To check whether the name is acceptable or available, the entrepreneur can use the website of the Ministry of Company Affairs (“MCA”) – www.mca.gov.in.

For any clarification or doubt the office of the Registrar of Companies (‘ROC’) can be visited .

Address: 2 nd Floor, CPWD Building, Kendriya Sadan, Sultan Bazar, Koti, Hyderabad 500 195.
Phone : 040-4657937,4652807
Fax: 040-4652807

After the name has been finalized, six names in order of preference can be inserted in the prescribed Form 1-A for making the application to the agency notified by the MCA (MCA PFO, Block No. 128, First Floor, Swaran Jayanthi Commercial Complex, Ameerpet, Hyderabad - 500016) for seeking availability of desired name. The said Form 1A is thereafter forwarded to the office of RoC for further processing.

While filing Form 1A it should be ensured that:

• The details are filled in correctly as no change is entertained in the Form once the Form is filed.
• Guideline Instructions issued by the Department of Company Affairs for deciding the availability of name for the formation of a Company are compiled with.
• As per the provisions of the Emblems and Names (Prevention of Improper Use) Act, 1950, use of improper names is prohibited.

The status of application filed can be ascertained from the MCA’s website.

The Ministry of Company Affairs has laid down guidelines as regards the use of key words in a company’s name. In order to have a key word as part of the company’s name, the following minimum authorized share capital requirements have to be fulfilled: -

INR 200 (for MOA) + INR 300 (for AOA) + INR 10 (stamp paper for declaration in Form 1)

The procedure in Rajasthan is that the Memorandum and Articles of Association is drafted on plain paper and then presented to the Officer of Stamps for stamping. Special adhesive stamps are affixed on the MOA and AOA.

The application should be accompanied necessarily by the following:

(i) Two Blank Copies of the Memorandum of Association and Articles of Association.

(ii) Payment receipt.

Ensure that the copies submitted to the Superintendent of Stamps for stamping are unsigned and no promoter or subscriber has written anything on it by hand. The Superintendent returns the copies one of which is duly stamped, signed and engrossed evidencing the payment of the requisite stamp duty.

The print out of the Memorandum and Articles of Association of the Company on the non judicial stamp paper are to be signed by at least two subscribers, each of whom shall also write in his own hand, his fathers name, occupation, address and the number of shares subscribed for. There will at least be one witness to these signatures, who shall also sign and write in his own hand, his fathers name, occupation and address. Get the following documents prepared:

• Form 1 (Declaration of Compliance) - This is to be given by an advocate of the Supreme Court or of a High Court or a Secretary or a Chartered Accountant, in whole time practice in India who is engaged in the formation of a Company or by a person named in the Articles of the company as a director, manager, or secretary of the company that all the requirements of the Companies Act, 1956. This declaration should be on the non judicial stamp paper INR 10/- of the appropriate value with reference to the State in which the office of the Registrar of Companies situate.
• From- 18 (Notice of situation of the registered office)-This form is to be signed by the First Director of the Company named in the Articles and must be lodged with the Registrar together with the Memorandum and Articles of Association at the time of lodgment for the incorporation of the proposed company
• Form 32 (in duplicate) (Particulars of Directors )
• Power of Attorney (on Non-judicial stamp paper INR 100/- ) to be given in favor of one of the promoter/subscriber or chartered accountant or company secretary or an advocate for fulfilling various formalities at Registrars' office for incorporation of a company.

The fees paid to the Registrar for registration are scaled according to the amount of the share capital of a company as stated in its memorandum. The schedule is as following:

For registration of a company whose nominal share capital does not exceed INR100,000: INR 4,000.

For registration of a company whose nominal share capital exceeds INR100,000, the above fee of INR4,000 with the following additional fees regulated according to the amount of nominal capital:-

(a) INR 300 for every INR10,000 of nominal share capital or part of INR10,000 after the first INR1,00,000 up to INR5,00,000;

(b) INR 200 for every INR10,000 of nominal share capital or part of INR10,000 after the first INR5,00,000 up to INR50,00,000;

(c) INR 100 for every INR10,000 of nominal share capital or part of INR10,000 after the first INR50,00,000 up to INR1 crore;

(d) INR 50 for every INR10,000 of nominal share capital or part of INR10,000 after the first INR1 crore.

The above stated fees are required to be paid in the office of the ROC by way of a Demand Draft/ Treasury Challan.

