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January 9, 2023
By
Reddy Mohith

Business Registration

In India, a businessperson can form one of seven various types of businesses and use the enrollment process in a variety of ways. However, every transportation mode must get registered with Indian governmental bodies. This company registration process is unique in the Indian economy and opens the door to new possibilities for individuals and groups of individuals.

The sky is the limit if you want to start a legitimate business in India. In recent years, India has strategically developed an accelerated business culture. There are seven different types of businesses and registrations in the Indian Republic. Your company can be in any industry or sector, and you can take advantage of various opportunities throughout India.

Once you make the wisest business decision, register your company with Indian ascendant entities. The business entity registration allows you to choose the business owners, taxation, compliance, and benefits. Read further to know more about company registration in India.

Different types of businesses in India

First things first, before you decide on your business idea, it is essential for you to understand which sector your business belongs to. Below are a few listings for reference

1. One-Person Company (OPC) or Sole Proprietorship

An OPC was introduced in 2013 and is the best way to begin a company if there is only a promoter or owner. It allows a sole proprietor to continue working while remaining a part of the company's framework.

2. Limited Liability Partnership (LLP)

An LLP is a distinct legal structure in which partners' liabilities are limited to their agreed-upon contribution. An LLP is formed with the Registrar of Corporations under the Public Limited Act of 2008. (ROC).

3. Private Limited Company (PLC)

In the eyes of the law, a PLC is regarded as a distinct legal entity from its founders. It has shareholders (investors) and directors (company officers). Every individual is considered a company employee.

How to perform a company registration in India?

A company registration and a trademark registration in India is a simple procedure followed by a couple of steps. There are 4-steps you must follow to register your company with the Indian government bodies.

1. Digital Signature Certificate (DSC)

Because the company registration process is internet-based, you must provide a digital signature to submit a registration form on the MCA portal. All proposed directors and subscribers to the Memorandum of Association (MoA) and Articles of Association must have DSC (AoA).

DSC is available from government-approved certifying officers. A description of such certificated authorities is available on the portal. However, you can obtain a DSC certificate online within 2days if you do not have one. The directors and subscribers of the MoA and AoA must obtain DSC in the Class 3 category.

2. Director Identification Number (DIN)

The Director Identification Number (DIN) is an identification number issued for a director, and it is essential for anyone aspiring to become the company's director.

The company registration application must contain details about the director's name, address proof, and the DIN identification number. You can also obtain the DIN number when filing the SPICe+ form (SPICe+ is a company registration form).

SPICe+ is a web-based company registration application through which you can get the DIN number for a maximum of three directors. If there are more directors in the company and they do not have a DIN, you can incorporate three directors, and you have to appoint new directors later on after incorporation. The appointed directors can obtain DIN by filing the DIR-3 form since only the proposed directors of an existing company can apply for DIN in the SPICe+ form.

3. MCA portal registration

You must complete the SPICe+ form on the MCA portal to apply for the company's registration. The company's director must first register on the MCA portal to submit the required documents and fill out the SPICe+ form. After registering, the director will get credentials to log in and access MCA portal services such as e-forms submissions and browsing public documents.

In addition, you must withhold the company's name by uploading two proposed titles in Part-A of the SPICe+ form. The reservation of the title is required because the SPICe+ form gets rejected if the corporation is related to the existing or registered company's name, LLP, or trademark or includes words barred under the Businesses (Incorporation Rules) 2014.

Note: You must re-file another SPICe+ form by paying the prescribed fee to reserve a new name if your application gets rejected due to non-approval of the company's name. However, once the name filed in Part-A of the SPICe+ form is approved, it will be confined for 20 days, during which the company must fill out Part-B of the SPICe+ form and submit it online. The applicant must fill out Part-B of the SPICe+ form with company and director information, attach files, submit DSC, check the application, and submit it.

4. Incorporation Certificate

The Registrar of Companies reviews your application once it has been completed and forwarded with the required documents. They will issue the Company's Certificate of Incorporation after verifying the application.

The PAN and TAN assigned by the Income Tax Department also get printed on the Certificate of Incorporation. On successful review, you will receive an email with a Certificate of Incorporation attached, as well as the PAN and TAN.

Documents required for the company's registration

1. Identification proof of all company's directors and shareholders

2. Address proof of all company's directors and shareholders

3. DIN and DSC of all the directors

4. The proof of the company's registered office

5. The Memorandum of Association (MoA) of the company

6. The Articles of the Association (AoA) of the company

Wrapping Up

To run a successful business in India, every company must register under government bodies. However, you need to understand the different business types in India to know which category your idea belongs to. Once you define your business industry, it is a matter of 4-steps to put an application for company registration.

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