Introduction
Are you preparing to launch your own Company? Is your entrepreneurial dream about to become a reality? Being your boss is the most energizing experience. Microfinance company registration is also similar. As a result, while we wish you luck on your new endeavor, this post will assist you in getting started by providing key information about the company registration procedure in India.
In India, registering a company is also known as incorporating a company or starting a business. Your business becomes a distinct entity and acquires legal status when registering it. The Ministry of Corporate Affairs is responsible for the company registration procedure in India.
There are currently close to 7 lakh registered firms in India, and new applications are being submitted daily, according to statistics. This page provides a step-by-step breakdown of the company registration procedure in India so that you are fully aware of the registration process.
A Guideline for Registering a Company
The Companies Act 2013 governs how a company is registered in India. Public limited companies, private limited companies, and one-person corporations are the three different kinds of businesses in India. We’ll go into more detail on business registration in India, the kinds of businesses you can create, and other topics in the following sections. Let’s start by discussing the many types of company characteristics and the different kinds of businesses you can create in India.
Did you know?
The Companies Act 2013’s SPICe+ type is used to register a company in India.
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It is a form that can be used to apply for GST. Employees state insurance, provident fund, profession tax registration, shop and establishment act registration, and bank account opening. Director Information and additional information, like the Company’s address and supporting documentation, must be provided.
SPICe MOA and AOA
It includes details about the Company’s primary objectives, secondary objectives, and article clauses.
Components of Company
Organization Incorporated: According to the Companies Act 2013, a company must be registered or incorporated.
Separate Legal Entity from its Members: Corporate personality is another word for this feature. The Company’s legal entity is also separate from the legal entities of its members.
An extremely significant characteristic of a company is that it is an artificial person. Because a company is founded by law and destroyed by law, it is known as such a type of artificial person.
Limited Liability: One of the main benefits of conducting business through a limited company is that its members have only limited liability regarding settling the firm’s debts.
Perpetual Succession: Because the firm is a synthetic person, it is immune to disease and has an infinite lifespan. Due to its separation from its members, the Company is unaffected by their passing, insolvency, or retirement. Although Members may come and go, the Company will always exist.
Documents Required For Registering A Company
First, the members must choose who will serve as the Company’s directors. These records are necessary for each director.
PAN
Address proof
Photograph
Contact Details
Occupation
Educational Background Information
Digital signature
Regarding the Needs for Verification of Registered Office Address
- Conveyance Deed
- Copies of bills
Company Registration Process
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Submit a Request for a Director Identification Number (DIN)
Getting the unique identification number is the first stage in the company registration procedure in India. The Companies Amendment Act of 2006 mandates that all directors of a business, both current and prospective, must get their
The Companies Act 2013 section 153 authorizes the issuance of the 8-digit, distinctive DIN number. DIN requires a real identity, father’s name, DOB, id cards, residence and evidence, a copy of the PAN card, and two pictures of each prospective director.
The application form, known as the DIN-1 Form, is accessible online at the ministry of corporate affairs’ official website (MCA Website). Every business owner must register on the MCA website to receive a login ID.
After paying the necessary costs, the DIN-1 Form must be fully completed and uploaded. The processing time for the nominal INR 100 DIN application form is one day.
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Get Digital Signature Certificate (DSC)
Only by receiving a legitimate digital signature on all of the documents submitted in the e-filing procedure can the legitimacy of the documents and information provided in the DIN-1 Form be guaranteed.
Every Company must obtain a Digital Signature Certificate (DSC) as part of the company registration process in India to ensure a safe method of submitting documents electronically. The prospective directors’ full name, father’s name, DOB, address with evidence, a copy of their PAN card, proof of identity, and a photograph are requirements for applying for a digital signature.
However, businesses should only purchase DSC from organizations that have received approval from the Controller of Certification Agencies (CCA).
Businesses shouldn’t exchange DSCs because they are unique to each company organization. This digital certification is typically good for one or two years, and the CCA must renew it.
Depending on the organization’s structure and the duration of the DSC’s validity, the application fee for obtaining one ranges from INR 800 to INR 5999. Processing a DSC form typically takes two to three working days.
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Complete New User Registration
Registration on the MCA portal is crucial. You must first create a user account to submit an eForm, perform other actions, and pay the required fees. There is no cost to register with the Ministry of Corporate Affairs.
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Documentation
The creation of charter documents such as the Memorandum of Association (MOA) and Articles of Association is required throughout the business registration procedure (AOA).
Memorandum of Association (MOA) – All the information about the registered Company needed throughout the company process is contained in the MOA. Additionally, it provides information on the Company’s goals and authority and the interaction between the outsider and the business. Once generated, the MOA cannot be changed.
Articles of Association (AOA) – The Company’s policies and regulations are outlined in this document. The AOA is an adjunct to the MOA but is amendable as needed. It offers information on the management, behavior, and bylaws regulating the internal affairs of the business.
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Register Your Company Name
The prospective business name should be original and describe the goods and services the Company provides. It allows them to stand apart from their rivals in the same industry.
Recently, the Ministry of Corporate Affairs (MCA) launched a web tool called RUN (Reserve Unique Name) for the incorporation of the Company. However, you can only use this service once. RUN cannot be used again after being denied due to name resemblance issues or failing to follow the Companies Incorporation Rules.
Therefore, you must ensure that the proposed name is original and adheres to all established requirements. After paying the required fees, the applicant must submit a new RUN form in the event of a refusal.
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Register Other Details
The notice for the appointment of directors, secretaries, and managers is registered as the next stage in the business registration procedure in India.
To incorporate the company name on the MCA website, Form-1 must be meticulously filled out and filed. You must offer at least four different names for your business. Additionally, the proposed company name must adhere to all the rules of the Companies Act of 1950. Then, you must select one of them before completing Forms -18 and 32, which specify the Company’s address and the names of the directors, secretary, and manager, respectively.
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Acquiring PAN and TAN
Getting your Company’s PAN (Permanent Account Number) is the final stage in the registration procedure for companies in India. Typically, the procedure takes seven days and might cost up to INR 70.
You must obtain a TAN (Tax Account Number) for your business and a PAN. This costs about INR 60 and takes a week to complete. You can get it from any Assessing Officer at your state’s Income Tax Department.
The Office of Inspector, Shops and Establishment Act (State/Municipal) must then be contacted for you to register the business. The Form includes information such as the manager’s and employer’s names, the business’s name, its postal address, and its legal classification. It must be delivered to the local shop inspector’s office with any necessary fees. The Establishment Act must be registered within a month of your business’s launch.
Conclusion
All business owners must follow the legal procedures associated with company registration in India. The required time for registering a company, which includes approving the name, DIN, and other requirements, is around seven working days. To simplify the procedure, all the supporting documents are now included in a single application form along with the MCA. This is unquestionably welcome news for Indian companies seeking to expand.
I hope this post has made you more aware of the procedures and required paperwork for the incorporation of the Company in India.