Tag: Company Registration

Categories
Startup

How to Register a Private Limited Company: Things you Must Know!

business registration in india
business registration in india

From a handful of tech-ventures to 29K startups in 2014 to around 55K startups by the end of 2020, The Indian startup system has developed and grown by leaps and bounds in the past decade.

Although the COVID 19 pandemic has delivered a brutal blow to the startup system, it has also acted as a catalyst for many to reimagine, recreate, reengineer, refocus, and reappear.

With around 12 Indian start-ups joining the league of Unicorns in 2020, more and more local entrepreneurs are pushing themselves to become self-reliant.

According to the Department for Promotion of Industry & Internal Trade, there were around 24,927 companies were recognized as startups in November 2019. And during the pandemic, the Indian startup ecosystem has emerged even stronger with 39,114 new startups in early November 2020.

reference https://inc42.com/resources/registering-your-company-a-step-by-step-guide/

If you are planning to start a business and register it as a private limited company, here are the key steps that will ensure a successful company registration in India.

But first things firsts! What exactly is a private limited company?

A private limited company is a privately-held business entity. Though it is held by the private stakeholders, the partnership extends only up to the number of shares held by them. The governing body for such a company is the Ministry of Corporate Affairs (MCA).

Here is a list of mandatory things for the company registration process:

Members & Directors: For a company to get registered, it must show a minimum number of two and a maximum number of 200 members. This requirement is mandatory according to the Companies Act 2013.

Name of the company: This is often considered the most technical task, which is also the most difficult. A private limited company is required to cover the three aspects while deciding a name such as Main name, Activity to be carried out, and mention of PVT. Ltd in the end.

Registered office address: The permanent address of the registered office must be filed in the registrar of the company, once the company has been registered.

Important Documents: For electronic submission of documents, the registered company must obtain a digital signature certificate. A digital signature certificate helps to verify the authenticity of the documents.

Steps to form a Private Limited Company:

Step 1. Obtain DSC (Digital Signature): As we mentioned earlier, DSC is required to file the forms for company formation. It is mandatory for all the subscribers and witnesses in the memorandum and the articles of association. As the company registration process is online, the forms require a digital signature.

Step 2. Apply for DIN (Director Identification Number): DIN is an identification number for a director. The business owner who wants to be a director of the company must obtain DIN. One DIN is sufficient to be a director in any number of companies.

Step 3. Name Approval: Decide a name and apply for the registration. There are two methods- RUN (Reserve Unique Name) and SPICe (INC-32). In the first method, the applicant gets only a single chance. Once rejected, the applicant will not get a second chance to apply. The applicant will have to re-file another RUN with the prescribed fee.

In the case of SPICe, the applicant will get a second chance of approval, in case of rejection due to the non-approval of the name.

Step 4. E-MoA (INC-33) and e-AoA (INC-34): e-MoA refers to an electronic Memorandum of Association and eAoA is electronic Articles of Association. These forms were introduced to simplify the company registration process in India.

Memorandum represents the charter of the company, while articles of the association represent the internal guidelines, rules & regulations of the company.

Step 5. PAN & TAN Application: Through form SPICe, an applicant can also apply for the company`s TAN and PAN. Form 49A is used for PAN, and form 49B is used for TAN. Once you have submitted the form SPICe, the system will automatically generate these forms.

You can download the forms from the website, affix them with digital signatures, and upload both the forms on the portal of the Ministry of Corporate Affairs (MCA). After MCA will approve the registration, a Corporate Identity Number (CIN) will be allocated. You can track CIN online on the MCA portal.

We hope the above-mentioned steps will guide you through the company registration process. However, getting your company registered is just the first step.

To ensure that your business grows and prospers in the future, you will need to take care of various other aspects related to business. For that, you will need proper guidance and smart strategies. Take our Everything about Entrepreneurship course to learn the business dynamics.

Click here: https://www.badabusiness.com/?ref_code=ArticlesLeads to learn from the experts!

 

Categories
Business motivation

6 Steps To Register Your Private Limited Company In India

Wish to be an entrepreneur in India? Starting this journey can be overwhelming as well as scary at the same time. There are many steps to be considered before you step up out and start your venture. So, when you are planning to plan your own business, you need to work on deciding what kind of entity it will be.

