Company Formation In Delhi

Company Formation in Delhi

"We provides services like Company Registration, Incorporation, Formation in Delhi, Gurgaon, India. Get the lowest price. To Know more about process of Company Formation in India .

Company formation in Gurgaon

Company formation in Gurgaon is not tough when you have the best consultants.Get the lowest price. To Know more about process of Company Formation in Gurgaon. Contact us + 91 98101 58561

Company Incorporation Services In India

What is the procedure for Incorporation of Company in India? Know the Step by Step Process

Under the New Companies Act 2013, the Ministry of Corporate Affairs has mandated the procedure for the incorporation of company in India.

In this article, we will discuss the step-by-step process and required documents for the incorporation of company in India.

There are two sectors of companies i.e. Public and Private.

In this article, we will emphasis on private company incorporation, as per the new Companies Act 2013.

Besides the required documents, we will also discuss about private limited company registration fees and director’s identification number meaning, which is baffling for new business owners.

Step by Step Process for Incorporation of Company in India

Step 1: Reservation of Company’s Name Under RUN or Spice

The initial and prime footstep in the company registration process is preserving the name of the company.

There are two methods to do this: RUN and Spice. RUN or Reserve Unique Name is a online form on the website of the Ministry of Corporate Affairs, wherein aspirants can checked if their new company name is existing or not and then can apply for a required name for the company.

The aspirants must provide two names in privileged order and then must follow all the norms of the naming convention.

Once MCA approves a company name, it’s reserved for 20 days within which the applicant must complete all the residual steps vital for company registration. You may visit the RUN web service by the Ministry of Corporate Affairs.

Ministry of Corporate Affairs checks three major factors while approving the company name:

1. The name should be exclusive, and no another company whether public or private should be using that name.

2. The name should not be violent.

3. The name should not give an imprint that it’s linked with the government.

By filling of the Spice-32 form is another way to settle the name, but you can opt only one option and if, it’s rejected, you will need to do again all documentation.

The applicant must also decide the names of the Directors of the company. In a private limited company, at least two names of the Directors are to be provided.

Step 2: Procuring Digital Signature Certificate

After the company name has been approved by Ministry of Corporate Affairs and registered, then the next step is procuring a Digital Signature Certificate of your private limited company.

Digital Signature Certificate is a arrangement of a digital key, which contains all the vital information about the registered signatory like authorized person name, address, email, phone number, and the authority which has provided the certificate.

Digital Signature for a registered company permits the authorized signatory to prove its identity and sign the documents electronically. For E-Filing, Digital Signature’s Certificate is a mandatory prerequisite.

Step 3: Applying for Director Identification Number or DIN

DIN or Director Identification Number is the Unique Identification Number for Directors of a registered company. Once Director Identification Number is approved, only then corporation documents can be filed under Registrar Form No.-DIR-3.

Note: Here, that the name approval process for the company can be filed before applying for Directors Identification Number (DIN), and there is a fee of Rs 500 is applicable for this process, and it may take seven days for DIN to be activated and approved.

Step 4: Writing Memorandum of Association (MOA)

Under the Section-4(6) of The Companies Act, 2013, Memorandum of Association or MOA must be in a respective form mentioned in a Table A, B, C, D and E of Schedule-I.

MOA is similar to the Constitution of the Company. It will highlight all the fundamental info about the company, its directors’, stakeholders and their relationship with the company. The objective of the company, liabilities associated, the state in which the company is functioning, and other related information are presented in this document.

Step 5: Writing Articles of Association (AOA)

Articles of Association or AOA is the article that procures the purpose of the company, how its business will run and how its Directors have been appointed and much more.

Step 6: Application for the Incorporation of Company

Once all these documents are arranged and finalized, the applicant may file for the incorporation of the company and under Section 7 of the Companies Act 2013, the application requests to be filed with the registrar under whose jurisdiction the company’s address is sited.

The application for company’s registration can be done thru e-Form (Simplified Proforma for Incorporating a Company Electronically) accompanied by SPICe MOA and AOA.

Once the outstanding procedures are completed, the Registrar of Companies grants a Certificate of Incorporation, which is the best evidence of the company’s existence.

The certificate of incorporation of a private limited company has under mentioned three critical information:

1. Company Identification Number (CIN)

2. Permanent Account Number (PAN)

3. Director Identification Number (DIN)

The list of documents required for the incorporation of company includes an Aadhaar Card, PAN Card, Address Proof, Digital Signature Certificate attested by the aspirants.

