How can I register my own company in India?

 

A company is the most common type of business structure in India and has grown significantly since the launch of the Startup India initiative. Now, business owners from all over are swarming to the Ministry of Corporate Affairs to register their companies. Why the sudden fascination? Is Registering a Company in India worthwhile? The rationale for business registration in India is examined in this article. Your business can hold real estate in its name and enjoy eternal succession because it is a legal entity. It's crucial that you incorporate your business with the Registrar of Companies if you want to register it as a "distinct legal entity". This post will also lead you through a quick registration process in India from the comfort of your home.

Let's simplify the difficult procedure of company registration into 7 easy stages.

 

Ø  Step 1: Obtain a DSC: As soon as registration is done online, the first thing to do is to get a DSC (DSC). DSC makes sure that all of your electronic submissions are genuine and safe. You will need to acquire a class 2, or a class 3 DSC, depending on the kind of business. For assistance in obtaining a Digital Signature Certificate, one must contact any of the Licensed Certifying Authorities.

Ø  Step 2: Request a DIN: A unique 8-digit number called a Director Identification Number (DIN) is given out in accordance with Companies Act section 153. According to the Companies Amendment Act of 2006, all company directors must obtain a DIN in order to register the firm. If your application is approved by the Central Government, you can submit it online, and you should receive your DIN within a month.

Ø  Step 3: In this you have to register for an account on the MCA portal by the company's director. The director can access the SPICe+ form to register the company after registering for the portal.

Ø  Step 4: Request for Name Availability: You must request a distinctive name for your business. Always use a name for your business that describes the goods or services you provide. If you don't adhere to the MCA naming requirements, your application may be turned down. If you already have a name in mind, you can use Legalraasta's company name search feature to see if it is available.

Ø  Step 5: Charter Document Submission: The Memorandum of Association (MoA) and the Articles of Association (AoA) are necessary documents before a business may be registered. The MoA is referred to as the organization's charter. It outlines the fundamentals of the organization's structure, its operations, and its goals. The MoA also outlines how it interacts with the outside environment. AoA functions as the organization's "user handbook." The rules and guidelines for managing internal affairs, such as maintaining financial records and appointing directors for business formation in India, are all mentioned.

Ø  Step 6: Apply for a PAN and TAN: All significant transactions need the use of the 10-digit alphanumeric Permanent Account Number (PAN). Through the NSDL website or approved agents, submit an online PAN application. A tax collector or deductor is given a Tax Deduction Identifier (TAN), a 10-digit alphanumeric number that is crucial for filing TDS returns. You can apply for your TAN card by going to the NSDL website. If you don't, you will be required to pay a fee of 10000/-.

Ø  Step 7: Certificate of Incorporation (COI) Issues: The MCA issues certificates for Company Registration. Once you have it, it is official proof that the MCA was used to lawfully incorporate your business. The Company Identification Number (CIN), PAN, TAN, and DIN numbers are given to the Directors.

What is the Indian obsession surrounding company registration?

Ø  A Separate Legal Entity is Created Following Company Registration: A company is a distinct legal entity, in contrast to all unregistered business entities in India. You give it a new identity as you incorporate it with the help of your business advisers. It is comparable to giving birth to a person in the business world. This person is capable of owning property, possesses a PAN card, and a bank account.

Ø  Director’s benefit from limited liability: For novice business owners, operating a company is simple when there is little risk involved. They therefore favor a company that offers them little liability. What does that imply? This indicates that a shareholder is only responsible for losses up to the amount of his investment in the business. If the corporate entity fails, none of his personal assets will be harmed. The majority of business owners have had the guts to launch their ventures with vigor thanks to this particular benefit.

Ø  It can endure forever: The ability of the business entity to continue to exist even after the director departs this world is one of the significant advantages of online Company Registration. The shares that belonged to the deceased might be transferred to another party through share-transfer. By doing this, the Company leaves a lasting legacy that endures long after the death of its founder.

Ø  It's simple to transfer the shares: Due to the simplicity of share transfers, a company has the benefit of continuous existence. Shares can transfer from one shareholder to another with the simple consent of the board at a single meeting. By attracting investors, the transferability factor also aids business owners in growing their enterprise.

Ø  Obtaining funding is simple: Obtaining funding is simpler for a company. Additionally, if it is granted Startup Registration, it will have the ability to get low-interest financing from banks. Additionally, because it is a registered corporate entity, its investors can comfortably and worry-free invest in it.

 

Ø  It is simple to register a company: It is amazing how simple it is to establish a company. The online and self-explanatory Company Registration Process is simple. To incorporate your business entity, all you have to do is get in touch with a company secretary or a chartered accountant, collect their contact information.

Conclusion

Everyone has been bitten by the entrepreneurship bug ever since the Startup India project was announced. No matter what kind of business someone runs or how big or little their operation is, everyone wants to develop their business idea into an organization, or a Company. You can receive numerous advantages from forming a company in India, including the ability to raise money, transfer shares, get tax breaks, and more. The availability of Company Registration Services in India has made it possible for business owners to emerge from hiding and take the risk of forming an organization. If you are one among them, get advice from our professionals. Finally, we have described the numerous steps needed to register your business from the comfort of your home. We have also covered the advantages of registering a corporation in India in this blog. We can quickly register your company and provide the best incorporation services. Once you have gotten your Certificate of Incorporation and PAN and TAN, you can formally open a current bank account and start running your business. If you still find the process challenging, consider asking the professionals at LegalRaasta for assistance in registeringyour organisation without any hassles.