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: E-Wing, 2 nd Floor, Kendriya Sadana, Karomangala, Bangalore 560 034.
Phone: 080-25537449,
Fax: 080-25538531
email: roc@kar.nic.in

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, F1, First Floor, Vistar Enclave, No. 12, Fourth Main, Malleswaram, Bangalore) for seeking availability of desired name. The said Form 1A is thereafter forwarded to the office of RoC for further processing

• 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 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:

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.

(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.

According to the Karnataka Stamp Act, 1957 Schedule, fees are as follows:

• Art.33. Memorandum of Association of a company
• If accompanied by Articles of Association under Section 26 of the Companies Act, 1956 (Central Act 1 of 1956): INR 1000
• Art. 10. Articles of Association of, a company where the company has no share capital or nominal share capital or increased share capital: INR 500 for every INR 100000 of capital or part thereof.

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.
• Form 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 INR 100,000: 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:

• 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;
• 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;
• 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;
• 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.

• 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) from the Income Tax Department, Bangalore under section 139 A of the Income Tax Act, 1961 by making an application in Form 49A or before 31st May of the relevant assessment year.

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, office of the UTI, Raheja Towers , M.G. Road Bangalore - 560001. PAN can be applied for in Tatkal category by paying additional fees. Fees for applying PAN under Tatkal category is INR 150/- . Documents required will be Certitificate of Incorporation issued by the Registrar of Companies and Situation of Registered Office (Form 18) which is filed with the RoC.

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 Centre at Bangalore . Related link is www.incometaxindia.gov.in.

The Company is required to apply for allotment of the Tax Deduction Account Number from the Income Tax Department, Bangalore under section 203A of the Income Tax Act, 1961, which is outsourced to NSDL, by making an application in Form No. 49B. Concerned authority for TAN is the Office of the Joint Commissioner of Income Tax of respective range (No.- 14/3, R.B. Building , Nruptunga Road , Bangalore - 560001.). Permanent Account Number is required to be submitted along with the application for obtaining the Tax Deduction Account Number . Related link is www.incometaxindia.gov.in.

ll Companies that are required to get itself registered both with the Central Sales Tax authorities and with the Value Added Tax department of State of Karnataka have to file an application in Form 'A" prescribed under the Central Sales Tax Act for Central Sales Tax registration. Application is to be made in form "1" as prescribed under the Karnataka Value Added Tax Rules, 2005 along with the declaration in Form 26 prescribed under the Karnataka Value Added Tax Rules, 2005 for obtaining Karnataka Sales Tax registration. Application is to be made within 30 days of the company becoming liable to pay tax, to the respective circle of the Commercial Tax offices, situated at Sheshadripuram, Bangalore depending upon the jurisdiction is which the office of the Company situate. Refundable deposit of INR 3,000 to INR 25,000/- is to be paid on the basis of turnover.

Every dealer whose total turnover exceeds or likely to exceed two lakh rupees as computed under the provisions of Karnataka sales tax Act 1957 shall get himself registered under the Karnataka Value Added Tax Act, 2003 and rules made there under, Karnataka Value Added Tax Rules, 2005. For registration dealer means and include:

• Every dealer whose taxable turnover is likely to exceed two lakh rupees during any year;
• Every dealer whose taxable turnover exceeds fifteen thousand rupees in any one month after the date from which the tax shall be levied in accordance with section 3 and every dealer executing a works contract whose receipts exceed fifteen thousand rupees in any one month;
• Every dealer who obtains or brings taxable goods from outside the State;
• Every dealer who exports taxable goods;
• Every dealer who effects sale of goods in the course of inter-State trade;
• Every casual dealer and every non-resident dealer or his agent;
• Every dealer involved in the execution of works contract. The application shall be made in ‘Form VAT 1’ for registration to the jurisdictional Registering Authority in whose area the principal place of business of the dealer is located, accompanied by a fee of five hundred rupees

Consultancies and professional companies do not require Sales Tax Registration. Sales tax registration will be effective from the date of application.

The Company is required to get itself registered as an 'employer' under Section 5 of Karnataka Tax on Professions, Trades, Callings and Employment Act, 1976. The Company is also required to get itself enrolled under the said Act. The concerned authority is the office of the Professional Tax Officer, depending upon the jurisdiction in which the office of the Company is situated. For registration of the company as an employer, application is to be made in Form '1' prescribed under the said Act. Here the cost will vary depending on the salary structure of the employees. An application is to be made in Form 2 for enrolment of Professional Tax . An annual fee of INR 2,500 has to be paid towards first year fees at the time of registration and every year annual renewal fee of INR 2500/- to be paid before 20th April .

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.

An application in the Employer's Registration Form is required to be submitted with the office of the Regional Provident Fund Commissioner, Office of Provident office situated at Bhavishyanidhi Bhawan, No. 13, Raja Ram Mohan Roy Road, P.B. No. 2584, Bangalore 560 025.

The Employees' State Insurance Act, 1948 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 is required to be made to Regional Office of Employee State Insurance Corporation (Panchdeep Bhawan, No. 10, Binny Peth, Binny Fields, Bangalore 560023, Karnataka).

Under the Karnataka Shops and Commercial Establishments Act, 1961, within thirty days of the establishment of the new establishment, the employer shall send to the Inspector of the area concerned, a statement in the prescribed form containing the following information:

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

On receipt of the statement and fees, the Inspector shall, on being satisfied about the correctness of the statement, register the establishment in the register of establishments. The registration certificate shall be prominently displayed at the establishments. Registration of all establishments is compulsory. Application in Form-A to be made to concerned labor Inspector with necessary fee which is as under: