Company formation India

Company formation - India

What are the different types of company that are available to be incorporated?	Private Limited Company (Ltd), Public Limited Company (PLC), Holding Company (HC), Subsidiary Company (SC), Joint Stock Company (JSC), Producer Company (PC), Government Company (GC), Foreign Company (FC)
What documents are required to incorporate these companies and what are the other registration requirements?	Private Ltd Company - An application in form No.1A is prescribed to the companies (Central Government's) General Rules and Forms, 1956, and a fee of Rs.500 is payable with each application (Rule 4A); the Registration fees paid to the Registrar are Rs. 4000 and the Filing fee is Rs. 100 (Schedule X of the Act). The Documents required to be prepared/completed before submitting to Registrar Of Companies (ROC) are: 1. Memorandum of Association (MOA) and Articles of Association (AOA). These should be executed by the promoters in their own hand in the presence of a witness in quadruplicate stating their full name, father's name, residential address, occupation and number of shares subscribed for, etc. 2. Form No. 1 - a declaration to be executed on a non-judicial stamp paper of INR 20 by one of the directors of the proposed company or other specified persons such as Attorneys or Advocates, etc. stating that all the requirements of the incorporation have been complied with. 3. Form No. 18 - to be filed by one of the directors of the company informing the ROC of the registered office of the proposed company. 4. Form No. 29 - a consent by all the proposed directors of the proposed company to act as directors of it. (Not required in the case of a private company). 5. Form No. 32 - stating the appointment of the proposed directors on the board of directors from the date of incorporation of the proposed company and signed by one of the proposed directors. 6. Company name approval letter (in original form). 7. Power of Attorney signed by all the subscribers of the MOA authorizing one of the subscribers or any other person to act on their behalf for the purpose of incorporation and accepting the certificate of incorporation. 8. Power of Attorney in case of a subscriber who has appointed another person to sign the MOA on his behalf. Public Limited Company- The documents are the same as that of a Ltd company. Registration fees paid to the Registrar are Rs. 16000 and the filing fee is Rs. 200 (Schedule X of the Act).
How long (approximately) does this process take from start to finish?	Normally about 2-4 weeks
What are the capital requirements (minimum amounts, types of capital, limits of shareholders liability)	Private Ltd Company: A minimum paid-up capital of 100,000 Rupees or such higher paid-up capital as may be prescribed by the Articles of Association. It restricts the rights to transfer its shares; (a) limits the number of its members to 50 not including: (i) persons who are in the employment of the company; and (ii) persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after their employment ceased; and (b) prohibits any invitation to the public to subscribe for any shares in, or debentures of, the company; (c) prohibits any invitation or acceptance of deposits from persons other than its members, directors or their relatives; Public Limited Company: Minimum paid-up capital of 500,000 Rupees or such higher paid-up capital, as may be prescribed. The shareholder's liability is limited to the price to be paid for his share. Capital consists of ordinary shares, and preference shares with special rights (eg voting, dividends) are possible.
What is the minimum management requirements (e.g. types of office holder or nationality requirements, etc.)?	Private Limited Company: Minimum of two shareholders, two directors; there are no nationality requirements. Basically any two or more persons, associated for any lawful purpose may, by subscribing their names to the Memorandum of Association and otherwise complying with the requirements of the Companies Act, 1956 (as amended) in respect of registration, form a private limited company, with or without limited liability. Public Limited Company: Any seven or more persons, associated for any lawful purpose may, by subscribing their names to a Memorandum of Association and otherwise complying with the requirements of the Companies Act, 1956 (as amended) in respect of registration, form an incorporated company, with or without limited liability; and every public company shall have at least three directors.
Approximately, what is the local currency cost in relation to formation expenses and taxes?	For both Private Limited Company and Public Limited Company: the cost in relation to formation expenses and taxes (if any) varies dependant on the authorized and paid up capital amount.
What publicity is required (e.g. filing of accounts, publication of other information)?	For both Private Limited Company and Public Limited Company: Annual returns (with details of Officers and Shareholders), annual accounts (audited for larger companies) and changes in details of Officers and Shareholders must be registered at the Registrar of Companies. Certain information must be held at the premises, and certain information must be put on the company's letterhead.