How to Register a Company in India – Complete Guide 2018
If you are here to find the information on How to register a company in India or How the registration process works?
You are at right place.
I am sure that this content is best information piece you need for company registration. so, let’s start with the guide.
How to Register a Company in India
As per procedure from MCA ( Ministry of Corporate Affairs ), India has made it very simple & Efficient, and we can get the company formed in just 7 days.
Also, you can register your company from any part in India without going to any Govt office. All the documents are filled electronically and you do not need to visit for registration.
Many companies in India can help you in getting it registered, or our partner team can help you with registration at a low price.
Also read: New Small Business Ideas In India
With help of this article, you will find information on:
– How to register a company in India?
– What Type of company to register?
– What are the documents required for company registration?
First of all, you need to understand the types of company in you can register in India.
There are mainly 5 types of companies in India, all are different from one another in different aspects.
Procedure to Register a company in India:
To make it simple and easy for registering a business in India business in India, Ministry of Corporate Affairs Introduced INC-29 Form.
With this form ( INC-29 ) Company registration has merged few processes like Getting Business Name Approval, Director’s Identification Number (DIN) and Incorporation Application into one single process.
This step had made the process of company incorporation very easy. It’s all online and just takes seven days for company incorporation nowadays.
Following is the process for registering a company in India:
1. Obtaining Digital Signature Certificate (DSC) from MCA
Step one is to apply for the digital signatures of the directors, also called as DSC. DSC is e-signature to help you complete the new company registration online.
It Normally takes 2 days to obtain DSC after the submitting the documents.
The Information Technology Act, 2000 has provisions for use of Digital Signatures on the documents submitted in electronic form in order to ensure the security and authenticity of the documents filed electronically.
This is the secure and authentic way to submit a document electronically. As such, all filings done by the companies/LLPs under MCA21 e-Governance programme are required to be filed using Digital Signatures by the person authorised to sign the documents.
2. Prepare INC-29
Director’s Identification Number ( DIN number )
Memorandum and Articles of association ( MOA & AOA )
Registered office verification
Appointment letters and declaration
3. Filing INC-29
Once all these documents are ready, we have to file the forms for company formation after which we get the certificate of incorporation.
4. Issue of Incorporation Certificate
Once you get the certificate of incorporation we get the pan number along with it and we can open the bank account.
Documents Required to Register a Company in India:
You need to supply the following documents for company registration in India.
- Passport-sized photograph
- Copy of PAN Card
- Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
- Voter’s ID/Passport
- Notarized Rental Agreement in English
- No-objection Certificate from property owner
- Utility Bill for the registered address.
You can send these documents online ( scanned copies ) to start the registration process.
After that, you will need to apply for GST ( depending upon the type and size of business ).
FAQ – Company Registration in India
There might be many queries raising in your mind regarding the registration process. Sharing some of these here with an answer.
I am launching my startup, Which company type should I choose?
If you are a startup and willing to raise funding for your startup, a Private limited company is best option to go with. With this option, you can receive external funding in your startup and also can issue stock options to your employee.
How many directors do we need to form a Private Limited company?
If you are registering a private limited company, then you must have at least two directors and shareholder and can have a maximum of 15 directors and 50 shareholders.
Private Limited or LLP? which company type to choose?
If we answer this in simple terms, If you are starting and wish to raise funds or offer ESOPs, then private limited is a must. But if you are starting a small business of your own which will not attract external funding in near future, then you can go with LLP.
LLP is a bit cheaper to form and low cost to maintain the accounts.
Do, however, take time to dwell on this question, because once you decide to register an LLP, you will likely get several licenses and approvals in its name (profession tax or shops and establishments registration, for example). If, at any point, you need to switch from an LLP to a private limited company, considerable effort would be required.
Can I register a company without the help of any external firm or CA?
Yes, you can register it with help of MCA website but it will be really tough to do that. Better is to leave the job to professionals and focus on your core business.
There are 100s of companies out there for registration, which one to choose?
Yes, there are many experts available in the market who can register your company without any hassle, But will be better if you choose someone who has a good reputation and experience in startup company registration.
Internet had made it very simple & you can get your company registered from anywhere with help of online company registration process.
Can I register a company on the Home address? Also what if it is rented?
Yes, you can register the company on home address, you will need utility bill for it. Also, you can get it done in the rented house as you have to provide NOC and Rent agreement.
Are 2 Directors must for a Private Limited Company?
Yes, you must have to have 2 directors for registering a private limited company in India.
Hope this article will help you to understand the process and documents for a company registration in India. We would like to hear your views via comments.