How to Register a Company in India

How to Register a Company in India

Officially registering your company in India is the first step towards a successful business life. Through the incorporation of a company, you can start your business in a legal way where you are not only provided an infrastructure of growth, but also assistance from the government.

What is a Company Registration?

A company refers to a business entity comprised of at least two directors, and members/shareholders. It is a legal business unit incorporated under the company's registration online rules established under the Company’s act, 2013. Company registration is a process to acquire a company registration number in India through which the business gets a legal infrastructure through which you can do business.

Types of Companies in India

There are six types of companies, each of them taking a different approach to the company registration process in India.
  1. Private Limited Company
  2. Public Limited Company
  3. One Person Company
  4. Producer Company
  5. Nidhi Company
  6. Section 8 Company
Features common to every type of company
  1. Separate Legal Entity
  2. Limited Liability
  3. Incorporated business entity
  4. Transferable Shares
  5. Perpetual existence
  6. Common Seal
Benefits of Registering a Company in India
  1. A Company is an entity with a real existence:
After you register a new company in India, you gain access to a business entity whose existence is recognized by the government bodies
  1. A Company can exist perpetually:
Any limited business entity can exist perpetually. A one-person company, even though it doesn't have a direct perpetual succession benefit, can continue to exist by transferring the shares to the nominee.
  1. Limited Liability to the directors: 
The debts of the directors or members of the Company are limited by the face value of shares they have purchased.
  1. Transferring the shares is easy: 
All it takes is one board resolution to authorize the transfer of shares among the members of the Company. And, when it comes to a public limited company, the transferability of the shares is easy even when the public is involved.
  1. Owning Property becomes a possibility: 
After completing the company registration procedure in India, it becomes easy for a company to own a property.
  1. Power to file cases or get sued: 
Because a company is a legal entity that has been conferred the status of an "individual" by the government of India, it now has the potential to file court cases against others or get sued all the same.
  1. Raising equity becomes a possibility: 
Company name registration in India leads to forming a business entity that is more trusted in the market and, thus, has the investors' faith. Therefore, it becomes less laborious for you to raise equity for your enterprise.
Documents Required for Incorporation of Company in India
The government has introduced a Simplified Proforma for Incorporating a Company Electronically (SPICe), an integrated single-point application that enables the stakeholders to carry out legalities of company registration. The portal can be used to complete formalities such as Company Name Registration, Allotment of DIN (for Directors and Incorporation) along with allotment of Permanent Account Number (PAN) and Tax Collection and Deduction Account Number (TAN) to the new company.  Following documents are needed to be submitted while registering a company in India. 
Documents Required for Company Registration from Shareholders and Directors:
    A. Identity Proof Documents  
  1. Permanent Account Number       
  2. Aadhaar Card / Passport / Driving License / Voter Identity Card (at least one from the list)
    B. Address Proof Documents            
  1. Telephone Bill / Mobile Bill           
  2. Electricity Bill / Water Bill           
  3. Copy of the Bank Passbook with latest transaction entry or Bank Statement (not more than 2 months old)
   C. Passport size Photographs (3 each)

How to Register a Private Limited Company in India
      Following are the steps to register a Private Limited Company in India.
1. Put an application to get the Digital Signature Certificate
2. Apply for the DIN (Director Identification Number)
3. Check and send an application for the name availability
4. File the EMOA and EAOA to register the private limited company
5. Application for the PAN and TAN of the company
6. Get the Certificate of incorporation, issued by the Registrar of Company and PAN and TAN.
7. Open a current bank account in the company name.
How to Register a Proprietorship Company in India
Unlike other types of businesses, the proprietorship is the most straightforward company to register in India. To register the proprietorship company in India, the applicant needs to have the following documents ready – Aadhar card, PAN card, Bank Account and Registered Office Proof.
      1. Open a Current Account in the name of the Company name in any Bank.
      2. GST Registration (depends on the type of business)
      3. Shop Act License
      4. MSME Registration/Udyam/Udyog/SSI Registration.
      5. IEC Code (Import-Export) FSSAI/Trademark

How to Register a Start-up Company in India
The following steps are needed if you want to register your start-up company in India.
  1. Get the Incorporation/Registration Certificate of your start-up
  2. Details of the Directors
  3. Proof of concept like pitch deck/website link/video (in case of a validation/ early traction/scaling stage start-up)
  4. Register Your Start-up with Start-up India
  5. Get DPIIT Recognition
  6. Patent and trademark details (Optional)
  7. PAN Number
How to Register a Construction Company in India?
In India, construction business can be carried out in the private sector and the government sector. Construction businesses are capital intensive, and thus the business directors may be required to buy the equipment and ensure the labour procurement needed to deliver the projects.
Construction companies can be registered in the following business structures – Proprietorship Firm, Partnership Firm, Limited limited partnership, Private Limited company, and Public limited company.


Created & Posted by Sony Garg

Accountant at TAXAJ


TAXAJ is a consortium of CA, CS, Advocates & Professionals from specific fields to provide you a One Stop Solution for all your Business, Financial, Taxation & Legal Matters under One Roof. Some of them are: Launch Your Start-Up Company/BusinessTrademark & Brand RegistrationDigital MarketingE-Stamp Paper OnlineClosure of BusinessLegal ServicesPayroll Services, etc. For any further queries related to this or anything else visit TAXAJ

 

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