Starting a business can be a thrilling and rewarding experience, especially in India where the government is pushing for more startups to emerge. In fact, the Indian government has taken several initiatives to support and encourage entrepreneurship in the country. However, navigating through the regulations and legal procedures involved in starting a business can be challenging and overwhelming for many. But don’t let that discourage you from pursuing your entrepreneurial dreams!
In this blog, we’ll guide you through the step-by-step process of starting a business in India, and provide you with some helpful tips and resources to make the journey a little smoother.
Obtain a DIN or Director Identification Number
Process & Sequencing
Application for DIN can be made (a) in Form DIR-3 or (b) at the time of incorporation in Form INC-32 (SPICe+) on the MCA portal. A maximum of 3 Directors can apply for DIN at the time of incorporation.
Resident / Non-Resident Implications
If the applicant is a non-resident, all documents of proof of identity and proof of residential address have to be notarised and apostilled. For identity, passport is mandatory.
Online/Manual
- Application for DIN can be filed online on the MCA portal.
- Along with the application a photograph and physically signed self- attested proof of identity and residence has to be submitted.
- For identity PAN is compulsory for a resident director.Â
- Address proof can be copies of Aadhar or utility bills – telephone, gas, electricity bills etc., not older than two months.
Obtain a DSC or Digital Signature
Process & Sequencing
National Informatics Center (NIC), IDRBT Certifying authority, E-mudhra, NSDL, Capricorn, CDAC, (n)Code Solutions CA and Sify SafeScrypt CA services, are certifying authorities.
Resident / Non-Resident Implications
Both resident and non-resident directors have to mandatorily hold the DSC.
The process for acquiring the DSC is the same for both.
Online/Manual
- Application for DSC can be filed online or manually. Manual application must be filed along with self-attested proof of supporting documents like Aadhar, PAN, Bank account details and other government proof of identity and residence.
- Foreign applicant; Proof of address and residence have to be notarised and apostilled.
- Applicants can also use Aadhar eKYC based authentication. No additional documents are required here.
Get the approval on Name of the Company
Process & Sequencing
If filed individually, the form provides flexibility for adding 2 proposed names. If in SPICe+ Form(Part A), only one name can be proposed.
Resident / Non-Resident Implications
Not Applicable
Online/Manual
Completely Online
File the incorporation documents : MOA and AOAÂ
Process & Sequencing
- MOA is filed in Form INC-33 with the ROC(Registrar of Companies).
- AOA is filed in Form INC-34 with the ROC.
- Both MOA and the AOA are digitally signed by each member subscribing to the Memorandum.
- They have to be authenticated by an Advocate, a Chartered Accountant, Cost Accountant, or Company Secretary engaged in the formation of the company.
Resident / Non-Resident Implications
- In case of Indian subscribers, e-MOA and e-AOA needs to be prepared and can be signed digitally with DSC.
- In case of foreign subscribers, the MOA and AOA needs to be physically signed, notarized and apostilled.
Online/Manual
Both MOA and AOA can be submitted online in case of resident subscribers.
Verify your Office Address
Process & Sequencing
- The registered office address can be notified to the Registrar in SPICe+ Form INC-32 at the time of incorporation.
- If the company does not have an official address at the time of incorporation, then the temporary address of correspondence has to be provided. The company has to then register an office premise within a period of 30 days from the date of incorporation. The intimation for verification of such registered office premise has to be filed in Form INC- 22 to the Registrar within 30 days from the date of incorporation .
Resident / Non-Resident Implications
Not applicable
Online/Manual
Verification of registered office address can be filed online with the following supporting documents:
- Rent agreement with the owner of the property in the name of the proposed company.
- Utility bill(electricity/ /gas/telephone bill) of the proposed registered office premise in the name of the owner of the property (not older than 60 days).
- NOC from the owner of the Property
Apply for Certificate of Incorporation or CIN Number
Process & Sequencing
- No action from applicants. Process by the ROC.
- On incorporation, the Registrar sends an email with the Certificate of Incorporation to the registered email ID of the company.
Resident / Non-Resident Implications
Not applicable
Online/Manual
Not applicable
Certificate of Commencement of Business
Process & Sequencing
- Log into the MCA website to file Form. INC-20 A with the Registrar.
- Declaration has to be provided within 180 days from the date of incorporation.
- All information declared by the Directors in the Form has to be further verified by a Chartered.
- Accountant, Cost Accountant or a Company Secretary.
Resident / Non-Resident Implications
Not applicable
Online/Manual
Can be filed with the Registrar online.
Proof of payment towards the shares subscribed has to be attached.
Obtain a PAN / TAN
Process & Sequencing
- Can be applied in SPICe+ Form INC-32 at the time of filing the Incorporation application .
- Once the company is incorporated, the Income tax department allots PAN and TAN.
- The details of PAN and TAN allotted to the company is reflected in the Certificate of Incorporation.
Resident / Non-Resident Implications
Not applicable
Online/Manual
Completely online
Open a Bank Account
Process & Sequencing
Can open a bank account using the AGILE-PRO e form (INC-35) linked to the SPICe+ form at the time of incorporation.
Once the company is incorporated and has obtained Certificate of Incorporation and PAN, all necessary information required for the purpose of opening a bank account is automatically sent to the selected bank for processing.
Resident / Non-Resident Implications
AGILE-PRO e form and SPICe+(Part B)Form needs to be digitally signed by the resident director who is also the authorised signatory.
Both forms need to be signed by the same authorised signatory.
Online/Manual
Completely online
The details of the proposed director (i.e. DIN, PAN, name, mobile number, Email id) who will act as an authorised signatory and a passport size photograph in JPG format have to be submitted.
The Indian Government has made it easier for startups to incorporate their businesses by introducing various initiatives that simplify the process. This way, entrepreneurs can focus on their business instead of worrying about complying with regulations. Follow the steps in this article to start your company, and once it’s set up, there are additional procedures you’ll need to follow to start transacting.Â
Check out our blog on post-incorporation compliances to learn more.Â
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