Problems with re-submitting

Have I written about re-submission of e-forms earlier? I think I did, but I was quite optimistic. A few weeks back, I submitted a form 1A (to register the name of a new company which we are incorporating). However, it was rejected because a non-compulsory field was not filled up (if it is actually compulsory why they don't mark it as compulsory? I don't know).

At first, I tried re-submitting but the status of my SRN was "to be clarified" thus I couldn't re-submit. I contact the support of the MCA website and they quickly and efficiently changed my status.

Then, again I tried re-submitting. After downloading the latest e-form, filling it up (which in this case does not need digital signature), pre-scrutinizing it and trying to upload it, I was told: that I needed the latest version of the e-form. I thought: "this must be a small programming mistake which will be corrected in a few days time". So, I waited. After a few days, I tried again, but didn't work. So, I again sent an e-mail to same highly efficient people that had helped earlier... this time I wasn't so lucky. They didn't reply.

I decided to try again uploading after a few days... nothing. I wrote again to the support people, and no reply. Finally, the time for re-submitting is due. I have been sent an e-mail telling me that, if I want to submit the form again, I will have to do it afresh (i.e. paying the fee again). I've written to the support team complaining about this, but I only get silence... this is really quite disappointing!

I guess I could try fighting for this out, but perhaps the most efficient and less costly way of getting my things done is simply to spend again the Rs. 500 for submitting the form and forget about the issue (hopefully this time it will work fine). Perhaps I shouldn't forget so easily about this and claim my rights... but unfortunately I don't think I have the time, nor the patience to do so.

Stamp duty and registration fees

I've always been amused by the amount of signatures and colorful stamps that the people in the government offices like. The process of registering a company is not an exception.

Once you have got drafted the MoA and AoA, and the forms 1, 18 and 32 are filled up (my next post will be about those forms) you will need to get them stamped, paying stamp duty and registration fees.

Unlike the other expenses which are fixed and relatively low (in the range of 500) this fees are slightly different.

The exact amount keeps varying. I don't know how often (may be every few months) and is directly proportional to the authorized capital which you request.

There are several sites which give you the ranges, some more updated than others. Sorry I don't give a link this time but I'm writing from my PDA where it is rather difficult to surf and the info I have is in my laptop. But to give you an idea, for a company with authorized capital of Rs. 5 lakh, the registration fees are about Rs. 17,000.

(For those who are not in India, Rs. 5 lakh is equal to Rs. 500,000)

By the way, I don't think it would be a good idea to try doing this without your Company Secretary's advice.

Drafting Memorandum and Articles of Association

When I first started setting up the company, I wanted to do as much as possible (I hoped everything would be) on my own, until I reached the point for drafting the Memorandum of Association and Articles of Association. That's what made me decide that I needed professional help.

The MoA and AoA (short forms for Memorandum and Articles of Association respectively) are drafted by solicitors. I think the best way to do it, is through your Company Secretary who already knows well what you want and what you need, and for sure will be in contact with a good solicitor who can do the job within your budget (considering the fees of the CS are already within your budget, of course).

The MoA and AoA are quite important for the future development of your company. They will state what your company does. Hence, if the panorama of the MoA and AoA is not wide enough, you will find yourself into trouble when you plan to expand the services or products offered by your company, as in theory, your company should not be doing that stuff. Thus, when drafting the MoA and AoA ask the solicitor to try to include as many services and products as you can think of, which of course, are in a way related to the main service you are starting with.

For instance, if you are planning to set up a company to sell pencils, don't write just pencils in your MoA and AoA. It would be better if you write manufacturing and selling of stationery items, paper making and recycling, printing, publishing, etc, i.e. all kind of related activities which one day may fall in your sphere. The idea is that, when more business opportunities come your way, you do not be constrained by something as small as this. I guess you would just have to re-draft the MoA and AoA, but why to take the trouble if you can avoid it?