How Did I Register My Company?

Confused about which company structure to choose? Try out our tool to decide!

Picking the right company structure for your business is as important equally whatsoever other business concern-related activeness. The right concern structure will allow your enterprise to operate efficiently and encounter your required business targets. In Bharat, every concern must annals themselves as role of the mandatory legal compliance. Before nosotros learn how to register a visitor, let's try and empathize the types of business structures in India.

Comparative List of Different Types of Business Structures in India

Here is a comparative list of the popular business organisation structures in Republic of india.

Company type	Ideal for	Tax advantages	Legal compliances
Limited Liability Partnership	Service-oriented businesses or businesses that accept low investment needs	Do good on depreciation	Business tax returns to be filed ROC returns to be filed
Ane Person Company	Sole owners looking to limit their liability	Tax holiday for kickoff 3 years nether Startup India College benefits on depreciation No tax on dividend distribution	Business organization returns to be filed Limited ROC compliance
Private Limited Company	Businesses that have a high turnover	Tax holiday for first 3 years under Startup Republic of india Higher benefits on depreciation	Business taxation returns to be filed ROC returns to be filed An audit is mandatory
Public Limited Company	Businesses with a high turnover	Tax exemptions nether	Business organization tax returns to exist filed. Mandatory Audits

What are the types of business structures in India?

Allow's try and empathize the types of business structures available in India. Here is a listing of some of them:

One Person Company (OPC)

Recently introduced in the year 2013, an OPC is the all-time style to start a company if there exists but ane promoter or possessor. It enables a sole-proprietor to carry on his work and still be part of the corporate framework.

Express Liability Partnership (LLP)

A separate legal entity, in an LLP the liabilities of partners are only limited only to their agreed contribution. An LLP is established under the Express Liability Deed, 2008 with the Registrar of Companies (ROC).

Private Express Company (PLC)

A PLC in the optics of the law is regarded equally a split up legal entity from its founders It has shareholders (stakeholders) and directors (company officers). Each private is regarded as an employee of the company.

Public Limited Visitor

A Public Express Company is a voluntary association of members which is incorporated nether company constabulary. It has a separate legal existence and the liability of its members are limited to shares they agree.

You tin can choose what business construction suits your business organisation needs all-time and accordingly register your business.
Other forms of business structures include Sole proprietorship, Hindu Undivided Family, and Partnership firms. Please behave in mind, these structures do non come under the ambit of company law.

Why is it important to cull the right business structure?

It is important to choose your business structure carefully every bit your Income Tax Returns will depend on it. While registering your enterprise, retrieve that each business concern construction has different levels of compliances that need to exist met with. For example, a sole proprietor has to file only an income tax return. Withal, a company has to file an income tax return as well as annual returns with the Registrar of Companies.

A company'southward books of accounts are to be mandatorily audited every year. Constant by these legal compliances requires spending money on auditors, accountants and tax filing experts. Therefore, it is important to select the right business construction when thinking of company registration. An entrepreneur must take a clear thought of the kind of legal compliances he/she is willing to deal with.

While some business organization structures are relatively investor-friendly than others, investors volition ever prefer a recognised and legal business organisation structure. For example, an investor may hesitate to give coin to a sole proprietor. On the other hand, if a good business organization thought is backed by a recognised legal construction (like LLP, Company, etc) the investors volition be more comfortable making an investment.

How to choose a business structure while applying for visitor registration in Republic of india?

Let'southward accept a wait at some important questions every entrepreneur must ask himself before he/she finally decide upon a business concern construction.

How many owners/partners will your business concern accept?

If you are a unmarried person who owns the unabridged initial investment required for the business, a Ane Person Visitor would be ideal for yous. On the other hand, if your business concern has ii or more owners and is actively seeking investment from other parties a Limited Liability Partnership (LLP) or Private Limited Company would accommodate you best.

Should your initial investment determine your choice of business concern construction?

