Step-by-Step Process for Incorporation of Company in India

The joining of an organization alludes to the lawful strategy that is familiar with composing an organization substance or a partnership. These organizations will be known with terms like 'Inc' or 'Limited' in their names. It turns into an organization's lawful substance to completely split away from its property holders.

Private Company

To be consolidated as a Private Company, an organization should have a base settled up capital of Rs. 1, 00,000, and a base number of individuals needed to shape a privately owned business is at least 2 individuals.

Public Company

A Public Company should have a base settled up capital of Rs. 5, 00,000 and needs no less than at least 7 individuals.

What is the procedure of Incorporation of a Company in India?

The procedure is as follows:- 

1. Selection of name of the company 
2. Apply for Digital Signature Certificate (DSC) 
3. Applying for Director Identification Number or DIN
4. Drafting of Memorandum of Association (MoA)
5. Drafting of Article of Association (AoA) 
6. Application of Incorporation of Company

Selection of Name of the Company 

Select, arranged by inclination, no less than one reasonable name up to a limit of six names, characteristic of the primary objects of the company. The organization's name should wrap up with 'limited' assuming that it's a public organization and 'Private Limited' if it's a non-public organization.

Ensure that the name doesn't take after the name of some other currently enrolled organization and doesn't abuse the arrangements of tokens and Names (Prevention of Improper Use Act, 1950) by profiting the administrations of really taking a look at name accessibility on the entry.

To check whether the picked name is accessible for reception, the advertisers need to compose an application to the Registrar of Companies of the State. A 500 rupee is paid with the application. The Registrar then, at that point, permits the organization to embrace the name given they satisfy all legitimate documentation conventions inside a time of 90 days.

Apply for Digital Signature Certificate (DSC)

Digital Signature Certificates (DSC) are the computerized same (for example, electronic arrangement) of physical or paper authentications. Testaments fill in as verification of a person's character for a specific reason. A computerized Signature Certificate is a type of advanced key that holds all the essential data about the enrolled signatory like name, address, email, telephone number, and the power that has given the endorsement. Similarly, a computerized testament can be introduced electronically to demonstrate your character, get to data or administrations on the Internet, or sign specific archives carefully. One can get DSC enrolled by marking MCA-21 E-frames carefully.

Advanced Signature for an enlisted organization empowers the approved signatory to demonstrate its character and sign reports electronically. For e-Filing, Digital Signature Certificate is an obligatory requirement. An authorized Certifying Authority (CA) gives the advanced mark. Affirming Authority (CA) implies an individual who has been conceded a permit to give a computerized signature endorsement.

The rundown of authorized CAs alongside their contact data is accessible on the MCA entry ( For acquiring a Digital Signature Certificate, the candidate needs to contact any of the approved organizations supported by the government for the equivalent:

IDRBT Certifying Authority (

E-mudra (

Code Solutions (

Safescrypt (

Goodbye Consultancy administration and National Informatics Center (

The Fees for getting DSC are different among all the Certifying Authority.

How to apply for Director Identification Number (DIN)?

It is a unique identification number assigned to the current overseer of the organization or expecting head of an organization as per Section-152(3), Section-153, and Section-154 of the Companies Act, 2013.

It is solely after the DIN is endorsed the joining records can be documented with the Registrar Form No.- DIR-3. Notwithstanding, the name endorsement can be acquired preceding the endorsement of DIN. It requires around 7 days to get the DIN supported, given all legitimate archives are outfitted. Expenses to be paid for the designation of DIN is Rs.500.

Documents required to get the DIN application are:

  • Identity proof: Copy of PAN card is mandatory.
  • Address proof: Copy of passport or Voter Id or Ration card or Electricity bill or any other address proof.
  • Passport size photograph (latest) in soft copy.
  • Occupation
  • Email address
  • Education qualification
  • Telephone number
  • Signed verification

Drafting of Memorandum of Association 

The memorandum of association of an organization can be alluded to as its constitution or rulebook. The MoA is the Constitution of the Company which should contain all the essential data of the company. MoA characterizes the relationship of the company with its investor. Subsequently, it is critical to draft the MoA cautiously with appropriately fusing Clauses cautiously. The memorandum states the field in the organization will work, targets of the organization, just as the sort of business the organization intends to attempt.

It is further divided into five different clauses:- 

1. Name Clause
2. Registered Office Clause
3. Objects Clause
4. Liability Clause 
5. Capital Clause 
6. Drafting of Article of Association 

Articles of Association is, for the most part, an archive that states decide that the internal administration of the corporate can follow. The article agrees with the corporate and its individuals. The article specifies the freedoms, obligations, and liabilities of the individuals. It's similarly restricting on every one of the individuals from the corporate.

Application for Incorporation of Company 

When this multitude of documents are prepared and finished, the candidate might petition for the fuse of the organization, and under Section 7 of the Companies Act 2013, should document the application with the recorder under whose purview the organization's location is found. Assuming the Registrar is pleased that everyone's necessities are fulfilled by the corporate that is being fused, then, at that point, he can enlist the corporate and issue a declaration of consolidation—after the higher than reports were documented with the Registrar, paid the endorsed expenses accordingly. Subsequently, the joining authentication given by the Registrar is unmistakable verification that everyone's requirements of the Act are met.

This Certificate of Incorporation qualifies the corporate for a legitimate individual. In various words, the corporate is brought into the world upon the issue of a Certificate of Incorporation.
The list of documents required for the incorporation of the company includes
1. Aadhaar card
2. PAN Card
3. Address proof
4. Digital signature certificate of the applicants.

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