According to Section 3 of Companies Act, a company is a legal entity registered and formed under the 1956 Companies Act. New Company Registration is a primary step for any business organization. To protect your business and secure your rights, a new company registration is essential. There are various forms/constitution of businesses available that one can register with. The choice of the constitution would depend upon the specific need of the applicant. New company registration of business allows you to meet various government norms and also helps in getting finances from the bank, provide a unique identity to the business and allows other benefits from various government schemes. This is also the first step if you wish to start a business online.
You should be clear about the type of your startup before choosing an appropriate constitution. It is also necessary to be aware of the technicalities, benefits, pros & cons of each type prior to registering to incorporate your entity under a specific business type.
Before having a new company registration, you should have a clarity on the kind of business you are into, your goals and objectives since each of these types come with their own legal implications. There are five main types of companies you can register in India namely Sole proprietorship, Private limited, Public limited, Partnership and Limited liability partnership.
Advantages of New Company Registration.
New Company registration offers many benefits. A registered company increases the authenticity of your business.
➭ It shields your business from personal liability and protects from other risks and losses.
➭ More customer attraction.
➭ A company happens to be a legal entity, independent and distinct from the individuals who from time to time function its members.
➭ More capital contribution and greater stability
➭ Increases the potential to grow big and expand
Documents required for new company registration in India
Below are the major documents required for new company registration in India:
➢ Digital Signature Certificate (DSC)
➢ Director Identification Number (DIN)
➢ Getting Registration on the MCA Portal
➢ Certificate of Incorporation
Apart from the above documents, you will also require documents that’ll represent your Company’s office address, PAN number, GST registration, ROC registration, PT registration, PF registration, and ESIC registration while having new company registration.
How to get Digital Signature Certificate (DSC)
For ensuring the security or authenticity of documents filed electronically the information act 2000 demands a valid digital signature on the documents submitted electronically. This is the only and safest way that one can submit their documents electronically. The digital signature certificate is very important for new company registration and should be acquired by only those agencies which are appointed by the controller of certification agencies (CCA). One should not use DSC given by any other agency which is not approved and it’s illegal to use others DSC as yours or the false one.
If you already have a digital signature then you can use the same, no need to apply another one for new company registration. But do check for your digital signature validity, agencies issue DSC’s with one or two year validity after expiry you have to renew it.
Depending upon the type of applicant, the documents required to obtain DSC for new company registration will differ.
Documents required by Indian Residents for DSC
➭ ID Proof, PAN Card of the Applicant
➭ Bank Account Passbook & Bank Statements signed by the bank (should not older than 3 Months)
➭ Address Proof, Passport & Driving Licence
➭ Registration Certificate
➭ Post Office ID Card
➭ Voter ID Card and Aadhar Card
➭ A photo ID card (Issued by the Ministry of Home Affairs of State/Centre Government)
➭ Any Government-issued photo ID card which bears the applicant’s signature
➭ Electricity Bill & Water Bill (should not be older than 3 Months)
➭ Sales/Service/VAT Tax registration certificate
➭ Municipal Corporation/Property Tax Receipt
Documents required by Foreign Nationals for DSC:
➭ ID Proof
➭ Attested copy of Applicant Passport & VISA
➭ Address Proof
➭ Attested copy of any other Address proof issued by the Government
➭ Attested copy of Resident Permit certificate.
How to get DIN (Director Identification Number).
It is a must process in new company registration that each director of the company should obtain their identification number. As per the amendment act 2006, acquiring a DIN is compulsory for every director i.e. as such every existing and intending directors have to obtain their DIN. To get DIN one needs to file an eForm DIN-1. The DIN-1 form is available on Official site of the ministry of corporate affairs. The steps are as follows :
Move 1 - Register yourself on MCA Website first and have a login id. After filing DIN-1 Form, one should upload the filled form by clicking the eForm upload button on MCA website and should pay applicable fees.
Move 2- After getting generated DIN one should intimate their company about DIN. The director can intimate their company about DIN by using DIN-2 Form.
Move 3 - Then the company should intimate the Registrar of Corporates(ROC) about all director’s DIN through DIN-3 Form.
Move 4- If there is any change in DIN or need for any update like change of address, personal details etc, then director should intimate this change by submitting the eForm DIN-4 Form.
Registration on the MCA Portal
Having a registered user account on MCA Portal is necessary before applying for new company registration. Creating an account is totally free of cost and it is important for filing an eForm, for online fee payment, for different transactions as registered and business users.
Applying for new company registration.
We’ve reached the final major step in the new company registration process which includes incorporating company name, registering the office address or situation of office and notice for appointment of company directors, manager and secretary. And also regarding the take and pay for their qualification shares.
After submitting the major forms aforementioned, once the application has been approved by MCA, you will receive a confirmation email regarding the application for incorporation of a new company, and the status of the form will get changed to “Approved”.
You should thoroughly check the following important documents related to new company registration before submitting:
➭ DIN of all those directors of a proposed company.
➭ DSC – Digital Signature Certificate
➭ Original copy the of formal letter issued by ROC regarding availability of Company
➭ Form-1 for incorporation of a company.
➭ Form-18 for situation or address of the proposed company.
➭ Form-32 for particulars of proposed directors, managers and secretary.
Once all the steps above have been successfully completed, the investors will receive the certificate of incorporation. There are certain formalities to be followed while company Incorporation which are:
➭ A Permanent account number (PAN) from income tax dept. India and a TAN card
➭ Documents obeying shop and establishment acts. (If required)
➭ For foreign trade, Registration documents of import export code from Director, General of foreign trade. (If required)
➭ Registration documents of Software technologies Parks of India (STPI). (If required)
➭ RBI approval for foreign companies investing in India and FIPB approval. (If required)
➭ Both Indian and foreign directors need to have valid Digital Signature Certificates from authorized agencies.