Company registration is the process by which an entity comes into existence. From filing the correct form to submitting the required documents, starting a company in India involves a lot of legal formalities.
In India, every business must register itself due to mandatory legal compliances. However, one must choose the right type of company, fulfilling their business requirements. Therefore, before proceeding with the process of online company registration, you must be aware of different types of companies in India.
OPC is a company that can be formed with just one person or member. It has lesser compliance requirements as compared to other types of companies.
The formation of the private limited company requires two directors and members. It is considered a separate legal entity and involves various legal compliances.
Public limited company can be formed with three directors and seven members. It has a separate legal existence, where the liabilities of its members are limited to the shares held by them.
Online registration of a company involves various steps, which are as follows:
Step 1: Apply for DSC
The process of online company registration begins with applying for a Digital signature certificate (DSC). DSC is mandatory for filing registration forms at the MCA portal. Therefore, the company’s director must have their DSC.
Step 2: Apply for DIN
The next step is to apply for a Director Identification Number (DIN). It is an identification number for a director and must be obtained by all proposed directors. The details of DIN are filled in the company registration form.
Step 3: Company name approval
The members have to decide the company’s name, which must be unique and related to the company’s business activities. Once it is decided, they need to intimate it to MCA for approval.
Step 4: Draft MOA and AOA
After the company name approval, a Memorandum of association and Article of association needs to be prepared. These are the documents that contain the rules and regulations that companies will follow during their business operations.
Step 5: Filing of the registration form at MCA Portal
For the online company registration, you need to fill and submit SPICe+ at the MCA portal.
Step 6: Apply for PAN and TAN
The company has to apply for the separate PAN and TAN of the company. PAN is also required for opening the bank account. However, now the system automatically generates PAN (49A) and TAN (49B) forms after submitting the SPICe form.
Step 7: Certificate of Incorporation
Upon successfully submitting the registration form and the required documents, the ROC will verify the correctness of the documents and issue a certificate of incorporation to the company. It is a legal document (license) issued by the government.
Obtaining the company registration builds the business image and enhances credibility in the customers, financial institutions, stakeholders, and suppliers’ eyes. The process of online company registration must be followed sequentially to avoid complexities.