Steps involved in incorporation of company in India by Foreign Residents.

Updated: Aug 20

For the purpose of registration of a company, the company has to first obtain a registered name

for which they have to submit the application to the registrar for checking the availability or similarity to a previously registered name. With the application they also have to submit alternative names in the order of priority in case of the rejection of the proposed name. Once the registrar is satisfied then the name is registered.


The procedure for incorporation of a company in India involves several steps as provided under the Indian Companies Act and they are:

1. Application for obtaining Director Identification Number (DIN) from the Ministry of Corporate Affairs.

2. Search for a company name-This step requires search of company name and the availability of names can be checked at the website of Ministry of Corporate Affair

3. Application of proposed name- An application for proposed company name is to be filed with the Registrar of Companies ROC

4. Drafting of Memorandum of Association (MOA) and Articles of Association (AOA) MOA and AOA. MOA covers the fundamental provisions involved in the company’s formation and an AOA covers the rules and regulations governing the internal management of a company

5. Filling of Forms and Paper with ROC

Thereafter, documents filed for incorporation of company will be verified by ROC. Pursuant to verification of documents, the ROC will issue a “Certificate of Incorporation” to the company.


Thereafter, the company can commence functioning.


Certificate of Incorporation and Certificate of Commencement

Certificate of Incorporation is a certificate which sanctions the existence of the companies once the registrar has scrutinized all the documents and has made necessary changes in MOA and AOA. Certificate of Incorporation is given to both Public and Private Companies. Certificate of Commencement is given after obtaining the Certificate of Incorporation and a Public Company having share capital cannot commence its business without this certificate. Whereas this is not necessary for commencement for Private Companies which can commence its business after receiving the Certificate of Incorporation.

Compliance for Companies in India

An investor, investing in India may choose from various types of entities depending on their

own requirements. After deciding the type of entity, they want to invest in, the next step is to perform the required compliance according to the rules and regulations laid down by the respective Acts. Below mentioned are few of the compliances that an investor has to perform in order to get its business incorporated in India;

Formation and Incorporation of the Company Checking the Foreign Direct Investment (FDI) allowed with respect to a foreign investor’s business operations. Requirement of various licenses and approvals from concerned central and state governmental authorities. Performing Intellectual Property Audit Tax compliances Appointment of auditors.


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