If you desire to spend less initially, it would exist wise to go in for a Sole Proprietor, or HUF or Partnership firm. But, if you are certain that y'all will be able to recover the setup and compliance costs, you tin can opt for a 1 Person Company, LLP or a Private Limited Visitor

Willingness to conduct the entire liability of the concern

Business structures like sole proprietor, HUF, and partnership firm accept unlimited liability. This means, in instance of whatsoever default in loans, the entire money will be recovered from the members or partners in turn a profit sharing ratio. The take chances to personal assets is high in these cases.

Whereas, Companies and LLPs have a limited liability clause. This means that the liability of its members is restricted to the corporeality of contribution made by them or the value of shares each fellow member holds.

Income Tax Rates Applicable to businesses

The income tax rates applicative to a sole proprietorship and a HUF are the normal slab rates. In the case of a sole proprietorship, the business income is clubbed with the individual's other income. But in the case of other entities similar partnership firm and company a tax charge per unit of 30% is applicative.

Plans of getting money from investors

As mentioned earlier, it is difficult to get investments when your business organization structure is unregistered. Entities similar LLP and Private Limited Visitor are trusted when it comes to investment. Make sure you choose the correct structure, seek the help of an practiced and so that you register under proper guidance.

How to Register a Company in Republic of india?

Registering a company in India is now a simple 4-step process-

Stride ane: Digital Signature Certificate (DSC)

As the registration procedure of the company is completely online, Digital signatures are required to file the forms on the MCA portal. DSC is mandatory for all the proposed directors and the subscribers of the Memorandum of Clan (MoA) and Articles of Association (AoA).

DSC tin can exist obtained from government recognised certifying government. The list of such certified government can exist accessed here. DSC can also be obtained online in just two days from here. Class iii category of DSC must be obtained by the directors and subscribers of MoA and AoA.

Pace 2: Director Identification Number (DIN)

The Director Identification Number (DIN) is an identification number for a manager and it has to be obtained past anyone who wants to exist a managing director in a company. The DIN of all the proposed directors of the company forth with the name and the address proof are to be provided in the company registration class. DIN tin can be obtained while filing the SPICe+ form, i.e. company registration form.

SPICe+ is a web-based company registration form, through which DIN tin can be obtained for a maximum of iii directors. If there are more directors in the company and they practice not have a DIN, the company can be incorporated with three directors and it has to engage new directors later on after incorporation. The appointed directors can obtain DIN by filing the DIR-three form since only the proposed directors of an existing company can utilize form DIR-3.

Step 3: Registration on the MCA Portal

To utilize for company registration, the SPICe+ form is to be filled out and submitted on the MCA portal. To fill out the SPICe+ form and submit documents, the director of the visitor has to annals on the MCA portal. After registration, the director can log in and will obtain access to the MCA portal services which include filing e-forms and viewing public documents.

The company must besides reserve its name by submitting two proposed names in the Part-A of the SPICe+ form. The reservation of the name is essential because if the company proper name is similar to the proper name of an existing/registered company, LLP, trademark or it contains words prohibited under the Companies (Incorporation Rules) 2014, the SPICe+ class will become rejected.

If the SPICe+ class gets rejected due to not-approving of the company proper noun, the bidder has to re-file another SPICe+ course for the reservation of a new name by paying the prescribed fee. However, after the approval of the proper noun filed in Office-A of the SPICe+ course, it will be reserved for a menses of 20 days inside which the visitor must fill Part-B of the SPICe+ form and submit the form online. The applicant must provide the details of the company and directors in the Part-B of the SPICe+ form, adhere documents, attach DSC, check the grade and submit it.

Pace 4: Certificate of Incorporation

Once, the registration application is filled and submitted along with the required documents, the Registrar of Companies volition examine the awarding. Upon verification of the awarding, he will issue the Certificate of Incorporation of the Company.

The Certificate of Incorporation is issued with PAN and TAN as allotted by the Income Tax Section. An electronic mail with Certificate of Incorporation as an zipper along with PAN and TAN will besides be sent to the applicant.

With this, nosotros accept covered the nuts of how to register a company.

