India being one of the fastest-growing economies worldwide not only provides plenty of new opportunities for start-ups but also offers them extended support and assistance. Any new players enter the Indian market each year or expand their wings globally to leverage a competitive edge. If you are too seeking to establish a company and prosper with the others, get your business registered under the Companies Act 2013 and avail benefits offered by the government of India. For the process and checklist, read below.
Checklist for Registering a Company in India
Minimum no. of directors
According to The Companies Act 2013, a private limited company must have a minimum number of two members and a maximum number of 200 members to start a company. However, the maximum number of directors has been kept at 15 while the minimum number of directors is two. At least one of the directors must be an Indian citizen and have lived in the country for at least 182 days in the previous year.
Unique Name and capital contribution
The company name must be unique and must not match any existing trademark in India. Although the minimum amount of capital that needs to be invested has not been mentioned in the Companies Act, a company must have an authorised capital of a minimum of 1 lakh.
To register a company, you may or may not have a commercial space. Even a rented home of a part of a house is sufficient to form a company if you can obtain a NOC from the landlord.
Company registration process
This is among the most basic and essential processes in forming a business anywhere in the world. The course your company takes and how it manages operations for the rest of its lifespan will be largely determined by the business structure you adopt. As a result, deciding on the best business structure that meets your company’s aims and objectives becomes critical. There are many different types of business structures in India, and deciding which one to use might be difficult.
Digital Signature Certificate
A digital signature is a method of confirming the legitimacy of software or, in our instance, documentation. The Digital Signature is usually a replica of the physical signature, but it may also be a stamped seal that confirms the document’s validity and provides substantially larger intrinsic protection against imitation. It is generally used to authenticate a person’s identity, but it may also be used to access research and gather services through the internet, as well as to digitally sign certain documents. There are many classes of DSC or Digital Signature Certificate such as:
- Class 1 Certificate: Individuals/Private Subscribers.
- Class2 Certificate: Business Personnel as well as for personal and private use.
- Class 3 Certificate: High Assurance Certificates. Majorly for E-commerce Operators whether individuals or organizations
Company name for approval
When you seek to form a company, you must have a company’s name which will represent itself as a separate legal entity. It is important to choose an appropriate name and one that does not match a trademark registered in India. For a public limited business, the term Public Limited Company is attached to the end of the company name while private companies have Private Limited Company. Common business structures have a common name at the end attached with the company’s unique name as mentioned in the company’s act. But, before filing for approval with the ROC, you must check thoroughly if your company’s name does not match with another company name as it may prove troublesome later.
Digital Signature Certificate and professional certificates
Because of the computerized corporate environment, obtaining a DSC is a relatively recent need that must be completed. For a DSC, documents must be submitted online. Digital signatures can be used by all directors when filing papers once they have been approved. Obtaining a professional certificate, on the other hand, certifies a professional’s status in the organisation, such as a chartered accountant or company secretary.
File for Incorporation
All businesses must register as a Limited Liability Partnership, a Private Limited Company, or a Registered Partnership Firm. Other than the above-mentioned company structures, no extra registration is necessary to benefit from the Start-up India Scheme.
Article of Association (AOA) and Memorandum of Association (MOA)
These two together make up the company’s structure. These two essentially establish the company structure, the scope of the company’s legal authorities and information about the company’s commercial operations, as well as the company’s connection with its shareholders. After you’ve applied for business registration, you’ll need to file the company’s constitution. It takes about 7-8 working days to form a corporation in India. Furthermore, you must adhere to Companies Post Incorporation Compliances.