Updated: Aug 26, 2021
Registering a company in India can be done online. There are only 3 simple steps that need to be followed to do this. Before beginning the registration process, however, the persons interested in starting a company must first decide what business structure they prefer, as each structure comes with different requirements.
There are 4 main business structures in India:
One Person Company (OPC) - This structure is most suited to a business which runs with a single owner. OPC is an upgraded version of sole proprietorship having a limited liability. This is suitable for business units that intend to run their businesses without raising funds through shares or securities from third parties.
Limited Liability Partnership (LLP) - In an LLP, the partners liability is limited to only their agreed contribution. LLP is an upgraded version of the partnership firm. This is also suitable for the business units that intend to run their businesses without raising funds through shares or securities.
Private Limited Company (PLC) - A PLC is regarded as a separate legal entity from its founders, directors and shareholders. This is the most preferred type of structure in India, here business units raise funds including sale of business. Corporate tax applicable to PLC is also lesser than other types of structures available.
Public Limited Company - A public limited company is a voluntary association of individuals and has a separate legal existence. The liability of the members is limited to the value of the shares that they hold. Here business units can raise funds from the public.
Those who are interested in starting a company must choose what kind of business structure that they want as taxation and compliance varies based on the structure. The ability to raise funds from an investor may also be affected by what kind of structure the business is. A private or public limited company for example would be more attractive than an OPC.
Once the structure is chosen, there are only 3 steps to follow in order to incorporate a company:
Pre-requisite documents - In order to register a company the director and shareholder should keep certain documents ready with them. They are:
a. PAN and Aadhar Card.
b. Director identification number if available, or else latest Bank statement or utility bill.
c. Email ID and mobile number.
d. Digital signature.
e. Registered office address and latest electricity bill or telephone bill for the address.
f. Name for the company and nature of business the entity will carry on.
2. Signing company incorporation documents:
There are certain documents that must be signed while applying for incorporation. The required documents are:
Declaration related to non acceptance of deposits.
DIN declaration (If already allotted DIN).
Consent letter to act as a Director.
3. Submitting for incorporation:
The documents mentioned in point 1 and 2 will be attached to Spice + form in www.mca.gov.in and the relevant details and documents are to be filled in Spice + form. In the Spice + form Memorandum of association and Articles of association is available in digital form, same needs to be duly filled and digitally signed by the promoters and professional. The Spice + form must be submitted to the Central Registration Center for incorporation approval. After scrutinizing the application Govt. will issue incorporation approval letter. Along with Incorporation PAN, TAN, DIN for the Director, GST, ESI and PF registration certificate will be issued by Govt.