With the Government imparting its idea of ‘Make in India’, the number of start up in India has risen astronomically across the past few years. People are creating new technologies and vast improvement in many fields has been evident. Consequently many people have been showing interest in knowing the process of the registering their company. Let’s break down the process of registering into small pieces and discuss each of them thoroughly.
What’s registering really means?
The companies that are registered under Company Act 2013, also including the companies that are already registered under any previous Company Act is known as Incorporated or Registered Company. The registration of company in India is governed by Ministry of Corporate Affairs (MCA).
Types of Companies in India
· Pri
Private Limited Company
A Private Limited Company or LTD is a privately owned small scale business unit. Number of shareholder for these companies can’t exceed 50 and restricts public trading of the same. A LTD should have 2 Directors, and the number of members of the company can’t exceed 200.
One Person Company
The concept of One Person Company in India came through existence with the penning of Companies Act 2013, this was set up to create entrepreneurs who are capable of starting their own company.
Partnership Firm
When two or more people combine to form a company and they enter into an agreement of sharing the profit among them. The business must be carried on by either one of them or all of them. These types of Firms are governed by the Indian Partnership Act, 1932.
Limited Liability Partnership (LLP)
Limited Liability Partnership (LLP) is the newest form of Partnership Firm. The main advantage of LLP is that all partners are immune to other Partners action, misdeeds, and incompetence.
Public Limited Company
A company whose capitals are traded on a stock exchange and anyone can keep share with these type of companies. Public companies are strictly supervised, and are required by law to publish their complete financial status so that investors can determine the true worth of its shares. These types of entities are also called publically held companies.
Click here for starting your own Public Limited Company.
Producer Company
A producer company is mix of a private limited company and a cooperative society. It combines the concept of cooperative enterprise and the higher efficiency of a company. It is a group of people involved in producing a primary product or involved in a step of creating a product.
Click here to know about Producer Company.
Nidhi Company
Nidhi Company is a Non Banking Financial Company (NBFC) which does not require any Reserve Bank of India (RBI) license. Nidhi Company works through its members. It can accept deposits and lends loans to its members only.
Section 8 Company
A NGO or Non Profit Organisation is an entity that operates for promotion of art, science, sports, education, research, social welfare, religion, charity, and protection of environment or any such other object. In India, an NGO can be registered as any of the three structures being Company under Section 8 of the Companies Act, 2013(section 25, companies act 1956), Trust or Society.
Sole proprietorship
A sole proprietorship is company that is held by an individual and that person manages and carries out all related operations of the business. This individual is the sole responsible of the company.
The process of Registering your Company
The process of registering your Company in India involves four major steps.
· Procuring Digital Signature Certificate(DSC)
· Procuring Director Identification Number(DIN)
· Filing an eForm or New user registration
· Incorporate the company
Ministry of Corporate Affairs has merged the process of getting Business Name approval, getting Director Identification Number (DIN) and Incorporating application into one single form. The whole process takes up to 7 Days now.
Procuring Digital Signature Certificate
As per Information Act 2000, to ensure the security of documents filed electronically requires a valid digital signature on the documents submitted electronically. For that all the company’s Director’s are required be to create Digital Signatures. In order to get a DSC, visiting a Certifying Authorities (CA) along with original documents is required.
DSCs can also be obtained, wherever offered by CA, using Aadhar eKYC based authentication, and supporting documents are not required in this case. In case either of the above is not available, a letter issued by a Bank containing the DSC applicant’s information as retained in the Bank database can be accepted.
Few authorized CA’s are National Informatics Center (NIC), IDRBT Certifying Authority, SafeScrypt CA Services, Sify Communications Ltd., (n) Code Solutions CA, Tata Consultancy Services, E-MUDHRA, CDAC, NSDL and Capricorn.
Procuring Director Identification Number (DIN)
The foremost process of getting registration for your company would be to get Director Identification Number (DIN). The concept of DIN has been introduced for the first time with the insertion of Sections 266A to 266G of Companies (Amendment) Act, 2006. It’s an unique identification number given to Director’s of the company that is supposed to Incorporated.
The process of getting is quite simple, PAN number is mandatory for Indian Citizen and Passport for Foreign nationals. All one would need to do would be to visit the following webpage (http://www.mca.gov.in/MinistryV2/applyfordin.html) and follow the procedure.
Following forms should be used for updating DIN:
SPICe Form: First Director of a New Company
DIR-3 Form: Intended Director for already existing Company
DIR-6 Form: Any changes in the particulars of the directors
New user registration
After completing the process of DIN and DSC, you would need to register a user account on MCA Portal. Creating an account is totally free of cost. This is created, so that you can do transactions as a registered and business user.
Incorporate the company
The final step is to incorporate your company name, register the office address, or notice the situation of office and notice for appointment of company directors, manger, and secretary.
Form-1:
Form-1A: Application form for availability or change of a company name. Once you apply for new company name, the MCA will suggest four different form of your company name; you have to choose one among them. To do the same you have you have to fill Form-1A and submit.
Form-1: This is for application or declaration for incorporation of a company, in this form you have to fill the same name which you have chosen during application of form-1A.
Form-18:
This form is for notice of the situation of a new company office or change of situation of previously registered office.
For a new company you have to fill the form with genuine office address and submit.
Form-32:
For a new company, Particulars of the Director's, Manager or Secretary
For an existing company, this form is for a change of directors, Manger, Secretary or company head.
Once the approval from MCA happens, you will receive a confirmation email regarding the application for incorporation of a new company, and the status of the form will get changed to Approved.
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