Registering your company means simply giving its value, a reputation, and a brand profile. Just as a father’s name has name for his son or daughter, company registration provides businesess a legal identity in the marketplace.
Registration of a company in India is trouble-free and doesn’t take much of a hustle. But, one must have all the required documents, both manual and electronic, ready at the time of registration. This article aims to provide some significant steps and documents that one might need while registering their company, and we will discuss how to register a company in India.
This article shall deal with the registration process of three widely known company structures, i.e., Limited Liability Partnership, Private Limited Company, and One Person Company. We will talk about the simple steps through which one gets their respective type of company registered.
Documents Required for Company Registration –
To register a company, one must ensure the availability of certain documents that they need to produce.
All of them are listed below —
1. ID proofs —
To register a company, you need to have the company owner’s ID proof, PAN, or ADHAAR CARD.
2. Registered Office —
A registered office is required to get your company registered. One must produce the necessary utility bills of the registered office. If one doesn’t have an office or does work from home, i.e., their residence is their registered office, they must make sure that the couriers for the office come to the same address.
3. Bank Account —
A registered company must have a bank account. There should be a separate business account and bank account of the owner.
4. Name of the Company —
The company’s name should be approved before incorporating the company.
5. DSC (Digital Signature Certificate) —
Digital Signature Certificate is the electronic signature of the owner that is required while applying for online registration. One must be authorized to use it in case a company consists of more than one member. There shall be separate DSC for each of the members.
6. DIN (Director Identification Number) —
As every individual has their own PAN Identification Number, likewise for every director, there is a Director Identification Number. Every director needs to have their DIN.
In an LLP or LLC, the director may obtain a DPIN; there is no need to have a DIN. But in case one have the DIN, they don’t need DPIN.
7. Memorandum of Association —
A Memorandum of Association consists of the company’s objective, all the details of the shareholders, registered office, office liability, company operation, profit distribution, etc. It is the charter of the entire company, which is a publicly available document.
8. Article of Association —
Article of Association is the company’s internal document, consisting of the rules, regulations, operations, etc. It is available solely for the internal members of the company.
9. Declaration —
Apart from the above documents, a declaration must conform to and meet the legal compliances while registering.
How to Register a Company?
In India, three types of company registration are more polpular and convenient. Typically depending upon the size and nature of business, one need to decide which structure is best for their business.
LLP Registration –
These are the following steps that one needs to follow to register their LLP —
1. One must obtain their DPIN to start with the registration. If the owner already has the DIN, then there is no necessity to go for the DPIN. Both of these can be obtained from the DIR-3 form. Essentially the ID Proofs and KYC documents (original) along with a self-attested copy need to be submitted.
2. Within 2-3 working days, you shall obtain your DPIN; as there are more than two partners in an LLP, all of them must get their DPIN/ DIN
3. The DSC (Digital Signature Certificate), through which one can sign all the electronic documents, is compulsory. One may check the certified authority’s details on the MCA portal here. The DSC then shall be obtained around 3 – 7 working days.
4. Once you have your DSC, DIN, or DPIN, you must register on the MCA official portal.
5. After the registration is done, one has to apply for the name approval, and for the same, one must fill form no. 1, and for the incorporation form no. 2.
6. After the form has been filled up, and one must ensure that within 30 days, they have their Limited Liability Partnership Agreement.
7. The next step would be the submission of the agreement and filling up form no. Three consists of Bank Account details, registered office, and LLP agreement. These shall ensure the registration. For the registered office, you need the utility bills of 2-3 months, for example — the electricity bill.
Private Limited Company –
1. For registering a Private Limited Company, one must obtain their DSC first from the certified authorities.
2. Then, you have to fill up the SPICe (Simplified Per Forma for Incorporating Company electronically). Along with SPICe, SPICe+ has also been launched to help new entrepreneurs establish their businesses fast.
3. In this form, there will be two parts, A & B; when you fill up your name in the form, the availability of your chosen name will be shown, as to if the chosen name is at all available, or whether it follows all the guidelines. One must opt for the name after the process of auto-checking.
4. Inform B, there shall be four documents that would be required,
— Incorporation Form.
— Director Identification Number.
Convert them into PDF, attach DSC with them and then upload it in the mca portal.
5. Other documents required are Article of Association, Memorandum of Association, electronic version of these, i.e., AOA & eMOA, can be uploaded provided the company has less than seven members and all are Indian citizens.
6. Utility bills for registered office declaration, the consent form and other details of the nominee, ID proof, etc., shall be required. Other than these, some business specifics would be necessary for the registration. For instance, if the company is about to start an import-export business, it shall require IEC, i.e., Import Export Code.
7. The fourth form shall be of AGILE, and here five documents are required,
— GST Number
— Bank Account Details
— Professional Tax, depending on the state in which the company is being registered
— ESIC and EPFO, i.e., the employee’s State Insurance
All these documents shall be submitted by a CA, Cost Accountant, or Advocate after proper verification.
One Person Company Registration
For registering the One-Person Company, one must follow the below steps —
1. One must have the DSC (Digital Signature Certificate) or must generate one for the online signing purposes, which shall require —
— Address Proof
— PAN Card
— Adhara Card
— Phone number
— E-mail ID
2. The applicant should fill the SPICe form, and the name approval shall also be done quite similarly to the Private Limited Company.
3. The PAN, TAN & DIN of the company shall also be obtained.
4. The company incorporation forms are then to be filled up.
5. There shall be a separate bank account for the business, details of which shall be required.
6. AOA and MOA in there.
If you’re starting a business, the first and most crucial step is to register your company. Business registration is one of the essential phases because it provides many advantages and is very important. It enables you to wield market influence. Registering your business is a critical decision while competing with your rivals and establishing a reputation in the industry. It has greater applicability to companies than its other standard stages.