Easy Steps for Incorporation of a Private Company

STEP – I: Apply for the name of the Company using RUN:

1. Login to MCA Website (http://mca.gov.in/mcafoportal/login.do)

The applicant has to login into their user account on the MCA Website using his credentials. (Pre-existing users can use the earlier account or new users have to create a new account.)

After Login user has to click on the icon “RUN” in MCA Service. An online form shall be open. Applicants have to fill the information online on the portal. (RUN is service, not a form so this can’t be download)

Note: – From 26^th January 2018 e-form INC-1 has been skipped from the Companies Act, 2013.

2. Details required to be stated in the online form:

• Entity type (i.e. Part I, One Person Company, Sec. 8 etc.)
• CIN
• Proposed name (Auto Check Facility)
• Comment (Declare Objects of the proposed Company and any other relevant information Like Trade Mark etc.)

Note: It may be noted that CIN (Corporate Identification Number) has to be entered only when an existing company needs to change its name and is using RUN to reserve a new name)

3. Choose File (Option to upload file):

This option is used to upload PDF documents. If the person applying for name want to attach any file, can be upload at this option.

4. Submission of Form on MCA Website:

After completion of the above steps, the applicant shall submit the Form with the MCA website.

5. Payment of Fees:

There is no option of pay later challan in RUN service. The applicant has to pay the fees immediately after submission of the form. After payment challan shall be generated on the portal.

The validity of Reserved Name:

For a New Company: Reserved name shall be valid for 20 days from the date of approval of the Name.

For an existing Company: Reserved name shall be valid for 60 days from the date of approval of the Name.

STEP-II: Documents to be prepared for Incorporation of Company:

After approval of name for Incorporation of Company applicant have to prepare the following below mentioned Documents;

1. INC-9: It is an Affidavit/declaration by the first subscriber(s) and director(s) (on duly authorized Stamp Papers).
2. DIR-2: It is a declaration from first Directors along with Copy of Proof of Identity and proof of residential address.
3. No Objection Certificate (NOC) from the owner of the property in which the registered office of the company situated.
4. Proof of Office address of the company (Conveyance/ Lease deed/ Rent Agreement etc. along with rent receipts);
5. Copy of the utility bills like Telephone bill, electricity bill etc. (not older than two months)
6. In the case of subscribers/ Director does not have a DIN, it is compulsory to attach proof of identity and residential address of the subscribers

Note: All the Subscribers should have Digital Signature (DSC).

 STEP – III: Fill the Information in Form:

Once all the above-stated documents/information are available. The applicant has to fill the information in the e-form “Spice” (INC-32).

 Features of SPICe (inc-32) form:

• Maximum details of subscribers are SEVEN.
• In case of more subscribers, sign the MOA & AOA physically and attach the scan copy of the same with the Form.
• Maximum details of directors are TWENTY.
• Maximum THREE (3) directors are allowed for filing application of allotment of DIN (Director Identification Number) while incorporating a Company.
• A person can apply the Name of the company also in this form.
• Applying for PAN / TAN will be compulsory for all fresh applications filed with SPICe form in case of companies incorporated, with effect from the 26th day of January 2018, with a Capital which is less than or equal to Rs. 10,00,000 or in case of companies not having a share capital whose number of members as stated in the AOA does not exceed twenty.

Note: Fee on SPICe (INC-32) shall not be applicable.

Single Window Form:

Before 26^th January 2018, if one wants to incorporate a Company then he has to apply for the DIN, Approval of the Name Availability (Form INC-1) and Separate form for first Director, Registered office address, PAN, TAN etc. But this form is a single-window for the Incorporation of Company.

SPICE form can be used for the following purposes:

1. Application of DIN (Maximum 3 Directors).
2. Application for the availability of Name of the Company.
3. Application for first Director (DIR-12)
4. Application for the address of the registered office (INC-22)
5. Application for PAN & TAN

STEP – IV: Preparation of MOA & AOA:

The applicant has to submit the MOA & AOA electronically with the SPICE. Without AOA & MOA, the application shall stand incomplete. The applicant has to download the e-form INC-33 (MOA) and IN-34 (AOA) form the MCA portal. After downloading of e-form fill all the information in the forms as per the requirement of Table A to J of Schedule I.

After completely filing of the form affix DSC of all the subscribers and professional (CA/CS/CMA/Advocate) on subscriber sheet of the MOA & AOA.

Note: – It is also noted that the Date of Signing of the Spice, e-AOA, and e-MOA should be the same.

STEP – V: Fill details of PAN and TAN:

It is compulsory to mention the details of PAN and TAN in the Incorporation Form INC-32. Link to find out of Area Code to file PAN and TAN are given in Help Kit of SPICE Form.

 STEP – VI: Submission of SPICE, e-AOA, and e-MOA on MCA-:

Once all the three forms (Spice, e-AOA, and e-MOA) are ready and pre-scrutinized, upload all three documents by using linked upload option on the MCA website and make the payment of the same.

STEP – VII: Certificate of Incorporation-:

After successful verification of all the documents filed, Incorporation certificate shall be generated with CIN, PAN and TAN and Confirmation of the same shall be sent on the registered email id along with the Incorporation certificate.

After getting the Incorporation Certificate, one has to file the Form 20A within 180 days from the date of incorporation for the purpose of obtaining Certificate of Commencement of Business.

You can also visit http://taxclue.in/all-about-form-inc-20a/ to know more about the Form-20A.

Resources: SBEC, ICSI 2019