Company Registration Process in India | Register a Company in India

Registering a company is easy through a chartered accountant firm in India. A minimum of two people is required to act as directors and shar...

Registering a company is easy through a chartered accountant firm in India. A minimum of two people is required to act as directors and shareholders.

Each year these top chartered accountant companies help register thousands of companies across India. The company registration process can be completed online on IndiaFilings in less than 10 days with assistance from experienced incorporation experts.

Company Registration Process in India
Company Registration Process in India

Online Company Registration Process in India

Picking the right company structure for your business is as important as any other business-related activity. The right business structure will allow your enterprise to operate efficiently and meet your required business targets. In India, every business must register itself as part of the mandatory legal compliance. Before we learn how to register a company, let’s try and understand the types of business structures in India.

Also Read:- 800+ Free Business Listing Sites List India {Updated 2021}

Company Registration Process in India
Company Registration Process in India

1) Apply For Director Identification Number (DIN)

The first step towards the company registration process in India begins by obtaining the unique identification number. According to the Companies Amendment Act 2006, all directors in a company (existing as well as intending directors) need to acquire their Director Identification Number (DIN).

DIN is a unique 8-digit number that is issued under the Companies Act section 153. The requirements for DIN include full name, father’s name, DOB, identity proof, address and its proof, PAN card copy, and two photographs of all the directors proposed.

The application form is available online on the official website of the ministry of corporate affairs (MCA Website) as the DIN-1 Form. All business owners need to register themselves at MCA Website and acquire a login ID.

The DIN-1 Form must be duly filled and uploaded after paying the applicable fees. The DIN application form is charged a nominal INR 100 and takes about one day for execution.

2) Apply For Digital Signature Certificate (DSC)

The authenticity of the documents and information provided in the DIN-1 Form can only be assured by getting a valid digital signature on all the documents submitted in the e-filing process.

The company registration process in India requires every business to acquire a Digital Signature Certificate (DSC) to ensure a secure way to get the documents submitted electronically. The requisites for application of digital signature include proposed directors’ full name, father’s name, DOB, address with proof, PAN card copy, identity proof, and a photograph.

However, companies should acquire DSC only from agencies that are anointed by the Controller of Certification Agencies (CCA). Some of the government-listed CCA are agencies such as MTNL, IDBRT, nCODE Solutions, TCS, and SAFESCRYPT to name a few.

A DSC is distinguished for every business entity and should not be shared by businesses. Normally this digital certification is valid for a period of one or two years, and after expiry, it should be renewed by the CCA again.

The application fees for acquiring a DSC range from INR 800 – 5999 depending on the structure of the organization and the validity period. It usually takes 2-3 business days time to process a DSC form.

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3) Filing For New User Registration

It is important to get registered on the MCA portal. You need to create a user account for filing an eForm, carrying out different transactions, and paying the prescribed fees. The Ministry of Corporate Affairs does not charge any fee for creating an account.

Also read:- Company Registration Consultants in Ahmedabad

4) Filing for Charter Documents

In a company registration process, the applicants are required to create charter documents like Memorandum of Association (MOA) and Articles of Association (AOA).

Memorandum of Association (MOA) – The MOA contains all the details of the registering company required during the incorporation process. It also provides details regarding the objectives and powers of the company and also the relationship between the outsider and the company. The MOA once created cannot be amended.

Articles of Association (AOA) – This document specifies the rules and regulations laid by the company. It provides details about the management, conduct, and bye-laws governing the internal affairs of the company. The AOA acts as an auxiliary to the MOA, yet it can, however, be amended, if required.

5) Application For Company Name

The proposed company name should be unique and descriptive of the products and services offered by the business. It provides them with a distinguished entity from their competitors in the same field.

The Ministry of Corporate Affairs (MCA) has recently initiated a RUN (Reserve Unique Name) web service for incorporating a company. However, this service can be used only once. Due to a similarity in names or failure to abide by the Companies Incorporation Rules, once rejected, RUN cannot be re-used.

Hence, you must make sure that the proposed name is unique and fulfills all the guidelines prescribed. In case of rejection, the applicant must re-file another RUN form after paying the prescribed fees.

6) Register Other Details

The next step in the company registration process in India includes registering the company name & address and notice for appointment of directors, secretary, and manager.

Form-1 must be carefully filled and submitted for incorporating the company name on the MCA website. It is mandatory to provide at least 4 alternative names for your company. The proposed company name should also abide by all the provisions listed under the Companies Act, 1950. Following this, you must choose one of them and process with filing Form -18 and Form-32 for the company’s address and appointment of directors, secretary and manager respectively.

Also Read:- GST Registration in Ahmedabad

Once the forms are submitted they are scrutinized by the concerned agencies. The whole process is completed in about 8-10 days. On being approved by the MCA, the status of your company registration form changes to Approved.

7) Acquiring PAN and TAN

The last step in the company registration process in India is acquiring PAN (Permanent Account Number) for your company. PAN should only be obtained from authorized agents who are appointed by the Union Trust of India (UTI) Investors Services Ltd or the National Securities Depository Ltd. (NSDL). The process usually takes about seven days and costs up to INR 70.

After PAN, you also need to get a TAN (Tax Account Number) for your company. It can be obtained from any Assessing Officer present at the Income Tax Department of your state. This takes a week’s time and costs around INR 60.

Also Read:- Company Registration in Ahmedabad

The company registration process in India is a legal procedure that all business owners need to abide by. The stipulated time for the company registration process, including the approval of the name, DIN, and other requisites, takes approx 7 working days. However, now all the documentation is combined in an individual application form with the MCA to simplify the process. This definitely comes as a piece of good news for businesses in India looking for expansion.

Hope this article makes you aware of the processes and documentation for company registration in India.

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Company Registration Process in India | Register a Company in India
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