How to register a Company in India
The compliance for company registration in India must go through explicit thorough
minute details and to avoid any penalties or failing into non-compliances, this
process needs to be handled with great knowledge and shall be given to the
organization that has great experience and the one where our trust resides.
We at Starters’ CFO
have made company registration services simple, easy to understand, with proper
documentation and clear guidelines that will assist any organization in
starting their business by following a set of rules and procedures that we
assist them with, and they only need to establish their trust and faith in our
company registration services.
We are a team of
individuals who have been dealing with company registration services for years,
so we are well aware of the process. We have a team of Chartered Accountants
and Company Secretaries who assist in making the entire process fully
compliant, as well as keeping us abreast of the latest laws and regulations
that make the company registration process go smoothly.
Registering the
organization and giving it a legal name is a very crucial decision. There are
various options concerning the registration of the company. Selecting the right
option as per your business activity is of utmost importance. When the right
enterprise is selected, business revenues and growth can be met.
As per mandatory
legal compliance, In India, we need to register a company.
Let us understand
the process and the types of company options one can avail of.
Types of Companies that can be
registered in India.
- One
Person Company.
- Private
Limited Company.
- Public
Limited Company.
- Limited
Liability Company.
Selecting the right business structure is extremely important, let us see
why a particular structure shall be selected.
One Person Company
If there is a
single person and has an entire single initial investment, the biggest benefit
it carries is that it requires only one person to become the main authority. It
can offer limited liability shareholders and is easy to operate and follow its
rules and regulations with one authority as the supreme one.
Private Limited
Company
It's intended for smaller
organisations. A minimum of 2 members and a maximum of 200 members are required
in the formation of a corporation under the Companies Act of 2013. Individual
members own shares in the company. Their
responsibility is restricted to the amount of shares they own. These
shares can be sold, and new members can be included in the company.
It can also be divided into three parts:
- Company
limited by shares.
- Company
limited by guarantee.
- Unlimited
Company.
Company limited by
shares - The liability of the company's shareholders is limited to the amount of
shares they own in this sort of business. If the debt is not paid, they will be
held liable.
Company limited by
Guarantee- In this type of company, the liability of the shareholders of the
company is not only limited to the amount but also the personal assets that
they give a guarantee of.
Unlimited Company- There is no liability on the members
in this case. If the company fails to pay debt here then the amount can be
taken by selling personal assets of the shareholders as well.
Public Limited
Company
This type of
company formation issues shares to the general public. This type of company
allows various investors and raises high capital and a company that needs to
expand more into varied projects, can sell stock easily to the public, raising
their funding helps them to capture markets.
Limited Liability
Company
The type of company
that is protecting the investors or owners of the business from their assets
and the entities that want a hybrid structure company formation can have this
option(partnership and Sole-proprietorship)Its regulations would vary from
state to state. The taxation aspects here bypass the profits to members and
then they file returns on their capacities.
The process of
Company registration is simplified and we at Starters’ CFO will provide a
glance of how it works from the process of applying, document creation and
registration, filing of various forms, directors registration, and all other
company-related activities are simplified.
Company
registration has to abide by the following procedure.
The details are
given complying with Section 7 of the Companies Act,2013.
- Filing
the papers with the registrar of the companies and obtaining Digital
Signatures
- Obtaining
DIN (Director Identification Number)
- Registering
the Company on MCA Portal
- Obtain
the certificate of Incorporation.
- Furnishing
of false information at the time of incorporation and any penalties if
levied.
We at Starters’ CFO help you in each process and
regulate each procedure with effective compliance measures so that laws are
followed and no penalties are levied.
Let us see how each
step is evaluated.
- Filing
of the papers with the Company Registrar
From legal to
documentation aspects, the entire process is facilitated with the help of a
team of experts of CS, Lawyers, and Chartered Accountants that minutely examines
the legal aspects.
A small glimpse of
the process:
- The
Memorandum of Association has to be signed by all the persons who intend
to become members of the company.
- The
person having the name in the articles also needs to sign the declaration
following the rules and compliance aspects are duly taken care of.
- The
other procedural aspects such as checking that no conviction has been done
concerning all the directors, and no fraud aspects are found in management
and the information is checked that it is true and correct.
- All
the individuals who are directors need to submit all the residential
proofs and if it's a body corporate then all the documents need to be
submitted.
Digital Signatures
are also an essential part of the company registration process. All the
directors that are proposed or subscribers of the memorandum and articles of
association.
2.
Obtaining DIN (Director Identification Number)
In the company
registration forms, every person who has to be the director of the company has
to submit all the details, address proofs with all the required details needs
to be submitted along with the registration form.
3.
Registering the company on MCA Portal
To apply for
registration, all the forms (SPICe+) forms have to be filled and submitted on
the Portal. For performing this procedure, the director of the company needs to
be registered on the MCA Portal. All the services can be accessed when a
director has DIN and other MCA Services and filing of public documents can be
done after having the DIN.
4. Obtaining
the certificate of Incorporation.
After filing every
document, which is thoroughly checked by the experts at CFO, we examine each
document to have a hassle-free procedure. The registrar of companies will
examine the application and will issue a certificate of Incorporation.
Documents that are
required for company registration:
- Photo
Id and Proof of Residence.
All
the necessary documents that are a Photo ID, residency proof, latest
Telephone
Bills,
Electricity Bills, Aadhar Card. It should be in the name of the directors of
the
company.
An additional thing that one needs to note is, if it's a foreign director, then
the
Passport
of that Embassy must be attached.
2.
Utilities(Active)Proof.
To
know ,whether the company is active in use, then utility bills such as
telephone bill
The
electricity bill must be registered in the name of the company. It is always
advised that the latest Bill must be submitted.
3. Agreement
of Rent and NOC from the owner.
The premises on
which the company has to be set up will have a rent agreement that has all the
information in a true sense along with a NOC from the owner that will help to
abide by all the rules legally and complete the registration process.
4. PAN Card
of every director
It
is essential to submit the PAN Card of every director,as guided by income tax,
which is also
mandatory
document for the company registration process.
Let us examine the penalties
if one fails to obtain registration or does not obtain registration through
legal means.
We at Starters’ CFO
assure that the registration is legally compliant and the person is saved from
bearing heavy penalties and following a smooth procedure of the company
registration process.
- Section
4 - Furnishing incorrect information while applying for the company name.
Defaulter-
The person who violated this rule.
Civil
Liability - Maximum of Rs 1 Lakhs.
- Section
7 - Furnishing incorrect information or hiding important facts during
registration.
Defaulter-
The person who violated this rule.
Civil Liability- Minimum of the amount that is fraudulent to a Maximum of 3 times of amount about fraud.
Criminal
Liability -Min -6 Months and Maximum 10 years
* Note that in case of criminal liability if public interests are affected then minimum tenure shall be 3 years.
Thus ensure your
faith in us and we legally approach the Registration process and save our
clients from bearing such penalties.
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