5 steps for online company registration in India

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Online Company Registration, Image Source: PEXELS" alt="Online Company Registration, Image Source: PEXELS" />

Legally getting a right to do business is known as company Registration. A certificate is issued by the competent authority to conduct the business activity. The company has to follow all set of rules while registration and after registration. The business organization which buys sells goods or services in exchange for money is known as a company. Company Registration is governed by Ministry of Corporate Affairs, Companies Act 2013 and Companies Incorporation Rules, 2014. The criteria for registration of diverse business forms is different. To select the appropriate business form is a difficult choice, the promoter’s needs to think about the product, the expansion plan, future team, funding and business vision.

The whole process of registration is electronic now. Hence, there is no physical submission of the document to any government office. You just need to have login credential of MCA portal (mca.gov.in) where you can submit e-forms for company registration. Depending on the category of business the forms can be uploaded to this website.

Documents required for company registration

• Passport Size colored photograph of all directors for obtaining DSC

• PAN Card copy

• Proof of identity (Any one of below)

1. Passport

2. Aadhar Card

3. Driving License

4. Voter’s ID

• Proof of identity (Any one of below)

1. Bank Statement

2. Electricity Bill

3. Telephone Bill

4. Mobile Bill

• Registered Office Proof documents

1. Electricity Bill

2. Telephone Bill

3. Any other Utility bill

The registration process for a company

1. Name reservation for a company: A new reservation system has been launched by Ministry of Corporate Affairs on 26th January 2018. New Web service “RUN” (Reserve Unique Name) is introduced to reserve the name for a company for 20 days. Once the name is approved the incorporation process starts. At this stage, DSC of Directors is not required. Prior to this form, Applicants need to file form INC 1 for name reservation where DSC was mandatory.

2. Apply for DSC: The Directors of the company needs to apply for DSC once the name is approved by the ministry. Class 2 digital signature is enough for submission of MCA Forms. The DSC is an instrument issued by certifying authorities by which the directors can sign electronic documents.

3. Preparation of MOA, AOA, and other Documents: Once the name is approved, the company needs to prepared Memorandum and Articles of Association. All these documents contain information about the company’s business and its objective. The memorandum of Association tells about the main object of the company and how the company will do its business. It comprises of paid up and authorized capital of the company. A number of shares issued to proposed directors are also stated in the MOA.

a. Articles of Association contain information regarding the internal management of the company. It speaks about the daily operation of the company. For submitting MOA and AOA of the company, the applicant needs to file Form 33 and Form 34. This forms need to be digitally signed by the directors of the company and should be witnessed by one person.

b. Other documents such as DIR 2, INC 9, Declaration and NOC are prepared and signed by the respective Directors and Property owner (Register office). Optional documents should be attached with the form if the need arises.

4. Application for PAN and TAN: A new system is launched by MCA wherein no separate application or forms need to be submitted for securing PAN and TAN of the company. Spice form includes a section wherein the Area Code for PAN and TAN is filled and based on this information PAN and TAN is issued. Earlier eForm 49A and 49B were submitted for issuance of PAN and TAN.

5. Certificate of Incorporation: Once all the forms are uploaded on MCA portal, the documents are scrutinized by the Officer and after verification approves the uploaded form. After approval, a certificate of incorporation is sent via email to the directors of the company. Once the Registrar issues the Certificate of Incorporation, the directors can conduct their business activity.