Registering a company seems like an exhausting process. However, presently registering a startup company in India has become quite easy keeping in mind a few easy steps. With many business entities looking to set up enterprises, there are a few details to consider while registering a company in India.
Registering a Private Limited Company in India is one of the highly lucrative ways to start a business. To register a startup or a new company in India one needs to record it in the Indian official records i.e. Ministry of Corporate Affairs (MCA). Currently, one does not even need to visit the corporate office for registration as it can be easily done online.
A registered company testifies the authenticity of business.
Registration of company secures the business from personal liability and protects from other risks and losses.
It naturally attracts more client base due to the authenticity.
It helps to avail bank credits and investments from reliable sources easily.
Also, it offers liability protection to protect your company’s assets.
A registered business provides increased capital contribution and greater stability.
It aids the business to potentially grow and expand.
A registered company allows an Entrepreneur to easily raise capital and transfer ownership without any hassles.
Original copy of formal letter issued by ROC regarding availability of Company name
DIN of all those directors of a proposed company
DSC – Digital Signature Certificate
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
Company Name Availability: One should always start the process by checking the availability of the proposed name of the company. This can be done online, where applicants may check the availability of their desired company names. Once approved, the selected company name appears on the website.
Acquiring a Director Identification Number (DIN): A Director Identification Number (DIN) is a unique identification number that is provided to any existing or potential directors of companies that are to be incorporated. A provisional DIN can be obtained by filling a DIN-1 application form online. The Information Technology Act, 2000 has provisions for use of digital signatures on the documents submitted in electronic form in order to ensure the security and authenticity of the documents filed electronically. Then, a printed and signed version of the form must be sent forward to the concerned ministry along with address and identity proof for their approval. A permanent DIN is issued after the verification of the documents and the subsequent approval of the request.
Acquiring a Digital Signature Certificate: A digital signature certificate is an authorized electronic key that validates and identifies the holder of this certificate. One of the approved agencies registered with the ministry can issue this certificate. The company directors when applying for a Digital Signature Certificate should submit the application form, identity proof, and permanent address proof.
Obtaining an Incorporation Certificate: An incorporation certificate is provided by the Ministry of Corporate Affairs and is used as proof for the constitution of the company. To apply, the following forms must be digitally filed on the official Ministry of Company Affairs website – e-form 32, e-form 1 and e-form 18. Along with Form 1, the Registrar of Companies must be provided with one copy of each: The Memorandum and Articles of Association (MoA and AoA), the consent of directors, and a stamped copy establishing the power of attorney. The certificate of incorporation will then be automatically sent to the e-mail ID as provided in the information submitted with the forms while incorporating the company.
Creating a Company Seal for official documentation: A company seal is required to be placed on papers for sharing important certificates and other official documents. The total cost of acquiring an official seal is dependent on the number of words that need to be engraved on it, the number of seals issued, and the time period for the delivery of the seals. It is to be noted here that the requirement to maintain a company seal is not mandatory for private companies.
Stamping of all Company Documents: The application to have the company’s incorporation documents stamped must always have the unsigned copies of the Memorandum and Articles of Association attached alongside the payment receipt for the same. Stamp duty should be paid online for such documents to the Registrar of Companies. Post this application, the Superintendent will return the copies – one of which is stamped, signed and embossed in an official capacity. Finally, the company promoters must sign the MoA and AoA, with all required information being filled in their own handwriting.
Acquiring a Permanent Account Number (PAN): Filing of Form 49A is required for the application of PAN. Once a unique PAN is acquired, a physical version of the PAN card will be delivered to your registered address by official post. The PAN application may also be done online, but the required documents will still need to be physically sent for final verification.
Acquiring a Tax Account Number (TAN): As per the Government of India, a Tax Deduction Account Number or Tax Collection Account Number (TAN) is a special number issued by the Income-tax department to all entities who are required to either deduct or collect tax at the source. To obtain this number, the form 49B must be filled out and submitted at a TIN Facilitation Center. Once the application has been verified, it is forwarded to the Income Tax Department and the TAN is issued.
Obtaining a certificate from the State/Municipal Inspector under the Shops and Establishment Act: A statement that includes the employer/manager’s names, company’s designated name and permanent postal address and business category must be provided to the State Shop and Establishment Inspector along with the payment of applicable fees. This is a vital step in trade license registration, as all companies must be registered within one month of the opening of their business.
Applying for GST Registration in India: GST registration is mandatory for any entity seeking to undertake the supply of goods and services across states while maintaining an annual aggregate turnover of more than INR 40 lakhs/20 Lakhs. This should be prioritized before any other process for new company registration.
Obtaining a Profession Tax Certificate from the State Profession Tax Office: Every employer, who is not a government officer is liable to taxation and must obtain a certificate of registration from the relevant authority. A company is required to file Form 1 to the State Profession Tax Office to apply for the Profession Tax Certificate, if applicable.
Completing a National Employees Provident Fund Registration in India: Every employer is required to provide their worker information to the local Employee Provident Fund Organization (EPFO). This must be done in the prescribed manner so that an Establishment Code Number (ECN) can be allotted to the company. This process is within the sole purview of the employer, and no separate applications need to be made by the employees. Note that this will only be required if the provisions of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 are applicable on the company.