Company Formation under the Companies Act of 1956

Formation of Companies under Companies Act, 1956

  • Select in order of preference a few suitable names, not less than four, ensuring that the name does not resemble the name of an existing Company.
  • Apply to the jurisdictional Registrar of Companies to ascertain the availability of name in Form 1A along with mentioned fee.  Registrar of Companies informs the status of the application within 14 days.  If the name proposed is not available, apply again for a fresh name.
  • Arrange for drafting of the Memorandum and Articles of Association(MA) through a Consultant, vetting of the same by the Registrar of the Companies and printing of the same.
  • Arrange for stamping of the M & A as per Registrar of Companies instructions.
  • Get the Memorandum and Articles of Association signed by, at least 2 persons in case of Private Limited Company, at least 7 persons in case of Public Limited Company, each shall also write in his own hand his fathers name, occupation and address and number of shares subscribed for, and duly witnessed by at least one person who shall also write in his own hand his full details as above.
  • The M & A should be dated on a date after the date of stamping.

The following forms are to be filled and signed:

  • Declaration of Companies of Companies Act 1956, Form No.1.
  • Notice of situation of Registered Office of the Company  Form No. 18.
  • Particulars of Directors, Manager or Secretary  Form No.32.
  • Consent to act as Directors  Form No. 29.

File the following documents with the Registrar of Companies with necessary Registration and filing for:

  • Stamped and signed copy of Memorandum and Articles of Association.
  • Form No. 1, 18, 32, and 29 in duplicate.
  • Any other agreement referred to in the Memorandum and Articles.
  • Any agreement proposed for appoint of Managing Director/whole time Director.
  • Certified true copy of the Registrar of Companies letter intimating availability of name.
  • Power of attorney in favor of any person for making corrections on their behalf in the documents and papers filed for registration.

Obtain the certificates of incorporation from Registrar of Companies:

In case of Private Limited Companies, they can commence business immediately on receipt of the certificates of incorporation from the Registrar of Companies.

In case of Public Limited Company following additional steps are to be completed.

  • Arrange for payment of application and allotment money in cash by the Directors on the shares taken or agreed to be taken by them.
  • File the statement in lieu of prospectus with the Registrar of Companies in accordance with Schedule IV of the Companies Act 1956.
  • File a declaration in Form No.20 with the Registrar of Companies to the effect that the application and allotment monies have been paid/will be paid in respect of shares taken up by the Directors.
  • Obtain the certificate of commencement of Business from the Registrar.

Source: Scribd.com

About Abey Francis

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