Due Diligence Of Company

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Starting From Rs.6899

All inclusive price

Company registration with 2 DSC, 2 DIN, MOA , AOA, all related government fee & stamp duty*, PAN, TAN, ESI & PF registration, bank account opening, Commencement of Business and LEDGERS accounting software. Inclusive of all government fees and taxes.

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    WHAT IS DUE DILIGENCE?

    Due diligence is generally conducted by investors to check for regulatory and process compliance by the company on a regular basis. Due diligence of a company is generally performed before any private equity investment, business sale, bank loan funding, etc.

    In this process, the legal, financial and the compliance aspects of the company are usually reviewed and documented. It is basically the process of examining all the material facts of a deal or a contract before a legal contract is signed by both the parties. It is not just limited to buyers, even sellers can perform a due diligence on the buyer. Due diligence consist of factual, background, legal and accounting checks. This done to ensure that there are no surprises after a deal is done.

    DOCUMENTS REQUIRED FOR DUE DILIGENCE

    GOOD NEWS! JUST SOME BASIC DOCUMENTS. JUST SEE OUR CHECKLIST BELOW:
    Charter documents of the company
    Notices, Attendance Sheets & Board Meeting Minutes
    Notices, Attendance Sheets & General Meeting Minutes
    Statutory Registers
    Legal Agreements executed by the Company
    RBI Related documents

    ASSESSMENT OF MCA DOCUMENTS

    Most of the due diligence of a company begin with the Ministry of Corporate Affairs. On the website of the Ministry of Corporate Affairs, the master data about a company is made publicly available. Further, with payment of a small fee, all documents filed with the Registrar of Companies is made available to anyone. This information from the MCA website is generally verified first. The information and documents gathered in this step include:

    Company Information
    The date of Incorporation
    Authorised capital
    The paid up capital
    The date of the last annual general meeting
    The date of the last balance sheet
    Status of the company

    Director Information
    The directors of the company
    The date of appointment of directors

    Charges Registered

    • The details of secured lenders of the company
    • The quantum of secured loans

    Documents
    The certificate of incorporation
    The memorandum of association
    Articles of association

    In addition to the above, the financial information of the company and other filings with the MCA pertaining to various aspects of the company can be downloaded and reviewed. The review of MCA documents of the company would provide a good overview of the company to the person performing the due diligence.

    Assessment of Articles of Association
    It is imperative to review the articles of association of a company during the due diligence process to establish the different classes of equity shares and their voting rights. The articles of association of a company can restrict/limit the transfer of shares of a company. Therefore, the articles of association should be studied judiciously to ascertain the procedure for transfer of shares.

    Assessment of Statutory Registers of Company
    Under Companies Act, 2013, a private limited company is required to maintain various statutory registers relating to the share transfer, share allotment, board meetings, board of directors, etc., Therefore, the statutory registers of a company must be reviewed to obtain and validate the information pertaining to the directorship and the shareholding.

    Assessment of Book of Accounts and Financial Statements
    Companies are required to maintain the book of accounts along with detailed transaction information by the Companies Act, 2013. The detailed financial transaction information must be audited and verified against the financial statements that are prepared by the company. Some of the matters relevant during the business financial due diligence process are:

    Verification of the bank statements
    Verification and valuation of all the assets and the liabilities
    Verification of the cash flow information
    Verification of all the financial statements against transactional information

    Assessment of Taxation Aspects
    The taxation aspects of a company must be thoroughly checked during the due diligence process. This helps to ensure that there are no unforeseen/unexpected tax liabilities created on the company in a future date. The following aspects relating to the taxation aspect of a company must be checked:

    The income tax return filed
    The income tax paid
    The calculation of the income tax liability by the company
    ESI / PF returns filed
    ESI / PF payments
    ESI / PF payment calculation
    The GST/service tax / VAT returns filed
    The GST/service tax / VAT payments
    Basis for the GST/service tax / VAT payment calculation
    TDS returns
    TDS payments
    TDS calculations

    Assessment of Legal Aspects
    A complete legal audit of the company has to be performed by a legal practitioner to establish if there are any pending/incomplete legal actions, suits by or against the company and the liability in each. Further, the following aspects must be checked during the legal due diligence:

    Legal due diligence for all the real estate properties of the company.
    No objection from a secured creditor for the transfer of company.
    Verification of the court documents and the court filings, if any

    Assessment of Operational Aspects
    It is important to acquire a thorough understanding of the business operations, business model and operational information during the process. The review of the operational aspects must be all-encompassing including the site visits and employee interviews. Following are the aspects that must be covered and documented in the operational aspects review:

    Business model
    Number of employees
    Number of customers
    Production information
    Vendor information
    Machinery information
    Utilities

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    We complete the secretarial jobworks for over 1000 companies and LLPs every month with a small team, by leveraging our tech capabilities. Come on board and experience convenience.

