To achieve your dream of having a successful business, proper knowledge is required. The first step towards that should be the company registration. Over the last few decades, the government has made everything very clear and easy for everyone to understand. Now you can complete the whole procedure sitting on your couch and not going anywhere. Due to the government’s consistent efforts, the company registration process is now seamless and unified. But before you step into registering your company, try to know the process in detail. In this article, we will discuss every small step associated with the procedure of company registration.
Authority that regulates the Procedure of Company Registration
Ministry of Corporate Affairs or the MCA is the primary company registration regulatory authority in India. If you want to set up a company, you need to reach MCA and submit all your necessary papers depending on the type of company you are about to set up. During the company incorporation, all the shareholders and company directors should be present and follow the steps mentioned on the MCA’s website. The post incorporation procedure will also be monitored by the Ministry of Corporate Affairs only.
Checklist:
If you want to incorporate your business and register your company, you need to fulfill some requirements. Here is the checklist that you have to tick off before setting up your company.
- Number of directors: Every company undergoing company registration must have 2 nos of directors or shareholders. Your company has up to 15 directors. The directors will act as shareholders here. Also, your company can have some foreign nationals as shareholders. But for that, they need to submit their passports and other necessary documents at the time of incorporation.
- Capital of the company: You can seek investments as per the requirements of your business. The MCA has nothing to do with it. Also, there is no upper or lower limit of investments applicable for a business. You need to add the government fee to the capital of your business. Minimum capitalisation conditions are considered here.
- Naming the company: Your company should have a unique name. The name should not be fully or partly similar to any other registered business. Some companies apply for a trademark and stay under process. You also need to check the trademark registry to make sure that no one else has applied for the same name. The name of your company must not violate any provisions of the intellectual property law. The name must abide by the rules of the Copyright law and Trademark law. Name of the company must not go against the Government of India’s sanctity.
- Registered office space: You must not possess or rent a commercial space for your company. A rented house can also be your registered office. But you must possess a no objection certificate from the landlord. Also, the landlord needs to produce a copy of his identity proof along with the NOC.
Online Procedure of Company Registration
Even if you have a start-up company, you should always register your company under MCA. This will benefit you in many ways and also help you stay ahead of your competitors who haven’t registered their companies yet. The process of registration varies from company to company. Also, the process seems complex for some of them due to different compliances.
- Application of DSC: The first step of registering your company will include application of DSC or Digital Signature Certification. Digital signature certification is required during the registration process. The whole process is done online. So, the DSC should be acquired. This is required for the verification of information. Lots of electronic paperworks is involved in the company registration procedure. So, before progressing further, you should apply for DSC from the Ministry of Corporate Affairs.
- Application of DIN: Once you apply for the Digital Signature Certificate, you must also apply for the DIN or the Director Identification Number. This number is important for the registration process and the directors need to submit this number throughout the registration process. This number ensures that the director meets all the required fields to become a director of the institution. The application for digital signature and director identification number should be done simultaneously while applying for the company registration.
- Memorandum of Association and Article of Association: After the DSC and DIN, you need to apply for the Memorandum of Association and Article of Association as well. These two are one of the most important legal forms that you need to submit. They ensure that your company is legally entitled and not an illegal concern. These application forms are available on the Ministry of Corporate Affairs website.
- Company name availability: You also need to make sure that under the name you are registering your company, is valid. This is also an important step of the company registration process. When you submit your name, the portal will take you to the list of names added to their index. If the name is valid, you can claim it. If the name is not available, the portal will ask you to change it. Also, the name must not go against the intellectual property law of India. You can always check the availability of the name of the MCA website.
- PAN and TAN application: Once you complete filling the above mentioned applications and forms, you should apply for a PAN and TAN number for your business. PAN stands for Permanent Account Number and TAN stands for Tax Deduction and Collection Account Number.
- Certificate of incorporation: Once you fulfill every above mentioned steps, the ROC and MCA will go through your application and allied forms. If everything satisfies them and you abide by all the rules, you will be granted a certificate of incorporation. You need to produce this document whenever asked. This is a legal paper which ensures that your company compliances with all the necessary requirements to do business in India.
Conclusion
No matter whether it is a private limited company, proprietorship company, or a start-up company; registration is mandatory for each of them. Registering your company will help your clients believe in your existence. After people start believing you, they will start sending your proposals for business. So, whenever you plan to set up your own business, just follow the procedure mentioned in this article and get your company registered as soon as possible.
FAQ:
- Can you register your company offline?
Ans: No. The company registration process is a purely online process. The directors of the company need to keep their digital signature ready for the purpose. Throughout the process, they need to sign lots of papers digitally.
- Please explain the difference between Memorandum of Association and Articles of Association?
Ans: Memorandum of Association talks about the tasks carried out by the company. The company cannot carry out any other task apart from the ones mentioned in this document. This will ensure that the company is going in a single direction. The Articles of Association is a legal paper. It states what your company can do and what not. Your company should follow some rules and regulations to work ethically. Articles of Association ensure those rules should be followed.
- How much time should I invest to register my company in India?
Ans: The whole registration process for a private limited company would take up to 14 working days in India.
- Do I need to have a physical place as my registered office space?
Ans: You can always have a virtual office set up. All your employees may work remotely. Then also you need to have a physical place as your registered office space. Such corporate spaces are available online. You can check and find an appropriate space for your business and complete the registration process.
