Wondering how to register a company in India Registering a company is a crucial step towards establishing a business in India. It not only provides legal recognition but also opens up opportunities for growth and expansion. If you’re considering starting your own business in India, this guide will walk you through the process of company registration, the importance of choosing the right business structure, and how a business loan can help you get your start-up going.
How to register a company in India
To register a company in India, first, decide on the type of company structure, such as Private Limited, Public Limited, or LLP. Then, obtain Digital Signature Certificates (DSC) and Director Identification Numbers (DIN). Next, file the required documents with the Ministry of Corporate Affairs and obtain the Certificate of Incorporation.
Step 1: Check the company name
Before proceeding with company registration in India, ensure your chosen name complies with the regulations outlined in the Companies Act 2013 and Companies (Incorporation) Rules 2014.
- Your name must be distinct from existing ones, avoiding plurals, altered letter cases, or translations.
- Names incorporating sensitive terms like "Bank" or "Insurance" require approval from relevant authorities.
- Verify the availability of your desired name via the provided link to prevent conflicts during registration.
check company name availability in India is a key step to verify your desired name and prevent conflicts during registration.
Step 2: Obtain the pre-registration documents
- Gather essential pre-registration documents to streamline the online company registration process in India. These include obtaining Digital Signature Certificates (DSC) to electronically authenticate filings, ensuring compliance with the Information Technology Act 2000.
- Secure Director Identification Numbers (DIN) by submitting the Simplified Proforma for Incorporating a Company Electronically (SPICe).
- Prepare the Memorandum of Association (MoA) detailing shareholders and objectives, along with the Articles of Association (AoA) outlining company rules as per the Companies Act 2013. Knowing the company registration fees can help you budget for this step effectively.
Step 3: Select your preferred business type
Before you register your start-up in India, it's important to understand the different business structures available in India. The most common types of business structures are:
- Sole Proprietorship
- Partnership Firm
- Limited Liability Partnership (LLP)
- Private Limited Company
- Public Limited Company
Each structure has its own set of advantages and disadvantages, so it's essential to choose one that aligns with your business goals and requirements. If you are considering flexibility in management, explore the conversion of private limited company into LLP for a simplified compliance structure.
Step 4: Register the company online
Once all required documents are prepared, begin by creating your MCA Portal User ID. Utilise this ID to access the MCA Portal and fill out the SPICe+ form. Note that only directors with acquired DIN can proceed with the application process. Upon completion, submit the necessary documents through the MCA Portal under the SPICe+ section.
Step 5: Receive the Certificate of Incorporation
Following submission, the Registrar of Companies (RoC) undertakes authentication of the provided company documents. Upon successful verification, the RoC issues the Certificate of Incorporation, signifying the official recognition of your company's establishment under Indian law. This certificate serves as a crucial legal document confirming your company's existence and incorporation status. For those transitioning from private to public, understanding the process of converting private company to public limited company is equally crucial.
Importance of choosing the right business structure
Choosing the right business structure is crucial as it impacts various aspects of your business, such as liability, taxation, and compliance requirements. For example, a sole proprietorship offers simplicity but exposes you to unlimited liability, while a private limited company provides limited liability protection but involves more compliance. Learning about the difference between private and public company can help you make an informed decision for your business.
Using a business loan to start your business
One way to finance your budding start-up or company is through a business loan. A business loan from Bajaj Finance Limited can provide the necessary funds to start or expand your business. With a high loan amount of up to Rs. 80 lakh and disbursal of funds within 48 hours of approval, it is an ideal option to get the funds you need to start your business. Use our business loan EMI calculator to estimate your monthly instalments and choose the right loan amount that fits your repayment budget.
Different ways to choose the right business structure for company registration
When choosing a business structure, consider factors such as the nature of your business, the number of owners, liability protection, and tax implications. Consulting with a legal or financial advisor can help you make an informed decision.
Documents required for company registration
The documents required for company registration vary based on the business structure chosen. However, some common documents include:
- PAN Card
- Aadhaar Card
- Address Proof
- Identity Proof
- Memorandum of Association (MOA) and Articles of Association (AOA)
- Director Identification Number (DIN) for directors
Advantages of registering a company in India
Registering your start-up in India offers several advantages, such as:
- Legal recognition: Registering your company provides legal recognition and protects your business name.
- Limited liability: Business structures like LLPs and private limited companies offer limited liability protection to the owners.
- Access to funding: Registered companies can easily access funding through credit options such as secured business loans, investments, and grants.
- Tax benefits: Registered companies are eligible for various tax benefits and incentives provided by the government.
How a secured business loan can help you scale your business
Once your business is registered, you may need additional funds to scale and grow. A secured business loan from Bajaj Finance Limited can help you finance expansion projects, purchase equipment, or increase working capital. By using your assets as collateral, you can secure a lower interest rate and higher loan amount. You can borrow up to Rs. 1.05 crore and repay it comfortably over a tenure of up to 15 years.
In conclusion, registering a company in India is a significant step towards establishing a successful business. By understanding the different business structures and using a business loan wisely, you can set your business up for success.
