HOW TO REGISTER A COMPANY – EXPLAINED IN DETAIL
We all dream to have a business which is well known but there are certain obligations we have to follow to make our brand viable and be called a company or a corporate. This is the process of Company Registration in which you enroll your business/companies with the Rules and Regulations of Companies Acts under the Government Guidelines. One can only call a business-a company only after incorporating it with the government. This process can be time consuming but can be done with ease. All you need to do is to familiarize yourself with the Indian business authorities in the event if you have practically zero required information about them. All organizations in India fall under the Companies Act of 1956, which permits the legislature to control all parts of a business from its establishment to liquidation. To register your organization, you have to file your application online with the Indian government’s Registrar of Companies, or RoC. The RoC, which is under the purview of the Ministry of Corporate Affairs, that directs the consolidation of new organizations and the administers businesses under the legal guidelines of the Companies Act.
Here are the steps you need to follow to register your company.
Prerequisites before registration
Decide your Company Structure
This is one of the most fundamental yet significant steps for Online Company Registration in India. Choosing the organization structure will decide how your organization manages and how it oversees engagements and operations. There are numerous Business Structures in India, and it can be difficult to pick which one to go for.
Pick potential names for your organization
To register a company in India, you should initially have a unique business name that must be approved by the RoC. It would be great if you can think of four possible names for your organization, in case there is a chance that some other company is registered under that name with the RoC.
By performing due constancy on the language and culture if you’re curious about it, it is possible that you can abstain from picking names that may irritate conceivable customers or be dismissed by Indian authorities. For example, you may not utilize a name that suggests any association with government or Indian organizations. Consider a name that you think is unique and will attract more people to your business.
You can also check in advance if the name that you have thought of for your company is available. It is a good step as it will ensure your application process is smooth. The Ministry of Corporate Affairs in its website has this provision where you can get information about what are the company names registered under it.
Apply for the DIN (Director Identification Number).
Before you register your enterprise, you have to apply for a DIN. It is a unique number, relegated by the Ministry of Corporate Affairs that distinguishes the current or planned director of your organization in India.
On the Ministry of Corporate Affairs’ site you can find the forms DIR-3 and DSC that will permit you to apply for the DIN online. For the two forms, you’ll need documents including your identification, verification of address, educational qualification, eligibility and current occupation. You likewise need a passport size photograph.
Register online for a DSC (Digital Signature Certificate).
DSCs are what might be compared to physical or paper testaments and can be presented to prove your identity, to get to information or services on the Internet or to sign certain records digitally. You can register for your DSC online at the Ministry of Corporate Affairs’ website The Ministry of Corporate Affairs necessitates that all organizations have a DSC on the grounds that organizations will fill their applications online.
You need a similar ID documentation to get a DSC that you used for the DIN.
Once you have all the documents and application material ready and have checked the names on the government’s website to ensure your company’s name is unique and have your DIN and DSC in hand, you are all set to file an application for the registration of your company online with the RoC. All the forms required to file the application are available online on the Ministry of Corporate Affairs website.
How to fill the final registration application?
File for Company name registration
You first have to fill the eForm 1A online to apply for the company’s name. If the name is found unique and is available, the RoC will approve it. It takes around a couple of days for RoC to approve the name of the company as it has to be ensured that there is no existing company register under this name as well. The fee of Rs500 has to be paid for filing this form.
Once RoC gives a nod to the name of your company, you get 6 months to file an application online for the registration of your company.
File for Memorandum of Association (MOA) and the Articles of Articles (AOA)
To check the company’s business objectives and details of the company’s daily operations, Memorandum of Association (MOA) and the Articles of Articles (AOA) of Association are required. Thus, before applying, you or your legal counsel must draft the Memorandum of Association (MoA) and Articles of Association (AoA) that will contain information regarding the company’s vision and objectives for starting this business. Both the documents must be signed at least by the two members of the company in their own handwriting. The document also demands the signature of an eye witness.
Carefully examine your MoA and AoA before filing them online for vetting by RoC. The MoA and AoA must be notarised. You will have to submit these documents to the stamping authority of the Indian State where you have planned to register your company. Once you have a notarised copy, you need to scan these documents and upload them online with other documents. The RoC has offices all across the country for each state and region. Find one that is suitable for you for stamping your documents.
Once you are through with all the documentation and have them ready, you will be required to upload them on the portal Ministry of Corporate Affairs’ website for the registration of your company with the RoC. This is a complete online process so be aware of the fraudulent who may try to trick you.
The list of mandatory documents required for the registration of company to RoC are
- A Stamped MoA
- A Stamped AoA
- A copy of agreement referred in the articles
- A copy of letter from RoC stating the availability of company name
- The eForm 1 for registration of company
- Receipts of payments made
One you have uploaded all the necessary documents, file your application for registering your company by making payment of final fees. The website of the Ministry of Corporate Affairs will prompt if you have missed any document.
After you have done with your application, you should wait for 10-12 days for the certification of registration. After you get the registration Certificate, concerned departments will provide you PAN, TAN and other certificates as said at the time of application filing.
If there are any mistakes in the application, RoC will inform you about the discrepancies and you can re-file your application after making necessary corrections.
Why should you register your company?
- Registering your company has many benefits:
- An authorized company makes it genuine and people trust it more. It improves the business’ credibility.
- Ensures against personal obligation, and safeguards against different dangers and misfortunes.
- Creates a goodwill and support that ensures that more clients are interested to do business with you.
- Provides with reliable investors bank credits and good investment with ease.
- Assures cover of the responsibility to protect the company’s assets in case of mishappening.
- Makes sure a bigger commitment to wealth and promotes greater stability
- Increases the ability to develop.