Do you want to succeed as an entrepreneur? A new business venture can excite and scare you at the same time. You must do a lot of planning and consider before starting a venture. Before starting your own, it is necessary to decide what kind of entity it needs to be. The best option for you is to go for a private limited company registration. This way, your personal liability is different from the company’s.
Before you establish your business, you must comply with any legal requirements aside from launching the business market. As an entrepreneur, you must focus on the launching and setting up the business, search to start the business without experiencing hassle in the company incorporation legal procedure.
Find out more here:
Table of Contents
Secure A Digital Signature Certificate (Dsc)
You must first procure a DSC from the involved personnel. The DSC requirement comes from filling out e-forms on the MCA online portal because the Ministry says that it is needed for online registration. The DSC comes from the Certifying Authority which is in token form and it has a validity of 1 to 2 years.
The personnel who is involved in the company formation in India are the Subscribers and Directors for the company being proposed. The Subscriber is someone who promotes the company and its shareholders. The shareholders must file the MOA and AOA online by affixing the DSCs and the directors must obtain a DIN online.
Director Identification Number (DIN)
The DIN assigned to you by the Ministry of Corporate Affairs is unique and it is for a lifetime unless you withdraw or surrender it.
When you obtain a DIN, you must be an appointed director of the company. The DIN can be used for setting an appointment for other companies and appointment as a designated partner.
Get The Name Approved
The proposed name can be applied for through the INC-32, but you only use one form per name. That means you must make sure that the proposed name follows the guidelines and trademarks to keep it from being rejected.
It is a faster process to file the INC-32 compared to filing through the INC-1. The process takes 2 to 3 days to complete and that already includes name approval and incorporation.
It is only advisable to file through the INC-1 if the name you want is difficult to obtain.
Certificate Of Incorporation
After your name is approved, the Certificate of Incorporation can now be issued. Applying for a company’s registration online must be made by submitting online of Simplified Proforma for Incorporating Company Electronically.
Drafting Of The Moa And Aoa
These are charter documents needed for a Private Limited Company. MOA is the Memorandum of Agreement of company and AOA is Articles of Association.
The MOA talks about the scope of company operations through enumeration of the company’s activities and main objectives.
The AOA provides how the operations and administration will be done. These documents have a lot of importance, and must be drafted carefully with the help of a professional.
Application For Pan And Tan
You can also apply for a PAN and TAN through the INC-32 using form 49A for PAN and 49B for TAN. The system auto-generates these forms after submitting the INC-32 form. All you must do is download it, affix your digital signature and upload the forms on the MCA portal.
If you have filled out all the details, the forms will be filed with the important documents. The MCA approves the registration and your company will be allocated a Corporate Identity Number (CIN). You can track the CIN online on the MCA portal.
Certificate Of Incorporation
This document refers to company formation. The state government will issue this that allows formation of a corporation or non-governmental entity/corporation. It is also a valid document that proves your company’s registration.
This is tax on sale, services, and purchase. It covers sales tax, excise duty, service tax, and more into one and that is the GST. This tax is levied in almost every business in India. Your company or business must pay GST if your yearly sales turnover is at least 20 lakhs, if you have sales outside your state even if it is less than 20 lakhs. It is best to opt for this because you cannot make sales outside your state, and you will not receive any tax refunds on purchases.
Requirements For Foreign Shareholders:
- INC-9 Form
- A No-Pan Declaration, which will be counter-attested by the officials of the Indian Embassy
- Passport (Apostilled or Notarized in your country of residence) and it will be counter-attested by the Indian Embassy officials
- Proof of address: Government-issued identification that has an address, driving license, or residence card
- Copies of your utility bill: Proof of address, residence card, driving license, government issued identification form that contains your address
The new private limited company registration process has important procedures you must follow to avoid any obstacles in running your business.
Take note of the procedures mentioned here to keep the company registration process timely. Therefore, you can start your business operations right away. You can contact 3E Accounting India for assistance and help in terms of India company incorporation.