Company Formation India procedure has been streamlined drastically after the MCA 21 initiative of the Ministry of Companies Affairs. Time required for forming a company has also reduced. Most of the process is now being undertaken online without the need for physical interaction due to implementation of e-governance. The process involves two important steps i.e. Name Approval & Generation of Certificate of Incorporation. Both these steps require manual intervention of approval from Registrar of Companies (ROC).
It generally takes 3-4 days for name approval and another 3-4 days for getting COI after submission of Memorandum and Articles of Association. However, recently the company handling the MCA 21 operations was changed and there are some technical issues being faced by ROC which is causing delays in company formation. once these are sorted out the total time frame for company formation should be back to 7-8 working days.
All in all the e-governance system of Ministry of Corporate Affairs has vastly improved and simplified the company formation procedure in India and has reduced the time required for incorporating an Indian company. This has also improved the overall environment for people looking to setup business in India.