What Are the Procedures To Register A Company in India?

ByChris Jones
Company in India

One of the most essential things for a businessman or entrepreneur who is interested in establishing a company in India is to go through innumerable laws. The second most predominant step is registration of that business since many entrepreneurs take care of this process. It will make sure the business is formally constituted according to Indian law. The following steps are sure to guarantee effective registration of your business whether you plan on starting a new venture or attempt to expand on one already existing.

1.    Selecting a Business Structure Carefully

The main issue in company registration is to decide about the structure in which your company should be registered. The type of structure oneself would determine such issues as: taxation, legal liability, funding options, and the manner in which the business is carried out. The forms of business structures in India are many. The most prominent ones would be:

  • Private Limited Company (for startups and small businesses)
  • Public Limited Company (for big businesses looking for public investment)
  • Sole Proprietorship (where a single person manages the company)
  • Partnership Firm (for a company with two or more people running it)
  • Limited Liability Partnership, or LLP (collaboration with limited liability protection)

2. Procure a Digital Signature Certificate (DSC)

A digital signature certificate is a requirement that is needed with regard to submitting electronic forms to the MCA. Every proposed director of a company needs to procure their own DSC. An individual wishes to obtain one by approaching a certified provider and submitting, among others, a digital copy of the PAN card, Aadhaar card, and address proof. The DSC is, therefore, a very secure digital key and endorses the validity of all papers that are required to be submitted online in the process of registration.

3. Acquiring a Director Identification Number (DIN)

A Director Identification Number is a unique identification number issued for the purposes of those wishing to register as directors of a company in India. To get a Director Identification Number, one needs to apply online through the MCA portal with proof of identity and proof of address. Once issued, the DIN is valid for a lifetime and becomes the symbol under which an individual is recognized as a certified director.

4. Name Approval Process

Selecting an appropriate name for a company is among the most exciting yet critical steps involved in registration. The name must respect the relevant MCA conduct guidelines and must be legally fit for consideration while also being ideally unique and not an infringement of any existing trademarks. One may apply for their name preferences using the RUN (Reserve Unique Name) form on the MCA portal. It is generally advisable to include two or three names to maximize the chances of getting one of them approved.

5. Filing the Incorporation Application

Once the name is approved, the next step bordering the incorporation application is filing it. This includes the submission of relevant documents:

  • Memorandum of Association: It mentions the objectives and aims of the company.
  • Articles of Association: It examines the internal policy of the company.
  • Registered Office Address: proof of registered office address is provided by a rental agreement or electricity bill.
  • Identity and Address proof of the directors and shareholders: License, Passport, PAN Card or Aadhar Card.

6. Receiving the Certificate of Incorporation

After verification and acceptance of your files from the MCA, you would well be accorded a Certificate of Incorporation (CoI). This document acts as the official proof of your company being lawfully registered under the Companies Act, 2013. The CoI also contains the Corporate Identity Number (CIN) required for future filings and compliance activities. Congratulations! Your company has been officially registered.

A confusing process for registering a company can become slightly less daunting if there is a specific plan laid out and the procedure is followed as described above, in all ways. In reality, every step varies from ensuring the right business structure to compliance matters. Tactfully, each of these is of absolute importance in putting a strong legal foundation for your business. It is only after your company is successfully registered that you can shift your focus to developing the venture into a successful one with absolute ease.

The process of company registration could look overwhelming; following the steps mentioned above would help in simplification. Every step pays an important piece in establishing the legs for your business: from choosing a business structure to complying after its registration. After your company’s registration, you can focus entirely on developing it into a successful business with confidence.