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    Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we’ll try to ensure that your doubts are cleared before they even arise.

    A Step-by-Step Guide to Company Registration Process

    We can incorporate a company in less than ten days, subject to government processing times and availability of all documents.

    Step 1: Dedicated incorporation expert assigned for the engagement
    Step 2: Collection of information and documents for company registration from client
    Step 3: Application submitted for digital signatures to eMudhra
    Step 4: Name approval request submitted to MCA
    Step 5: Incorporation documents drafted based on the MCA approved name
    Step 6: Signing of incorporation documents by all Directors & Shareholders
    Step 7: Submission of incorporation documents to MCA for approval
    Step 8: Company incorporated with incorporation certificate & PAN
    Step 9: Other process or services begin as per customer requirement

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    Documents required for Company Registration

    To register a company, various documents are to be submitted to the MCA as follows:

    PAN Card: PAN Card copy of the proposed Directors of the Company will be required for Company Registration.

    Address Proof: The address proof submitted must have the name of the Director as mentioned in the PAN Card and the most current address of the Director.

    Residential Proof: The residential proof must also contain the name of the Director as mentioned in the PAN Card and must not be older than two months.

    Registered Office Proof: In addition to providing identity, address and residential address for the Directors, proof must be provided to validate the registered office address of the Company.

    1. The registered document of the title of the premises of the registered office in the name of the company; OR
    2. The notarized copy of lease / rent agreement in the name of the company along with a copy of rent paid receipt not older than one month;

    In addition to the above, the following must also be provided as proof of registered office:

    1. The authorization from the Landlord (Name mentioned in the Electricity Bill or Gas Bill or Water Bill or Property Tax Receipt or Sale Deed) to use the premises by the company as its registered office. This is usually referred to as NOC from Landlord; AND
    2. Proof of evidence of any utility service like telephone, gas, electricity, etc. depicting the address of the premises in the name of the owner or document, which is not older than two months.
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    Reasons to Register a Company in India

    Entrepreneurs choose to register a company due to various reasons. Two of the main reasons is that a company is a distinct legal entity having perpetual succession. Hence, a company is not affected by the death, insanity, or insolvency of an individual member. The following are some of the top reasons to register a private limited company in India.

    Separate Legal Entity

    As per Law, a company is an artificial judicial person established under the Companies Act. A company is a separate legal entity from its Directors and Shareholders. Hence, a company enjoys a wider legal capacity, to own property and incur debts – while the individual company members owe no liability towards the company’s creditors for debts.

    Separate Legal Entity

    As per Law, a company is an artificial judicial person established under the Companies Act. A company is a separate legal entity from its Directors and Shareholders. Hence, a company enjoys a wider legal capacity, to own property and incur debts – while the individual company members owe no liability towards the company’s creditors for debts.

    Separate Legal Entity

    As per Law, a company is an artificial judicial person established under the Companies Act. A company is a separate legal entity from its Directors and Shareholders. Hence, a company enjoys a wider legal capacity, to own property and incur debts – while the individual company members owe no liability towards the company’s creditors for debts.

    Separate Legal Entity

    As per Law, a company is an artificial judicial person established under the Companies Act. A company is a separate legal entity from its Directors and Shareholders. Hence, a company enjoys a wider legal capacity, to own property and incur debts – while the individual company members owe no liability towards the company’s creditors for debts.

    Separate Legal Entity

    As per Law, a company is an artificial judicial person established under the Companies Act. A company is a separate legal entity from its Directors and Shareholders. Hence, a company enjoys a wider legal capacity, to own property and incur debts – while the individual company members owe no liability towards the company’s creditors for debts.

    Separate Legal Entity

    As per Law, a company is an artificial judicial person established under the Companies Act. A company is a separate legal entity from its Directors and Shareholders. Hence, a company enjoys a wider legal capacity, to own property and incur debts – while the individual company members owe no liability towards the company’s creditors for debts.

    What is the Price I Need to Pay for Registering a Company?

