Steps for Company Registration and SEBI Approval
The Indian market has a huge scope for all types of businesses. It supports new emerging businesses to survive in the global economic market. Different categories of business sectors have been allotted to their dedicated regulatory bodies. India has one of the best facilities and policies to start your financial security venture. The Securities and Exchange Board of India which is popularly known as SEBI is the regulatory body to look over the workings of corporations that are involved in the financial security sector. To operate legally in the country, these operations need the approval of SEBI. If your company also deals with related business processes, then you need to register your business with SEBI to continue to work without any restrictions. Here, you will get to know more about the process of getting SEBI approval for registering a company.
The process of company registration takes some time; therefore, the company owners should get their company name reserved so that it is not taken by any other applicants. The company name can be secured by filling the RUN form. After that, you can proceed with the registration process by submitting an online application. All the rules mentioned under the regulatory guidelines need to be followed during the selection and approval of the name for the business by the registrar. If the name of your business includes words such as Mutual Fund, Venture Capital, Stock Exchange, Asset Management, or any other related words, then it becomes mandatory to obtain the approval of SEBI. Once you have received SEBI approval, you can submit the form to secure the name of the company along with the approval provided by SEBI to the ROC. The name of approval be SEBI will be needed when you will apply for incorporation.
The List of Steps for Company Registration With SEBI Approval
As per the guidelines fabricated by SEBI, different financial security forms will have to go through there distinct registration procedure. This is because the requirements, as well as the laws along with the eligibility criteria of these firms, vary based on company activities. These activities of the business decide what compliance will be applied to the company as well as the immediate steps that need to be addressed to register a company with SEBI. The list of steps mentioned in the article is generally followed by the corporations to get permission from SEBI.
With the integration of technology, the process for registration has become easier because SEBI recently launched an authorized platform to apply for the registration.
Submission of the application form:
- Arrange the NOC from SEBI: You need to fill the application form in the given format. Submit all the required papers along with the application form.
- Understand SEBI regulations: Go through the complete list of regulations formulated by SEBI that you need to follow to carry on with your regular business activities.
- Submit company details: Next, you have to provide all the details of the company to the authorized body for reviews such as the name of the company, business strategy and structure, financial layout, incorporating location and various other information about the workings of the business.
- Cover letter: Send a letter to the authority in which you need to mention if you are applying for the first time with SEBI or you have already applied earlier for the approval of other activities.
- Application fees: Once you have filled the application form, you have to ensure that you complete the payment procedure the application. The form fees will not be reimbursed even after rejection.
- SEBI reply: You will have to wait for 3 to 4 weeks or more to receive the reply from SEBI.
On-site business inspection:
It could be possible that SEBI may visit your official site to inspect the working of the business and infrastructure of the company. Generally, the inside business inspection happens when there is a complaint against the company or if it is a Credit Rating Agency (CRA) or Mutual fund.
Approval of the certificate by SEBI:
- The certificate is approved by SEBI after confirming that all the rules and regulations are being followed strictly.
- Once all the documents are being verified and the application gets approved, you will receive the notification from SEBI about the approval of the application form. The action on the payment receipt is according to the policies and practices of the authorized committee.
- You will have to wait for the approval of the payment receipt by SEBI to send the demand draft of the application fees. It is going to be payable at Mumbai and made out to “The Securities and Exchange Board of India. The charges for the application of registration of the company vary as per the type and structure of the company. It is more for corporate forms and lesser for individuals.
- NOC is given by SEBI after the acknowledgement of the payment receipt.
Compliances after the registration
- Once your company is registered with SEBI, your business will have to adhere to the compliances and rules defined by SEBI from time to time.
- Keep on active rechecking on the SEBI official website to get the latest information about any new or modified protocols and/or circulars related to your business activities.
- You must acknowledge the changes made by SEBI.
Where Can I Get the Assistance to Register a Company With SEBI?
3E Accounting is known for being professional and competent in the field of business solutions. You will get complete guidance to get the SEBI approval for the smooth operation of your business. With the team of dedicated staff, we are proud to be one of the leading advisory firms in the country. If you are looking for assistance in the process of company registration, you can connect with our team to get valuable advice.