Most of the business founders in today’s era are from diverse backgrounds and hence have little or no expertise of company registration in India. With the launch of Startup India registration, there is a boom of new company registration in India since every business is thriving to become a well-established company in long run. Talking about company registration in India there are multiple options to go about it such as:
- One person company (OPC) registration
- Private limited company registration
- Limited liability partnership (LLP)
- Public limited company
But before we proceed further we must understand the actual meaning of a company.
What is a Company?
A company is a legally established entity by an individual or group of individuals with the sole objective of achieving the ultimate organization goal. Regulations pertaining to company registration in India are derived by the provisions of Companies act, 2013. According to Companies act, 2013; a company can be formed for any lawful purpose(s) by:
- Seven (7) or more person(s), where the company so formed is to be termed as public company;
- Two (2) or more persons, where the company to be formed is to be a private company
- One person, where the company to be formed is to be One Person Company that is to say, a private company;
What is the procedure of Company registration in India?
The process of company registration in India requires perfection and expertise in the sense that the registration needs to be accompanied with the actual documents which are needed to be attached with the application form. Therefore mostly people look for experienced chartered accountant or professionals having experience in company registration. Whether you are looking for a private company registration in India or OPC registration there are two (2) main governing bodies that looks for the compliances attached with company registration in India viz. MCA >>> Registrar of companies (ROC).
Steps required for company registration in India are:
|1||Name search||Finding a suitable business name is most crucial as it reflects the nature & functioning of the company. It is the name that goes on forever till the life time of the Company; therefore it must be given appropriate consideration.|
|2||Digital signature certificate (DSC)||Digital signature certificate helps in authorising & identifying the DSC holder and minimises the possibility of tampering with the signature. Hence a DSC becomes more reliable for all official purposes.|
|3||Directors identification number (DIN)||Unique identification number; DIN is associates with the identity of Director of the company. As per companies act, 2013; it is mandatory for every director to hold a DIN in its name.|
|4||MOA/AOA||MOA & AOA are regarded as magna carta of the company. It defines the parameters for the functioning of the company and acts as guiding principles for the management and also for the employees.|
|5||PAN/TAN||Permanent account number (PAN) & Tax deduction & collection account number (TAN) are necessary for the process of company registration in India.|
|6||Certificate of Incorporation||After successful Submission of all the documents with the ROC within the stipulated time period a pre-screening of the documents is being done before actually releasing the company incorporation certificate.|
|7||Current Bank Account||Open a current bank account in the name of company so as to carry out official business transaction. This will require you to submit the certificate of incorporation, MOA & AOA details of with the bank.|