You want to start your own business. Is your dream of starting a business getting closer to coming true? There’s nothing more exciting than being your boss. This post will help you get started by giving tips on registering a company in India.
Registering a company with the help of a company registration consultant is also called forming a business or incorporating a company. When you register your business, it makes it a separate entity and gives it a legal existence. In India, the Ministry of Corporate Affairs is in charge of this process.
According to the numbers, almost 7 million companies are registered in India, and new applications are sent daily. It’s important to know how the registration process works, and this post gives a step-by-step guide.
How to Register a Company with the Help of a Company Registration Consultant in India?
India now has a simple 4-step process for registering a company:
Step 1: Digital Signature Certificate (DSC)
As registering a company is done online, you need a digital signature to file the forms on the MCA portal. All proposed directors and people who agree to the Memorandum of Association (MoA) and Articles of Association must have a DSC (AoA).
DSC can be obtained from certifying bodies that the government recognises. The directors and people who signed the MoA and AoA must get a DSC in the Class 3 category.
Step 2: Number of the Director’s ID (DIN)
The Director Identification Number (DIN) is a way to identify a director, and anyone who wants to be a company director must get one. All proposed directors’ DINs and proof of their names and addresses must be listed on the company registration form. When you fill out the SPICe+ form, a company registration form, you can get a DIN.
SPICe+ is a web-based form for registering a company. It can be used to get DINs for up to three directors. If there are more than three directors in a company and they don’t have a DIN, the company can still be formed with only three directors, but it will have to hire new directors later.
Only the proposed directors of an existing company can fill out the SPICe+ form to get a DIN. The appointed directors can get a DIN by filling out the DIR-3 form. You can take the help of a company registration consultant.
Step 3: Sign up for an Account on the MCA Portal
The SPICe+ form must be filled out and sent to the MCA portal to register a company. The SPICe+ form and supporting documentation must be submitted via the MCA portal, which requires the director of the company to register with the MCA. After signing up, the director can log in and use the MCA portal services, such as filling out e-forms and reviewing public documents.
The company must also reserve its name by putting two possible names in Part-A of the SPICe+ form. The name must be reserved because the SPICe+ form will be rejected if the company name is similar to that of an LLP, existing/registered company, or trademark or contains words that aren’t allowed under the Companies (Incorporation Rules) 2014.
If the SPICe+ form is turned down because the company name needs approval, the applicant must pay the fee and fill out another SPICe+ form to reserve a new name. But once the name submitted in Part-A of the SPICe+ form is approved, it will be held for 20 days, during which time the company must fill out Part-B of the SPICe+ form and submit it online.
The applicant must provide firm and director details in Part B of the SPICe+ form, along with supporting papers and the DSC, before checking the form and submitting it.
Step 4: Get a Certificate of Incorporation
The Registrar of Companies will review the application once it has been filled out and sent with all the necessary documents. The Certificate of Incorporation of the Company will be given to the company once the application has been checked.
Certificates of Incorporation will include a PAN and TAN issued by the Income Tax Department. A PAN and TAN will be sent to the applicant through email, and a Certificate of Incorporation will also be issued.
Pros of Registering a Company in India
There are many benefits to registering a business. A licence shows that a business is real and adds to the business’s credibility.
• Keeps you safe from personal obligations and other threats and losses.
• Builds goodwill and helps bring in more customers.
• Makes it easy for reliable investors to get bank loans and make good investments.
• Shields the company from the responsibility to protect its assets.
• Shows a bigger commitment to wealth and more stability.
• Makes it easier to grow and get rich.
This is the complete step-by-step process for registering a business. Hopefully, this guide has answered all of your questions about how to register a company. An expert company registration consultant will help you.