To make sure you follow all the rules, it’s vital to take some steps when starting a business in India. You can do several essential things for your business when registering it. This guide will help you figure out how to register a company in India and pick the best structure.
Own a Company in India: Start with the Registration Process
These steps are significant if you want to know “How to Register a Company in India.” To start your business, you need to do several things. To help you understand, let’s talk about it:
1. Pick a Business Structure
The right way to set up your business will rely on your needs and goals. Several prevalent designs include:
- Sole Proprietorship
- Partnership
- Limited Liability Partnership (LLP)
- Private Limited Company (PVT Ltd)
2. Obtain the DSC and DIN
All the directors of your Indian company must have a Digital Signature Certificate (DSC) and a Director Identification Number (DIN) to start a firm.
3. Approval of Name
You can register a company in India by applying for a name on the Ministry of Corporate Affairs (MCA) website. Ensure that the name adheres to the guidelines established by the MCA.
4. Put in Documents for Incorporation
You need to upload the following documents on the MCA website:
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- Proof of registered office
- Identity and address proof of directors
5. Get an Incorporation Certificate
You’ll receive a Certificate of Incorporation (COI) when everything’s sorted out. It assures you’ve signed up for the company.
6. Compliance After Forming a Company
Once you’ve signed up, don’t forget to open a bank account and register for:
- GST (Goods and Services Tax),
- PAN (Permanent Account Number), and
- TAN (Tax Deduction and Collection Account Number).
Establishing a company in India and making it great will be easier if you follow these tips.
Cost of Registering A Company in India
You should know how much you must spend establishing a company in India. The costs vary based on the type of business, professional fees, and government fees, among other things. Here’s how it works:
Government Fees
The government charges different fees to register a company in India depending on how much capital it has. For example:
- Private Limited Company: Approximately ₹10,000 to ₹30,000
- Limited Liability Partnership (LLP): Around ₹500 to ₹2,000
- Sole Proprietorship: There are no specific fees; you need to pay mainly for GST registration if you need it.
Fees for Professionals
You usually need professional help to register, like from Chartered Accountants (CA) or Company Secretaries (CS). Fees can be anywhere from ₹5,000 to ₹50,000, based on how complex the case is.
Extra Costs
- Digital Signature Certificate (DSC): ₹500 to ₹1,500 per director
- Director Identification Number (DIN): ₹500 per director
- Name Approval: ₹1,000 per application
If you plan for these costs, you can make a good budget for registering a company in India.
Registering a PVT Ltd Company in India: The Complete Process
You should now know “How to Register a Company in India,” so let’s go on to the next part. The first thing you need to do is decide the legal arrangement for your business. We have already mentioned them above. A private limited company is among the most often used forms of business structure.
A private limited company is popular because it provides advantages like restricted liability and simple money-raising tools. These essential steps will help you form one of India’s best Private Limited Companies.
1. Get ready with documentation
Check to see whether you have all the necessary documents, that include:
- Aadhaar Cards of the directors
- PAN Cards of the directors
- Documents for Directors’ Addresses
Proof of the company’s license, such as an electricity bill or rent agreement
2. DSC and DIN
Each director is required to submit:
- Digital Signature Certificate
- Director Identification Number
Both of these documents are crucial for register a company in India.
3. Acceptance of the Name
On the MCA website, fill out the SPICe+ form. The name has to be special and follow the rules the MCA sets.
4. Filing for Incorporation
Use the SPICe+ form to send in the incorporation papers, such as the MOA and AOA.
5. Get the Certificate of Incorporation
You’ll get the Certificate of Incorporation when the MCA approves the application.
6. Formalities after Incorporation
Sign up for GST, open a business bank account, and make sure you file your taxes on time.
If you follow these steps, it will be easy for you to set up a PVT Ltd company in India.
Importance of Hiring a Professional CA to Register a Company in India
Even though you can start a business on your own in India, you should really hire a Chartered Accountant (CA) or a lawyer for these reasons:
- Advice from experts: When you want to know how to register a company in India, a chartered accountant (CA) can help you do it right and make sure that all the legal requirements are met.
- Proper Documentation: The major documents you need to present are the Articles of Association and the Memorandum of Association. An expert CA verifies that all forms and documentation are accurate.
- Simple Process: The process is simple, but navigating the MCA website and engaging with government staff could take some time. Getting a CA speeds up the process and keeps you from having to do extra work.
Conclusion: How to Form a Company in India
You need to know how to register a company in India if you want to start your own business there. This comprehensive guide tells you everything you need to know, from the prices and steps to what a CA does.
So, if you want to know how to register a company in India, you should plan and get professional help from the experts at VJM Global. If you do this, you’ll be ready to make your business idea come true. Best of luck with your plan!