The DD has to be drawn in favor of either the office of the concerned ROC or in favor of the Pay and Accounts Officer, Department of Company Affairs.

Schedule of RoC filing fees for the Articles and for the other forms l, 18 and 32:

• INR 200 In respect of a company having a nominal share capital of INR 100,000 or more but less than INR 500,000;
• INR 300 In respect of a company having a nominal share capital of INR 500,000 or more but less than INR 2,500,000;
• INR 500 In respect of a company having a nominal share capital of INR 2,500,000 or more.

The ROC will then scrutinize the documents filed by the Company and if necessary the authorized person will on intimation make the necessary corrections under his initials. Obtain the Certificate of Incorporation of the company from the office of the ROC. The company can commence its business on getting incorporation certificate from ROC. The other procedures given below can be done after the business is started.

 Although the process of electronic filing has begun to take place, as of April 2006, the person incorporating has two choices. He or she can either file the company documents in the traditional manner, or can prepare a soft copy of all forms (which are now available online), save them in a floppy or CD, and take it to the registry where it is uploaded to the new system and filed. Once the electronic system is fully implemented, the goal is that an entrepreneur will be able to incorporate the company from any computer. All documents for company incorporation will be available for electronic filing subject to the condition that the person has obtained a Digital Signature Certificate. To obtain a Digital Signature Certificate an application is required to be submitted with the agencies, which are notified by the MCA.

Another new requirement is the Directors Identification Number (DIN); which will be mandatory for every person who is a director on the board of the company. Directors can receive a provisional DIN through the Web. The provisional number is used in the same way as the final number, which will be issued in about 30 days. A person can only have one DIN and it is used for all companies for which he or she is a director

The Company is required to apply for allotment of the Permanent Account Number (PAN) in Form 49A at the UTIISL, Bank Street, Hyderabad-1 on or before 31st May of the relevant assessment year. The application should be accompanied by the board resolution passed by the company, attested true copy of Certificate of Incorporation and Memorandum and Articles of Association. This application should be filled by the applicant in black ink or ball point pen.

Income Tax department has outsourced the allotment of PAN to Unit Trust of India and accordingly applivation is to be submitted to the IT PAN Services Centre, offices of the UTI.

The work of allotment of PAN is also assigned to National Securities Depositories Limited (NSDL). So the application can also be made with any one of the designated Tax Information Network (TIN) Facilitation Centres. Related link is www.incometaxindia.gov.in

In Hyderabad, it is mandatory for every dealer to obtain registration certificate under the Local Sales Tax Act, even if the total turnover is nil. The Company is required to apply for allotment of the Tax Deduction Account Number by making an application in Form No. 49B at Ayakar Bhavan, Basheer Bagh, Hyderabad. Application is to be accompanied with the copy of Memorandum and Articles of Association of Company, list of Directors and board’s resolution in favor of any director authorizing him to apply for the TAN. TAN must be applied immediately after first deduction of tax at source. Related link is www.incometaxindia.gov.in.

In Hyderabad, registration under the Andhra Pradesh General Sales Tax Act,1957 is necessary for every dealer (other than casual trader) whose total turnover in any year exceeds INR 50,000/-. The VAT license is granted by the Commercial Taxes Department located at the Mayur Kushal Complex, Abids, Hyderabad, and the commercial tax officer at Gagan Vihar complex, first floor, M.J.Road, Hyderabad.

Application for registration under the Central Sales Tax Act is to be made within 30 days of becoming liable to pay tax. The application has to be made in Form C along with a court fee stamp of INR 25/-. The application under the Andhra Pradesh General Sales Tax Act should be made in Form D before the commencement of business along with fees of INR 500/-.

The following documents are required to be submitted:

• The memorandum and articles of association
• Proof certificate through two registered dealers
• Lease deed on INR 20 Non Judicial stamp paper
• Copy of PAN card
• security deposit/ surety bond/ bank guarantee.

After the filing of the application with the sales tax authorities, the concerned inspector will inspect the place of business and on his approval report, the sales tax registration certificate will be issued.

