As an entrepreneur, you need to take many decisions each of which decides the fate and future of your company. Incorporating your business entity under the right structure is one such crucial decision. Registering a company increases its perceived value, makes you eligible for supplier discounts, makes hiring easier and much more. It also protects your brand name from being used by anyone else. So, how do you go about registering your company in India? Here are 8 easy and simple steps.
Step 1: Choose a Company Name
To register a company in India, you first need a unique company name. Depending on the nature of your business, you can choose 4 – 6 names for your company. The name your company is registered under must be unique and approved by the RoC. You should also ensure that the name does not offend anyone or imply a connection to international or government organizations.
Step 2: Check Website Availability
Today, every company needs a website. So before you register your company, check for the availability of a website with your company name. An easy way to do this is by checking the Indian Ministry of Corporate Affairs website to see if a website with the name you want for your company has been registered by anyone else. Ideally, the .com URL should be available along with the .org and .net variants.
Step 3: Apply for a Director Identification Number(DIN)
Every company needs aDirector Identification Number or DIN before it can be registered. This is a unique number that identifies a person as the current or intended director of the company. You may apply for the DIN online at the Indian Ministry of Corporate Affairs website by filling in the DSC and DIR-3 forms. Along with these forms, you will also need to submit a passport size photograph, educational qualifications, proof of address and your current occupation.
Step 4: Register for a Digital Signature Certificate(DSC)
The DSC is a digital equivalent of traditionally printed certificates. It can be used to access information and services online, prove your identity, and sign digital documents. A DSC is necessary for all registered companies as the registration applications must be submitted online. Like the DIN, the DSC can also be obtained at the Ministry of Corporate Affairs’ website. The same proof of identification must be submitted for the DIN and DSC.
Step 5: Prepare Registration Application
The form 1A required to register a company is available online at the Ministry of Corporate Affairs’ website. This form may be filled in digitally and submitted at the website. On it, you will need to include the list of shortlisted company names in order of preference and the digital signature. The form is usually processed within 2 working days. If none of the proposed company names are available, the applicant may apply for a new name on the same application. A processing fee of Rs 500 must be paid at the time of submitting the application.
Step 6: Draft the Memorandum of Association (MoA) and Articles of Association (AoA)
Next, you will need to draft the company’s business objectives in the form of a Memorandum of Association (MoA) and write down the details of the company’s daily operations in the form of an Articles of Association (AoA). Both documents must be signed by at least 2 members of your company and at least 1 witness.
- The MoA and AoA must then be vetted online by the Registrar of Companies (RoC) after which they must be printed and notarized. The notarized copy of the documents must then be scanned and filed online with the application and other documents including the:
- Form1 – Declaration of compliance
- Form18 – Notice of situation of registered office of the company
- Form32 – Particulars of the Company’s Director, Manager, and Secretary
Step 7: Send a Physical Copy of Forms to the RoC
The completed set of forms and supporting documents must then be filed in duplicate with the RoC. This includes:
- A stamped copy of the MoA
- A stamped copy of the AoA
- Copy of any agreements mentioned in the agreements
- Copy from of the letter from the RoC indicating the availability of company name
- E Form1
- Receipt of fees paid for registration
You should file these documents on the website of the Ministry of Corporate Affairs. It has a prompt for you to upload all application materials.
Step 8: Receive Certificate of Incorporation
Once the RoC has vetted your application, you will be issued a Certificate of Incorporation. If you are registering a Public Limited Company, you will also need to obtain a Commencement of Business Certificate.
Congratulations! Your company has been registered!