What is Service Tax?


What is the procedure to start a company in India ?

This information will be useful for those who are looking in a nutshell the steps involved to start a Private Limited company in India
1. First and foremost identify the Directors of the Company. Minimum of two directors need to present and Maximum of 8 is allowed.
2. All Directors should have DIN (Directors Identification Number). If you do not have one you can apply DIN online at www.mca.gov.in. FAQ on DIN


Documents required for DIN 
A. Identity Proof (Any one of the following) 
  • PAN Card 
  • Driving License 
  • Passport 
  • Voter ID Card 
  • Others (to be specified) 


B. Residence Proof (Any one of the following) 
  • Driving License 
  • Passport 
  • Voter ID Card 
  • Telephone Bill 
  • Ration Card 
  • Electricity Bill 
  • Bank Statement 
  • Others (to be specified) 
3. Once you have got your DIN then you need to apply for Company name. You need to go with 5-6 names in the order which you prefer.If the name is not available then they go to the next one in the order you have provided. 
4. You need to apply online for the name availability . You need to Fill in Form 1A. Forms are available at this 
location. 
5. Once you have got your name approved you have to apply for the Incorporation of Company. For this you 
will have to prepare Memorandum of Association which will detail what the company;s operations the first list of directors 
who are going the be in the board need to be defined in this document. This should be applied along with Form 1 
Once this has been approved make at least 10-15 copies of your Certificate of Incorporation and Memorandum of Association and have it in a booklet form. 
6. Once your company has been incorporated you can open a Current account in any of the leading banks 
for carrying out your operations. You will need to submit a copy of Certificate of Incorporation and Memorandum of Association along with Borad resolution to open the bank account. 
7. Then you need to apply for TAN and PAN for the Company 

8. If your services are in Software related area you can apply for STPI license which will give you certain benefits 
like Company need not pay tax for 5 years, there will be no import or expurty duty levied on software/hardware, 
You will get office spaces at lower rates at STPI units. These are few of the benefits of becoming an STPI member. 
All this you can do on your own or you can outsource these to professional auditor. We did it through Auditor and it took almost three weeks (Upto Step 7 excluding STPI) and all charges(excluding sTPI) would approximately cost you Rs.25,000. 
I am not sure how much it would cost if you do it on your own. I read in one of the blogs that in Delhi the whole 
process was completed in 30 minutes after the e-Governance was launched. 

Do you want to start a Foreign Company?

  • Any foreign company can establish its place of business in India by filling Form FC-1 (Documents delivered for registration by a foreign company). The eForm has to be digitally signed by authorized representative of the foreign company.
    There is no need to apply and obtain DIN for Directors of a foreign company but the DSC of the authorized representative is mandatory, which again is not required to be registered on MCA Application.

Do you want to register a Section 8 Company?

To register a section 8 company, applicant is required to file Form INC-1 for name availability. Once the name is approved/made available, there is a further requirement of obtaining a license for a Section 8 Company, for which Form RD-1 is to be filed in order to obtain a license for such company. After obtaining license number, applicant can proceed further to incorporate a company by filing e forms INC-7, INC-22 and DIR-12 or e-forms INC-7 and DIR-12 as the case may be.

Do you want to register a Part I Company?

In order to register Part I Company, applicant is required to file Form INC-1 for name availability. After approval of the same, applicant is required to file Form No. URC-1 along with filing e forms INC-7, INC-22 and DIR-12 or e-forms INC-7 and DIR-12 as the case may be.

Do you want to start an Indian Company?

Apply for the name of the company to be registered by filing Form INC-1 for the same. After that depending upon the proposed company type file required incorporation forms listed below.
Form INC-7 or Form INC-2 : Form INC-7 for Application for incorporation of a company (Other than OPC) or Form INC-2 for Application for Incorporation of OPC.
Form INC-22 : Notice of situation or change of situation of registered office based on the option chosen in Form INC-7.
Form INC-22 is to be filed within 30 days from the date of Incorporation of OPC (If the registered address is different from the address given in Form INC-22) or other than OPC (if not filed earlier).
Form DIR-12: Particulars of appointment of directors and the key managerial personnel and the changes among them. This form is to be filed by OPC in case promoter is not the sole director or there are more than one director in an OPC.

DIN Process Revised

What is Director Identification No?
It is an unique Identification Number allotted to an individual who is an existing director of a company or intends to be appointed as director of a company pursuant to section 153 & 154 of the Companies Act, 2013

Who can file an application for allotment of DIN ?
Every individual, intending to be appointed as a director of the company, can file an application for allotment of DIN.

Who will allot the DIN?
Central Government (Office of Regional Director (Northern Region), Ministry of Corporate Affairs) will allot the DIN.

What is the Procedure of of obtaining DIN?
Any person intending to apply for DIN shall have to make an application in eForm DIR-3 and should follow the following procedure:
1. eForm DIR-3 has to follow the online e-Filing process . For more details regarding the same visit e-Filing FAQ's .
2. Attach the photograph and scanned copy of supporting documents i.e. proof of identity, and proof of residence as per the guidelines. Physical documents are not required to submit at DIN cell.
3. Along with the supporting documents, Verification as per Form DIR-4 shall also be attached. This shall contain the Name, Father’s name, date of birth and text of declaration and physical signature of the applicant.
4. The eForm shall have to be digitally signed and shall be uploaded on MCA21 portal.
5. Upon upload, Pay the fees for eForm DIR-3. Only electronic payment of the fees shall be allowed (I.e. Netbanking / Credit Card). No challan payment will be accepted under revised procedure of DIN allotment.
The applicant is required to get himself/herself registered on the MCA21 Portal to obtain login id, which is necessary for payment of the fees. After obtaining the login-id, Login to the MCA21 portal and click on 'eForm upload' link available under the 'eForms' tab for uploading the eForm DIR-3 . eForm DIR-3 will be processed only after the DIN application fee is paid.
6. Upon upload and successful payment,
Form DIR-3 is mandatorily to be signed by an Applicant and a practicing professional or secretary (who is a member of ICSI) in whole time employment or the Director of the existing company
Approved DIN shall be generated in case the form is being signed by a practicing professional and details have not been identified as potential duplicate. Provisional DIN shall be generated in case form is signed by secretary in whole time employment or Director of existing company and details have been found as potential duplicate. A suitable informational message and an email shall be provided to the user that the DIN shall be approved after due verification by the DIN cell.
7. Processing of e Form DIR-3
In case, DIR-3 gets certified by the professional (i.e. CA(in whole time practice)/ CS(in whole time practice)/ CWA (in whole time practice)/, the DIN will be approved by the system immediately online (in case it is not potential duplicate).
8. Post-approval changes in particulars of Form DIR-3
If there is any change in the particulars submitted in eform DIR-3, applicant can submit e-form DIR-6 online. For instance in the event of change of address of a director, he/ she is required to intimate this change by submitting eform DIR-6 along with the required attested documents.