COMPANY FORMATION IN INDIA

COMPANY FORMATION IN INDIA

One of the fastest growing economies is India which makes it profit lucrative place for a private limited company registration in India. Ease of doing business is one of the pre-requisites which almost every rational business looks forward during their initial stage of company registration in India. Therefore many Startups are choosing to register under Startup India registration scheme wherein a lot of benefits are stored for them.

Company registration in India is governed by the rules & regulations specified under companies act, 2013. So whether a foreign entity is looking forward to expand their business venture in India or a new entity is looking for a Startup India registration, both of them need to comply with the same guidelines and need to follow the same procedure for company registration in India.

One of the most suitable and opted business structures of company registration in India is a Private limited company. Baring a few cases, a private limited company registration in India approximately take 7-10 days on an average after the successful submission of documents.

Procedure of company registration in India

A certain set of pre-requisites is necessary to have a private limited company registration in India viz. as follows:

  • Minimum of 2 directors must be appointed
  • Minimum capital requirement of INR 1,00,000
  • Directors identification number (DIN)
  • Digital signature certificates (DSC)
  • PAN Card/Aadhaar card

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Once you are ready with all the pre-requisites you are ready to go through company registration in India. MCA regulates the process of company formation in India in accordance with the law in force.

1.) Name the company: First and foremost requirement in company registration process is to finalise a name for your company which is not in use by any other brand. Choosing the right name can prove to be a game changer in success of your enterprise.

2.) Apply for digital signature certificate (DSC): It is important to apply for Digital signature certificate (DSC) since it is the most trusted way of authorising and verifying the documents.

3.) Apply for Director Identification number (DIN): DIN is a unique identification number which is associated with existing or the potential director a company so incorporated. As per companies act, 2013; it is mandatory for every director to hold DIN.

4.) Submission of MOA/AOA: MOA & AOA are regarded as the basis for the functioning of the company in an effective and efficient manner. It not only defines the rules & regulations of the company but they also act as the guiding principles for the management and the employees.

5.) Apply for PAN/TAN: Permanent account number (PAN) & Tax deduction & collection account number (TAN) is an important document in company registration process for every business since this helps in online ITR filing.

6.) Collect Incorporation certificate: After successful Submission of all the documents with the authorities within the stipulated time period a pre-screening of the documents is being done before releasing company incorporation certificate.

7.) Bank account in name of the company: Last but not the least; open a current bank account with in registered name of the company. This process will require you to submit the incorporation certificate, MOA & AOA of the company with the bank. It is necessary to open a bank account so as to carry out business transaction in the name of the company.

FREQUENTLY ASKED QUESTIONS (FAQ’s)

(Q) How many days does it take for company registration in India?

Once the documents are submitted and application fee is submitted, it takes on an average 7-10 days to get incorporation certificate of the company.

(Q) Is a physical presence of a person needed for company registration?

No, physical presence is not necessary for company registration in India. You can get online company registration in much more easy and simple way.

(Q) Is it possible to register a company online?

Yes, online company registration is one of the trends which are prevailing in the Indian business environment. Startups prefer to go for online company registration because it saves them plenty of time & resources and they can focus on more important aspects of the company.

(Q) What is the method for company registration number check?

Company registration is also known as Company identification number (CIN) which is assigned to every company irrespective of its size and its form as per companies act, 2013. You can check the details of your company registration online with the help of following steps:

  • Go to MCA Website
  • MCA Services drop down menu bar.
  • Company services
  • Find CIN.

(Q) What is the minimum capital requirement for Private Limited Company registration in India?

Companies act, 2013 specifically mandates that all private limited companies will have to keep a minimum paid up capital of Rs 1 lakh before actually commencing the business.

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The CAONWEB Team comprises qualified chartered accountants and experienced investment experts who are passionate enough about finances to bring you the best advice and tips on everything related to your hard-earned money.