What is the registration process of a company?
In India, company registration is also referred to as the incorporation of a company or the formation of a business. Registering the company makes the business a distinguished entity and gives it a legal existence. The registration process of a company is done under the Ministry of Corporate Affairs (MCA), which is governed by the Companies Act 2013.
Step 1: Apply For Director Identification Number (DIN)
The first step towards India’s company registration process begins with obtaining a unique Director Identification Number (DIN). According to the Companies Amendment Act 2006, DIN is required for any person who wishes to register a company or become a Director of an existing company in India. The application form is available online on MCA Website as the DIN-1 Form.
Step 2: Apply For Digital Signature Certificate (DSC)
The registration process of a company requires every business to acquire a Digital Signature Certificate (DSC). DSC is a legislation requirement for submitting various forms to the Government of India.
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Step 3: Company Name Approval
Apply for company registration; the SPICe+ Form must be submitted on the MCA portal.
The Part-A of the SPICe+ Form for company name approval is first submitted to the MCA to reserve the company name. In the name approval application, 1 or 2 names with business objectives can be submitted. If a name approval is rejected, 1 or 2 more names can be resubmitted. Typically, the MCA approves all name approval applications in less than five working days.
Step 4: Company Incorporation Application Submission
After the approval of the name, it will be reserved for twenty days, within which the company must fill out Part B of the SPICe+ Form and submit it online. The applicant must furnish the details of the company and director in the Part-B of the SPICe+ Form, attach documents, attach DSC and submit it.
Get a Certificate of Incorporation
Once the registration application (SPICe+) is filled and submitted along with the documents, the Registrar of Companies will examine the application. Upon verification of the application, the RoC will issue the Certificate of Incorporation of the Company.
This is usually issued with Permanent Account Number and Tax Deduction and Collection Account Number as allotted by the Income Tax Department. An email with a Certificate of Incorporation as an attachment, along with TAN and PAN, will also be sent to the applicant.
MINIMUM REQUIREMENTS
Minimum 2 Shareholders
- One of the Directors must be Indian Resident
- DSC (Digital Signature Certificate) for 2 Promoters & 1 witness
- Minimum 2 Directors
- Suggested Authorised Share Capital 20,000 (INR Twenty Thousand)
- The directors and shareholders can be same person
- DIN (Director Identification Number) for all Directors
You need to arrange very simple details of directors like photograph, Pan card and one address proof.
No, commercial office space is not required. You can show your own residential or rented home address as the registered office address of the Company. This office address can be changed at any time after incorporation of the company. Once your startup is set up, stable and ready to move on to a nice corporate space you can change the registered office address by informing to the ROC office.
No. Once the company is formed, it will be valid till it is officially closed down by the owners. No renewal or fees is required. However, every year companies have to file very basic returns with ROC office.
Director Identification Number (DIN) is a unique identification number required for a person to become a director of a company. DIN is issued by ROC office (Ministry of Corporate Affairs)
It is similar to a PAN Card number. DIN is to be mentioned in documents while appointing a person as a director of a company.
Company name is very important part in registration of company. The company name is divided into 3 Parts:
- Keyword (brand name like TATA or Flipkart)
Activity word(i.e. showing nature of business like Software)
Business Type word (i.e. Pvt. Ltd. or LLP). For Incorporation of company, the suggested name should not match with existing companies or trademark.
MOA means Memorandum of Association and AOA means Articles of Association. These are the byelaws or rules based on which important matters like main business of the company or meetings is decided. These are standard legal documents prepared by Company Secretaries during registration of the Company.
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