Choosing the right corporate structure for your business is just as important as any other business-related activity. A proper business structure allows the company to operate efficiently and achieve the required business objectives.
In India, all companies are required to register as part of their compliance with the law. Before learning how to register a company, let’s try to understand the types of business structures in India. Here in this article, you will know about company registration.
How Can I Register My Company in India
Company registration in India benefits startups as it gives them an advantage over those who have not registered. The process of registering a company is complicated and requires many compliances. Here are simple 4- steps of the limited company registration process.
- Get a DSC ( Digital Signature Certificate).
- And apply for Director Identification Number (DIN).
- Application request name availability.
- Filing MoA (Memorandum of Association) and AoA (Articles of Association) to Register a Limited Liability Company.
- Now, apply for company PAN and TAN.
- The RoC (Registrar of Companies) issues a Certificate of Incorporation with PAN and TAN.
How to register DSC on MCA portal?
Steps to register DSC on MCA Portal.
- Visit mca.gov.in
2. Click DSC Services > Associate DSC.
3. Select the appropriate option from the Select Role drop-down list. The Authorized Associate Director/Designated Partner Representative’s DSC page will be displayed.
4. Select position as director. Fill in the director’s details.
5. In digital certificate section attach DSC.
6. Check the terms and conditions box to accept the declaration that the data provided is correct.
7. Click the Submit button to register your DSC. An acknowledgement message is displayed.
How to check company registration?
A step-by-step guide to check company registration.
- Visit the MCA website
- Click the MCA Services tab.
3. From there, select the MCA Services tab and you’ll see a dropdown list.
- Select View Company/LLP Master Data from the list.
- Enter your CIN number, company name, and captcha code and click Submit.
The page will show the details of company:
- CIN
- Name of Company
- Company category
- Class of company
- Date of Incorporation
- Authorised and paid up capital
- Number of members
- Date of incorporation
- Registered address and e-mail
- Assets under charge
- Details of all the directors of the company
How Much Does It Cost to Register A Company in India
The cost of Limited Company Registration / Pvt Ltd Company Registration in India varies between INR 6,000/- to INR 30,000/- depending on the number of directors, number of members, authorized share capital and professional fees. The fee for an expert depends on the complexity of the task. A limited liability company must have and maintain a minimum paid-up capital of Rs. 1 lakh rupees. May occasionally be higher at MCA’s request.
Why Do We Register A Company
Company registration has many advantages. A licensed company makes that a reality and increases the company’s credibility.
- Protect against personal commitments and prevent other threats and losses.
- Build goodwill and help attract more customers.
- Easily provide bank loans and good investments to reliable investors.
- Provides sphere of responsibility to protect company assets.
- A stronger commitment to prosperity and stability.
- Evolution/enlargement ability up.
What Are The Types of Registered Company
Business registration is the primary process by which a business owner organizes or incorporates a business. Since there are multiple types of companies in India, entrepreneurs should choose the type of company that suits their business. In India, the Companies Act, of 2013 prescribes seven different structures for setting up a company.
- LLP Registration
- One Person Company
- Sole Proprietorship
- Section 8 Company
- Private Limited Company
- Public Limited Company
- Partnerships
How Do You Registered A Small Company in India
When you are ready to register your startup or new company in India, you must register it with the official records of India i.e. Ministry of Corporate Affairs (MCA). You can do it at home, so you don’t have to go to the company to register. Registration includes the submission of a Digital Signature Certificate (DSC), Director Identification Number (DIN), and an electronic form.
- Obtain a DSC(Digital Signature Certificate).
The Information Technology Act of 2000 includes provisions for the use of digital signatures on electronically transmitted documents to ensure the security and authenticity of electronically transmitted documents.
- Obtain a DIN (Director Identification Number).
The concept of a Director Identification Number (DIN) was first introduced with the introduction of Sections 266A to 266G of the Companies (Amendment) Act 2006.
- Create an account on the MCA (Ministry of Corporate Affairs) portal New User Registration
- Now, incorporate or apply for the company to be registered
How Much Money I Need to Open A Pvt Ltd Company
A company can be set up in India with a very small amount of capital. There is no fixed amount and the shareholders of the incorporating company can decide how much capital they want to contribute. When setting up your company’s capital structure, you should keep in mind the following concepts:
Face Value of Share:
The face value of a stock is the price per share when the company is incorporated. Generally, the face value of a share is Rs. 1 or Rs. 10, or Rs. 100 or Rs. 1000 or Rs. 10,000.
Authorized Capital:
Authorized capital is the total amount of shares that a company can issue to its shareholders. All companies are usually incorporated with an authorized capital of Rs. 1 lakh or Rs. 10 lakhs. If a higher authorized capital is required, the company must pay an additional fee to the Ministry of Enterprises. The company’s authorized capital may be increased at any time after incorporation.
Paid-up Capital:
A company’s paid-up capital is the number of shares paid or deposited in the company by shareholders. The company’s paid-up capital cannot exceed the company’s authorized share capital.
Frequently Asked Questions (FAQs):
Which type of company registration is best?
If you want to enjoy doing business as a private limited company, registration of a limited liability company is an ideal choice. As a general rule, shareholders equally assume liabilities to protect their assets. In these companies, net capital is the sum of shares held by each shareholder.
Wrapping up
There are many processes involved in company registration. Before registering your company, you need to decide on your company structure i. e. Whether the company should be registered as an OPC, LLP, PLC, or public limited company.
Once you have selected your company name and received your DIN and DSC, you will need to submit your company registration form to the MCA Portal.