October 11, 2013


In India Companies are of three types:
1. Private Company
2. Public Company
3. Section 25 Company

In this post we will discuss the steps to incorporate a private company:

Section 3(1) (iii) defines a private company as one which:- 
(a)has a minimum paid-up share capital of Rs.1 Lakh or such higher capital as may be prescribed;and (b)by its Articles Association: 

1.restricts the right of transfer of its share; 

2.limits the number of its members to 50 which will not include:-
A. members who are employees of the company; and B. members who are ex-employees of the company and were members while in such employment and who have continued to be members after ceasing to be employees; 

3.prohibits any invitation to the public to subscribe for any shares or debentures of the company; and 

4.Prohibits any invitation or acceptance of deposits from persons other than its members, directors or their relatives.


1. Get DSC for one of the director- First of all get a Class II Digital Signature Certificate for one of the prospective director. This can be purchased from your local RA of companies providing DSC. DSC usually cost Rs. 500-700 but its price goes to as low as Rs. 250 at the peak season.

2.Get DIN for the director- After getting DSC, get Director Identification Number for Each Director. There should be atleast 2 director for Private Company. To get DIN file online form DIN1. Fees is Rs. 100 for each DIN.

3. Apply for Name of Company- After getting DIN for each director apply for name of the company. You can apply upto 6 names for the prospective company. For applying for name file Form 1A. Fees for Name approval is Rs. 1000.00

4. Get MOA and AOA stamped- Pay appropriate Stamp Duty and get your MOA and AOA vetted.

5. File form 1- Application or declaration for incorporation of a company

6. File Form 18-Notice of situation or change of situation of registered office

7. File Form 32- Particulars of appointment of managing director, directors, manager and secretary and the changes among them or consent of candidate to act as a managing director or director or manager or secretary of a company and/ or undertaking to take and pay for qualification share

Akshay Jain
Chartered Accountant
Varanasi (U.P.)
Contact Me at: for any query
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