Incorporation means formation of a new company. (A company which has to be a legal entity that is recognised under law).
In India, there are following types of Business formations:
1. Public Limited Company
2. Private Limited Company
3. Unlimited Company
4. Sole Proprietorship
5. Partnership
The most common ones are Private Limited Company, Publich Limited Company and Sole Proprietorship.
The process of incorporation is also easy and cost effective through online. However, one has to consider all the necessary steps that are required. One needs to apply for Directors Identification Number (DIN) and Digital Signature Certificate (DSC).
The first steps of Registration of company involves the approval of name by ROC. The approval name follows by certain conditions. For instance, there should not be any existing company in the same name. The name of the company should end with the type of the company like pvt ltd if it is a Private Limited Company and Ltd if it is Public Limited.
A company is formed by registering the MOA (Memorandum of Associated) and AOA (Articles of Association) with Registrar of Companies of the State. Registrars of companies(ROC) deal with the incorporation process, company name change process, converting companies from private to public or vice versa and any further actions regarding companies.
The Company registration documents i.e. MOA and AOA has to be filed online with the ROC. The ROC registers these documents and issues Certificate of Incorporation. MOA and AOA are the important documents for purpose of incorporation of the company.
After the registration completion, the company has to obtain TAN (Tax Collection and Deduction Account Number), PAN (Permanent Account Number). Also, Service Tax Registration or Value Added Tax (VAT) depending on the nature of business functions.
Both the TAN and PAN has to be indicated on all the documents filed with Revenue Department. PAN is also required to be stated on documents pertaining to sales or purchase that exceeds Rs 5 Lakhs etc.
Also note that a foreign company can open up a branch or liason office in India after the approval of RBI (Reserve Bank of India)