Documents required for Company Registration

The general documents that are to be submitted for registration of LLP, 1 Person Company, Individual Limited and Public Limited Visitor are as follows:

Documents of the Directors and Shareholders of the company/ Partners of the LLP

Proof of identification of all the company'southward directors and shareholders (partners in case of LLP). Whatsoever i of the below documents tin be submitted as proof of identification:
- Pan card
- Aadhar bill of fare
- Driving license
- Passport
Proof of address of all the directors and shareholders (partners in case of LLP). Any one of the below documents tin can exist submitted as address proof:
- Latest telephone bill (not older than 2 months)
- Latest electricity nib (not older than 2 months)
- Bank account statement having address
DIN (DPIN in case of LLP) and DSC of all the directors (partners in case of LLP)

Documents of the Company/LLP

Proof of registered function of the company. The beneath documents must exist submitted as address proof of the company:
- Tenancy/rental understanding between the landlord and company/LLP
- Alphabetic character or NOC from the landlord of his/her permission to utilize the office/premises as the LLP's/visitor's registered function.
- Sale act of the company/LLP role premises in the name of the company/LLP
The Memorandum of Association (MoA) which contains the objects of the company for which the company is going to be incorporated and the liability of the members of the company.
The Articles of the Association (AoA) which lays down the by-laws on which the company volition operate.

For more details nigh documents required for incorporating a I Person Visitor, read our commodity on documents required for 1 person visitor registration.

For more details most documents required for incorporating a Private company, read our commodity on documents required for private express company registration.

For more details about documents required for incorporating a Public company, read our article on documents required for public express company registration.

For more details most documents required for incorporating an LLP, read our article on documents required for LLP registration.

How ClearTax Helps in Simplifying Visitor Registration Process?

With ClearTax, yous tin establish your visitor seamlessly in but ten days (bailiwick to departmental approvals). Our company registration bundle includes:

Name approval of your visitor
Obtaining DIN for two directors
Filing SPICe+ course
Payment of Stamp Duty for authorized capital up to Rs.1 lakh except for the states of Punjab, Madhya Pradesh and Kerala
Issuance of Incorporation Certificate along with PAN and TAN
Opening of current business relationship for your company

The company registration from ClearTax is completely online and thus, y'all can save time and money as you lot do not have to visit our office. Plus, you tin can register your visitor in just 4 unproblematic steps, which are:

Pace one: P urchase the programme

Purchase our visitor incorporation plan that suits you the best. You tin fifty-fifty chat with our experts by entering your email, phone number and clicking on the 'Asking a Callback' button. Yous can also contact us by sending an e-mail with your queries at enquiries@cleartax.in. Our experts will contact you lot and clear all your queries.

Step 2: Upload the documents on our website

Upload the required documents on our website. The uploaded documents are will be stored safely in our vault and 100% privacy is maintained.

Stride 3: Document verification by our experts and signature of documents

Our experts volition verify the documents uploaded by you. You lot will need to adjure your signature on the documents.

Step 4: Our experts will file the grade on the MCA portal

Our experts will file the company incorporation class on behalf of you on the MCA portal. After the company incorporation grade is filed on the MCA portal, the ROC and the respective departments will verify the forms submitted by our expert. The verification process takes around 10 days (subject to departmental approval and reverts from the corresponding departments).

Our experts will follow up with the respective authorities till y'all receive the Incorporation Document. After the verification procedure is complete, you volition receive the Incorporation Certificate forth with PAN and TAN in about 10 days.

Checklist for Company Registration

Minimum number of directors/partners, which are as follows:
- Minimum of ane managing director for OPC
- Minimum of two directors for PLC
- Minimum of 3 for Public Limited Visitor
- Minimum of two partners for LLP
Minimum number of members in a visitor, which are as follows:
- Minimum of one member for OPC
- Minimum of two members for PLC
- Minimum of 7 members for Public Limited Company
DSC for all designated directors/partners.
DIN for all directors of a visitor/DPIN for all designated partners of LLP.
Name of the company/LLP, which is not similar to any existing proper noun of a company, LLP or trademark.
Authorised capital letter in instance of an OPC, PLC or Private Limited Company.
Capital letter contribution by the partners of the LLP, in the case of LLP.
MoA and AoA in case of an OPC, PLC or Private Limited Company.
LLP agreement betwixt the partners, in the case of LLP.
Proof of registered role of the company/LLP.

