Step by Step Process of Company Registration

OVERVIEW

Setting up a company is the most recommended way to start a business in India. This type of entity offers limited liability to its shareholders which protects their personal assets in the event the assets of the company become insufficient to pay off its debt liabilities. In case of companies there is a distinction between ownership and management where ownership is in the hands of members, management is in the hands of directors, and they may be different from shareholders.

Key takeaways of the article:

Benefits of Company RegistrationChecklist for company registration in IndiaStep by Step Process of Company RegistrationDocuments required for Online company registrationCompany Registration cost in IndiaFAQs on company registration

BENEFITS OF COMPANY REGISTRATION

Protection of personal assets of the company - Company Registration provides limited liability to its members, which acts as a shield from personal liability and protects from other risks and losses.Attract customers - Company Registration gives a professional image to the entity which helps it to attract new customers and retain the existing one.Gets good excess to capital - The transparent functioning of the company as well as good credit score along with professional image allows company to access good amount of funding from angel investors, venture capitalist and banks.Increases the possibility to grow big: The company form of business entity gives multiple options to expand and diversify the business of the entity for e.g., merger, takeover, amalgamation, Joint venture etc. also there are multiple instruments through which company can raise funds such as stocks, debentures, deposits, Loans from bank and financial instruments etc.Perpetual succession: company form of business entity has sperate legal entity from that of its members and perpetual succession which means even if all the members and directors of the company leave the company then also the entity of the company can not come to an end unless and until it has been legally wound up under the Companies Act.

 

CHECKLIST FOR COMPANY REGISTRATION IN INDIA

As defined by the Companies Act, 2013 we shall meet the following checklist requirements:

Minimum number of Directors – A Private Limited Company shall have two and Public Limited Company shall have minimum three and maximum 15 directors. One of company’s director shall be resident in India.Subscribers to the MOA – A Private Limited Company shall have minimum 2 and Public Limited Company shall have minimum 7 persons as Subscribers to MOA.Unique Name – Proposed company to be registered shall have a unique name to be reserved with the MCA. The suggested name should not match with the names by which any company or LLP has already been registered.Minimum capital contribution – The requirement of minimum capital contribution of the company registration has already been done away. Now a company can be registered with any amount of capital contribution.Registered office – The proposed company shall have a place that is to be registered with the MCA as the Registered Office of the company. Such place need not to be the commercial office, it can be set up at the residential address also.

STEP BY STEP PROCESS OF COMPANY REGISTRATION

The process of company registration is complex and involves various compliances which has been simplified here for your reference.

 

Steps Involved

Particular

Step-1

Obtain Digital signature certificate (DSC) of the first directors

Step-2

Apply for Director Identification numbers (DIN) of first directors.

Step-3

Application for name reservation in form SPICe part A or integrated SPICe Plus form and receipt of name reservation letter from CRC a wing under Registrar of Companies.

Step-4

Application for incorporation of company in form SPICe Plus Part-B along with AGILE-PRO-S and INC-9 and SPICe MOA and SPICe AOA of the company

Step-5

Payment of Stamp duty and filing fees, which depends upon the share capital of the company and the state where Registered Office of the company is proposed to be situated.

Step-6

After due verification, ROC will issue a Certificate of Incorporation (COI) and the company stands registered on MCA.

 

 

DOCUMENTS REQUIRED FOR ONLINE COMPANY REGISTRATION

 

In India company registration can not be done without proper documentation, the following documents are required for company registration in India.

Self-attested copy of PAN card and Aadhar Card of Subscribers to MOA and Directors.Self-Attested copy of Bank Statement or Utility Bill (should not be older than 2 months) as present address proof of Subscribers and Directors.Self-Attested copy of Voter ID/ Driving License/ Passport as permanent address proof of subscribers and directors.Consent Letter in form DIR-2 and declaration as to non-disqualification and interest in other entities in form DIR-8 for first directors.Rent agreement/ NOC from owner and utility bill for Private Limited Company Registered Office address.Details regarding the share capital of the company including the authorised share capital and paid-up share capital of the company.Details about the business activity and NIC code of business activity of the company.

COMPANY REGISTRATION COST IN INDIA

Cost of DSCs of Subscriber and first directors: It may cost around Rs.1000 per DSC. Rest it depends upon the discretion of DSC issuing agency and location of the agency.Fees For Name Reservation: Rs 1000 per Application, however this cost can be saved if application is filed in integrated form SPICe plus along with incorporation application.Stamp Duty Fees: It depends upon the Authorized Share Capital of the company and the state where Private Limited Company Registered Office is proposed to be situated.Payment For PAN And TAN: Government fees for Rs. 65.00 and Rs. 66.00 for allotment of PAN and TAN.Fees for Company Registration Consultant: For incorporation of OPC consultation and professional certification of CA/CS/CMA in practice is required, the professional charges for which are subject to their discretion.

FAQs ON COMPANY REGISTRATION

How much time does it take to register a Private Limited Company in India?

Ans. If all the documents are in place it takes around 15 to 20 days to register a private limited company, however it also depends upon the workload of Registrar.

 

Can the private limited company be registered into LLP?

Ans. A private limited company can be converted into LLP after complying with the provisions under LLP Act, 2008 and Companies Act, 2013.

 

Does one have to be present physically to register company in India?

Ans. The procedure of company registration has been made o0nliner therefore there is no need to physically visit ROC and submit required application form along with all the documents in hard copy.

If you are looking to start your business but have lots of queries as to Process of Company Registration, we have got you covered. At Compliance Calendar LLP, we have dedicated team of Company Secretaries who are experts in MCA Registrations. You may speak to us at 9988424211 or connect at [email protected] and we will be more than happy to support you in your Startup journey.