What are the Changes in formalities to incorporate a Company?

The new rules have built in counter measures to tackle fictitious applicants from forming a company. 

This is one of the ,must know changes for the Startups in Companies Act 2013.

Below is the brief and point to point update on these changes for some one keen to form a new Company.

A. Reservation of name
An application for the reservation of a name shall be made in Form No. INC.1

B. Signing of memorandum and articles
The Memorandum and Articles of Association of the company shall be signed in the following
manner, namely:-

1. The memorandum and articles of association of the company shall be signed by each subscriber to the memorandum, who shall add his name, address, description and occupation, in the presence of at least one witness who shall attest the signature and shall likewise sign and add his name, address, description and occupation.
2. The witness who is generally a practicing professional shall state that “I witness to subscriber/subscriber(s), who has/have subscribed and signed in my presence (date and place to be given); further I have verified his or their Identity Details (ID) for their identification and satisfied myself of his/her/their identification particulars as filled in”.

C. Declaration by professionals
For the purposes of clause (b) of sub-section (1) of section 7, the declaration by an advocate, a Chartered Accountant, Cost accountant or Company Secretary in practice shall be in Form No.
INC.8.

D. Affidavit from subscribers and first directors

For the purposes of clause (c) of sub-section (1) of section 7, the affidavit shall be submitted by each of the subscribers to the memorandum and each of the first directors named in the articles in Form No.INC.9 

E. Particulars of every subscriber to be filed with the Registrar at the time of incorporation. The following particulars of every subscriber to the memorandum shall be filed with the Registrar- 

• Name (including surname or family name) and recent Photograph affixed and scan with MOA and AOA: 
• Father’s/Mother’s/ name: 
• Nationality: 
• Date of Birth: 
• Place of Birth (District and State): 
• Educational qualification: 
• Occupation: 
• Income-tax permanent account number: 
• Permanent residential address and also Present address (Time since residing at present address and address of previous residence address (es) if stay of present address is less than one year) similarly the office/business addresses; 
• Email id of Subscriber; 
• Phone No. of Subscriber; 
• Fax no. of Subscriber (optional) 
• Proof of Identity 
• If the subscriber is already a director or promoter of a company(s), the particulars relating to- 

           (i) Name of the company;
           (ii) Corporate Identity Number;
           (iii) Whether interested as a director or promoter;

• The specimen signature and latest photograph duly verified by the banker or notary shall be in the prescribed Form No.INC.10. 

F. Particulars of first directors of the company and their consent to act as such The particulars of each person mentioned in the articles as first director of the company and his interest in other firms or bodies corporate along with his consent to act as director of the company shall be filed in Form No.DIR.12

Would this impact the companies already under incorporation?
In our view, it will impact. The registrar of Companies would demand for the documents and witnesses even in those cases. Certain forms for approval may be considered in transition if already filed before this comes into force.