Getting your company officially registered is the first step towards realizing your entrepreneurial dream of setting up a business. It gives your company a distinguished identity and establishes legal recognition for the business. It would also enable the shareholders to raise capital. All new companies must get themselves registered under and approved by the Ministry of Corporate Affairs (MCA).
Since this can prove to be a cumbersome process as well as a time-consuming one for a newly established company, here is a complete guide elaborating on the two main courses of action for company registration in India to help you through it.
Everything is in the name
The name of the company is one of its main signatures. It is the most important facet of individuality that a brand carries. During the registration process, you will be required to submit the proposal for the name of your company. Keep in mind the following points for the same:
- It should be catchy and evocative so that the company is easy to remember and convey. This boosts customer retention and unintentional brand promotion, making your brand long-standing in the market.
- It must reflect the objective of the company. People get more attracted to authentic brand names representing the mission of the company than those names that vaguely indicate what the company does.
- It is critical to get the proposed company name analyzed by a lawyer before submitting it for registration to check for abidance by the rules set by the Companies Act 2013 and the Companies Incorporation Rules 2014.
Documentation is important
For efficient completion of the registration procedure of your company, you must ensure the application of appropriate documents along with creating an account on the MCA website for the necessary transactions. The following is a list of the required credentials for the same:
Director Identification Number (DIN)
According to the Companies Amendment Act of 2006, it is mandatory for all the directors of a business to acquire their unique 8-digit DINs through the SPICe e-form as part of the registration process. The form must be filled and uploaded on the MCA portal after the payment of the applicable fees of INR 100. There are different forms for the different statuses of the company and the director, and hence care must be taken before lodging the application. More details are given on the official website of the MCA in the case of queries regarding the DIN.
Digital Signature Certificate (DSC)
The DSC is an electronic medium of certification that can be used to represent an identity. It can be used as an official authorization for access to personal, confidential information and services online. It can also allow the person to submit his/her signature on legally accepted documents through the Internet using the DSC. For more information on how to obtain the DSC, refer to the official portal of the MCA.
Memorandum of Association (MOA)
The Memorandum of Association is a statement defining the legal shareholder details of the company and the address of the registered office. It includes an objective clause that needs to be filled by the company with the particulars of the shareholdings, such as total share capital, nominal share value, and share distribution, as well as the financial assets of the business. It can be seen as analogous to the Constitution of a country, except, it cannot be amended once formulated.
Articles of Association (AOA)
The Articles of Association is a document that comprehensively enumerates the regulatory standards set by the company with respect to its management body and the operation of its internal affairs. Routinely, the AOA consists of Share Variation Rights, Transmission of Shares, Capitalization of Profits, the Operation of Bank Accounts, etc.
PAN and TAN
Along with the above documents, it will be necessary for you to submit your Permanent Account Number (PAN) and Tax Account Number (TAN) to complete your registration process with the Office of Inspector, Shops, and Establishment Act (State/Municipal).
Company registration in India usually takes 10-15 days from the submission of documents to the final approval of the business by the relevant government department. Once your company is registered, remember to associate your company with a dependable firm to file ROC compliances on time.