There are quite a number of budding entrepreneurs losing sleep over planning and launching of their own business/company. They’re so busy working towards getting their new company up and running that they often neglect or delay the process of registering the company. Registering a Company is a very important part of starting it. In fact much more important than starting the company since Registration is essential before any company can start its operations.
The steps involved in the process of registering a company in India is explained here to take off a part of the tension involved in the exercise of setting up a new company, read on,
- Obtain Director Identification Number (DIN): The very first step for company registration in India is to to get a Director Identification Number (DIN). For this, you should apply online on the website of Ministry of Corporate Affairs (MCA) i.e, http://www.mca.gov.in/MCA21/Din.html.
Immediately after applying, a provisional DIN will be assigned to you, after which you need to print the application form, sign it and send it through post/courier to the Ministry of Corporate Affairs for approval.
The application must be accompanied by copy of proof of identity and proof of address.
- Obtain a Digital Signature Certificate (DSC): After you have the DIN, you need to get a Digital Signature Certificate (DSC). The Ministry of Corporate Affairs has authorized certain private agencies for this purpose and you can obtain a DSC from one of them.
The company director has to submit the application with proof of identity and proof of address.
- Choose a Name for your Company and Get it Approved: Next step is that of choosing a name for your company. This name has to be approved by the Registrar of Companies of your state (List of ROC). When you apply for the approval, check that the desired name is available. You can check the availability of the name on the Ministry of Corporate Affairs website.
A maximum of 6 names can be suggested, among which one name which has the least similarities with any company registered with Ministry of Corporate Affairs will be approved to you.
- Get the Company Documents Stamped: After getting the approval for your company name, the company documents needs to be stamped by the State Treasure or by an authorized bank. To get the company documents stamped, a stamping request has to be raised along with unsigned copies of Memorandum of Association, Articles of Association and payment receipts are to be submitted.
Memorandum of Association is a document which governs the relationship between the company and the outside and contains how much capital you want to raise and related aspects where as Articles of Association is the document which defines the functioning of the company, responsibilities of the directors, kind of business etc.
- Get the Certificate of Incorporation: Now, apply for getting the Certificate of Incorporation which will be issued by the Registrar of Companies, Ministry of Corporate Affairs. This requires you to fill up prescribed forms online on Ministry of Corporate Affairs website furnishing all the necessary documents along with signed & stamped copies of Memorandum of Association and Articles of Association.
The company can start the operations after the receipt of Certificate of Incorporation.
- Obtain PAN & TAN: All the companies are required to have a Permanent Account Number (PAN) and a Tax Deduction Account Number (TAN) as mandated by the Income Tax Department.
You can apply for PAN and TAN online National Securities Depository Limited or NSDL’s website (tin-nsdl.com) or offline through centers or agencies authorized by Income Tax Department.
- Registrations based on Line of Business and Other Regulations: Apart from the above registrations, you also need to register for Bank account, Value Added Tax (VAT), Professional Tax, Employees Provident Fund Organization, Employee’s State Insurance Corporation, etc., whichever is applicable to your business based on the various rules and regulations laid down by the government
Now that you know process of registering a company, you can now concentrate on other aspects involved in getting your new company up and running.