Private Limited Company’s Registration Fees

Private Limited Company’s Registration cost is zero if, the company is small. In 2019, the Government of India abandoned off the registration fees for new companies which are incorporating under the private limited category. This abandonment of registration fees is applicable only for those private limited companies whose authorized capital is less than Rs 15 lakh. Only stamp duty requires to be paid in such a case. However, small companies availing fee abandonments for registration cannot raise any capital till one year. Registration fees for a private limited company having more than Rs 15 lakh capital and less than Rs 50 lakh capital are Rs 2000. In case, if it is not a small company, then registration fees are Rs 36,000. Don’t get dazed when it comes to considerate the procedure for the incorporation of company in India! We at () are here to provide you with expert guidance and mentorship.

Company incorporation services in India

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Updated Return under Income Tax Act

Updated Income Tax Return Filing

Finally, the provision of filing an updated Income Tax Return has been presented in Income Tax with effect from 01.04.2022. An assessee, whether he has filed or not, an income tax return (whether it be the original return, the delayed return of the revised return), may now provide an updated return of income, within two years from the end of the applicable assessment year. For e.g.: For the AY 2022-23 (i.e. Financial Year 2021-22), the updated return could be filed up to 31st March 2025. The updated return can be also fitted out only once for an assessment year. Though the updated return cannot be filed, if it:

a) is a return of loss or b) has the outcome of decreasing the tax liability determined as per previously filed return or c) grades in a refund or increases the refund determined as per previously filed return

Who cannot file an updated return A person will not be entitled to file an updated return for the applicable assessment year and any year preceding that, if in the relevant previous year –

a) a search or survey has been initiated/ directed against him or b) books of accounts/other documents/ any assets are requested or c) a notice has been issued to the effect that any asset detained or requisitioned in the case of any other person, belongs to him or d) a notice has been allotted to the effect that any books of account or documents, seized or requisitioned in the case of any other person, relates/pertains to him For e.g.: If the search has been originated against the person in FY 2022-23, then the updated return cannot be filed for the relevant AY 2023-24 or any former assessment year.

The updated return cannot be filed for the year in respect of: a) which has any assessment/reassessment/re-computation/revision of income is incomplete or has been completed b) which has hearing chronicles have been initiated c) the assessing officer has any information about the assessee, under double taxation avoidance agreements or under the following Acts, which has already been transferred to him, prior to the filing of such return – i. The Smugglers and Foreign Exchange Schemers (Forfeit of Property) Act, 1976 ii. The Ban of Benami Property Transactions Act, 1988 iii. The Prevention of Money-laundering Act, 2002 iv. The Black Money (Unnamed Foreign Income and Assets) and Nuisance of Tax Act, 2015

The circumstance where the filing of updated return is mandatory for succeeding years too If any person has formally filed a return of loss for any previous year, duly within the time allowed for filing the original return, then he shall be permitted to provide an updated return, if the updated return is a return of income, irrespective of the time limit of two years from the end of the relevant assessment year. However, in such a case, the assessee will have to deliver an updated return for each subsequent previous year, if a) such loss or even the unabsorbed reduction has been carried forward or b) tax credit in respect of tax paid on supposed income relating to certain companies or tax credit for substitute minimum tax is to be condensed as a significance of filing the updated return.

Tax on Updated Return The taxation norms in case of an updated return would though be somewhere different from the normal income tax return. The assessee will have to pay an “additional income tax” along with the tax and interest figured to be payable if filing an updated return.

Additional Income-Tax The additional income-tax due in case of an updated return shall be equal to – I. 25% of the aggregate tax and interest payable, if the updated return is furnished after the expiry of time offered for filing the belated return of the revised return but before the completion of twelve months from the end of the pertinent assessment year. II. 50% of the collective tax and interest payable, if the updated return is furnished after the expiry of twelve months but before the completion of twenty-four months from the end of the applicable assessment year. Also, the proof of payment of tax, additional income tax, interest, and fee shall attend such return.

Conclusion: At this, one may accomplish that the introduction of a provision for filing an updated return would result in escaping litigation to a good extent. If any income has been left to be reported by the assessee in the return initially filed or the revised return, then the updated return results in an opportunity to rectify such a mistake. Otherwise, assessment chronicles would have been initiated against him, which the assessee always wants to avoid, as he will have to sustain the consulting fees of professionals for responding to the proceedings and then will pay the tax on that income at the conclusion of such proceedings.

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