The 21st century is the century of startups and new rising companies. If you too want to start something of your own, something different and promising but don't know how to put it up in front of the world in a legal way or you are too intimidated by the modus operandi here's something for you that can help you start your venture of business and money-making.
Some Fundamentals of Registering your Business in India
Before going for the legal authentication part make sure you have done some profound research on the market you are going to step in, build a product that fits the demand of the people, and have an easy yet noteworthy name for your brand so that your registration process goes as smooth as it can be. You simply can't build a business if you don't have the exact idea of what you are going to present in front of the world. Make sure you are confident enough to start sailing in the ocean of marketing.
The Legal Way of Registration
Registering your business offline could be a complicated and greasy process. It is far better to do it online and it gives more transparency on how the systems work. Here are certain procedures that have been broken down into simple steps to help you register your business in India.
Visit the Website of the Ministry of Corporate Affairs
When you start the process of registration, first of all, you need to visit the government website of the Ministry of Corporate Affairs (MCA). There you will need to find two forms, one of them is named DIR-3-KYC and the other as DSC (Digital Signature Certificate). You need to fill out these two forms first then apply for the DIN i.e. Director Identification Number.
While filling out both of the forms you need to have certain documents handy as they have to be submitted along with both of the forms. These documents include proof of address, educational qualification, current occupation, passport. Along with all these documents you also need to send some passport size photographs.
After filling out these forms you will have to register for the Digital Signature Certificate, also known as DSC without which you won't be able to apply for the company registration in the online mode. For this, you also need those same documents which include proof of address, educational qualifications, current occupation certificate, passport, and passport size photographs.
File an Application
Once you are done with the previously mentioned forms, prepare an application. In this part, you will have to fill up the 1A form electronically. This process officially performs the registration of the name that you want to give to your company. You cannot just give a name that you think is suitable for your business. Here you will have to send a list of at least four names out of which one will be selected by the RoC based on their availability and whether they are appropriate. It is normally better to give more than 5 names as you will have more chances for your application not to get denied.
The RoC (Registrar of Companies) might take up to 2 days to respond. In this process, you will have to pay a fee of Rs. 500. Once the RoC approves the name that you have provided, the registration of the company must be done within 6 months of approval. If not done within the period, the whole process of registration has to start all over again.
Draft the MoA and AoA
The last step of registration includes the drafting of the Memorandum of Associations (MoA) and the Articles of Association (AoA). As these are two legal forms, these need to be dealt with carefully where you might take help from Lawyers while filling out the forms. The MoA provides a list of the different agendas of the company while the AoA lists out the details of the Company’s operation and its management. Both the Documents need to be compulsorily signed and attested by a minimum of two people from the company with a person being the witness of the whole drafting process.
After doing so these documents are to be sent to the RoC for the verification process. After the documents get approved by the authority, a print out must be taken out so that you can get them validated. Then you can attach these documents along with all other documents necessary for the registration of your business.
With all of the above documents attached, you can now apply for the registration of your company by submitting the documents to the RoC. You have to register your company in the state where you will be performing your business. Then you will be provided with a certificate of Incorporation from the RoC which is the legal Certificate that declares the business to be legal and to be your own. This means that your business is registered and you can simply start conducting your business.
What after Registration?
After the successful registration of your new Business, there is another additional step that you must do before starting your business. You must apply for a GST number, which when registered will complete the whole process of your company’s registration.
This must have given you the basic idea of how to register your business in the smoothest way possible. Though there might be some extra procedures involved, depending on your location and the type of business you want to run, it is always better to get started as soon as you can.
Registering a business in India is not that complicated as it may feel. You just need to have some knowledge before getting down on the platform. The procedures set by the government for a successful registration is a quick and sorted process which makes it easy for a new company to start and run without much complications. After you are done with registering your business in India, it is now time to make it prominent and successful. There is one small piece of advice that you may need before you start your business venture is that no matter how challenging and exhausting the market makes you feel if you can make it better for the customers, you will surely succeed in your business. Keep your hopes high and your visions clear.
FAQs for Registering your business in India
How to register a foreign company in India?
A foreign company can establish its business in India by filling out the FC-1 e-form. A digital signature of the official representative is needed whiling filling out the form electronically. There is no need to apply and obtain the DIN for the Directors of the foreign company.
What is the objective of small business registration in India?
Regardless of the type of business you want to run, you will always have to register your business officially. The reason being that a certain business transaction must follow specific rules and guidelines for being legal in India. Registering the business declares the company to be yours, secures the name of your company, and gives you the authenticity to take any legal actions whenever necessary.
Can I get a registration number for my business?
On applying for registration you will be given a recognition number for your business. This number will be provided to you once there is complete verification of your documents.
How long does it take to start a business in India?
It normally takes two to three weeks to complete the registration process and you can start your business in India within a short span. After you are provided with a legal recognition certificate for your business, the Indian Director can help you with opening a bank account in the company name.
How to choose a company name?
It is better to search for a name that is simple, easy to pronounce, and is relevant to your business. You can always take help from the internet. The RoC may expect you to follow some naming guidelines while naming your company.