Steps to Set Up Private Limited Company in India

There is one or the several reasons why foreign companies are making investment and seeking to get the status of a company so that they can easily run business without any hassles. If foreign company or investor wants to start a business set-up, it needs to follow the Foreign Company Registration. There are numerous options available for a foreign company to start the business operations and it includes opening liaison offices, Branch Offices, and Project Offices.

Liaison Offices: Liaison office helps the foreign company to look after the business operations in India and make the promotion of businesses. However, this type of investment of foreign company cannot run business and running expenses for liaison offices needs to be managed from abroad.

Project Offices: Having the project office is considered as the best way for getting the business presence, but it aims for specific time period for a particular project only. Companies that engaged in running the turnkey construction projects in India can establish the project offices.

Joint Ventures: Foreign Company can go into the financial or technical collaboration with Indian counterpart. It helps to run business with pre-established market of the Indian company. 

It is the better option to acquire the status of a company, if looking further for long term period investment. It is possible to enter into the Indian market by getting the status of public limited or private limited company.

Steps to Set Up Private Limited Company

If any of the foreign company is looking to make the company formation in India. It is essential to know how it can go through. There are some pre-specified procedure/ steps to set up private limited company, and it is described as below:

Type of Company: Firstly, it needs to check out which type of company and in which sector you want to register. The management of the company may it be the individual or corporate body have to define the nature of business and need to specify in which sector it is going to operate.

Company Name: Pick up the particular name of the company. Company management has to specify the six names on the basis of preference according to the provisions, rules, and clarifications to Ministry of Corporate Affairs.

Requirement of Director Identification Number: According to the Companies Act, 1956, no company can appoint an individual as the director unless he has the Director identification Number as mentioned u/s 266B.

Preparation of Articles of Association and Memorandum of Association: Drafting AOA and MOA just after getting name to the company by the registrar. These are included under the rules & regulations for a company. It therefore needs to draft with great care and required the professional assistance in this regard. There are number of company formation services providers that render assistance in this critical procedure at each step and you need not to take worries.

Payment of registration Fee: Next is the fees payment to the registrar however, the payment varies as per the authorized capital of the business enterprise which is supposed to be registered.

Obtain the Certificate: After the fee payment, company can get the certificate of incorporation.