Like if you wish to own the business by yourself, then you can register your startup as a sole proprietorship. Similarly, you may register for a partnership. But if you wish to separate your liability from the company’s liability, then you should go ahead with private limited company registration.

In this structure, you need to choose the amount for taxes, paperwork, and the amount of personal liability to be distinguished clearly.

Here are a few steps that can help you to understand Private Limited Company registration processes in India.

Step 1: Get Digital Signatures (DSC)

The digital signature is one you require to file the forms for company registration. This process is online, and the forms need a digital signature. DSC is one of the mandatory for any subscriber and witness in the memorandum and articles of association. You can obtain the digital signature certificates from the government recognized certifying agencies.

If we talk about the costing of DSC depends on the certifying agency you work. You need to obtain either Class- 2 or Class- 3 categories of DSC. In this process, the person needs to present him or herself before registering authority to prove their identity.

Step 2: Apply Director Identification Numbers (DINs).

The Director’s ID number or DIN is a unique eight-digit ID number that is issued by the central government to each person who must be a director of a business or who is already a director of a business. It must be obtained by those wishing to become directors of a company. A single DIN is sufficient for an administrator in several enterprises.

Step 3: Name Approval

The company name is something that gives recognition to the brand. So, getting approval is important. For this, there are two procedures for acquiring the approval for the company name.

One process is to apply the name through INC-32 (Incorporating Company) but, in this process, only one name can be in this form. Therefore, make sure you have the proposed name should follow the name availability guidelines, existing trademarks to avoid rejection. Another process is by filing INC-32 it is a faster process than the INC-1 route.

Step 4: Information About Form INC-32

Recently, the Ministry of Company Affairs proposed Form INC-32. It is an explained pro forma for incorporating a company electronically.

It solves, the three purposes with the benefit provided in a single application:

  • Application for allotment of DIN (Director Identification Number)
  • Reservation of company name
  • Incorporation of a new company

Step 5: Information About INC-33 and INC-34

Both forms have been introduced, to facilitate the Indian company registration process. INC- 33 refers to an electronic Memorandum of Association, and INC- 34 is electronic Articles of Association

The memorandum describes the company charter, while the bylaws include the company’s internal rules and bylaws. Before the completion of both forms physically and now, you can complete these forms online and must include digitally signed subscribers to the memo and statuses.

Step 6: PAN and TAN Application

When you apply a single Form INC-32, you may submit an application for the company’s NAP and TAN uses Forms 49A for the NAP and 49B for the TAN. Once you have submitted Form INC-32, you can automatically generate the form(s). After forms download, please remember to attach a digital signature and upload it to the ACM portal. Upon completion of all details, the registration will get approved by the MCO, and a Corporate Identity Number (CIN) is issued. It is possible to follow up on-line through the GAC portal.

These six steps will help you to register yourself to set up a Private Limited Company in India.  Once you intend to register your company, you can get all information at the Ministry of Corporate Affairs online.

 

Categories
Finance Startup

iStandup 2.0: ICICI Bank Launches Dedicated Offering for StartUps in India, Offers Current Account in 3 Variants

ICICI Bank. (Photo Credit: Wikimedia Commons)
ICICI Bank. (Photo Credit: Wikimedia Commons)

Mumbai, September 12: India’s second-largest private sector lender ICICI Bank on Thursday launched a news offering — iStandup 2.0. With this new offering, ICICI is aiming to catch hold on the growing number of startups in the country. Though the new improved features, its customers will get a current account in three variants, offering additional features.

Under the iStandup 2.O, the ICICI bank offers premium savings accounts for the promoters, salary accounts for employees and a dedicated relationship manager. For its effective reach, ICICI has tied up with vendors to offer a ‘concierge-like’ service. This will enable the startups to access various services like company registration, taxation, compliance, logistics, facility management, staffing and digital marketing.

On the issue, the charges of the account, ICICI bank’s Head of Self-Employment Segment Pankaj Gadgil said that the bank will waive average quarterly balance requirement on the current account for a year. Adding more, he said that around 20,000 startups were registered with the Ministry of Corporate Affairs in July 2020, which went up in August 2020. Since the trends are encouraging, the bank launched the new offering.

As per details, all the startups — up to 10 years old — including partnerships, private and public limited as well as limited liability partnerships, will be able to opt for current account. It is to be known that ICICI bank already serves an undisclosed number of startups as part of earlier offering and other offerings that also include a current account.