An address, termed as ‘registered office’, is required to form a company in India. However, there is no requirement for location, minimum area, etc.
A private limited company has few compliance requirements. Therefore, generally where there is no requirement of raising of finances through a public issue and the ownership is intended to be closely held by limited number of persons, a private limited company is a good option.
The minimum paid-up capital to incorporate a private limited company in India is INR 100,000 (about 1550 USD).
Depending upon the workload of the registrar, it can take around 2 weeks to register a company in India.
All directors and shareholders must provide identity and address proof, as well as a copy of the PAN card (for Indian Nationals) and passport (for foreign nationals). Furthermore, a No Objection certificate must be submitted by the owner of the registered office premises.
The director of a company must be at least 18 years of age. There is no upper limit on the age of the director.
Memorandum of Association (MoA) is a fundamental document for company incorporation. It suggests the name, the state of registered office, the liability of the shareholders and the capital by which it is willing to start the business. The activities of the company are bound by the MoA and it is likely to attract penalties if goes ultra vires.
Articles of Association (AoA) is an internal document for the company which defines the matters relating to conducting the business of the company, procedure and limitations of altering the structure of the company.
An Indian company can be registered with 1 or more foreign nationals as its directors. As per Companies Act 2013, in case of a private company with only 2 directors and both of them foreign nationals, at least one of them has to be a resident in India for a period of at least 182 days in the calendar year.