Registering a
startup or a new business in India first and foremost one has to go by, there
are some official procedures a startup or a company has to follow in order to
register them in Indian official records, MCA (Ministry of Corporate Affairs)
One don’t need
to visit corporate office, you can apply for registration just sitting at home.
We will help you to get a legal license for your business. The registration
includes some must follow rules and some registration like Digital Signature
Certificate(DSC), Director Identity Number(DIN) and filing for an eform.
These are four
major steps:
·
Acquiring Digital Signature Certificate(DSC)
·
Acquiring Director Identification Number(DIN)
·
Filing an eForm or New user registration
·
Incorporate the company
It’s necessary
to get registered yourself to run your business without any legal problem.
India is a land of opportunity, no matter in which field
your business is operating the chances of getting success is very high, so it
just needs a start. starting an entrepreneurship in India would fetch you great
success. fallow this post sincerely till you incorporate your final claim for
your company. We assure one will end up in getting their business registered
after following this procedure.
Know the basics first: What is mean by company, the private company and public company?
Know the basics first: What is mean by company, the private company and public company?
In India, there
are about 8 lacks registered companies and every month thousands of firms apply
for registration. company is a legal entity; According to Section 3 of
companies act company means a legal entity formed and registered under
Companies Act 1956. Under the ministry of corporate affairs, every company is
to be registered by the registrar of companies for the state. This act
maintains two types of companies called private and public companies. The
‘Limited’ is the most commonly used corporate form at the end of the company
name. First you need to know what are these public and private companies and
decide how you want your company to get registered.
When it comes
to company registration, Every firm will have following two options:
1. Private
company:
2. Public company:
The main differences
between Private and Public companies are:
·
Minimum number of Board members required for a private company
is two and for a public company is seven.
·
Private company can have maximum of only 50 members, but a
public company can have any number of members.
·
A private company can start its business as soon as it is
incorporated but the public company shouldn’t start its business until it
receives business commencement certificate.
·
Private company shouldn’t sell it’s shares to anyone or
shouldn’t make any invitation to people regarding a company shares, but a
public company can invite people to buy it’s shares by issuing a prospectus.
·
Private company may have two directors, but a public company
must have at least three directors.
Lets start the
registration procedure: 4 Steps
Step 1: Acquire
Director Identification Number(DIN)
This is the
first process in registration that each director of the company should obtain
their identification number. As per the amendment act 2006, acquiring a DIN is
compulsory for every director i.e. as such every existing and intending
directors have to obtain their DIN. To get DIN one need to file a eForm DIN-1.
The DIN-1 form is available on Official site of the ministry of corporate
affairs the link is DIN-1 Form.
·
Register yourself on MCA Website first and
have a login id. After filling DIN-1 Form, one should upload the filled form by
clicking to eForm upload button on MCA website and should pay applicable fees.
·
After getting generated DIN one should intimate their company
about DIN. The director can intimate their company about DIN by using DIN-2 Form.
·
Then company should intimate the Registrar of Corporates(ROC)
about all director’s DIN through DIN-3 Form.
·
If there is any change in DIN or need for any updation like
change of address, personal details etc, then director should intimate this
change by submitting the eForm DIN-4 Form.
Step 2: Acquire
Digital Signature Certificate(DSC):
In order to
ensure the security or authenticity of documents filed electronically the
information act 200o demands a valid digital signature on the documents
submitted electronically. This is the only and safest way that one can submit
their documents electronically. The digital signature certificate should be
acquired by only those agencies which are appointed by the controller of
certification agencies (CCA). One should not use DSC given by any other agency
which is not approved and it’s illegal to use others DSC as yours or the false
one.
If you already
have a digital signature then you can use the same, no need to apply for
another. But do check for your digital signature validity, agencies issue DSC’s
with one or two year validity after expiry you have to renew it.
One can acquire
his/her Digital Signature certificates from these government listed agencies
like TCS, IDBRT, MTNL, SAFESCRYPT, NIC, nCODE Solutions etc. to check out their
price details of these Govt approved agencies, Go to this link.
Step 3: Create
a account on MCA Portal – New user registration
This is about
having a registered user account on MCA Portal for filing a eForm, for online
fee payment, for different transactions as registered and business user.
Creating an account is totally free of cost. To register yourself on the MCA
portal, click on the register link.
Step 4: Apply
for the company to be registered.
This is the
final major step in a registration of your company which includes incorporating
company name, Registering the office address or notice of situation of office
and notice for appointment of company directors, manager and secretary. And
also regarding the take and pay for their qualification shares.
·
Form-1:Form-1A: Application form for availability or change of a
company name. Once you apply for new company name, the MCA will suggest four
different form of your company name; you have to choose one among them. To do
the same you have you have to fill Form-1A and submit.Form-1: This is for
application or declaration for incorporation of a company, in this form you
have to fill the same name which you have chosen during application of form-1A.
·
Form-18:This form is for notice of the situation of a new
company office or change of situation of previously registered office.For a new
company you have to fill the form with genuine office address and submit.
·
Form-32:For a new company, this form is for notice for
appointment of new Directors, Managers and Secretary.For an existing company,
this form is for a change of directors, Manger, Secretary or company head.
After
submitting these forms, once the application has been approved by MCA, you will
receive a confirmation email regarding the application for incorporation of a
new company, and the status of the form will get changed to Approved.
Detailed
procedure for approval of the proposed company name:
For obtaining
name for your new company, An application in Form-1A needs to be filed with the
Registrar of Companies (ROC) of the state in which the Registered Office of the
proposed Company is to be situated to ascertain the availability of a name
along with an official service fee of Rs.500/-.
You have to
provide four alternative names for the proposed company. Your company name
shall not resemble the name of any other company already registered or violate
the provisions according to Act, 1950.
In this form
you have to fill name and addresses of directors (minimum 2 for a private
company and 7 for a public company). You have to mention main objects of the
company and authorized capital.
In about 10
days, the ROC will inform you about approval or objections. If there are any
objections then ROC will suggest you with some available names and let you
choose among them. If your company name is approved then you will receive a
formal letter regarding the confirmation of the same. Keep the same which will
be required during registration process of the proposed company.
If you find any
difficulty or encounter any problem while obtaining the company name then do
contact us, We will help you to sort out your problem.
Check these
documents before submission of a company:
1. DIN of all
those directors of a proposed company.
2. DSC – Digital
Signature Certificate
3. Original copy
the of formal letter issued by ROC regarding availability of Company name.
4. Form-1 for
incorporation of a company.
5. Form-18 for
situation or address of the proposed company.
6. Form-32 for
particulars of proposed directors, managers and secretary.
Formalities to
be followed while incorporation of a company:
1. Obtain a TAN
card
2. Obtain a
Permanent account number (PAN) from income tax dept. India
3. If required:
Documents obeying shop and establishment acts.
4. If required:
For foreign trade, Registration documents of import export code from Director
General of foreign trade.
5. If required:
Registration documents of Software technologies Parks of India (STPI).
6. If required:
RBI approval for foreign companies investing in India and FIPB approval.
Both Indian and foreign directors need to have valid Digital Signature
Certificates from authorized agencies
MRITUNJOY SINGH
9230222490
SATHIK PARAMARSH ADVISORY LLP
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