Amid all this hue and cry about difficulties faced by the entrepreneurs to incorporate company in India, let me go little more in detail to examine what are the exact pain points and explain how with a better planning you can get the things done much faster:
- For all the Directors and shareholders of the company, following documents should be in place:
- Adhar/ Voter ID/ Passport/ Driving License (any of the one)
- Bank statement/ Post paid mobile bill / electricity bill as proof of current residential address.
Keep the documents handy while you visit your CA.
2. Try to start with minimum number of Directors (i.e 2 for pvt. Ltd. 3 for public ltd) and shareholders
You can always add any person as Director or give any person shares at any time after incorporation. These processes after incorporation are much easier. Having more and more persons right at the time of incorporation makes documentations lengthy and causes delay.
3. If you have any person not residing in India as Director/ Shareholder, do not bring them on Board at the time of incorporation
Companies with nonresident shareholder/ Director are much difficult and time consuming to incorporate (in India) than with resident shareholders and Directors. You can start the process of taking DSC, DIN etc for non resident Director parallely while company incorporation is in process (with resident Directors) and after incorporation adding a nonresident Director will save you lot of time.
4. Don’t be very specific about the name of the company and always try to find a very unique name.
With unique names, you can go for single application process for incorporation which is much faster when compared to normal 2 stage process of first obtaining the approval for the name and then filing for incorporation.
You can always have your trade name different from your company name.
5. If you have Adhar Card try to take DSC (Digital Signature) from e-mudra (e mudra is a DSC agency, if you ask your CA, he/she will be knowing about it). E-mudra takes just 2 to 3 hours to issue a DSC if you have adhar and you are available to give your thumb impression on the application form.
6. Ask your CA to keep ready MoA ,AoA and all other incorporation documents immediately once you have applied for DSC.
Once your DSC is in place, you can immediately file the documents for incorporation under single application process without any delay if you have the documents ready.
7.Finally spend at least 1 hour incarefully going through the documents prepared by your CA. Though he/she might be a good professional, there are high degree of chances that some of the information may be missing. Most of the documents and information you provide at the time of incorporation are related to your personal credential like your name, address, phone number etcfor which you are a better person to verify and correct if there is any mistake.
[If you have no idea of DIN, DSC etc, you are advised to read our Article on ‘’Incorporation Process in India” together with this post]