Everything You Should Know Before Registering Your Company

The concept of entrepreneurship and running one's own business is quite attractive and has gained popularity all over. Modern colleges and universities are even offering short-term and long-term courses to understand the complex process of company registration. However, theoretical knowledge is insufficient to understand the intricate complexities of running a business.

Operating a business in India requires registering the company with the Ministry of Corporate Affairs (MCA) and carefully submitting the required paperwork in accordance with the guidelines set forth by the Company's Act 2013.

What is Company Registration

Company Registration basically means the legal process of registration with the Ministry of Corporate Affairs (MCA) and issuance of incorporation number to a business that will enable it to legally begin trading under its vision and mission. A company usually consists of two or more directors, shareholders, and other different staff members in various positions. It is a legal business unit incorporated under the company's registration online rules established under the Company's Act, 2013.

Company registration is one of the most important procedures for incorporating a business. It makes the process of establishing the venture much easier, reduces legal formalities, and minimizes the initial investment by entrepreneurs in terms of time and funds.

Eligibility conditions for company registration in India

In India, the registration of a company is subject to certain eligibility criteria followed by the Ministry of Corporate Affairs (MCA). The general eligibility criteria for registering a company in India are discussed below:

Type of Company:

You can register different kinds of companies in India, such as private limited, public limited, OPC, or LLP. In a few cases, eligibility criteria may differ based on the type of company you want to register.

Directors and Shareholders:

Two shareholders/directors must be present in case of a private limited or public limited company. However, in case of OPC then the bill can be served only by one person and this person will act both as a director as well as a shareholder. However, in case of partnership-based LLP then two persons must be there to act as partners.

Registered Address:

All correspondance shall occur as well as any other forms of communication at a registered office in India.

Digital Signature Certificate:

At least one of the directors should obtain Digital Signature Certificate. This will be mandatorily provided for filing incorporation documents on an electronic basis.

Director Identification Number (DIN) :

Each director of the company shall apply at the Ministry of Corporate Affairs for DIN.

Name Approval:

The proposed name of the company should be as per the Companies Act, 2013 and should not be similar to any other established company. It should also include the nature of the business.

The articles of association (AOA) and the memorandum of association (MOA):

These documents define the objectives, rules, and regulation of the company. They must also be prepared and filed at the Registrar of Companies or RoC.

Compliances with Regulations:

The company needs to be in accordance with all relevant legislation such as Companies Act, 2013 and all other relevant legislation.

Fees for registration and all other incidental services must be paid as required.

No disqualification by law of Directors or Shareholders: The Directors or shareholders shall not be disqualified by any law to form or manage a company.

You may either submit the requisite documents of company registration through an online procedure directly on the MCA portal or any professional service provider. It is, in fact, advised to seek a legal expert or chartered accountant so that you do not fall out of any requirement of law and regulation.

Documents Required for Company Registration Process

All such general documents, that one needs to submit for registration, of LLP, OPC, Pvt Ltd and Pub Ltd Co, includes the following:-

• For all Managing Directors and Shareholders (LLP Partners) Identity documents including PAN Card, Aadhar Card, Driving License, Passport Proof of address for all managing directors and shareholders (LLP partners).
• Director Identification Number (DIN (DPIN in case of LLP)) and Digitally Signed Certificate (DSC) of all the directors (partners in case of LLP)
• Evidence for registered office address.

These are the following documents as proof of the company's address.

1. Lease agreement between the lessor and the company/LLP
2. Letter or NOC from the landlord granting permission to use the office/premises as the registered office of the LLP/Firm.
3. Sale deed of company/LLP office premises in the name of company/LLP
4. MoA that includes the objects of the company for which the company is going to be incorporated and the liability of the members of the company and Articles of the Association (AoA) that states the by-laws on which the company will work.

FAQs

Q.1 What is the company registration number in India?

Company Registration Number or Company Registration Number (CIN). This is the company's unique identification number.

Q.2 What is DSC in company registration?

DSC is a Digital Signature Certificate. Essential documents to complete company formation online.

Q.3 What is the minimum number of members needed to register a public company?

Public business must have at least seven members in order to be registered.

Q.4 How can I check the registration status of a company?

To find out if your company is registered or not, simply enter its name in our company search portal.

Conclusion

Now is the moment to keep informed and get expert help as laws and the business environment change. The process of registering any company in India has not only a legal role but is also a very important step in realising the entrepreneurial dream and contributing to the business enterprise mechanism of the nation.