You’ve got a brilliant idea for doing business! But you need to comply with Indian regulations which are mandatory. As a founder, it’s very crucial to understand the company registration process in India.
From my personal experience, it is DAMN EASY, if you are well-educated about the process. If not, it feels like hell out there for you!
So, I’ve outlined essential information about the company registration process as per Indian regulations to make it easier for my fellow founders & directors. One of my friends’ metaphors company registration process for the “Namkarana Ceremony”!!!
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Quickly Master Company Registration Process in India: Best Practices To Avoid Delay
A survey by ClearTax revealed that nearly 70% of new-generation start-ups find this process challenging owing to the huge volume of paperwork and complexity that is associated with it!
Improper information about the registration process leads to many wrong decisions & may take the company in the wrong direction. I’ve got something important for you. If you realize why you should learn the best practices to follow for company registration, things become smoother for you.
As a founder, it’s indispensable to be efficient!
Why Founders Should Learn About Company Registration Process?
Here are quick insights about why you should understand the company registration process in India & it is important for founders.
- You’ll find it helpful to choose the right business structure, be it – LLP, Private Limited, OPC, or Sole Proprietorship.
- To learn better about legal obligations like Annual filings, Tax implications & any other statutory requirements for a company to follow.
- The learning process gives you a clear picture of minimizing risks associated with business.
- This education helps you importantly to reduce the hurdles of company registration. Saves time & makes process efficient.
- You can avoid legal obstacles that might arise during company registration.
Key Steps Involved in Company registration Process
1. Complete Name Approval Process
The first important decision that you need to make when registering a company is choosing the appropriate name for your business that complies with the legal requirements. It must not be similar or almost similar to other company names or trademarks already in use.
To minimize hiccups, undertake a proper trademark search. Fortunately, to resolve this, the Ministry of Corporate Affairs (MCA) provides the Reserve Unique Name (RUN) tool to look up your preferred name.
2. Get Your DSC before Proceeding to Registration
It is mandatory to have a Digital Signature Certificate (DSC) for all proposed directors as it is required to sign the documents electronically on the MCA portal. Ensure that each director obtains their DSC before proceeding with the registration process. You can also approach Actax India Experts to get DSC for directors.
3. Get Director Identification Number (DIN) for Company Registration
For every company director, there will be a special number designated as the DIN. It is an MCA-affiliated procedure to confirm each director’s identification and is crucial for their participation in business operations. You have to get DIN before heading to company registration process.
4. Fill out the SPICe+ form
The SPICe+ form (Simplified Proforma for Incorporating Company Electronically Plus) integrates multiple registration processes such as name approval, issuance of DIN, and application for incorporation. Filling out this form correctly is important to ensure that there are no issues with the registration of the company.
5. Drafting Your MoA and AoA
Your Memorandum of Association (MoA) and Articles of Association (AoA) are your company’s charters that state your business objectives and governing policies. As they are the first impressions of your business, make sure they are written carefully and meet legal requirements.
Also note that many service professionals are directly using the templates that apply to specific business structures like Private Limited, LLP, OPC, etc., MoA & AoA should be crafted according to the company’s requirement. Always work with trusted professionals to avoid such blunders.
6. Checkout Your Paperwork Right
Be ready with the following:
- Identification and residential proof of all directors.
- Proof of residence of the registered office address.
- e-MoA and e-AoA forms.
- Any other declaration required by law.
Inadequate or inaccurate information is the main cause of registration delays, so be careful with the details! Also, refer to List of Documents Required for Company Registration in India for detailed information of documents you require during company registration process.
7. Know Forms & Fees
After you have filled out all the forms and collected all relevant documents, you need to log into the MCA portal and upload all the documents with the payment of the fees. The challan which is the receipt of payment should be kept safe as evidence. Learn more about LLP Registration Fees in India
8. Get your Certificate of Incorporation – you're official!
After the ROC validates all the submitted documents, they will grant a Certificate of Incorporation. This is where you lawfully begin your business and get your seal of approval!
9. Nailing Post-Incorporation Compliance
The next procedure that follows after incorporation is the PAN and TAN registration for tax purposes. These are important in dealing with taxes and other monetary issues within the country of India.
Do You want Actax India to Assist in Company Registration?
You Won't Delay Company Registration Process, If You Know This
Make your Company Registration Process a ‘CAKEWALK’
1. Research and Plan Like a Pro
When planning to register a company, there are a number of factors that one needs to research. Seek to know the legal framework, its operating environment at the time and possible challenges you are likely to encounter. Preparing a little before will make the whole process easier and create a good foundation for the entire trip.
2. Bring in the Experts
Professional experts will be very helpful for you during the company registration process. Professionals shall assist you with detailed documentation & they take care of the approval process from the respective authorities.
Corporate lawyers/Chartered Accountants/Company Secretary professionals or people who assist you in incorporating a business understand minor details about incorporation.
3. Keep Your Records Spotless
Documentation is your friend during this process. Ensure that the contents of every document that you provide are correct and current. This habit will come in handy when verifying, to avoid a situation where there are some complications.
4. Stay on Top of the Rules
Stay updated with ongoing statutory compliance changes & local regulations. This helps you align your documentation process with changing dynamics.
Always be prepared for any shifts in the rules that deal with the registration of the company. It’s also important to stay informed to help avoid future time wasted, money spent, and headaches.
5. Make Technology Work for You
Make optimum use of important resources posted at the MCA portal. It assists in making decisions and tasks easier starting from checking your company name availability to submitting the document online. You can also start following our blog to get direct updates on compliance changes related to company formation in your inbox.
What does surveys say About Company registration Process?
- Some recent polls reveal that about 30% of new entrepreneurs experience difficulties when completing the company registration, primarily, because of the inaccuracies of the documentation and misunderstanding of the existing regulations.
- Further, 45% said that they had experienced name rejections or problems obtaining DINs and DSCs that led to delays.
- The findings showed that the professional service hiring group spent 50% less time on the process compared to the self-completion group, an indication that preparation and expert advice are crucial.
Make Company Registration Process Hassle Free!
If you want your startup to become a UNICORN, then a good start is really important. As it is said, well begun is half done and the company registration process is no different!
By following each and every step, you can take your business to new heights. Though the road seems rough the right approach will make your idea a hit!!
