid-up Capital : A company to be Incorporated as a Private Company must have a minimum paid-up capital of Rs. 1,00,000, whereas a Public Company must have a minimum paid-up capital of Rs. 5,00,000.
2. Minimum number of members : Minimum number of members required to form a private company is 2, whereas a Public Company requires atleast 7 members.
3. Maximum number of members : Maximum number of members in a Private Company is restricted to 50, there is no restriction of maximum number of members in a Public Company.
4. Transerferability of shares : There is complete restriction on the transferability of the shares of a Private Company through its Articles of Association , whereas there is no restriction on the transferability of the shares of a Public company
5 .Issue of Prospectus : A Private Company is prohibited from inviting the public for subscription of its shares, i.e. a Private Company cannot issue Prospectus, whereas a Public Company is free to invite public for subscription i.e., a Public Company can issue a Prospectus.
6. Number of Directors : A Private Company may have 2 directors to manage the affairs of the company, whereas a Public Company must have atleast 3 directors.
7. Consent of the directors : There is no need to give the consent by the directors of a Private Company, whereas the Directors of a Public Company must have file with the Registrar a consent to act as Director of the company.
8. Qualification shares : The Directors of a Private Company need not sign an undertaking to acquire the qualification shares, whereas the Directors of a Public Company are required to sign an undertaking to acquire the qualification shares of the public Company .
9. Commencement of Business : A Private Company can commence its business immediately after its incorporation, whereas a Private Company cannot start its business until a Certificate to commencement of business is issued to it.
10. Shares Warrants : A Private Company cannot issue Share Warrants against its fully paid shares, Whereas a Private Company can issue Share Warrants against its fully paid up shares.
11. Further issue of shares : A Private Company need not offer the further issue of shares to its existing share holders, whereas a Public Company has to offer the further issue of shares to its existing share holders as right shares. Further issue of shares can only be offer to the general public with the approval of the existing share holders in the general meeting of the share holders only.
12. Statutory meeting : A Private Company has no obligation to call the Statutory Meeting of the member, whereas of Public Company must call its statutory Meeting and file Statutory Report with the Register of Companies.
13. Quorum : The quorum in the case of a Private Company is TWO members present personally, whereas in the case of a Public Company FIVE members must be present personally to constitute quorum. However, the Articles of Association may provide and number of members more than the required under the Act.
14. Managerial remuneration : Total managerial remuneration in the case of a Public Company cannot exceed 11% of the net profits, and in case of inadequate profits a maximum of Rs. 87,500 can be paid. Whereas these restrictions do not apply on a Private Company.
15. Special privileges : A Private Company enjoys some special privileges, which are not available to a Public Company.


Details & Documents Required For New Company Incorporation as below,
1) Name of The Company (with the six-option name)
2) Registered Address of the Company
3) Full Name of the Directors
4) Fathers Full Name of the Directors
5) Residential Address of the Directors
6) Date of Birth the Directors
7) 3nos. of latest Passport Size Photographs of the Directors
8) Address Proof of The Directors (i.e. Copy of Ration Card, Passport, latest Electricity Bill, Telephone Bill, etc)
9) Identity Proof of the Directors (i.e. Voting Card, Driving Licence, School Leaving Certificate, etc)
10) If the Din number of the Director is approve, then kindly provide us din number.


Procedures in Registration of a Company


Applicable law

The Indian Companies Act, 1956 The Companies Act of 1956 sets down rules for the establishment of both public and private companies.

Allotment of Director Identification Number (DIN)

Application in Form DIN-1 shall be made online and provisional DIN number of the person intending to become director of the Company shall be generated.


Acquiring Digital Signature certificate (DSC)

Digital Signature Certificate is acquired by submitting the application alongwith prescribed fee to one of the various vendors like TCS, Satyam etc. On submission of documents, DSC is allotted in 1-2 days.


Name Approval of the company

An application in Form No. 1A needs to be filed with the Registrar of Companies (ROC) online through Digital Signature of one of the proposed director. On submitting the application, the ROC scrutinizes the same and sends the approval / objections in about 3-4 days to the applicant through e-mail.


Procedure after name approval of the company

An application for registration should be submitted to the Registrar of Companies with the following documents:
Memorandum of Association; Articles of Association;

A declaration in Form 1 by a person named in the articles of the proposed company as a director, manager, or secretary of the company, or by an advocate of the Supreme Court or High Court, or by an attorney entitled to appear before the High Court, or by a Chartered Accountant practicing in India stating that all the requirements of the Companies Act 1956 and the applicable rules with respect to the registration and other matters have been complied with; A list of persons who have consented to act as directors of the company.

Consent of every person prepared to act as a director. Information about directors, managing directors, managers and secretary must be submitted in a prescribed Form 32

Information about the registered office in prescribed Form 18 Power of attorney in favour of one of the promoters or any other person, authorizing him/her to make corrections in the documents submitted to the Registrar of Companies, Applicable registration fee payable to the Registrar of Companies.