By now, if you have followed all the process to register your company you will have finished with quite a few things. You decided you wanted a Private Limited company. You got your DIN (Director Identification Number) and your Digital Signature. You have already received your confirmation for the name you chose for your company. Also, you drafted your MoA and AoA, of course with the proper legal advice. You have shelled out some money for stamp duty and registration fees. Finally, you are ready to give the last step and soon afterwards get your Incorporation Certificate for your newly approved Private Limited Company.The last step is to submit form 1, form 18 and form 32. Of course, this will go along with the MoA, AoA and all the colourful rubber stamps you got in your papers at the time of the stamp duty and paying the registration fees.
- Form 1: Application and declaration for incorporation of a company.
- Form 18: Notice of situation or change of situation of registered office.
- Form 32: Particulars of appointment of managing director, directors, manager and secretary and the changes among them or consent of candidate to act as a managing director or director or manager or secretary of a company and/or undertaking to take and pay for qualification shares.
First, that they are quite important forms for the future. For instance, when you want to open a bank account or do a similar procedure, you will be asked for copy of these forms (at least 18 and 32).
The other issues, since by this time you will be doing it with legal advice you need not worry much about it. But they are such as making sure you have the latest form, etc.
As usual, I like to tell people that is important you get to know about those things before meeting your CS (Company Secretary) so that the meeting is much more efficient and you are somehow in the same "frequency". Thus, it is better if you try downloading those forms and read what all information they ask for there. You can get them from the MCA website.
The cost for submission of forms 1, 18 and 32, the cost of stamp duty and registration fees, were, all together Rs. 17,200.
ReplyDeleteThis depends on the authorized capital you have requested in form 1. The case of my company is 5 lakhs.
As per request....
ReplyDeleteThe total cost for the incorporation of the company came to Rs. 52,000. This includes the Rs.17,200 above, as well as the CS fees, the lawyer's fees, couriers, digital signature, and other small expenses which may have been incurred during the process.
Hi....Thanks for giving your valuable time for share your experience overhere.your wordings are very clear and perfectly understandable.
ReplyDeleteEach article you paste here is realy valuable.
Even those also...that are out of link...
but they have their own specific meaning..and are related in some sence.
I veiw your blog tomorrow(10 april,2009)and read all the article from last to end.Most of my confusions are clear for which i need to research in future.
You have put your all effort to help the people.
But ther still remain some queries about which i am keen to know.
Hope i will get the solution of all those query here in the core time.
Realy Thankful,
chitra
Hello Chitra, thank you for the encouragement... is really nice to know that the little work I do here is being helpful to people.
ReplyDeleteIf you have doubts or anything you would like to ask, do let me know it... I'll try to reply to the best of my knowledge (which may be limited, but I guess it could give you a lead)
Hi..Javier thanks for a fast reply.
ReplyDeleteone thing that is very clear is that we all have resources but the main thing is how u collect those resouces and how efficiently u are using them.
Tell me one thing,how u collect the staff and acomodation for starting up ur businees in pune,i know the plan faled,but it was a nice effort to grow up from bottom,nd from here u learn a lot i think so...well how much setup cost it required overther.
True Regards,
Chitra
Noida(U.P)
This time it took me a little longer to reply....
ReplyDeleteCertainly, it was not easy to try to coordinate the opening of the office at Pune... I will be writing about the recruiting, staffing, getting an office space, etc., in future posts.
With respect to costs, it depends on the number of people you want, the size of the office space, what kind of equipment you require, in which area of which city you will setup the office, and various other factors. But "which city" is a major factor which affects all the others... that was the reason we were going for Pune instead of Mumbai... you have the talent, the rents are lower, the people require lower salaries (as cost of life is lower), etc.
Hi, Javier……
ReplyDeleteHope U may be fine and doing your job in a perfect way.
I Need some favour,
Have a look at ur article,posted on Nov 21,2008…
Legal Process to start the Company,
Here u write….When setting up a new business you would like to start your service or selling your product immediately so as to begin receiving returns very soon…
U r right in some sence but clear me one thing if we r going to develop a software company or some what a web development company,then do u think it is possible to start the service(or starting a project)exactly before registration of the firm.
Or in general, for a product based firm it will be tough to set up the machinery before any legal process.
Another issue is to register your domain name over www under W3C.Mean when we register our company then MCA(Ministry of company affairs), provide a domain name for our company or we need to process it by our own.
If yes,then when we get the authorization to register a domain name directly after getting
Apply for ROC for the name of company or After the submission of form 1,8,and 32.
One More thing in ur article posted on 26 nov,2008…
U write the upfront cost to setup a Pvt Ltd. is at least Rs 15,000 to 20,000. and that for a partnership firm its about 8,000.
