How to Form a Company in India

Hello All,

I am thinking to form a small firm. can anybody clear my few things

what are the legal requirements and proccess
what is good pvt. ltd. or propritership

Regards,

Doga

 

if you asked me how to do that in US I would tell and even help you with taxes but India .. sorry man

 

You will have to go with proprietorship.

Forming company in India will be approximately around 17,000 to 18,000 INR's

To form a Pvt. Ltd. a 5crore turn over is required.

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Now this is all that I got out from one C.A.

 

False Statement

 

please visit your local panchayat or corporation
they can give all details.
or even registrar of companies office.
these are the 3 places.
if you have a accountant/CA he will have all the necessary details

 

I think you can better hire a cosultant for this

 

Can't be more untrue.

Forming a Pvt. Limited company what is needed is INR 100,000 (around $2175) as your minimum capital. The cost to open the company would not be more than INR 3000 for that.

Its always better to go thru consultant or C.A.

 

Well yes this maybe untrue. I know.

And that is why I mentioned that I got only this much out of a C.A.

Plus It started giving me a feeling that he knows nothing. Don't know what kind of C.A. he was.

 

Ok I have my own Private Limited Company .

May be i can help you out with this.

you can check with http://www.mca.gov.in/

You will need a capital of 1 Lakh only to be mentioned in records .. all you will need to setup a private limited company is 5000 rs DD for ROC .

You need to go to ROC directly or consult a CA for it .

The charges would be 5000 rs if u go directly or 5000+ CA Fees for starting a Pvt Ltd Company .

You will need atleast 2 directors in a Private Limited Company and also a Proof of CA signed Document .

I advice you to consult a CA for all these as he will be helpfull for you for obtaining PAN Card . Opening a Bank account , DIN Number , Digital Signature .

 

soccerfriend Can you provide me with Information on how to do that in US

 

Very good question. Specially for any non-resident.
Can anybody point online to a site which provides this info?

 

I too operate a company from India and I completely agree with
DEVIL's statement.


Al

 

There are many sites online that will let you let you make a company in the US.

 

Thanks everyone for giving your input and thanks devil for link

 

I think this will help you. chek this website :

http://india.gov.in/business/start_business.php

 

Rajesh has given a great link that you might want to check out.
http://india.gov.in/business/start_business.php

Here are few of my inputs here,
> DP member yfs1, has compiled a great list of points that you might want to go through.
http://www.yfs1.com/2006/forming-a-company-in-india.html

> Keep your documents ready, keep them clean (not shady) and make sure everything is easily accessible.

> Read India Mart's Company formation intro
http://finance.indiamart.com/new_ventures/cf_intro.html

> Consult a *GOOD* CA (Notice the highlighting)

> No need to start it out with a Pvt. LTD label .. you can always upgrade.

> Research a lot within your niche and make the company name presentable don't go for you mother, your grandmothers and your great grandmother's name combined ...

> Get your assets audited ..

> Make sure you have your PAN card handy (proves that you are a taxpayer)

> Make sure any software you use is actually Licensed, I'd suggest you include the licenses in your start-up expense, since otherwise it'll cause problems to you. Mind you, pirated software is a crime in India.

> Lest of all, if you are the work-from-home kind ... you could go for sole proprietorship. It is mainly used by individual designers, consultants etc. This way you can save a lot of taxes. Also if you run your proprietorship firm from a location other than your home, you'll also need clearances from the Municipality and local authorities. You can convert to a Private Ltd. Firm later on.

Hope that helps ....

 

Those were excellent resources abhishek. Was useful for mee too. (noted)

 

yeah, he have really good and useful info... thanks Abhishek for your good help!

 

Thanks Aditya and Pammer ... Glad I could be of some help

 

This is for forming a company (Pvt. Ltd) in India
1. Apply for a DIN (Director Identification Number), submit relevant documents and ID's like, PAN card, Passport, Voters Identity Card, or any other citizen ship proof.
2. If you are an income tax assesse already submit the Income Tax Return
3. Pay around 2500, to digital certification authorities to get a 256 bit encrypted digital key, that will be used by you(the future director) to sign all electronic documents or submit tax returns online(by 2008).
4. You will recieve your DIN within 4 weeks. Ministry of Company Affairs will email you and also send a document through post.
5. Register and block your company name with the National Registrars in Noida.
6. You have 6 months time after booking the company name to form a company.
7. You will require Memorandum of Associations etc.

Get a good CA.