What is the Cost for Company Registration?

Program amount for OPC Registration – ₹6999*

Programme amount for LLP Registration – ₹6999*

Programme amount for PLC Registration – ₹7999*

* Prices shown above may vary. Please click here to contact our experts for complete pricing details.

Cost of Public Express Visitor Registration – Rs.10,000 – 30,000*

*The price varies depending on the authorised capital, professional person fees, stamp duty and the number of directors and members.

Benefits of Company Registration in India

A visitor registration provides many advantages. A licensed company makes it genuine and enhances the business organisation' credibility.

Protects against personal obligation, and defends against other threats and losses.
Builds goodwill and also supports more customer allure
Gives reliable investors banking concern credits and expert investment with ease.
Provides cover of the responsibility to protect the company'southward assets
Bigger commitment to wealth and greater stability
Increases the power to develop and grow large

For a detailed understanding well-nigh the advantages of obtaining a company registration, read our article on the Advantages of Visitor Incorporation.

Name and Uppercase of the Company

Choice of Company Name

The name of the visitor should exist proposed in the Course SPICe+ 32 application. Only i preferred proper noun forth with the significance of keeping that name can be given in the Form SPICe+ 32 awarding.

The type of entity and one proposed name for the visitor is to be entered for reserving the proper noun of the visitor. The proposed proper noun should not be similar to the existing name of any company or LLP or Trademark. If the name gets rejected, another name can be submitted by applying some other Form SPICe+ 32 application and paying the prescribed fees.

An OPC should have the proper noun in the form of "XYC (OPC) Private Limited". Similarly, a private company should take the name in the form of "XYZ Pvt. Ltd." and a public company proper noun in the grade of "XYZ Limited".

Capital of the company

There is no requirement of minimum paid-up uppercase to showtime a private express visitor or a i-person company. Still, the public limited company must have a minimum paid-up capital of Rs.5 lakh.

The paid-up capital means the amount of money a company has received from shareholders in commutation for shares of the visitor. It is created when a visitor sells its shares in the market straight to investors, usually through an Initial Public Offering (IPO).

The authorised capital of any visitor must be Rs.ane lakh. The authorised uppercase means the maximum amount of share capital letter that the company is authorised by its Memorandum of Association to result to its shareholders. The authorised capital must exist mentioned in the MoA.

Compliances to be followed by the Company

Once, the visitor is registered there are sure compliances to be followed by the company annually. The company needs to follow compliances such as the Company is required to appoint its commencement auditor within 30 days of incorporation In the first board coming together. Every company must conduct minimum of iv board meetings during the calendar year at stipulated intervals.

Information technology has to maintain and file of profit and loss account, almanac return and remainder canvass every fiscal year together with an auditor's report earlier the due date with the Registrar of Companies. Every company is required to maintain certain Statutory Registers.

For more details almost compliances to be followed by the company, read our article on Compliances nether the Companies Act 2013.

The visitor needs to file certain annual forms with the Registrar of Companies. Details of all forms along with the due date of filing these forms are given in our article ROC Compliance Calendar.

Summary

Company registration involves a lot of processes. Earlier registering a company i should decide on the structure of the company, i.e. if the visitor is to be registered every bit an OPC, LLP, PLC or Public Limited Company. Afterward deciding on the structure, the visitor name must be decided and the directors of the company need to obtain DIN and DSC before applying for company registration.

