Step by Step India Company Registration Process
With a population of over one billion and still growing, India is offering a large, built-in and dynamic potential market for companies to explore. If you are interested in doing business in this sector, you need to develop the legal existence of your company in India by registering your firm with the relevant Indian authorities and submitting the required forms. This article provides a Guide on India Company Registration Process.
How to Register a Company in India?
The Indian company registration procedure and other regulatory filings are paperless today; documents are submitted online via the MCA website and proceeded at the Central Registration Center (CRC).
The registration process for the company is entirely online in India. The Registrar of Companies issues a digitally signed Certificate of Incorporation (COI) once all the company registration formalities have been completed. On the MCA website itself, all stakeholders may check e-certificates provided by the ministry.
Incorporating a company in India is a systematic procedure of gathering and submission of details required as per the requirements of Companies Act 2013 and as per the process defined by the Ministry of Corporate Affairs. Process management requires a thorough knowledge of the legal requirements and, not to mention, practical experience of the same.
Online India Company Registration Requirements
- Directors – Minimum two individuals out of which one must be a person resident in India. All directors must have KYC documents.
- Shareholders – Minimum 2 shareholders. It is possible to have people and entities as shareholders.
- Digital Signature – Since all documents are submitted online, it is required to have all directors and shareholders valid digital signature.
- Registered Office Address – Every company needs a registered office. The co-founders shall produce KYC documents at the time registration and after that for filing with the registrar.
Here is how to tackle the India Company Registration Process.
- Apply online with the Ministry of Corporate Affairs for the DIN (Director Identification Number). You’ll need to apply for a DIN before you can register your company. The unique number is issued by the Ministry of Corporate Affairs and recognizes the company’s actual or expected director in India.
- The forms DIR-3 and DSC, which you can find online at the Ministry of Corporate Affairs’s website, will allow you to apply for the DIN online. For both documents, you’ll need data including your passport, proof of address, educational qualifications and current job details. It would help if you also had a passport-sized photograph.
- Register online for a DSC (Digital Signature Certificate). DSCs are the digital counterpart to solid or paper credentials that may be used to confirm your identification, access information or resources on the Web or digitally sign any documents.
- You can register for your DSC online at the Ministry of Corporate Affairs’s website.
- The Ministry of Corporate Affairs mandates that all business 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.
- Complete e-Form 1A. This form governs the naming of your company.
- You should list a minimum of four possible names and a maximum of six in order of preference.
- File eForm 1A online to apply for the company name. The RoC will approve the company name based on availability and suitability.
- The RoC usually takes two days to approve one of your name choices.
- You will have to pay a fee of 500 rupees when filing this form.
- After the RoC approves your company name, you have six months to file online for the registration of your company.
- Draft the Memorandum of Association (MoA) and Articles of Association (AoA). Either you or your legal counsel can create these documents which have information on the company’s business goals 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 available for the signatures.
- File online to vet the MoA and AoA by the RoC. Once you start drafting these documents, you can submit them online with the RoC for vetting.
- Have the MoA and AoA notarized. You will send these documents to the right stamping authority for the Indian geographic region in which you register your company.
- Once you have a notarized copy, you can scan these documents and file them online with your other completed application materials.
- Pay the registration and filing fees online. Paying these mandatory fees at the Ministry of Corporate Affairs’ website is the last instruction you have to complete before you can submit your application for registration with the RoC.
- The required fee is based on your company’s capital assets.
- Find the corresponding RoC office to file your application. You will submit your registration application online for the Indian state in which you wish to register your business.
- The RoC maintains offices across India that are responsible for specific states and regions.
- Collect the Certificate of Incorporation. The RoC will vet your application and provide the Certificate of Incorporation if the documents are satisfactory.
- If the RoC does not find the application satisfactory, you will be informed as to what documents are missing or of any other information you need to provide on the application forms.
- You can re-file your application when you’ve made the necessary corrections.
- Conduct business! Once the RoC issues your Certificate of Incorporation, you are ready to begin doing business in India.
Advantages of Company Registration
- Business Credibility
A limited company is the most accepted business in India as its structure is popular to the public.
- Limited Liability
Like any other incorporated business, a limited company is a limited liability business. The owner’s liability is limited to the length of shares held in the company and ends once he pays for the shares.
- Protection of Personal Assets
Since the liability of owners is limited, their assets are protected against business risk as the company’s liability is not the owner’s liability.
- Perpetual Existence
Assets and liabilities of a company belong to itself and do not belong to the shareholders. Hence, the business will continue to be in existence even if the owner changes.