STEPS FOR

FORMATION OF
INDIAN COMPANY


TABLEOFCONTENTS
TypeofCompany .................................................................................................................................................4
ConversionofPvt.Ltd.intoPublicLtd. ..............................................................................................................5
Basisofdecidingthenameofthecompany ......................................................................................................6
DisclosureForm ...................................................................................................................................................7
FillingandcompletionofFormno.1A ................................................................................................................8
ApprovalofnamebyRegistrarofCompanies(ROC) ........................................................................................9
FinalizationofMemorandumofAssociationandArticleofAssociation(MOA&AOA)...............................10
StampingofMemorandumofAssociationandArticleofAssociation ..........................................................11
FilingofFormswithRegistrarofCompanies ...................................................................................................12
PaymentoffeestoRegistrarofCompanies ....................................................................................................13
CertificateofCommencementofBusiness......................................................................................................14
Statementinlieuofprospect(SLP)..................................................................................................................15
OpeningofBankAccount .................................................................................................................................16

FORMATIONOFINDIANCOMPANY(ProcessFlowChart)

Start

Decidetype
ofCompany

Public

Takeadecisiononname
ofthecompany

Fillingandcompletion
ofFormNo.1A

FilingofFormNo.1Ato
ROC

Isthename

approvedby

ROC

Yes
2

No

Private

FinalisationofMOAand

AOA

Issue Power of attorney

in favour of practicing

CompanySecretaryorin

favour
of
Director
of

company

GettheMOA&AOA

StampedasperDelhi

StampAct,fromthe

DistrictCourt.

FilingofformstoROC

FormNo.1
FormNo.32

PayROCchallan

Obtainapprovalfrom

ROC

IssuanceofCertificateof

Incorporationof

CompanybyROC

End

FormNo.18

Registration
Feesaccording
topaidup
capital


TypeofCompany

TYPEOFCOMPANY

Public

Maximumno.
Minimumno.
Minimumno.of
Minimumpaid
ofmembers
of
Directors3
upcapitalRs.5
Unlimited
Lacs
Subscribers7

Minimumpaidup
Maximumlimit
Minimumno.of

capitalRs.1Lacs
ofmembers=
Directors2

Private

Minimumno.of
Subscribers2

50

*Aprivatecompanywhichisasubsidiaryofapubliccompanyisdeemedtobeapubliccompany.Allthe
provisions of Companies Act, 1956 as applicable to Public Company are also applicable to Private Limited
CompanyexcepttheprovisionsrelatingtothebasicstructureofthePrivateLimited.
**Prohibitionforanyinvitationoracceptanceofdepositotherthanitsmember,directorsoftheirrelative.
**ConversionofPrivatecompanytoPubliccompany:APrivatecompanyhaslimititsmaximumnumberof
membersto50.Ifacompanyhassomeexpansionplansanditintendstoraisefundsthroughsomeexternal
sourcesmainlyfromthegeneralpublic,InitialPublicOffer(IPO)isoneofthebestmeantoraisefundsfrom
thepublic.ButaprivatecompanycannotraisefundsthroughIPOduetotherestrictionasperthecompany
law.Therefore,firstlyitrequiresgettingconvertintopubliccompanyandgoingforanIPO.
Adetailedprocessflowchartisasfollows:

BacktoFlowchart


ConversionofPvt.Ltd.intoPublicLtd.

CONVERSIONOFPRIVATE
COMPANYINTOPUBLIC

COMPANY

BoardMeeting

To approve the
Tofixtheday,time,venuefor
Issue a notice for convening of

conversion
theGeneralMeeting
GeneralMeeting

ConveningofGeneralMeeting

pass the special

To
Pass
special
Pass ordinary
Filing
of

resolution
for
resolution for
resolution for
Statement in

conversion
of private
alteration
in
increase
in
lieuofprospect

company into public

Article
of
Authorised

company
Association
sharecapital

Form no. 5 within 30 days from

ROC issues fresh

thedateofgeneralmeeting
Certificate
of

Incorporation

Form no. 23 within 30 days from

thedateofgeneralmeeting

BacktoFlowchart

Basisofdecidingthenameofthecompany

BASISOFDECIDINGTHENAMEOFTHE

COMPANY

Shouldreflect
Maximumof6

theactivity/
namesinorder

ofpreference
objectiveofthe

company

ADisclosureFormneedstobefilledatthisstage.Sampleformatattachedbelow.

BacktoFlowchart

DisclosureForm

DisclosureFormForincorporationofCompany
1. ProposedNameoftheCompany:(MaximumSixNameinorderofPref.)

1.
3.
5.

2.
4.
6.

2. NameoftheApplicantappliedforNameavailability
NameoftheApplicant(
Occupation
musthavedigitalsignature)

Address

State

Country

Pin
code

3. Shareholdingpattern:

Nameofthe
Subscriber

Husband/Fathers
Name

No.ofShare
held

Nominalvalue
pershare

DateofBirth/
incorporation

4. RegisteredofficeoftheCompany:

5. DetailofDirector

Nameof
the
Director

Fathers
Name

DINNumber Nationality

DateofBirth

Address

6. ShareCapitaloftheCompany:

ShareCapital

Amount

No.ofShares

AuthorizedShare
Capital
PaidUpShareCapital

Facevalueper
share

7. BankDetail:
NameoftheBank

ProposedAuthorized
Signatory

Singly/Jointly

Backtoflowchart

FillingandcompletionofFormno.1A

FormNo.1A

(Variousheads)

Details of the
State
where
Detailsof
Authorized
Detailsof
State
the
Registered Office
Directors.
Share
Subscribers.
significance
applicant
ofthecompanyis
Capital.
of the name
who has filed
tobesituated.
chosen.
theform.

