With a population of over 1.3 billion and still growing, India offers companies a huge, built-in, and dynamic potential market to explore. It has always been a land of opportunity for businesses to thrive with a wide potential consumer base. Establishing a new business seems like a challenging proposition. Yet, it can reap great benefits for both the company and the economy at large. For starting any business here, you need to establish your company's legal presence in India by registering your business and filing the appropriate forms with the Ministry of Corporate Affairs.
Decide Your Business Structure
One of the most fundamental and foundational step before beginning any company anywhere around the world is deciding the business structure of your company. It will define the path your company takes and how it handles operations for its entire lifetime. There are many types of business structures in India and therefore, it becomes a pivotal step to decide the right business structure conforming to your firm’s needs and wants.
Decide a Suitable Company Name
When you have a plan to incorporate a company, you certainly have to have a name for it right? And it is pivotal that the name approval procedure of the company goes smoothly and without objections or it could stall all your progress of registering a company. A company name contributes significantly to a company’s fate. You must consider all aspects before you decide your company name and most definitely remember to check the name availability on the MCA website.
After forming an effective business plan that includes the cost-benefit analysis, risks involved, investment details, and plans of the business, one will have to proceed with the registration of business ideas. The ministry of corporate affairs has now made it very simple for all companies to get legally registered. You must follow the following steps to get your company registered at the MCA website.
STEP 1: Obtain a DSC (Digital Signature Certificate)
Digital Signature is a means to verify the authenticity of a software our in our case, a document. Most of the time, the Digital Signature is a copy of the physical signature however, it could also be a stamped seal that verifies the authenticity of the document and offers far more inherent security against impersonation. It is a digital equivalent of a physical certificate. It is used to verify the identity of a person or sometimes to access information and get services on the internet or to sign certain documents digitally.
You can register for your DSC online at the Ministry of Corporate Affairs website. The Ministry of Corporate Affairs requires that all companies have a DSC because companies will file all applications online. You need the same identification documents to obtain a DSC that you do for the DIN, including passport and proof of address. One can acquire his/her Digital Signature certificates from these government listed agencies like TCS, IDBRT, MTNL, SAFESCRYPT, NIC, etc.
STEP 2: Obtain DIN (Director Identification Number)
Director Identification Number and it is a unique identification number given by the Central Government to individuals intending to be the directors of a new or already existing company. DIN numbers can be obtained by filling out these particular forms.
SPICe Forms: The SPICe forms are used for the allocation of the DIN number to the proposed directors of a new company in the process of the company registration.
DIR-3 Form: DIR-3 form is a form for becoming a director of an already existing company.
DIR-6 Form: To convey the changes in any particulars of the existing directors
Then, a printed –and signed version of the form must be forwarded to the ministry along with identity and address proof for their approval. A permanent DIN is issued after the verification of the documents and the subsequent approval of the request.
STEP 3: File for Incorporation
The company incorporation procedure is filing for the incorporation and the MCA has given dedicated forms for incorporation of companies. SPICe Forms (INC-32) allow for the incorporation processing of Limited Companies (Public /Private/ LLP/OPC) and have the following procedures streamlined.
Obtaining DIN
Name Reservation
Incorporation
Pan Application
TAN Number
STEP 4: File AoA and MoA
MoA stands for Memorandum of Association and AoA stands for Articles of association. Together, these two form the constitution of the company. Either you or your legal counsel can draft these documents which contain information on the company's business objectives and daily operations.
The Memorandum of Association contains the company's business objectives.
The Articles of Association contain details on the company's daily operations, including its management.
Each document must be signed by at least two members of the company in their handwriting. It is also required that one witness be present for the signatures.
Once your draft these documents, you can file them online with the RoC for vetting.
After you have filed for company registration, you have to file the constitution of the company. The MCA has provided the e-forms INC-33 for e-MoA and INC-34 e-AoA to help incorporate the company. And therefore, it would take about 7-8 business days for you to completely register your company here in India.
Written by - Riya Chhikara
Edited by - Vaibhav Sharma
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