Later on choosing the visitor proper name and obtaining DIN and DSC, the company registration grade must be filed on the MCA portal. The SPICe+ form, i.e., company registration form, must be filled, the required documents must exist uploaded and submitted online on the MCA portal forth with the prescribed fees. Later on verification of the SPICe+ form, the ROC volition issue the company incorporation certificate. The incorporation certificate is proof of registration of the company and the visitor will come into being as a carve up legal entity.

Frequently Asked Questions on Company Registration

Where tin I register my company?

If y'all intend to register a new company in Republic of india, yous must submit an application to the Ministry building of Corporate Affairs (MCA). Y'all make the application online at the MCA portal remotely also. For registration, y'all'll demand a Digital Signature Certificate(DSC), and Managing director Identity Number(DIN), among other things.

What happens if my company proper name is already taken?

The Ministry of Corporate Diplomacy (MCA) that maintains a tape of registered company names, you lot'll have to admission that directory and check if your company proper name is already registered. If the company name appears in the company registration directory, you lot'll have to choose some other name. If you have already made an application, you'll have to make another application for a different name that is previously not registered.

Can a foreign national exist a director of a visitor?

Yes, as per the Indian company law, a foreign national can be a manager of a company registered in India. However, he must fulfil all the criteria laid down in the Human action. The most of import existence allotment of a Director Identification Number (DIN).

Any person, including a foreign national, appointed as a Managing director cannot act in the capacity of a Manager unless he/she gives it formally in writing. This can be washed by filing Form DIR-2 within xxx days of existence appointed every bit the director.

How many days does it have to annals a company?

The new changes brought about past the MCA have made it like shooting fish in a barrel to register companies of any nature with the regime. Provided that you have all your documents in place, it tin can have anywhere between ten – 15 days to register your visitor formally.

Is a physical presence of a person needed for company registration?

The unabridged procedure is completed online, so you lot don't take to be present at any particular identify for registration. A scanned re-create of the documents must be submitted via postal service. At the business address, they receive the company incorporation certificate from the MCA.

How do I bank check if my company is registered or not?

You tin can check the status of the company registration on the MCA website. To bank check the status of your company, you need to go to the 'MCA Services' tab and select the 'View Company/LLP Master Data' from the drop-downwards list. And so enter the visitor's CIN and click 'Submit'. The verbal condition of your company volition be displayed.

Is the company registration process completely online in India?

Yeah, the company registration is completely online. A company or an LLP tin be registered merely through the MCA portal. The scanned documents of the visitor/LLP are sent by mail service to the MCA and they are processed at the Fundamental Registration Eye (CRC) which acts as a dedicated back office for Visitor and LLP Registration process. Upon completion of registration, the visitor/LLP receives a digitally signed Document of Incorporation which can exist verified by all the stakeholders on the MCA website.

Does a individual limited visitor accept continuous existence?

Yes. Since a private limited company has perpetual succession, information technology has continuous existence. Perpetual succession means a company will continue to be a legal entity irrespective of the decease of the founder/promoter or whatever managing director of the company. Thus, a company will be in being until it is dissolved for the reasons stated in the Companies Act, 2013 or until the Board and shareholders decide to air current up or close the visitor.

Is it necessary to take a company's books audited?

Yep. Every company, whether private or public or ane person company, must mandatorily conduct statutory audits of its books. The company must get its volume audited every yr from the auditor of the company and the audit report must be submitted past the accountant to the Board earlier conducting the company AGM.

What are articles of association and memorandum of association?

The articles of association lays downwards the internal rules and regulations of the company. It consists of the engagement of directors, audit and accounts, borrowing powers, winding up procedure, etc. The memorandum of association contains the v essential details about the company, which are company name, registered office, liability of members, object for which the company is formed and majuscule details. The articles of association are subordinate to the memorandum of association of a company.

Can the director of a private limited company be a salaried person?

Salary is non directly provided to a director of a private limited company. However, the Companies Human activity, 2013 provides that directors can exist given remuneration by the company. Remuneration means whatsoever money or its equivalent given to the director for the services rendered by him. Thus, the salary provided to a director will be known as remuneration provided by the company for the services rendered by him/her.

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