    The Cost of Incorporation / Registration a Company would vary from INR 6899/- to INR 29899/- depending upon the plan you choose.

    Pay as you go grow pricing

    All Inclusive Pricing - No Hidden Fee

    Basic

    ₹ 6899 all inclusive fees

    2 Digital Signature - 2 Year Validity 1
    2 Director Identification Numbers
    Name Approval 2
    Authorised Capital Fee 3
    Incorporation Fee
    Stamp Duty 4
    PAN & TAN
    LEDGERS Billing Software 5
    Bank Account Opening
    Commencement of Business

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    Basic

    ₹ 6899 all inclusive fees

    2 Digital Signature - 2 Year Validity 1
    2 Director Identification Numbers
    Name Approval 2
    Authorised Capital Fee 3
    Incorporation Fee
    Stamp Duty 4
    PAN & TAN
    LEDGERS Billing Software 5
    Bank Account Opening
    Commencement of Business

    Buy Now

    Basic

    ₹ 6899 all inclusive fees

    2 Digital Signature - 2 Year Validity 1
    2 Director Identification Numbers
    Name Approval 2
    Authorised Capital Fee 3
    Incorporation Fee
    Stamp Duty 4
    PAN & TAN
    LEDGERS Billing Software 5
    Bank Account Opening
    Commencement of Business

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    1. Digital signatures from eMudhra with 2 year validity along with ePass 2003 token.
    2. Upto 4 name options can be given in 1 RUN name approval request.
    3. Authorised capital is the amount of shares a company can issue at anytime and can be increased further in the future. Paid-up capital is the amount invested by shareholder and can be even Rs.2.
    4. In case of incorporation in Madhya Pradesh, an additional stamp duty of Rs.7500 will be applicable. In case of incorporation in Punjab, an additional stamp duty of Rs.10, 000 will be applicable.
    5. In case of Kerala, an additional stamp duty of Rs.3000 will be applicable.
      Premium LEDGERS Accounting Software with GST Portal Integration and eWay Bill Software.
      Statutory Auditor fee is payable on actuals directly to the Independent Auditor appointed by the Board of Directors. IndiaFilings will only be responsible for accounting, preparation of financial statements and filing of returns on behalf of the Company.
      Additional Directors can be added for an additional price of Rs.999 – if DSC & DIN is available. In case no DIN or DSC is available, cost for adding additional Director will be Rs.1999, inclusive of GST.
    6. Additional authorised capital can be purchased if requried at time of incorporation.
    7. Incorporations from Maharashtra state will also receive complimentary Professional Tax Registration.

    Frequently Asked Questions

    Authorised capital is the maximum value of equity shares that can be issued by a company. On the other hand, paid up capital is the amount of shares issued by the company to shareholders. Authorised capital can be increased any time after incorporation to issue additional shares to the shareholders.
    Authorised capital is the maximum value of equity shares that can be issued by a company. On the other hand, paid up capital is the amount of shares issued by the company to shareholders. Authorised capital can be increased any time after incorporation to issue additional shares to the shareholders.
    Authorised capital is the maximum value of equity shares that can be issued by a company. On the other hand, paid up capital is the amount of shares issued by the company to shareholders. Authorised capital can be increased any time after incorporation to issue additional shares to the shareholders.
    Authorised capital is the maximum value of equity shares that can be issued by a company. On the other hand, paid up capital is the amount of shares issued by the company to shareholders. Authorised capital can be increased any time after incorporation to issue additional shares to the shareholders.
    Authorised capital is the maximum value of equity shares that can be issued by a company. On the other hand, paid up capital is the amount of shares issued by the company to shareholders. Authorised capital can be increased any time after incorporation to issue additional shares to the shareholders.
    Authorised capital is the maximum value of equity shares that can be issued by a company. On the other hand, paid up capital is the amount of shares issued by the company to shareholders. Authorised capital can be increased any time after incorporation to issue additional shares to the shareholders.
    Authorised capital is the maximum value of equity shares that can be issued by a company. On the other hand, paid up capital is the amount of shares issued by the company to shareholders. Authorised capital can be increased any time after incorporation to issue additional shares to the shareholders.
    Authorised capital is the maximum value of equity shares that can be issued by a company. On the other hand, paid up capital is the amount of shares issued by the company to shareholders. Authorised capital can be increased any time after incorporation to issue additional shares to the shareholders.
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