Hissa ESOP Audit: Evaluate the need for an ESOP audit now with a quick assessment!

How to Register a Company in India: A Step-by-Step Guide

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

DIN is a is a unique number that identifies each director of the company, and is obtained through an online application. 
 
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 minimum of 2 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. 
  • 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

DSC is an electronic signature used for online filings and is issued by a certifying authority. 
 
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

Choose a unique name for your company and submit it to the Ministry of Corporate Affairs (MCA) for approval. You can check the availability of your chosen name on the MCA website. 

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 AOA 

The Memorandum and Articles are the most important legal documents that make up a company’s constitution. They are crucial to the foundation of a company and must be drafted with extreme precision and clarity.
 
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

The Registered Office serves as the main point of contact for any official communication with the authorities related to the company.
 
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

After the RoC approves the incorporation documents, they will issue a Certificate of Incorporation, which legally establishes the company.
 
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

The Certificate of Commencement of Business (COB) is a legal document that signifies that a company has obtained the necessary clearance from the Registrar of Companies (ROC) to commence its business operations. 
 
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

A PAN (Permanent Account Number) is a unique identification number used by businesses to file their Income Tax Return. On the other hand, TAN (Tax Deduction Account Number) is used by businesses to deduct and deposit TDS (Tax Deducted at Source).
 
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

A dedicated business bank account is established specifically for your company. It serves as the central point for managing your company’s finances.
 
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. 

Check out our blog on post-incorporation compliances to learn more. 

About Author :

Categories

Recent Posts

Send Us A Message