The Ministry of Corporate Affairs has cut some of the red tape choking entrepreneurs by simplifying online approval of application forms for registrations, with effect from August 11, 2011.
Once all the necessary forms have been certified and declarations given, applications will be processed electronically and digital certificates of incorporation will be instantly issued by the Registrar of Companies. Information on how to register online is available at NIC's India.gov.in.
With these changes, promoters will now be able to incorporate their companies within 24 hours, the government has promised. "It is expected that the above immediate online approvals of DIN, availability of name and registration of e-forms-1, 18, 32 and MOA and AOA, the complete process of incorporation of a company can be completed within 24 hours," reads the release issued by the government today.
It has also announced that incorrect information or illegal usage will result in liability for penal action under section 628 and 629 of the Companies Act, 1956 in addition to action prescribed in regulations of the respective professional institutes. Registration of a private limited company requires a paid-up capital of atleast Rs.1 lakh. Also read some of the common reasons for rejecting of a company's name here (PDF).