AKSHAY KSHIRSAGAR
HOW TO REGISTER COMPANY IN INDIA
By Adv Akshay Kshirsagar on 06 February 2022
Why to register a company in India
Registering company is the right business decision allow your enterprise to operate efficiently and meet your required business financial needs. In India, every business must register themselves as part of the mandatory legal compliance.
Registering company is always a good decision as it helps allow taxation benefits, legal compliance, loan sanction and more authentic business. Companies can be registered as private limited, sole proprietorship, partnership, limited liability, one person company, etc and each has its own guidelines. Companies are governed by Companies Act 2013 and all compliance can be done online on MCA portal.
Liability is one more reason to register your company, because most business decision are uncertain which may lead huge losses. So registering company offers protection and hence the business promoters are not liable for the liabilities of the business. There is no way of losing personal property.
Various Types of Companies
1. Liability Partnership Firm or Partnership firm.
It provides owners with minimum liability and is easy to maintain. LLP do not attract investors.
2. One Person Company
Sole owners looking to limit their liability
3. Private Limited Company
Business with high turnover. Need two or more person to form a private limited company
4. Public Limited Company.
Business with are listed publicly through an IPO. Need seven or more person to form a public limited company
Requirement for Registering Company in India
Directors:-
Minimum 2 directors for private limited company and minimum 3 directors in case of public limited company. A minimum of one of the company’s directors must be a resident of India.
Unique Name :-
The name of company must be unique. This name should not match with other companies or trademark. We suggest to register for name and logo trademark of your company to protect future competitors claim. To register for trade mark click here.
If name was applied by furnishing wrong or incorrect information, then
a. If company has not been incorporated, the reserved name will be cancelled and the person making application shall be liable to a penalty which may extend to one lakh rupees.
b. If company has been incorporated, the registrar may direct the company to change its name within three months or to strikeoff the name of the company or to make a petition to winding of the company.
Minimum Capital Requirement :-
The Companies Act, 2013 earlier mandated that all Private Limited Companies have a minimum paid-up capital of Rs. 1 lakh in case of Public Limited Companies an authorised share capital of Rs. 5 Lakh . That means shareholders should purchase minimum shares on 1 Lakh in company.
Registered Office :-
The company must have a registered office reflecting its name on the door. Registered may include commercial space or residential space, so long as an NOC is obtained from the landlord and compliance with local authorities is done.
Documents Required :-
Identity and Address Proof
Scanned copy of PAN card or passport (foreign nationals & NRIs)
Scanned copy of voter ID/passport/driving licence
Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
Scanned passport-sized photograph specimen signature (blank document with signature [directors only])
Registered Office Proof
Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
Scanned copy of notarized rental agreement in English
Scanned copy of no-objection certificate from the property owner
Scanned copy of sale deed/property deed in English (in case of owned property).
Digital Signature.
DIN (Director Identification Number).
MOA (Memorandum of association) and AOA (Article of association).
PAN and TAN of Company.
Registration Process
Step to register a Company on MCA portal.
1. Check name availability on MCA portal whether name is available for registration. check here
2. Register as registered user or business user i.e Director/ Partner/ Authorised representative. to register on MCA click here.
3. After registration enter login credentials and click MCA services>company registration> SPICe+. Click new application, and enter the required details.
4. After entering data in SPICe+ Part A application you need to pay Rs. 1000 for name availability registration and reserve name. If name is already registered with MCA then you will be given one more opportunity for name registration. After registration you can proceed with incorporation of company.
5. SPICe+ Part B you need to fill detail about structure of company. Meaning Authorized Share Capital, Subscribed capital etc.
6. Enter address details of the company.
7. Director and Subscriber details (DIN details).
8. Nomination details (In case of death of subscriber, name of the person to continue the company).
9. Pre-fill stamp duty payment details.
10. TAN and PAN of Company.
11. Attach required documents.
12. Enter Professional Details. (Chartered Accountant, Company Secretary, Cost Accountant, Advocate).