India's Company Registration
Every person in India wants to start their own business. Everybody wants to start a business to move forward with this dream and make it come true. India has company registration because of this. By forming a company, you can legally start a business and get help from the government.
What is Company Registration?
Before we begin the registration process, let us first define a firm. What exactly is a corporation? A company is a legal entity made up of at least two directors and one or more members/shareholders. It is a legal business unit that was set up according to the rules of the Company Act of 2013 for online company registration.
Company registration is just the process of getting a company registration number in India, which gives the business a legal framework for doing business.
India's Company Types :
There are six types of companies in India, each with its own approach to the company registration process.
Private Limited Company
Public Limited Company
One Person Company
Producer Company
Nidhi Company
Section 8 Company
Features that are common to all types of companies :
Separate Legal Entity: A corporation is a legal entity controlled by its directors. After a business registers as a new company, it gets a company registration number. This number is like a birth certificate for the business, making it a person in the eyes of the law.
Limited Liability: The members/shareholders and directors of a company are only responsible for its losses up to the value of the shares they bought.
Incorporated business entity: A company is an incorporated business entity managed by the Ministry of Corporate Affairs under the Companies Act, 2013.
Transferable Shares: The shares of a registered company can be traded between the members of that company.
Perpetual existence: Since a company's existence isn't tied to the existence of its directors, the company continues to exist even after a director dies.
Common Seal: After a company is registered online or offline, its directors must put a common seal on every document that has to do with the business.
The following are characteristics of a limited private company
Limited Liability
Minimum two directors required
Minimum two members/shareholders required
Maximum 200 members/shareholders
No minimum capital requirement
Perpetual Existence
A public limited corporation has the following characteristics
Separate legal entity
Transferability of shares among public
Perpetual Succession
At least 15,00,000 paid-up capital
Inclusion of the term “LTD” at the end of the company name
Minimum three directors required
Minimum seven members required
Annual prospectus required
The following are characteristics of a One Person Company
Separate legal entity
A nominee required
No Perpetual existence
No minimum capital requirement
Only one director required
The following are characteristics of a producer company
The business objective focuses on agricultural produce
Must include the words producer company
Only equity shares issued
Minimum five directors required
Must maintain a general reserve each year
The following are characteristics of a Section 8 Company
Non-Profit Organization
Dividend isn’t distributed among members
Profits generated to promote social welfare work
The following are characteristics of a Nidhi Company
Promotes savings and thrift
Provide short term deposits
Can only engage in business among members
Provides short/long term loans with minimum documentation
The Benefits of Starting a Business in India
A company is a real-life entity: When you create a new company in India, you gain access to a legal body whose existence is acknowledged by the government. It means that, unlike non-separate business entities in India, your company will be governed by the Companies Act of 2013.
A company can exist indefinitely: Any limited business company can exist indefinitely. Even if a one-person corporation doesn't have a direct permanent succession benefit, it can still stay in business by giving shares to a nominee.
Directors' Liability is Limited: The directors' or members' indebtedness are restricted to the face value of the shares they purchased.
It is simple to transfer the shares: A single board resolution is all that is required to permit the transfer of shares among the company's members. And, even when the public is involved, the transferability of shares is simple in the case of a public limited corporation.
Property ownership becomes a possibility: After completing the company registration procedure in India, it is simple for a company to acquire property.
The right to sue or be sued: Since a company is a legal entity that has been given the status of an "individual" by the government of India, it can now sue others in court or be sued by others.
Increase the ability to borrow: When a company registers online, its ability to borrow money goes up. Now that you have a legal business, banks and other financial institutions will be more than happy to lend you money.
It becomes possible to raise equity: When you register a company name in India, you create a business that is more trusted on the market and has the faith of investors. So, it will be easier for you to find investors for your business.
Who is eligible to register a company in India online?
Before you apply to register your company online in India, keep the following in mind. These are the most important requirements for registering a company in India because they give the company the legal framework it needs to get the MCA's approval.
The company should have at least two directors: If the company registration process you want to go through in India isn't for a "One Person Company" but for a "Private Limited Company," then your organization should have at least two directors.
One person can be both a director and a shareholder: When applying online for a new company incorporation, the directors and shareholders/members can be thought of as the same thing.
There are two kinds of "limited" things that a company can have: When applying for online company registration, you must specify whether your company will be limited by shares or by guarantee. If the company is limited by shares, you will have shareholders. There will be members in a company limited by guarantee.
There should be at least one person on the board who lives in India: One of the most important requirements for online company registration in India is that the company must have at least one Indian director.
The company should have a unique name: If the name of the new company is unique, it can only be registered online in India. You won't be able to get an online company registration in India if the name of your business goes against the rules of the Companies Act of 2013.
Documents Needed to Start a Company in India
Here is a list of the paperwork you need to register a company in India:
Here is a list of all the documents you need to register your own
company in India online, along with a brief explanation of each:
1. PAN card of the company's directors- The PAN card is a very important document that the directors must have in order to form a company. It is a unique number given by the Income Tax Department of India. It is called the Permanent Account Number (PAN). This document is needed for everything that has to do with the company's money.
2. Address proof of the company's directors- All of the directors of the Company must show proof of their address in the form of an Aadhar card, ration card, driver's license, telephone bill, bank statement, or other utility bill.
3. Passports of the foreign nationals- If a director is a foreign national, a copy of his or her passport must be provided.
4. Proof of where the company is based- Applicants must have a registered office in India in order to register a company online. As proof of registered office, two types of documents are acceptable: a sales agreement and a rent agreement.
5. Digital Signature Certificate- DSC is required to facilitate the online registration of the Company.
6. Director Number of Identification- All aspiring directors of a firm are assigned a director identification number before filing an application for a director.
India Company Registration Process
Check the availability of company names: The first step is to see if the company name is available in India. You must use either the official MCA portal or our platform to accomplish this.
Document collection: Provide all documentation and have it certified by a Chartered Accountant or a Company Secretary.
Applying for and acquiring a Digital Signature Certificate: The application for company registration must be submitted online. As a result, the DSC is required to authenticate the papers you upload to the MCA portal.
Obtaining and applying for a Director Identification Number: To access the firm registration application form, obtain the director identification number (DIN).
Creating the MOA and AOA: Create the Memorandum of Association to highlight the purpose of your company. To specify the rules and regulations that your organization follows.
Apply for company registration using the Spice form: The spice form is the application for company formation in India. It is thorough, user-friendly, and includes enough information for a layperson to complete out the application form.
Application form processing: Your application form will be reviewed by the Registrar of Companies. If you have done everything correctly, you will receive the company registration number via the certificate of incorporation.
Our Reliable Services for Company Registration in India
Our experts help you set up a business in India from start to finish by doing the following:
We always make sure that your needs for online company incorporation services are met on time. Our experts know how complicated the process of starting a business online can be. So, we've sped up the process and made it cheaper and easier for you to incorporate your company.
Certpedia is a company that helps new businesses with all of their legal needs. They offer full services for setting up a business in India. Each service is designed to get good results, and all of them are offered at the lowest possible company incorporation fees.