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.
