FAQ on Incorporation of Companies in India
The procedure for incorporation of a company in India involves the following steps:
Obtaining a Digital Signature Certificate (DSC) and a Director Identification Number (DIN) for the proposed directors of the company.
- Choosing a suitable name for the company and applying for its availability on the Ministry of Corporate Affairs (MCA) portal.
- Drafting the Memorandum of Association (MOA) and Articles of Association (AOA) of the company, which define the objectives, rules and regulations of the company.
Filing the incorporation application along with the required documents and fees on the MCA portal using the SPICe+ form (Simplified Proforma for Incorporating Company Electronically Plus).
- Obtaining the Certificate of Incorporation (COI) from the Registrar of Companies (ROC) along with the Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) of the company.
A producer company is a special type of company that is formed by a group of farmers or producers of agricultural products. The process of incorporation of a producer company in India is similar to that of a normal company, except that:
- The minimum number of members required to form a producer company is ten individuals or two producer institutions, or a combination of both.
The minimum paid-up capital required for a producer company is Rs. 5 lakhs.
The name of the producer company must end with the words "Producer Company Limited."
The MOA and AOA of the producer company must conform to the provisions of the Companies Act, 2013 and the Companies (Incorporation) Rules, 2014, as applicable to producer companies.
- The producer company must have at least five directors and a maximum of fifteen directors.
The fees and stamp duty involved in the incorporation of a company in India depend on the authorized capital, state of incorporation and type of company. The fees include the following components:
- ROC fees for filing the incorporation application, which vary according to the authorized capital of the company.
- Stamp duty for the MOA and AOA, which vary according to the state of incorporation and the authorized capital of the company.
- Professional fees for the services of a chartered accountant, company secretary or lawyer, who may assist in the incorporation process.
- Other incidental expenses, such as printing, courier, etc.
The MCA portal provides a fee calculator tool to estimate the fees and stamp duty for the incorporation of a company in India.
The business code for company incorporation in India is a six-digit code that represents the nature of the business activity of the company. The business code is based on the National Industrial Classification (NIC) 2008, which is a standard classification of economic activities adopted by the Government of India. The business code is required to be mentioned in the incorporation application and other forms and returns filed by the company with the MCA.
The MCA portal provides a list of business codes for company incorporation in India.
A CIN or Corporate Identity Number is a 21-digit alphanumeric code that is assigned to every company on incorporation in India by the ROC. The CIN contains the following information about the company:
- The first two characters indicate the state code where the company is registered.
- The next five characters indicate the ROC code where the company is registered.
- The next two characters indicate the type of company, such as public, private, one-person, etc.
- The next four characters indicate the category of the company, such as industrial, trading, service, etc.
- The next five characters indicate the sub-category of the company, such as manufacturing, banking, insurance, etc.
- The last three characters indicate the registration number of the company.
The CIN is a unique identifier for every company in India and is required to be quoted in all communications and filings with the MCA and other authorities. The CIN can be used to verify the details and status of the company on the MCA portal.