The Ministry of Corporate Affairs on May 1 vide its notification simplified the process of Company Incorporation in India. This was done to give effect to the Companies (Incorporation) Amendment Rules, 2015. The following types of companies can be registered using Form INC-29 now, Private Limited Company, One Person Company, Limited Company, Producer Company, etc whereas companies formed under Section 8 (Formation of Company with Charitable objects) and company defined under chapter XXI (Unregistered Companies) of the Companies Act, 2013 do not have such rules applicable for incorporation. Lets find the steps of registration to be followed in its entirety.
Step 1: Digital Signature Procurement
- To file Form INC-29, the digital signature of one of the Directors is required. To obtain Digital Signature, the signed Digital Signature form along with a self-attested copy of PAN Card and Address Proof must be submitted. The time to complete is around 2 to 5 The cost incurred is Rs 1500. Any one of the proposed directors must obtain a Class-II Digital Signature Certificate (DSC) from an MCA-authorised agency to use the electronic filing system of the MCA 21.
Apply for DIN of one Director
DIN of any one director is mandatory who will sign INC 29.
Step 2: Preparing for INC-29
- The INC-29 is an eight-page form requiring several pieces of information and documents, some of which require a Company Secretary’s/Chartered Accountants signature, to be submitted in one go. The resubmission is allowed two times.
- For Director Information Number Application: Up to three directors can apply for the Director Information Number (DIN) through INC-29; the rest, if any, may do so separately. The DIN is the number through which the MCA identifies directors of companies. Obtaining a DIN involves the submission of the following documents:
- Scanned copy of Passport-sized photograph
- Scanned copy of PAN card (passport if foreign national) and Driver’s License/Voter ID/Latest Utilities Bill.
- For Name Approval: One needs to give only one option for name approval. By and large, one needs to follow the following rules:
- Ensure that the company’s proposed name has not already been taken on MCA Government Website.
- Ensure that there is no registered trademark in the same name by checking at Trademark Search on Government Website
- Ensure that the first half of the name is unique. Avoid geographical references, adjectives, abbreviations and generic terms. Also, the words bank, exchange and stock exchange require approval from RBI and SEBI.
- Ensure that the second half describes the sector one is in. The significance of the name is to be entered in the form too.
- For Memorandum and Articles of Association: The Memorandum of Association (MoA) and Articles of Association (AoA) need to be attached to the INC-29. These may or may not be drafted by a Company Secretary, but should contain the signature of one. The MoA will also contain the main purpose of the business. Additionally, one needs to attach an affidavit from all subscribers through Form INC-9 (available on mca.gov.in).
- For Registered Office Verification: All companies must have a registered office address. This does not have to be a commercial space. It can even be the home of a director. But the details need to be provided, along with a copy of the Rental Agreement along with an NoC (No Objection Certificate) from the owner (if rented property) and sale deed (if property is owned).
- For Appointment Letters and Declarations: A number of attachments need to be submitted along with the application. These need to be self-attested, but a Company Secretary/Chartered Accountant must give a separate declaration of the company verifying the authenticity of all the declarations. The required attachments are:
- Letters of appointment of directors, CEO, managers
- Declaration by first director in INC-9
- Declaration by appointee director and managing director in Form DIR-2.
Step 3: Filing of the Form
If all the papers are in order, INC 29 can be filed. This is followed by payment of the fee which depends on the authorized capital fee and stamp duty as applicable in each case. It takes just one day to accomplish this.
Step 4: Issue of Incorporation Certificate
If all the documents submitted are correct & officer is satisfied with the authenticity of documents, then Certificate of Incorporation would be issued by Registrar of Companies.
Advantages of the INC 29 Form
- Less time for Company Registration in India
- There is a separate queue at the ROC back office created for processing INC 29 Form.
- The procedure is still optional, old procedure can be followed for one’s convenience, if at all.
- Refund can be applied in case there is a form rejection.
- There is also an added facility of applying for TAN and PAN.
- INC 29 is not an STP (Systematic Transfer Plan) form. It is a onetime investment.
Required Basic Documents
- Hard copy of completed Class-II form.
- Identity Proof: Copy of PAN card or, in case of foreign national, copy of Passport
- Address Proof: Copy of (any one) Passport/Election/Voter ID/Ration Card/Driver’s License/Utilities Bill/AADHAR Card. If the Utilities Bill (Gas/Telephone) is submitted, it should be in the name of the Applicant and no older than two months from the filing of the form (12 months, in case of foreign national)
It is to be kept in mind that the resident Indians should self-attest their documents. NRIs and foreign nationals would need to have their documents notarised if they live in a non-Commonwealth country.
Why Register with INC 29 Form
The INC-29, touted to be a 5-in-1 form for company registration, combines the application for DIN allotment, name reservation/ approval, incorporation and even PAN & TAN, while making the process inexpensive. Less time consumption is yet another advantage. The critical observation of the procedure would reveal that while comparing with old system, it will take around 48 working hours for incorporating the company
ABOUT THE AUTHOR
Aishwarya Dhakarey is Team Member at MyOnlineCA.IN “A On Demand Legal Services in India from Register a Company to handling legal things at user fingertips. We made legal at FingerTips in India”. For Queries drop a mail at [email protected]