Checklist for Registering a Company in India
To form a private limited company from a sole proprietorship, the procedure is to first form the private limited company, then take over the sole proprietorship through a Memorandum of Association (MoA), and transfer all benefits and liabilities to the limited company. Therefore, the following requirements must be taken care of before applying for a certificate of incorporation.
Two Directors: A private limited company must have at least two directors and at most, there can be 15. Of the directors in the business, at least one must be a resident of India.
Unique Name: The name of your business must be unique. The suggested name should not match with any existing companies or trademarks in India.
Minimum Capital Contribution: There is no minimum capital amount for a company. A company should have an authorized capital of at least Rs. 1 lakh.
Registered Office: The registered office of a company does not have to be a commercial space. Even a rented home can be the registered office, as long as an NoC is obtained from the landlord.
Memorandum Of Association( MOA): In the objective clause of Memorandum Of Association (MOA), there should be a phrase present “ the takeover or acquisition of a sole proprietorship concern”.
Annual returns: The private limited company should file an annual financial accounts statement and annual returns with the registrar of the company every year.