Incorporation Of A Company In India



Everyone dreams of starting their own company or becoming their employer. Ever wondered what are the formalities to start a company of your own? Well, we are here to help you! Read below to know more.

Steps You Need to Incorporate Into a New Company

Let us have a look at the steps you need to incorporate into a new company:

Name: You must select at least one name and a maximum of six names that reflect your company’s objectives. Ensure that the name you have chosen is not similar to the name of an already registered company. In addition to this, confirm that it does not violate the provisions of the emblems and names as per the Prevention of Improper Use Act dated 1950. This can be done by checking the availability of the word. You should apply to the appropriate Registrar of Companies to confirm the availability of the name in the eForm1 A by signing in to the portal. A fee of Rs.500 is to be paid along with the form. The applicant’s digital signature who is proposing the Company should be attached along with the form. In case of unavailability of the proposed name, you will need to apply for a new name on the same application.

  1. Registration of the Company: Once the name is approved, you can apply for the registration of the Company. This is done by filling out Form-1, Form-18 and Form-32 within 60 days from the name approval. 
  1. Memorandum and articles: you must arrange the Memorandum and the Articles of association by the solicitors. After this, the Memorandum and Articles must be assessed by the Registrar of Companies and printed. Both the documents should be stamped with the appropriate stamp duty. Two subscribers in their hand should sign the Memorandum and the Articles. Their father’s name, occupation, address and the number of shares subscribed for should be mentioned. At least one person should witness the process. Ensure that the date on the Article and the Memorandum is after the date of stamping.

3. Filling of Form-1, Form-18, GForm-32: After the above process, you must sign in to the portal and fill out the following forms. Also, attach the mandatory documents listed in the e-Form.


Form Number



Declaration of compliance


Notice stating the situation of the registered office of the company


Particulars regarding the Director’s, Manager or Secretary

You must submit the e-Forms after the digital signature is attached. Pay the required filing and registration fees. Once you complete all these procedures, you must send the physical copies of the Memorandum and Article of the association to the Registrar of Companies. After the form is processed, the Corporate identity is generated. The Certificate of Incorporation is to be obtained from the Registrar of Companies. 

Public Limited Company

If you are forming a Public Limited Company, a few more steps need to be followed. To get the Commencement of Business Certificate, the following compliances must be adhered to:

  1. A declaration in the e-Form 20 must be filed, and a statement must be attached in the place of schedule III of the prospectus.
  2. If the previous step is not taken, file a declaration in e-Form 19 and attach schedule II of the prospectus.
  3. Get the Certificate of confirmation of the Business.

Part IX Company

If your Company is a Part IX Company, Kindly follow the following steps:

  1. Part IX Company has to file e-Form 37 and e-Form 39 and e-Form 1, e-Form 18, and e-From 32. The e-Form 1 must be filled first, followed by all the other forms simultaneously or separately.

What are the different kinds of companies in India?

 Based on the number of members, the following are the types of companies:

  1. Private Company: A private company should have at least two members and a maximum limit of 200 members.
  2. One Person Company: The number of members in the Company is one. The person must and should be a citizen of India.
  3. Public Company: The minimum number of members should be seven in a private company. There is no restriction on the upper limit of the number of members.

Based on the Liability, the following are the types of companies:

  1. Companies Limited by Shares: The capital in these companies is introduced as shares. Share refers to the small portion into which the company’s capital is divided.
  2. Companies Limited by Guarantee: The capital introduced in such companies is based on a guarantee. The guaranteed amount is mentioned in the Memorandum and is signed by the member. The amount guaranteed determines the percentage of ownership.
  3. Unlimited Company: The liability of the company members is not limited. In case debt arises, the liability is not limited to the share but is also extended to the members’ personal assets.

Procedure For Incorporation Of A Company In India FAQs:

1. What is the fee for Udyam registration?

The Registrar of Companies is an office responsible for the proper functioning of companies and Limited Liability Partnerships. There are registrar companies all over the states and union territories in India. A few states have more than one Registrar of Companies.

2. What is a Part IX Company?

A company set up under the persuasion of any Act of the Parliament or Indian law other than the Companies Act, 1956, is a Part IX company. Such a Company, consisting of seven or more than seven members, can register under this act as an unlimited company or as an entity limited by the shares or limited by the guarantee.

3. What are Holding Company and Subsidiary Company?

A company which has the controlling power or the major part of the voting power of another company is a Holding Company. It is also called the parent company. A Subsidiary Company is a company whose board of directors or more than voting power is constituted by another company, namely the Holding Company.

4. How can you differentiate a start-up from a small business?

A startup has its uniqueness in ideas and innovation compared to a small business. A startup doesn’t set limits concerning its growth, while a small business has limited growth. A startup’s main product is technology, while a small business may be marked with little or no technology. A small business can always turn into a startup and vice-versa.

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