As per the Companies Act, 2013 all the Companies whether Private Companies, Public Companies or Non for Profit Organisations need to be registered with the Ministry of Corporate Affairs. As most of the founders are not aware of the basic legalities of setting up a new business, here is a guide to the most important question on how to incorporate a Company in India.
How do you register your company?
Initially, the entrepreneurs focus on their business idea, its viability, building a team, analyzing various prospects, creating a target market, etc. but the first and foremost thing to do is Company registration. As the Company would be the entity that would represent the founders of the promoters in the market.
The most important step in the Company registration process is to get the proposed name reserved for the Company. An ideal Company name is the one that is easy to memorize, register and pronounce. The proposed name should also reflect the business activity of the Company.
One needs to carefully choose the Company name as the domain name should also be available. While checking the availability of the proposed name of the Company one needs to also check the name availability on the trademark site.
The Ministry of Corporate Affairs has made the whole Company registration process online and simplified under the ease of doing business initiative, the name approval is a fast track service wherein one can get the name approved within 24 hours of filing the web form.
Once the name is approved the next step is to obtain digital signature certificates. One can get their DSC’s made through government listed agencies, these agencies are verified by the Controller of Certification Agencies.
Digital signature certificates are issued with one- two-year validity and can be renewed once it gets expired. DSC is password protected as they are used for certifying various forms that are required to be filed with government departments.
The most important step is to prepare the relevant documents and file the incorporation forms with the Ministry of Corporate Affairs. One can take assistance from professionals or hire them for such Ca services. The incorporation forms are linked forms which contain the following:
- FORM NO. INC-32 (Simplified Proforma for Incorporating Company Electronically): As the name specifies it’s an integrated form which shall enable the applicant to file the following:
- Name of the Company
- Director Identification Number
- Incorporation Certificate
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- FORM NO. INC-33 (e-Memorandum of Association): This form contains the main activity of the Company along with the details of the subscribers i.e. the shareholders of the Company and the amount of authorized capital.
- FORM NO. INC-34 (e-Articles of Association): All the rules and regulations along with the procedures for holding meetings, transfer of shares, voting rights etc. are listed in the articles of the Company. It like a rule book that the Company has to abide with.
- FORM NO. INC-35 (Application for Goods and services tax Identification number, employees state Insurance corporation registration plus Employees Provident fund organization registration): One can apply for GSTIN / EPFO / ESIC through the same form.
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Once these forms are filed and approved by the Ministry, the Incorporation Certificate is generated and hence the registration process is complete.
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Here are a few commonly asked questions:
Is one person company a private company?
Yes, One Person Company is a Private Limited Company, hence the Company name has the letters (OPC) in it.
Can one person company have employees?
Yes, there is no limit on the number of employees a One Person Company can have.
What is the fees for company registration?
The fee to incorporate a Company in India can fall in a price range of Rs. 5000/- to Rs. 12000.
How can I apply for Pvt Ltd Company?
The Company registration process is online, click on the to connect with professionals:- Company Registration
Which documents are required for company registration?
The following documents are required:
1) ID Proof ( PAN Card)
2) Any of the following proofs:
- Voter ID
- Driving License
3) Address Proof (anyone):
- Electricity Bill
- Telephone Bill
- Bank Statement
4) Photograph of both the proposed Directors
5) Electricity Bill and Rent Agreement of premises