Tell me one thing what does it mean by upfront cost ?????????..whether it include capital amount or not.
Also tell me the detail of authorized capital we are going to use to setup our company minimum capital required and other issues associated with it.
Thanks & regards,
Chitra Bhati
Noida (U.P),INDIA
Chitra... your questions are quite good and I will clarify the specific posts one by one in the coming days
ReplyDeleteK..No issue I will eagerly wait for the reply.
ReplyDeletewell U r right choosing a right "city"is realy
important..and Noida in India is not a bad option to start up the firm.
Its my native place I have analyze all the opotunity overhere.
BUT so much homework and reserch is still required.
I have posted the first reply at http://mumbaientrepreneur.blogspot.com/2009/04/start-working-asap.html for the question:
ReplyDelete"U r right in some..."
I wanted to know if you have to scan the stamped copies of the MOA and AOA for attaching them to FOrm 1 or just attaching the simple unstamped files will do?
ReplyDelete"I wanted to know if you have to scan the stamped copies of the MOA and AOA for attaching them to Form 1 or just attaching the simple unstamped files will do?"
ReplyDeleteI guess you mean while attaching the documents to the e-form, right?
If that is so, I think it may be enough to attach the unstamped files. But, if you have the possibility of scanning the stamped copies, I'd better do that... I prefer to always give more than what they ask me, otherwise they may end up asking it as well.
In any case, since this is the final submission, I would really strongly recommend you to get it checked by an expert Company Secretary. He or she will charge you a fee, but could save you a good headache (and perhaps a fine) in case you are doing it wrongly.
hello Javier, i am new to your blog but have tried to read most of its entries in past two days. I will be grateful to you if u can clarify a query, regarding registration of a pvt ltd company, though it may seem a bit awkward:
ReplyDeletecan a regular ph.d. student of a university can apply for DIN, etc and be the MD of a company while simultaneously pursuing his Ph. D.?
I will be eagerly waiting for your reply
Thanks
regards
Online form DIN-1 is the first form to apply for DIN, with which they will give the provisional DIN. Afterwards, you will need to submit the same form in hard copy with all your documentation.
ReplyDeleteThis form only includes information of the applicant such as: Name, Date of birth, address, Identity and residence proofs... i.e. no information at all about the present occupation of the applicant.
Thus, I would assume that it doesn't really matter (they don't get to know it) whether you are already the CEO of a company, or if you are studying a Ph.D., or if you are still studying your undergrads.
Do let me know if this is clear enough... I hope I'm not wrong though!
Regards,
Javier
By the way, for being the Director or Managing Director, applies practically the same.
ReplyDeleteHowever, here (form 18 or 32) you will have to tell your occupation, but it is actually up to the company whether they want to make you the MD... the government only needs to know who has been appointed by the company.
Regards,
Javier
Thanks !
ReplyDeleteSir...i read your comments...Its very imp to know what we are upto...Sir I have not started any sale yet....its all on preparation stage..I only have decided my company's name and now preparing other legal formalities...can you advise me that If I have name I just cant start company..I need to show with how much funds am Starting business with
ReplyDeleteHello there,
ReplyDeleteI'd suggest that you start doing business (selling) as soon as possible. Legal formalities are important but not essential and you can get that done quickly while you have started your business. Don't allow yourself to be blocked by the bureaucracy!
And no, you don't need to show anybody the funds you are starting your business with. Only you will need to get the respective approval for maximum amount of capital you want for the company, and pay the respective fees.
All the best!
Hi, i want to start a food biz..mainly through food stalls at food courts and malls, etc. Im still at the conceptual stage and currently salaried. I will be continuing my job and will have my support sys managing the day to day biz. However i need to set it up for them. What shoulf determine whether the biz would be an entrepreneurship or pvt lts co? What is the diff in the documentation? Appreciate your valuable feedback
ReplyDeleteHello Raula,
ReplyDeleteI guess that by "Entrepreneurship" you are referring to a Proprietorship or Partnership as against a Private Limited, right?
A Proprietorship would be an extension of yourself with respect to taxes and liabilities, while the Pvt. Ltd. is a different entity with its liabilities and taxes being separate from yourself.
Go for the Pvt. Ltd. if you need also to have a good Corporate image. Otherwise, Proprietorship is much simpler to handle (and less expensive as well).
I hope this helps you!
All the best for your venture,
Javier
Hi Team,
ReplyDeleteIf we need to open a classes for teaching on professional subjects then what we have to do.
Please let me know asap.
Thanking you in anticipation.
Regards,
Aamir Chougule