How to Register a Company in India – Steps, Procedure and Guidelines
In India there are almost 7 lakhs companies are registered. If you want to run your business without any legal problem, you have to register your company. Here is full details about How to Register a Company in India. There are some rules and official procedure to follow while registering a company in Indian official records. There are two options; private and public company. Both are different from one another. Every company has to follow this option. The word “Limited” is considered as a corporate form, which is commonly used after the company name.
Today, you do not have to to visit corporate office, because few years back MCA (ministry of Corporate Affairs) introduced an online registration process. So you can apply for registration by sitting at your home. Obtain Director Identification Number (DIN), get a Digital Signature Certificate(DSC), filing a eForm or New user registration and incorporate the company are the four major steps in the registration.
Step- 1 Obtain Director Identification Number (DIN)
According to the amendment act 2006, obtaining a DIN is mandatory for all directors. DIN of each director is unique and specific. They need to fill eForm DIN-1 to get DIN. The DIN-1 form is available now on the official website of the MCA. First, you need an ID and password to register on the MCA website. Then, download eForm DIN-1 and fill it. After that, upload the filled form by clicking to eForm upload button on the MCA website.
You can pay by using debit card, credit card, internet banking or cash/cheque at designated banks (Punjab National Bank, ICICI Bank, State Bank of India, Indian Bank, HDFC Bank). By using the DIN-2 form every director can inform their company about DIN after getting generated it. Through DIN-3 Form, company must inform the ROC (Registrar of Corporates) about all director’s DIN. In case anyone wants to update or change DIN, who must inform this by submitting the eForm DIN-4 Form.
Step- 2 Get Digital Signature Certificate (DSC)
Recently digital signature used to submit electronically on the documents for the security. Through which one can submit their document in a safest way. It is commonly used for contract management software, software distribution, financial transactions etc. When you have a digital signature , there is no need to apply for another. You should check the validity of your digital signature. IDBRT, TCS, NIC, MTNL, SAFESCRYPT, nCODE Solutions etc are known as government listed agencies. Through which one can get Digital Signature certificates.
Step- 3 Filing an eForm or New user registration
For filing an eForm, different transaction, online fee payment etc, one should have an account on MCA Portal. Creating an account is absolutely free. Click on the register link to register on the MCA portal.
Step- 4 Apply for the registration of the company
This is the last important step, which contains a notice for appointment of the company manager ,directors and secretary, name of the incorporating company, registering the office address etc.
This is a form for applying the change of a company name. The MCA will show 4 different forms of your company name. One can select one among them.
This application form mainly used for the incorporation of a company. Here you need to fill the same name, which you were selected at the time of filling Form-1A.
This is an application form, which is used to change the situation of formerly registered company or notice of the situation of a new company. You have to fill this form along with the correct office address of the new company and submit.
This form is mainly used by the new company to notice the appointment of the new Managers, Directors and Secretary. This form used by the existing companies for a change of the Manger, directors, secretary or company head. After submitting these forms you will get a confirmation email.
For acquiring the name for your new company, you have to fill an application in Form-1A with registered Office of the proposed Company. Which is done for ascertaining the availability of a name. You need to pay official service fee of Rs.500/-. Besides, you need to offer four different names. The name do not be similar with name of any other registered company.
Here you should fill name and addresses of directors. Within in 10 days, the ROC will inform you about approval. In case of any objection, the ROC will provide you the names. You can select one. After the approval of the name, you will receive a formal letter regarding the confirmation of the same. It will necessary at the time of registration process.
Digital Signature Certificate ( DSC ), Director Identification Number ( DIN) of all directors of a new company, original copy of the formal letter issued by the ROC regarding availability of Company name, Form-1 for incorporation of a company, Form-18 for situation or address of the proposed company, Form-32 for particulars of proposed managers, directors and secretary etc, you have to check before the agreement of the new company.
You need to follow some formalities while incorporating a company. Such as acquire a TAN card and a Permanent account number (PAN) from income tax dept. India. If needed; documents obeying shop and establishment acts, for foreign trade, registration documents of import export code from the Director General of foreign trade, registration documents of software technologies Parks of India (STPI) and RBI approval for foreign companies investing in India and FIPB approval. Indian and foreign directors must have a valid Digital Signature Certificates from authorized agencies.