A Guide on How to Register a Company

A Guide on How to Register a Company

Are you also looking to start your own venture in India? In such scenario, the first step you need to take is to register your company. The sigh of relief is brought by the Ministry of Corporate Affairs (MCA) which helps to register your company online with ease. This article will guide and explain on how you can register a business in India.

Table of Content:

• Company Registration in India
• Different Types of Companies Registration in India
• Documents Requirement to Register a Company in India
• Company Registration Process – Step-by-Step
• Conclusion

Company Registration in India

Registration of a company in India is governed under the Companies Act, 2013 through which a business is legally established. The process of company registration starts with arranging and submitting the documentation part.  It further involves following the rules and regulations set by the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA).

As soon as the company gets registration, it gains a formal identity which enables it to start operating as a legal entity in India. Also, the company can gain access to funding and can enter into legal contracts on its behalf.

Different Types of Companies Registration in India

There are several types of companies from which an entrepreneur can choose. According to the Companies Act 2013, companies can be classified into the following categories:

• Sole proprietorship
• One Person Company (OPC)
• Partnership Firm
• Limited Liability Partnership (LLP)
• Section 8 Company
• Public Company
• Private Company

Documents Requirement to Register a Company in India

1. Identity and Address Proof of Directors:

• Mandatory: PAN card
• Any One: Aadhaar card, Passport, Voter ID card, or Driving License

2. Passport-sized Photographs of Directors:
3. Proof of Registered Office Address:

Utility Bills: Water, Electricity or gas bill which should not be older than two months

If Rented: Rent agreement and No Objection Certificate (NOC) from the owner

If Owned: Sale deed or property tax receipt

4. Consent to Act as Directors (DIR-2):

DIR-2 must be signed by the proposed directors where they give consent to act as directors.

5. Declaration by First Subscribers and Directors (INC-9):

Confirmation of eligibility and compliance with the requirements of the Companies Act.

6. Memorandum of Association (MOA):

This is one of the most important legal document which defines the objectives and scope of activities.

7. Articles of Association (AOA):

The AOA includes the rules and regulations which helps governing the internal management of the company. The rights and duties of shareholders and directors are included in it.

8. Digital Signature Certificate (DSC):

The proposed directors must be ready with DSC to digitally sign the incorporation related documents.

9. Director Identification Number (DIN):

DIN can be applied by each director online through the Ministry of Corporate Affairs (MCA) website.

Company Registration Process – Step-by-Step

Step 1: Choosing the Business Structure according to your choice

Firstly, you need to select the type of business entity you wish to register. You may choose any of the business structure discussed above.

Step 2: Apply for Director Identification Number (DIN)

You can apply for DIN online through the Ministry of Corporate Affairs (MCA) portal. The DIN will be automatically generated while using the SPICe+ form (Simplified Proforma for Incorporating a Company Electronically) at the time of the company registration process.

Step 3: Obtain Digital Signature Certificate (DSC)

Obtain a Digital Signature Certificate (DSC) to sign forms electronically on the MCA portal. Government approved Certifying authorities can be obtained through Legal Window by providing documents like PAN card, Address proof, and a passport-size photo.

Step 4: Choose a Unique Company Name

Choose a name that aligns with your brand and also complies with MCA and Trademark guidelines. It must be unique and should not be similar to any existing company names.

Step 5: Apply for Name Approval

Once you have finalized a name for your company, you need to reserve it. The RUN (Reserve Unique Name) service on the MCA portal will be used for reserving the name. Also, to remain on the safer side, make sure that you have few alternatives ready. It is important to note that the approved names are valid for 20 days.

Step 6: Prepare Memorandum and Articles of Association (MOA & AOA)

MOA and AOA must be drafted and must be signed by directors and shareholders.

Step 7: Obtain Consent and Declarations

Obtain declarations regarding compliance with legal requirements.

1. Form INC-9 for directors’ declarations.
2. Consent forms like DIR-2.

Step 8: File Incorporation Documents

This is the most important step where all documents are submitted online via the SPICe+ form on the MCA portal.

Documents to Attach:

1. MOA & AOA.
2. DIN & DSC for directors.
3. Address proof for the registered office.
4. Identity and address proofs for directors and shareholders.

Additional Forms:

1 Form INC-9 for directors’ declarations.

2. Consent forms like DIR-2.

AGILE-PRO-S: For registration of GST, EPFO, and ESIC.

Step 9: Pay Registration Fees

The authorized capital decides the fees to be paid while incorporating the company. It can be made online on the MCA portal. Also, the fee structure varies on the type of company and capital.

Step 10: Receive the Certificate of Incorporation

Upon successful verification of all submitted documents and payment, the Registrar of Companies (ROC) will issue the Certificate of Incorporation which will include a Corporate Identification Number (CIN). Ultimately, the journey of your legally formed business will then begin

Conclusion

Before you plan to register a company, one should be well aware about choosing the type of business structure they wish to form. Furthermore, you should be well versed about the Companies Act, 2013 to understand the legal purview of the business. Registration can be completed hassle free even from the comfort of one’s home, eliminating the need to travel anywhere. So what are you waiting for? Contact Legal Window now.