REGISTER A COMPANY OR A STARTUP COMPANY IN INDIA

 

HOW TO REGISTER A COMPANY OR A STARTUP COMPANY IN INDIA

REGISTRATION OF STARTUP

Mostly any business in its initial stage wants to be recognized as a start-up, as there are many incentives by the government for a start-up in India. Many Startups after successfully establishing themselves in the market, look forward to going for private limited company registration or for a one-person company (OPC) registration rather than a public limited company because of ease in business and less compliances.

CHOICE OF BUSINESS STRUCTURES IN INDIA

BASIS	LLP	ONE PERSON COMPANY	PRIVATE COMPANY	SOLE PROPRIETORSHIP	PARTNERSHIP
NOMINEE	NOT REQUIRED	REQUIRED	NOT REQUIRED	NOT REQUIRED	NOT REQUIRED
DIN AND DSC	REQUIRED	REQUIRED	REQUIRED	NOT REQUIRED	NOT REQUIRED
MAXIMUM MEMBERS	NO LIMIT	ONE	TWO HUNDRED	ONE	ONE HUNDRED
NO. OF MEMBERS	TWO DESIGNATED PARTNERS	ONE MEMBER	TWO MEMBERS	ONE	TWO PARTNERS
LIABILITY	LIMITED	LIMITED	LIMITED	UNLIMITED	UNLIMITED
PAN CARD	YES	YES	YES	YES	YES
MINIMUM CAPITAL	NIL	NIL	NIL	NIL	NIL
NO. OF DIRECTORS	NIL	ONE	TWO	NIL	NIL

WHAT IS A COMPANY?

DEFINITION

As per Section 3 (1)(i) of the Companies Act, 2013 a company is a company formed and registered under this Act or any other previous company act. As per Chief Justice Marshall, a company is an artificial person, having a separate legal entity, perpetual succession, common seal and can only be wound up by the order of law. It, being a creature of law, is governed by the provisions of law and works for the objects defined in the charter document. It is an entity formed for a lawful purpose including –

1. Seven or more members for a public limited company.
2. Two or more members for a private limited company.
3. And one member for a one-person company.

Such a number of persons can become members by subscribing their names to the MOA of the company and complying with the requirements of the aforesaid companies’ act, 2013.

What is the procedure of Company incorporation in India?

The process of company incorporation in India for different types of companies is generally the same for all entities in India. Thus, for a start-up business, the following steps are followed –

STEP BY STEP PROCESS

1. DIGITAL SIGNATURE CERTIFICATE – The company is required to register on the MCA portal and fill the form for obtaining the DSC since the same is mandatorily required for all the subscribers of MOA and AOA to have DSC.
2. DIRECTOR IDENTIFICATION NUMBER – Once the DSC is obtained, all the directors providing their name in MOA should be in receipt of DIN. Any director not in receipt of DIN at the time of registration is required to apply for the same by providing ID and address proof.
3. NAME RESERVATION – After successful registration into the MCA portal, the company is required to go on the SPICE platform and fill the RUN form. They are required to provide at least 6 names for their company, in order of priority. The name provided should not be similar or identical to the name of any existing company. The name allotted by the Registrar will be reserved for a period of 30 days.
4. PREPARATION OF DOCUMENTS – The company then needs to formulate MOA, AOA of the company. These documents are accompanied by the declaration of Directors and the details and proof of registered office.
5. AUTHENTICATION AND FILING OF CHARTER DOCUMENTS – Once the above documents are ready, the directors are required to stamp them properly with the common seal of the company and upload the same on the SPICE portal.
6. FILLING THE DETAILS OF MEMBERS – The company is required to file the information regarding their directors along with their DIN number and of members who subscribe to the MOA and AOA along with their membership number.
7. FEE PAYMENT – After providing all the information in the SPICE portal, the company needs to recheck its details and confirm the same. After confirming, they will be directed to the payment gateway, where they are required to pay the requisite fee applicable either by debit or credit card, or net banking, or UPI.
8. SCRUTINIZATION OF DOCUMENTS – After receiving the application, the Registrar will scrutinize the documents to check the correctness and fairness of the documents submitted.
9. ISSUE OF CERTIFICATE OF INCORPORATION – Once the Registrar is satisfied with the authentication of the application and the documents, the company is notified about the same, and a Certificate of Incorporation is issued by post to the registered office of the company.
10.  REGISTRATION OF BANK ACCOUNT DETAILS – Once the entity receives the certificate of incorporation, they can open a bank account in the name of their firm, using MOA, AOA, and the PAN card details.

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The information / articles & any relies to the comments on this blog are provided purely for informational and educational purposes only & are purely based on my understanding / knowledge. They do noy constitute legal advice or legal opinions. The information / articles and any replies to the comments are intended but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as a legal advice or an indication of future results. Therefore, i can not take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented on this blog. You are advised not to act or rely on any information / articles contained without first seeking the advice of a practicing professional.