- 1 How to Register a Company in India
- 1.1 These are four significant steps:
- 1.2 Do you know what is mean by a company, the private company or public company?
- 1.3 When it comes to organization registration, Every firm will have the following two choices-
- 1.4 The main variations between Private and Public companies are:
- 1.5 Let’s know the registration procedure:
- 1.6 The detailed procedure for approval of the proposed company name
- 1.7 Check these documents are the submission of a company
- 1.8 Formalities to be followed during incorporation of a company
How to Register a Company in India
If you are starting a startup or a new business in India then first and foremost, there are some official procedures for a startup or a company has to follow to express them in Indian official records. MCA (Ministry of Corporate Affairs) has to delivered registration process online a few years back; please see below on how to go about these process when you want to register your company. Here you will learn all the doubts regarding How to Register a Company in India.
One doesn’t need to visit the corporate office; you can appeal for registration just sitting at the house. We will help you to obtain a legal license for your business. The listing includes some must follow the rules and some registration like Digital Signature Certificate (DSC), Director Identity Number (DIN) and filing for an e-form.
These are four significant steps:
- Acquiring Digital Signature Certificate(DSC)
- Acquiring Director Identification Number(DIN)
- Finishing an eForm or New user registration
- Incorporate the company
It’s essential to get registered yourself to manage your business without any legal difficulty. India is a land of possibility, no matter in which field your business is operating the chances of getting success is very high, so it just needs a start. Starting entrepreneurship in India would fetch you great success. Follow this post sincerely till you organize your final claim for your company. We assure one will end up receiving their business registered after following this procedure.
Do you know what is mean by a company, the private company or public company?
In India, there are about 1.7 Million registered companies and every month thousands of firms apply for registration. A company is a legal entity; According to Section 3 of companies act company involves a statutory body formed and recorded under Companies Act 2013. Under the ministry of corporate affairs, every organization is to be listed by the registrar of companies for the state. This act maintains two kinds of companies called private and public companies. The ‘Limited’ is the most usually used corporate form at the end of the company name. First, you require to understand what are these public and private companies and select how you desire your company to get registered.
When it comes to organization registration, Every firm will have the following two choices-
- Private company
- Public company
The main variations between Private and Public companies are:
- A minimum number of Board members required for a private company is two and for a public company is seven.
- A private company can have the maximum of only 50 members, but a public company can have any number of members.
- A private company can start its business as soon as it is incorporated but the public company shouldn’t begin its business until it receives business commencement certificate.
- A private company shouldn’t sell it’s shared to anyone or shouldn’t make any invitation to people regarding a company shares, but a public company can encourage people to buy its shares by publishing a prospectus.
- A private company can have two directors, but a public company must have the minimum of three directors.
Let’s know the registration procedure:
Step 1: Acquire Director Identification Number(DIN)
It is the first process in registration that each director of the company should obtain their identification number. As per the amendment act 2006, acquiring a DIN is compulsory for every director, i.e., as such every existing and intending directors have to obtain their DIN. To get DIN one need to file an eForm DIN-1. The DIN-1 form is accessible on the Official website of the ministry of corporate affairs the link is DIN-1 Form.
Register yourself on MCA Website first; you have a login id. After filling DIN-1 Form then you have to upload the filled form by clicking to eForm upload button on MCA site and should pay the applicable charge.
After getting generated DIN, you should intimate their company about DIN. The director can suggest their company about DIN by using DIN-2 Form.
If there is any mistake in DIN or need for an update like the change of address, personal details, and so forth, then director should intimate this change by submitting the eForm DIN-4 Form.
Step 2: Acquire Digital Signature Certificate(DSC)
To assure the security or authenticity of documents registered electronically, the information act 200o demands a valid digital signature on the documents submitted electronically. It is the only and safest way that one can send their papers electronically. The digital signature certificate should be obtained by only those agencies which are appointed by the controller of certification agencies (CCA). One should not use DSC given by any other agency which is not allowed, and it’s illegal to do others DSC as yours or the false one.
If you previously have a digital signature, then you can use the same, no need to apply for another. However, do check for your digital signature validity, agencies issue DSC’s with one or two-year efficacy after expiry you have to renew it.
One can acquire his/her Digital Signature certificates from these government listed agencies like TCS, IDBRT, MTNL, SAFESCRYPT, NIC, nCODE Solutions, and so forth. To check out their charges details of these Govt approved agencies, Go to this link.
Step 3: Create an account on MCA Portal – New user registration
It is about having a registered user account on MCA Portal for filing an eForm, for online fee payment, for different transactions as registered and business user. Creating an account is free of cost. To register yourself on the MCA portal, create a new account by clicking here.
Step 4: Apply for the company to be registered
It is the final significant step in a registration of your company which includes incorporating company name, Registering the office address or notice of situation of office and advice for appointment of company directors, manager and secretary. Moreover, also regarding the take and pay for their qualification shares.
- Form-1A: Application form for availability or change of a company name. Once you apply for the new company name, the MCA will suggest four different type of your company name; you have to pick one among them. To do the likewise, you have you have to fill Form-1A and submit.
- Form-1: This is for application or declaration for incorporation of an organization, in this form you have to fill the similar name which you have filled during the form-1A.
- This form is for notice of the situation of a new company office or change of condition of an earlier registered office.
- For a new company or startup, you have to fill all the details in the form with a valid office address and then submit.
- For the registration of a new company, this form is for the declaration of the appointment of new Directors, Managers, and Secretary.
- For an existing company, this form is for a change of directors, Manager, Secretary or company head.
After submitting these forms, once the application has approved by MCA, you will receive a confirmation email regarding the request for incorporation of a new company, and the status of the form will get changed to Approved.
The detailed procedure for approval of the proposed company name
For obtaining a title for your new company, An application in Form-1A needs to filed with the Registrar of Companies (ROC) of the state in which the Registered Office of the proposed Company is to be located to determine the availability of a name along with an official service fee is Nill (In BJP Government, It can be changed)-.
You have to give four alternative names for the proposed company. Your company name shall not resemble the title of any other company already registered or violate the provisions according to Act, 1950.
In this type of form, you have to fill the name and headquarters of directors (least 2 for a private organization and 7 for a public company). You have to specify principal objects of the company and authorized capital.
In about ten days, the ROC will inform you about permission or objections. If there are any problems, then ROC will advise you with some available titles and let you pick among them. If your company title is approved, then you will get a formal letter regarding the confirmation of the same. Keep the same which will require during the registration method of the proposed company.
If you get any difficulty or encounter any query while obtaining the company title then do contact us, We will assist you to sort out your problem.
Check these documents are the submission of a company
- DIN of all those directors of a proposed company.
- DSC – Digital Signature Certificate
- Original copy the of the formal letter issued by ROC regarding the availability of Company name.
- Form-1 for incorporation of a company.
- Form-18 for situation or address of the proposed company.
- Form-32 for particulars of proposed directors, managers and secretary.
Formalities to be followed during incorporation of a company
- Obtain a TAN card
- Obtain a Permanent account number (PAN) of your company from the income tax department of India
- If required: For foreign trade, Registration documents of import-export code from Director General of international trade.
- If required: Documents obeying shop and establishment acts.
- If required: RBI approval for foreign companies investing in India and FIPB adoption.
- If required: Registration documents of Software Technologies Parks of India (STPI).
- Both Indian and foreign directors need to have valid Digital Signature Certificates from authorized agencies.
I hope guys now you know how to register a company in India. If you have any doubt regarding this post or any suggestion of this post then you can contact us. If you follow these steps and complete all the documents then definitely you can register a company easily.