Madhya Pradesh is an Indian State and is referred to as ‘Heart of India’ due to its geographical importance and has Gwalior as its capital. Getting one’s business registered there will no doubt be a success as the geographical significance will bring in the economic benefits.
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Setting Up a Business in Madhya Pradesh
The process of registration of a company in India is governed by the Companies Act 2013 and the rules issued as per the Act. The whole process of registering the business is administered by the Ministry of Corporate Affairs.
The application for registration will be processed by the Central Registrar located in Delhi no matter if the registered office is located in Madhya Pradesh. Once the company has been registered by the Central Registrar, then it will be regulated by the Registrar of Companies (ROC), located in Gwalior.
It takes approx. 15 to 20 days for registration of a company in Madhya Pradesh. However, the time span may vary subject to the replies from ROC.The process of company registration involves following steps:
Selection of Name
Once you have worked out the business plan, and the type of business to be constituted is finalized the next step is to coin the name. For this purpose, a list of six names is selected in order of decreasing priority. The name should indicate the main purpose of the company. One could check the availability of the name on the portal to ensure that the name has not already been taken by some other business and that it is not in conflict with the postulates of emblems and names (Prevention of Improper Use Act, 1950). Once the list of names has been selected, apply for the name with the Registrar of companies who will check for its availability. If the name selected is unavailable, a new name has to be applied for on the same application.
Applying for Registration
- Once the name has been approved, move on to applying for the registration. The application should be made within 60 days of the approval of the name.
- Get articles and memorandum of association drafted for submission along with the application for Legal help could be sought in this regard. Get them examined by ROC and get them stamped by paying the stamp duty.
- The above documents are to be signed by two subscribers to the shares along with their personal information and the number of shares subscribed mention on the form. A witness should be there at the moment.
- Make sure that the above documents should have a date one day later than the day of stamping.
- Once all above is done, go on to online registration portal and fill forms
- Declaration of Compliance-Form 1
- Notice of registered office of the Company- Form 8
- Particulars of the Directors, Managers or Secretary-Form 32
- Once these forms are filled, they are to be submitted along with the digital signatures and registration and filing fee. Memorandum and articles of association are to be physically sent to ROC.
Once all the above form are processed and approval granted, Incorporation certificate is to be obtained from ROC.
Additional Steps for Public Limited Company
Public Limited Company has to comply with few further requirements for commencement of business after receiving incorporation certificate.
- It has to file a declaration in either form 19 or form 20 with prospectus (schedule II) attached to it.
- Once above is done, obtain the Certificate of Commencement of Business.
Fee for Registration in Madhya Pradesh
The fee for registration varies depending on the type of business structure i.e. a limited liability company, partnership, corporation, sole proprietorship etc. Different types of charges apply such as government fees, stamp duty, registration fees, and other charges if assistance from a professional is sought. Moreover, an additional amount of Rs 7000 is charged in Madhya Pradesh compared to other states due to higher stamp duty.