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Company registration is also known as company incorporation or company formation in India. Company Registration makes the company a distinct entity and gives it legal existence. The company registration process in India is done under the Ministry of Corporate Affairs.
What are the different types of business structures in India?
The different business structures in India are as follows:
- One Person Company Registration
- Limited Liability Partnership Registration
- Private Limited Company Registration
- Public Limited Company Registration
It is important to choose the business structure carefully, as it will affect the income tax return. When registering a business, it should always be remembered that each business structure has different levels of compliance which are required to be met.
What is the process of Company Registration?
The process of Company Registration is as follows:
Digital Signature Certificate
The first step in the business registration process in India begins with obtaining a unique identification number. According to The Companies Amendment Act 2006 requires all directors of a company (both existing and prospective directors) to obtain a Director Identification Number (DIN).
DIN is a unique 8-digit number issued under Section 153 of the Companies Act. DIN requirements include full name, father's name, place of birth, ID proof; address proof, copy of PAN card and two photographs of all proposed directors.
The application form is available online on the official website of the Ministry of Corporate Affairs (MCA website) as Form DIN-1. All business owners must register on the MCA website and obtain a login ID.
File for Name Approval
It is very important that the company name approval process goes smoothly and without any objections, otherwise it can slow down your entire progress in registering the company. To submit confirmation for Limited Liability Companies, PLCs (Public Limited Companies), OPCs, NBFCs, etc., use RUN eform. Alternatively, business owners can use SPICe forms to submit name verification. SPICe stands for simplified activities for establishing a company digitally.
However, to incorporate an LLP, the application for approval of name must be made using the RUN-LLP forms.
Even before applying for approval, it is very important to check that the proposed business name does not conflict with an existing business name. It is needed to be done to avoid legal problems as companies often have a trademark filing process for their company name.
Director Identification Number
The authenticity of the documents and information contained in the DIN-1 form can only be guaranteed by obtaining a valid digital signature on all documents submitted in the electronic submission process.
The company registration process in India requires every company to purchase a Digital Signature Certificate (DSC) to provide a secure way to file documents electronically. The requirements for applying digital signature are full name, father's name, date of birth, proof of address, copy of PAN card, identity document and photograph of the proposed directors.
- Registration on MCA Portal
Certificate of Incorporation
After completing and submitting the application for registration together with the necessary documents, the company registrar will examine the application. After verifying the application, he will issue a company incorporation certificate.
The registration certificate is issued with PAN and TAN according to the data assigned by the Income Tax Department. An e-mail will also be sent to the applicant with a Certificate of incorporation along with PAN and TAN.
What are the documents are required for Company Registration?
The documents required for Company Registration are as follows:
- Pan Card
- Address Proof
- Residential proof
- Registered Office Proof
- ID Proof Address Proof details of all shareholders
- Electricity Bill
- Telephone Bill
- Incorporation Certificate
- Board resolution authorizing investment in company
Conclusion
The company registration process in India is a legal procedure that all business owners must follow. The estimated time for the company registration process, including approval of the name, DIN and other requirements, takes about 7 working days. However, all the documents are now being merged into a separate application form with MCA to streamline the process. This is certainly good news for Indian companies looking to expand.