Dateof
No.of
Dateof
Name,
Address,
Birth,
shares,
Birth,

Emailidetc.

Fathers
Priceper
Fathers

name,
share
name,

address,
occupation,

occupation
address

,DINno

Backtoflowchart

ApprovalofnamebyRegistrarofCompanies(ROC)

ApprovalofnamebyROC

Nameappliedforisavailableforregistrationof

thecompany

Thenameisvalidforaperiodof60dayswithin

which all the formalities relating to

incorporationneedstobecompleted

Itcanfurtherbeextendedforaperiodof30

days

Feesforextensionis

Rs.250/

Iffailto
completeall
formalities
relatingto
incorporation
withinthe
specified
period,thenre
applyforname

Applicationfor
extensionoftime
periodshouldbe
filedbeforeexpiry
of60days

Backtoflowchart

FinalizationofMemorandumofAssociationandArticleofAssociation(MOA&AOA)

1st clause contains the

NAMECLAUSE

nameofthecompany

Specifies the state where RO

ofthecompanyissituated
REGISTERED

OFFICECLAUSE

Mainobject
To be pursued by the company

onitsincorporation

Incidentalor

Totheattainmentofmainobject
OBJECT
Ancillary

CLAUSE

Otherobject
Thecompanymaytakeupin

future

Limited up to the amount of

Limitedby

share they undertake to

share
LIABILITY

subscribe
CLAUSE

MOA
Limitedby
Limited up to the amount of

guarantee
guaranteememberundertaketo

contribute

The total amount of share capital with which

thecompanyisregisteredanditsdivisioninto
CAPITAL

different classes or kinds of capital, the

CLAUSE

number of share of each kind, the face value

persharehastobestated

Each of the subscriber, 7 in case of Public

company and 2 in case of Private Limited

SUBSCRIPTION

company undertake to take the share

CLAUSE

mentioned in the MOA against his name by

puttinghissignatureontheMOA

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10

AOA

Itcontainstheinternalregulationandbye
lawscoveringprocedure,share,meeting,
directorsandotheradministrativeissues

Backtoflowchart

StampingofMemorandumofAssociationandArticleofAssociation

RulesofstampingofMOAandAOA

Stampdutydifferfromstatetostate

AsperSchedule1AofDelhiStampAct

OnAOA
OnMOA

FilingupofTR6challan(inTriplicate)

Anddeposititinthetreasuryofcourt
FixedRs.200/

0.15%oftheAuthorised

sharecapitalofthe

companyuptoa

maximumofRs.25Lacs,in

favourofSBI,TeesHazari,

PAO6

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11

FilingofFormswithRegistrarofCompanies

FormNo.1

FormNo.32

FORMS

FormNo.18

Statutory
declaration:
A
declaration that all the
requirements of this act and
rules there under have been
compiled with. i. e. respect of
registration,shallbefiledwith
ROCandROCmayacceptsuch
a declaration as sufficient
evidenceofsuchcompliance

Theappointmentofdirector/
manager/ Managing director
ofthecompany

MOA & AOA and

POA, filed as an
attachment

Attach consent
letter of director
inthisform

The registered office of the

company with full address of
theofficeaswellasthepolice
stationnearthatarea.

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12

PaymentoffeestoRegistrarofCompanies

PayROCChallan

ThroughCreditCard
ByCash

13

Bycheque/DemandDraft

InfavourofMCACollection
Account,ICICIBank

Backtoflowchart

CertificateofCommencementofBusiness

APubliccompanycannotstartitsbusinessunlessitgetsacertificateofcommencementof
business(COB)fromtheRegistrarofcompanies.

IncaseofPrivateCompany,thesameisnotrequired.Itcanstartitsbusinessimmediatelyafter
gettingcertificateofincorporationfromregistrarofcompany.

ProcessFlowChart

CertificateofCommencementofBusiness

FilingofFormNo.20

Statement
in lieu of
prospect

MOA &
AOA

List of directors
&shareholder

Stamp paper of
Rs.20/

Consent letter
of auditor &
Formno.23B

Backtoflowchart

14

Statementinlieuofprospect(SLP)

Detail of
Authorised
Capital
of
directors
thecompany

Name and

address of

theDirectors

SLP

SLP to be delivered to the ROC which does not

issue a prospectus or which does not go to
allotmentonaprospectusissuedandreportssent
outtherein

Detail
of
preliminary
expenditure

Registration
Fee
+
Stamping
Charges
+
filingfee

Detail
of
auditor

Annexure
A

Covering
the
provision in AOA
ofthecompany

Relating
to
remuneration of
directors, MD and
manager

Annexure
B

Detail
of
preliminary
expenditure

Annexure
C

Resolution for
filing of SLP
Authorised by
director

Appointmentof
auditors

Appointment of
director, MD and
manager

Backtoflowchart

15

OpeningofBankAccount

OpeningofBankAccount

PublicCompany
PrivateCompany

Once
COB
is

Once Certificate of
obtained,
a

Incorporation
is
company can apply

obtained, a company
foropeningofbank

can apply for opening

account

ofbankaccount

Documentrequired

Duly filled and

CopyofBoard
MOA and
List
of
Copy
of

Resolution
signed form of
AOA of t he
directors &
Commencement

respectivebank
company
shareholders
ofbusiness

16