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| Company Registration Process in India |
One of the greatest milestones for any entrepreneur is setting up a business in India. Completing company registration is one of the first couple of important steps in setting up the company in India. Company registration is not just a license for operating your business but it also builds confidence and credibility among stakeholders. This guide will walk you through the step-by-step process for company registration in a very easy-to-understand and follow manner.
Step 1: Choosing an Appropriate Form of Business
Selecting the appropriate form of business is the first step towards the process of company registration in India. Some popular forms of business in India are Private Limited Company, Public Limited Company, LLP, and Sole Proprietorship. All the business structures have certain advantages; hence, the selection is to be made considering the business objectives and size.
Step 2: Digital Signature Certificate (DSC)
Unless otherwise advised, all the directors and signatories shall obtain a DSC in order to enable registration. The DSC is used to ink documents in electronic form and further authenticates the identity of the signatory when online submissions are made. Without the DSC, the registration cannot be proceeded with.
Step 3: Apply for a Director Identification Number (DIN)
Then, each director of the company needs to get a Director Identification Number. DIN is an exclusive number assigned by the MCA to identify the directors in case any non-compliance occurs. DIN would be needed to sign and file documents and forms during the process of Company Registration in India.
Step 4: Reserve Your Company Name
Accordingly, a unique name for your company has to be selected. You can very well check the availability of the name on the MCA portal and book the same for your venture. Ensure that the name is unique and meets the naming criteria laid down by the MCA; otherwise, it shall either be rejected or will involve more consumption of time.
Step 5: Memorandum and Articles of Association – Drafting
Secondly, comes the preparation of MOA and AOA. These are legal documents constituting the objectives of your company, its operations, and internal management rules. They are needed in the legal framework of your business and are required to be filed along with the registration process.
Step 6. Filing of Registration Forms and Fees
Once your company name is approved, and all documents are ready, you can proceed with filing the registration forms. The incorporation form SPICe+, fees, and supporting documentation like MOA and AOA along with proof of address is to be filed.
Step 7: Certificate of Incorporation
In such a case, upon submission of all documents, the ROC will scrutinize and approve your application. After approval, you are issued with the Certificate of Incorporation that actually incorporates your business. The certificate bears your company's Corporate Identity Number, and such confers legal existence upon the company.
Step 8: Apply for Permanent Account Number and Tax Deduction Account Number
After incorporation, you should apply for a PAN and TAN. These numbers are very important for compliances of the tax law in India and you will be required to have these to run your business legally. PAN is used for income tax purposes while TAN is used for TDS.
Step 9: Opening of Corporate Bank Account
Once your PAN, TAN, and Certificate of Incorporation are in place, you can move on to the opening of a corporate bank account. The corporate bank account will hold your business finance and deal with all of your official transactions. In general, every bank requires your incorporation documents, PAN, and company resolution for opening the account.
Conclusion
Company registration in India is quite smooth, provided one has carefully followed all the steps. Be it choosing a correct business entity or obtaining the necessary certificate-every step plays a crucial role in running your business smoothly and in a legit manner. In fact, with proper guidance, one can get this process completed without any unnecessary delay or obstacles.
We at Lexlevel Services help entrepreneurs through the company registration process in India without glitches. Our team of experts will make sure every requirement is met smoothly so that you go hassle-free into your business journey.