Company Registration stands as the most important step to expand the business of a company which also plays an important role in deciding the future aspect of the company. This stands as an important step towards the entrepreneurial venture and thus provides a structure that is backed by a legal framework for the smooth operation of the business. Hence always make sure to complete the registration process of the startups wisely and carefully with the expert help. Don’t give any chance to the department to reject your registration application.
What do you mean by Company Registration in India?
The registration of a company in India is done for those who want to set up businesses in the country and the basic selection is made for incorporation of a private limited company which is mostly preferred. This structure provides limited legal protection to its shareholders while placing specific proprietorship constraints.
Registration of an entity with the Registrar of the Companies as per the company laws after submitting all the paperwork as well as information through MCA is called company registration in India. This is a complex process through which you are asking for the permission from the government to register your entity with them.
Process of Startup Company Registration in India
The startup company registration will require several steps and compliance with the legal requirements, below mentioned is the steps required for registration of a start-up company:
Choose the Correct Business Structure
- Private Limited Company(PLC)
- Limited Liability Partnership(LLP)
- One Person Company(OPC)
- Sole Proprietorship
- Partnership Firm
To obtain a Digital Signature Certificate
A certificate of Digital Signature must be obtained from the directors and stakeholders in return for the digital signing of documents. To obtain DSC, a form has to be filled out and submitted towards the regulating authorities with the address and identity proofs.
Obtain the Director Identification Number
An online application is filled out via Form DIR-3 on the website of MCA(Ministry of Corporate Affairs) with the necessary proofs and documents. Each director needs to have a unique DIN.
Approval of the Name
A unique company name that adheres to MCA guidelines is required. This is done by filling out a Reserve Unique Name(run) form in the MCA portal.
Document Preparation
Documents like MOA (Memorandum of Association), AOA (Articles of Association), Form INC-32(SPICe), Form INC-33(e-MoA), Form INC-34(e-AoA), Form INC-9 and Form DIR-2 have to be prepared.
File Incorporation Documents with MCA
The procedure of filing for incorporation is by filing the INC-33(e-MoA), INC-32(SPICe) and INC-34(e-AoA) in the MCA portal. Other documents like identity proof, address proof and NOC from the owner are also required to be uploaded.
Certificate of Incorporation
The Registrar of Companies (RoC) further issues the Certificate of Incorporation if satisfied with the forms and attached documents.
Documents Needed for Registering a Startup Company
Given below is the list of documents required for the startup company registration in India:
- To obtain Digital Signature Certificate(DSC)
- To acquire Director’s Identification Number(DIN)
- Name Approval
- Minimum Paid-up Capital
- Minimum Members Requirement
- Memorandum of Association
- Articles of Association
- Submission of Prospectus
- Consent of the Directors
- NOC(No Objection Certificate) from Landlord
- Other documents like identity proof, passport photographs, address proof, PAN of directors and shareholders and utility bills
Different Business Structures Available for Startup Companies
The below mentioned are different business for startup companies:
Sole Proprietorship Firm
Sole Proprietorship company which is managed and owned by a single individual. This stands simple to set up with every other low requirement and is always low on capital and not separate from the owner as a legal entity.
Partnership Firm
A Partnership Firm is managed by two or more persons who further share their profits and losses, these types of companies are simple to share but have the potential to attract conflicts.
Limited Liability Partnership
Limited Liability Partnership (LLP) this is a hybrid form of partnership that is limited towards its partners having a separate legal entity with a flexible management authority but is subjected to higher formation costs.
Public Limited Company
This is under which the company upon formation offers its shares towards the public having more stringent requirements with the limited use of profits.
Private Limited Company
Pvt Ltd Company Registration usually has limited liability for its shareholders with easy transferability of shares but has higher requirements with higher costs of formation and maintenance.
One Person Company
This is a private company that only consists of one shareholder having a limited liability as compared towards other types of companies.
Section 8 Company
This company is formed for the promotion of (commerce, art, science,research, social welfare, religion, charity, sports, education, or any other useful object, with no intention of profit).
Cooperative Society
This is formed by an association of persons who unite together to meet their common economic, social and cultural standards having mutual benefits but a stringent form of regulatory control.
Conclusion
The startup company registration stands as a crucial step towards any entrepreneurial venture and provides a structured and legally recognised framework for the operation of the business. This not only protects assets but also secures a position for growth and success in a competitive market. “With the right approach and resources”, start-up company registration can be a (seamless process that sets the stage for long-term business achievements).
FAQs
- Why is it important to register a start-up company?
The registering of a start-up organization is a (widespread step that may offer numerous blessings, inclusive of limited liability, tax blessings, and a superior capability to elevate capital). The system, while straightforward, requires “careful making plans and compliance with criminal necessities to ensure a clean setup and operation”.
- What are the essential steps to register a start-up company?
The company registration of a start-up organization in India involves several steps which include getting essential digital signatures, reserving a completely unique corporation call, securing a director identification wide variety and submitting the documents for incorporation of the company or commercial enterprise.
- What is the process to register a start-up company?
To acquire a DSC and DIN, pick and reserve an organization call, draft MoA(Memorandum of association) and AoA (Articles of association), file the SPICe+ software and get an employer Registration certificate.
- What are the documents required for the registration of a start-up company?
Practice of Incorporation documents: documents like MoA(Memorandum of association), AoA (Articles of association), shape INC-32(SPICe), shape INC-33(e-MoA), form INC-34(e-AoA), shape INC-9 and shape DIR-2 needs to be organized.
- What do you understand about the Director’s Identification Number?
An online application is filled out via Form DIR-3 on the website of MCA(Ministry of Corporate Affairs) with the necessary proofs and documents. Each director needs to have a unique DIN.
