The first step before starting a business in India is to choose the right business structure. A right business structure is one which compliments the business of the entrepreneur. The available business structures in India are as follows:
- Sole Proprietorship
- Partnership Registration
- Company Registration
- Limited Liability Partnership
Being the most important step one needs to consult a professional to choose the right business structure. A Private Limited Company is the best and highly recommended business structure to start a business in India. Here are the benefits of Company Registration:
- Provides limited liability to its shareholders
- The directors may be different form the shareholders i.e. owners
- Tax benefits
- Ease of getting bank loans
- Legal Recognition
- Perpetual succession
- Preferred by investors
Once the business structure is decided the next step is to get the same registered. Company incorporation being the popular form of business one can refer the following Company registration process:
- UNIQUE NAME: Name registration/ approval is required to find a unique name for the proposed Company. For which a thorough check of MCA database and trademark in the related class needs to be done before applying the name with the Ministry of Corporate Affairs.
- DIGITAL SIGNATURE CERTIFICATE: Application for digital signatures need to be filed with the government authorised agencies which are verified by the Controller of Certification Agencies. DSC’s are password protected token used in the Company registration process.
- Next is to prepare the related documents and forms for which one can take assistance from professionals or hire them for such Ca services. The incorporation forms are linked forms which contain the following:
- FORM NO. INC-32 (Simplified Proforma for Incorporating Company Electronically): As the name specifies it’s an integrated form which shall enable the applicant to file the following:
- Name of the Company
- Director Identification Number
- Incorporation Certificate
Related Blog: ALL ABOUT COMPANY REGISTRATION IN INDIA
FORM NO. INC-33
(e-Memorandum of Association): This form contains the main business activity of the Company along with the details of the subscribers to the memorandum i.e. the shareholders of the Company and the amount of authorised capital.
Related Blog – INCOME TAX EXEMPTIONS/DEDUCTIONS
FORM NO. INC-34
(e-Articles of Association): All the rules and regulations along with the procedures for holding meetings, transfer of shares, voting rights etc. are listed in the articles of the Company. It contains the rules required to run the Company as required by the Companies Act, 2013.
FORM NO. INC-35
(Application for Goods and services tax identification number, employee’s state Insurance corporation registration plus Employees Provident fund organization registration): One can apply for GSTIN / EPFO / ESIC through the same form.
Once the forms are filed the company registration process is completed.
After business registration one needs to obtain the PAN i.e. Permanent Account Number and TAN i.e. Tax Account number. Both can be applied through NSDL website by filling form 49A and 49B respectively.
All businesses where the turnover exceeds 20 Lakh need to take GST registration. It is compulsory for E-commerce businesses as well.
The registration process takes around 7-12 working days. Business registration is not an easy task it requires professional interface at every step.
Brand registration is required for the logo and the brand name. For which trademark registration can be applied. Once the application is filed the words TM can be used with the logo and after approval R mark is used.
Frequently Asked Questions:
Que- What are the documents required for Company Registration?
Ans- DOCUMENTS REQUIRED:
- PAN Card of the promoters
- Passport size photograph of both the promoters
- Aadhaar Card/ voter id of the promoters
- Bank Statement/Utility bill of both the promoters
- Rent agreement, if the registered place of business is a rented accomodation
- Electricity bill/ Water bill (registered place of business)
Related Blog: WHAT IS THE GST REGISTRATION PROCEDURE