How to Register a Company in India?
Each business in India is registered according to the procedure initiated by the Ministry of Corporate Affairs (MCA) of the country. And, it is so efficient and quick that we can get a company formed in just 7 days. All the documents are filed electronically without any physical appearance in any Gov. Office.
The registration process includes some rules and some registration like Digital Signature Certificate (DSC), Director Identity Number (DIN) and more.
Step- 1: Acquire Director Identification Number (DIN)
It is the very first step of the process. Here, the director of the company needs to obtain an identification number. To get DIN, file an eForm DIN-1, it is available on the Official site of the ministry of corporate affairs. Acquire the provisional DIN by filing application Form DIN-1 online. Now, get the hardcopy of the application, sign on it and send for approval to the ministry along with proof of identity and address. After verification and approval, a permanent DIN is issued.
Step- 2: Register for a Digital Signature Certificate (DSC)
Digital Signature Certificate is the digital equivalent of physical or paper certificates and used to prove the identity. Register for the DSC online at the official website MCA. Besides, it can be obtained from one of six private agencies authorized by MCA 21. Here, one needs to submit the prescribed application form along with identity and address proof.
Step- 3: Create an Account on MCA Portal
Create an account on the MCA portal. It will be a registered user account to fill an eForm, to make online payment and different transactions as registered and business user.
Step- 4: Incorporation of the company
It is the final step of company registration that includes getting the name of the company, registering the office address and notice for appointment of company directors, manager, and other heading positions.
Form-1A is the application form for the availability of a company name. When one applies for a new company name, the MCA will suggest four different names; he has to select one among them. To do the same, fill Form-1A and submit.
Form-1 is for declaration for incorporation of a company, in this form, fills the same name which would be chosen during the application of form-1A.
Form-18 is for notice of the situation of a new company office or change of situation of previously registered office. For a new company, fill the form with genuine office address and submit.
Form-32 is for notice for the appointment of new Directors, Managers, and Secretary in a new company. After the submission of these forms, when the application has been approved by MCA, there will be a confirmation email for the application for incorporation of a new company.
Step- 5: Obtaining Company Name
For obtaining a name for your new company, fill the Form-1A with the Registrar of Companies (ROC) of the state. Provide four alternative names for the proposed company. The name shall not resemble the name of any other company already registered or violate the provisions according to Act, 1950.
In this form, fill the name and addresses of directors (minimum 2 for a private and 7 for a public company), the main objects of the company and authorized capital as well. Within10 days, the ROC will inform you about approval or objections. After approval, you will receive a formal letter regarding the confirmation of the same.
Step- 6: Other Formalities
- Obtain a TAN card
- Obtain a PAN from income tax debt
- Documents obeying shop and establishment acts (if needed)
- For foreign trade, Registration documents of import-export code from Director General of foreign trade (if needed)
Both Indian and foreign directors have to keep valid Digital Signature Certificates from authorized agencies.