Company Registration Process 2018

Update: Company Registration Process | 2020 Edition

On the occasion of the 69^th Republic Day of India, The Ministry of Corporate Affairs (MCA) announced a new process of incorporating companies in India. Prior to this, a fast track incorporation form was used for registration of company name, director identification number, and incorporation all at once or INC 1 was used for reserving the company names. This process had multiple drawbacks including the requirement of a Digital Signature even to apply for a Company Name.

So in order to solve these issues, the MCA has introduced a new procedure with a web-based name reservation system called RUN (Reserve Unique Name), where you can apply for the company name without digital signature, and once allotted you can go for incorporation. Post this new implementation, a user can incorporate a company in the following ways:

• Process 1: Go Through RUN(Reserve Unique Name)
  1. Reserve Company Name
     1. Apply for the company name by paying Govt fees of INR 1000 and reserve the name first. Once approved the name shall be reserved for 20 days from the date of approval, which means the incorporation has to be completed within the same time span, or else we will have to reapply for the name.
  2. Get Digital Signatures for Directors
     1. Once the name is reserved we can get digital signatures done for all the directors and members.
  3. Draft all the documents
     1. Proceed for drafting the documents such as Director’s Declaration, Affidavit, Company Rental Agreement, NOC, MOA & AOA.
  4. Apply for incorporation
     1. Once the documentation is done, we can proceed for incorporation. Since the name is pre-approved and all the documents are drafted on the basis of the pre-approved name there are no chances of rejection on the basis of the non-availability of the name, hence the process expedites.

• Process 2: Skip RUN(Reserve Unique Name)
  1. Get Digital Signatures for Directors
     1. Apply digital signatures for all the directors and members.
  2. Draft all the documents
     1. Proceed in drafting the documents such as Director Declaration, Affidavit, Company Rental Agreement, NOC, MOA & AOA on the basis of the proposed name of the company.
  3. Apply for incorporation
     1. Once documentation is ready, we can proceed for incorporation. Since we are skipping the name reservation part, in case the incorporation application is sent for resubmission on the basis of the unavailability of the company name, all the above documents are to be redrafted with a new proposed name. This may, in fact, cost you more time and money than the first one, hence we recommend you take the RUN way for incorporation.

Why go for RUN-way based Incorporation?
-Can apply for two proposed names while applying for name reservation.
-The name is pre-approved and hence better chances of approval
-Savings in time and stamp duty generally

What does it mean by zero Registration Fees?
Well, the Government has waived off the registration fees for incorporation but the process is not completely free since stamp duty is still payable.

Important Links:
Registration Of Private Limited Company
Registration Of One Person Company
Registration of Limited Liability Partnership