Small Business Owner’s Guide to Registering a Company

A company is a business entity under the Companies Act, 2013. There are various types of companies that entrepreneurs can register in India like private ltd companies, public ltd companies, one person companies and section 8 companies.

If you are a small business owner who is planning to register a company in India for business expansion and higher credibility, then check out this blog post! Here, we shall explain how to register a company in India.

Important Abbreviations Relating to Company Registration

Below, we have defined important terms relating to company registration in India :-

• MCA :- MCA full form is Ministry of Corporate Affairs. It is an Indian government body that administers laws like the Companies Act, 2013 and LLP Act, 2008. It is responsible for monitoring all the companies registered in India as well as ensuring good corporate governance in the business sector.
• ROC :- ROC full form is Registrar of Companies. It is an office under the MCA that registers companies in India and issues certificate of incorporation to them.
• COI :- Certificate of incorporation, abbreviated as COI, is a legal document issued by the Registrar of Companies to officially recognize the formation and registration of a company.
• DSC :- DSC stands for Digital Signature Certificate. It is an electronic certificate that is required to legally sign digital documents, including company registration documents online. Without a DSC, it is not possible to register a company in India.
• SPICe+ :- SPICe+ stands for Simplified Proforma for Incorporating Company electronically Plus. It is an integrated web form that needs to be filed with the ROC via the official MCA portal to incorporate a company in India.
• MOA :- MOA full form is Memorandum of Association. It is a company incorporation document that defines the objectives, scope, liability and capital structure of the company. The electronic version of an MOA is known as eMOA.
• AOA :- AOA stands for Articles of Association. It is a company incorporation document that outlines a company’s internal rules, governance and operational procedures. Its electric version is known as eAOA.
• DIN :- DIN’s full form is Director Identification Number. It is an 8 digit identification number to every director in India. Without a valid DIN, an individual cannot serve as a director at any company.

Step-by-Step Process to Register a Company

The process of company registration involves several steps. Below, we have explained each and every crucial step that you need to follow to complete the company registration process successfully. :-

Step 1 :- Choose a Company Structure

Before starting the company registration application process, it is important that you choose the type of company that best fits your business needs out of available options like private limited company, one person company, public ltd company, etc.

Understand each and every business structure carefully before choosing the best one. If you need assistance in deciding the most suitable structure, you can connect with Registrationkraft consultants.

Step 2 :- Select a Unique Company Name

After selecting the business structure, it’s time for you to select a unique company name. The name of your company must be unique and not match with the name of an existing company.

You can check the name of any existing company through the MCA website. Checking the name in advance is important for company registration. Doing so will help you avoid company name rejection during the company incorporation process.

Step 3 :- Director Identification Number (DIN)

The DIN is allotted to an individual appointed as a Director of a company by applying form DIR-3 according to sections 153 & 154 of the Companies Act, 2013. In the case of a new company, an application for allotment of DIN must be made at the time of filing an electronic form of its incorporation.

Step 4 :- Digital Signature Certificate

Digital signature certificate ensures the security and authenticity of the digital documents filed electronically. The company incorporation documents must carry the Digital signature of the authorized person, to ensure they are secure, genuine and unaltered. Make sure to obtain the DSC in advance before initiating the company registration application filing process.

Step 5 :- Collect Required Documents

While filing the company registration application form, you need to submit copies of the documents, self-attested PAN card, Aadhaar Card, Driving license and Passport. Address proof (telephone bill, electricity bill or bank account statement). For appointing a foreign national as an Indian company’s director, the important documents are a passport, copy of identity proof, address proof and board resolution.

The other required documents are office documents such as proof of business address, a copy of the rent agreement and the landowner’s no objection certificate, if applicable. Make sure you collect all these mentioned documents in a timely manner.  If you do not have any of the necessary documents during the application filing process for company incorporation, your application can face rejection.

Step 6 :- File SPICe+ Form

SPICe+ form is the prescribed form to register a company in India. You need to file this form online via the official MCA portal. The required details are provided in Part A and Part B of the SPICe+ form. In Part A of the form, you need to provide details like company type, class, category, industrial activity code and proposed company names.

In Part B of the form, you need to provide the company’s capital structure, registered office address, particulars of subscribers and directors, etc. Through the SPICe+ form, applicants can also apply for PAN and TAN simultaneously. You can pay applicable fees for filing the form online using Credit Card, Debit Card, Net Banking, NEFT, Challan or Pay Later options.

Step 7 :- Receive Certificate of Incorporation

After filing the SPICe+ form, the ROC will check all the details and documents. If the application aligns with all the requirements, the Registrar will issue a Certificate of Incorporation to the company. This document works as proof of the existence of the company.

Conclusion

To start a company in India, you need to complete company registration process with ROC. For registration, you need to file SPICe+ form online via the MCA portal. Upon successful registration, the Registrar will issue a Certificate of Incorporation in the name of your newly registered company.

Connect with Registrationkraft consultants for assistance!