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 you register it. The Ministry of Corporate Affairs is responsible for the company registration procedure in India. In India, every new business and startup must register before they can start operating, yet many of us have no idea how to do it. India is a developing nation with a strong youth population. The most important thing, though, is to register your company before launching it.
Steps for company registration in India
The following is the procedure:
Apply for DIN and DSC online
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, obtain their Director Identification Number (DIN).
The Companies Act section 153 authorizes the issuance of the 8-digit, distinctive DIN number. Full name, father’s name, DOB, identity proof, address and its evidence, a copy of the PAN card, and two pictures of each prospective director are required for DIN. The application form, known as the DIN-1 Form, is accessible online at the ministry of corporate affairs’ official website (MCA Website). Each and every business owner must sign up on the MCA website and obtain a login ID. After paying the necessary costs, the DIN-1 Form must be properly completed and uploaded. The processing time for the nominal INR 100 DIN application form is one day. It takes just one day to complete. PAN information is necessary for Indian residents, and a passport is necessary for international nationals.
Apply for a certificate of digital signature (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). A DSC is distinguished for every corporate entity and should not be shared by businesses. This digital certification is typically good for one or two years, and the CCA must renew it after that time. The application expenses for gaining a DSC range from INR 800-5999 depending on the structure of the firm and the validity duration. Processing a DSC form normally takes two to three business days.
Registering as a new user
Registration on the MCA portal is crucial. To submit an eForm, conduct different transactions, and pay the required fees, you must first register a user account. There is no cost to register with the Ministry of Corporate Affairs.
Requesting charter documents
Applicants must draft organizational charters like a Memorandum of Association (MOA) and Articles of Association as part of the company registration procedure (AOA).
Memorandum of Association (MOA): During the incorporation procedure, the MOA must contain all the information about the registration firm that is needed. Additionally, it provides information on the company’s goals and authority as well as the interaction between the outsider and the business. Once generated, the MOA cannot be changed.
The company’s laws and regulations are outlined in the Articles of Association (AOA), which is a legal document. It offers information on the management, behavior, and bylaws regulating the internal affairs of the business. The AOA serves as an adjunct to the MOA, but it is amendable as needed.
Request for company name
The proposed business name ought to be original and should describe the goods and services the company provides. It gives them a prestigious advantage.
Registration information
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 4 different names for your business. Additionally, the proposed company name must adhere to all the rules outlined in the Companies Act of 1950. Then, you must select one of them before completing Forms -18 and 32, which are used to specify the address of the company and the names of the directors, secretary, and manager, respectively. The concerned agencies examine the forms after they are filed. The entire procedure takes 8 to 10 days to finish.
Getting TAN and PAN
Getting your company’s PAN (permanent account number) is the final stage in the registration procedure for companies in India. Only approved agents authorised by the National Securities Depository Ltd. or the Union Trust of India (UTI) Investors Services Ltd. should be used to obtain PAN (NSDL). Typically, the procedure takes seven days and might cost up to INR 70. You must obtain a TAN (Tax Account Number) for your business in addition to a PAN. You can get it from any Assessing Officer working at your state’s Income Tax Department. This costs about INR 60 and takes a week to complete.