Companies registered with the Sales Tax Department prior to April 1, 2005 have to compulsorily get themselves registered under AP Vat Act which has become active from 1st of April 2005. And companies incorporated after April 1, 2005 can directly go for VAT registration. The VAT license is granted by the Commercial Taxes Department located at the Mayur Kushal Complex, Abids, Hyderabad. The Certificate is granted within a period of 20-30 days from the date of application made to the department. The application for registration has to be made in Form 100, 100B, and 150A. Under The Andhra Pradesh Value Added Tax Act, 2005, by the following

• :Every dealer other than casual dealer;
• Every dealer commencing business and whose estimated taxable turnover for twelve consecutive months is more than INR 40,00,000 shall be liable to be registered as a VAT dealer before the commencement of business;
• Every dealer whose taxable turnover in the preceding three months exceed INR 10,00,000 or in the preceding twelve months exceeds INR 40,00,000;
• The following dealers shall be liable to be registered irrespective of their taxable turnover

a. Dealer importing goods;

b. Dealer registered under the CST;

c. Dealer residing outside the State but carrying business within the State;

d. Every commission agent, agent, broker, declared agent, auctioneer or any mercantile agent;

e. Dealer availing sales tax deferent;

f. Every dealer executing works contract-exceeding INR 5,00,000;

The application for registration shall be made in Form ‘VAT 100’ providing for details like:

1. Status of business;

2. Occupancy status of the business premises;

3. Nature of the principal activity of the business;

4. Business bank account details;

5. Details of directors etc.

20 days, simultaneous with previous procedure

Every person engaged in any profession, trade, calling, employment has to obtain a certificate of registration from the local assessing authority under the Andhra Pradesh Tax on Professional, Trades, Callings and Employments Act, 1987. Within thirty days of becoming liable to pay tax, the assessee has to apply for a certificate of registration to the assessing authority in the prescribed form. The assessing authority shall make such enquiry as may be necessary and shall within thirty days grant the registration certificate if everything is in order. The assessee makes an application for registration in Form 1 and the certificate of registration is given in Form IA.

The Employees' Provident Fund and Miscellaneous Provisions Act, 1952 provides for the institution of compulsory Provident Fund, Pension Fund and Deposit Linked Insurance Fund, for the benefit of the employees in factories and other establishments. The Act applies to every factory and establishment in which 20 or more persons are employed and which is engaged in any industry as specified. The company would be required to cover its employees under the provisions, once it crosses the limit of 20 employees. For registration under the said Act, an application in the Employer's Registration Form is required to be submitted with the office of the Regional Provident Fund Commissioner, Employees Provident Fund Organization, Regional Office, Bhavishyanidhi Bhavan, Barkatpura, Hyderabad-500027. The application for registration must be accompanied along with the certificate of incorporation of the company and the list of employees with their salary structure.

The registration under the ESI Act is required to be done at Chikkadapalli, Local office, ESI Corporation, H.No.1-1-193/6, Chikkadapalli, Hyderabad-500 020.

The Act provides for grant of cash benefits to the employees in the recognized contingencies of sickness, maternity and employment injury. It also provides for medical benefit, in kind, to the employees and their families. The Act is applicable to all non-seasonal factories and certain establishment. For registration under the Act, an application in the prescribed Form- Form No.1, is required to be made to Regional Office of Employee State Insurance Corporation within 15 days of the Act becoming applicable.

ESIC Registration is optional if employee strength is less than 10 in a factory carrying on manufacturing process with the aid of power and less than 20 where the manufacturing process is being carried on without the aid of power.

The Procedure for obtaining registration certificate under the Andhra Pradesh Shops and Establishments Act, 1988 is as follows:

-The employer of every establishment shall, within thirty days from the date of commencement of its work, submit with the Inspector of the area concerned, a statement in the prescribed form along with the applicable fee (depending on number of workers working in the establishment) for registration of the establishment.

The statement shall consist of the following information:

• the name of the employer and the manager, if any;
• the postal address of the establishment; and
• such other particulars as may be prescribed.

The Inspector shall then register the establishment by entering the name of the establishment in the register of establishments and shall issue a certificate of registration to the employer. The certificate of registration is required to be prominently displayed at the establishment. The certificate of registration so issued is required to be renewed after the expiry of such period as prescribed in the State Act.

The employer shall compulsorily inform the Inspector about any change in the statement/form submitted for registration, within fifteen days from such change. The Inspector shall then make necessary changes in the register of establishments and in the certificate of registration. The employer is also required to inform about the closure of the establishment to the Inspector within fifteen days from the date of closure and return the certificate of registration to the Inspector.

This procedure can be commenced simultaneously with procedure 7.

The charges to be paid for registration depend on the number of employees to be recruited in the establishment.