How to Online Register a Company in India before Foraying into Business

If you are having an entrepreneurial objective in India and planning to start your own business, then the first thing you need to do is to register the company. Every business owner needs to register the company to render it a distinguished entity and a legal existence. Company registration in India is also known as the incorporation of a company or the formation of a business. 

We have already talked in detail about registering companies in India. You can learn about them by following the link:

Meanwhile, in this post, we will talk about how to register the company online in a few simple steps. Pls. find below a step-by-step guide to the company registration process in India:

Apply for Director Identification Number – While starting a business, the owner will first require obtaining the unique 8-digit Director Identification Number issued under the Companies Act section 153 of all the proposed directors. To obtain DIN, directors need to provide some of their basic information like name, DOB, identity proof, address and Xerox copy of PAN card, and two photographs of all the proposed directors. Business owners will need to register themselves on the official website of the ministry of corporate affairs by filling the application form available online. To register at this site owner will need to create a login ID. 

Apply for Digital Signature Certificate - In the online company registration process in India business needs to obtain a Digital Signature Certificate to get all documents electronically submitted. The digital signature application must include the proposed directors' full name, father's name, date of birth, address along with its proof, copy of PAN card, identity proof, and a photograph. Businesses should obtain Digital Signature Certificate only from agencies appointed by the Controller of Certification Agencies like IDBRT, nCODE Solutions, TCS, etc. Usually, the digital signature certification is valid for a period of one or two years after which it should be renewed by the CCA again. 

Register on the Ministry of Corporate Affairs Portal - The business owner needs to get registered on the MCA portal by creating a user account on the portal. The owner will need to fill an eForm, then carry out some transactions and pay the prescribed fees. Creating an account on the MCA portal is free of any cost.

Filing for Charter Documents - In the online company registration process, a business owner needs to create documents like Memorandum of Association and Articles of Association. Once created the MOA cannot be amended and contains all the details of the registering company that are required for the incorporation process. MOA also includes details related to the objectives and powers of the company. The other charter document created is the Articles of Association that specifies the rules and regulations that are framed by the company and comprises details about the management, and bye-laws governing the internal affairs of the company. This charter document can be amended if required.

Application for Company Name - The business owner should choose a unique name of the company that must describe the products and services offered by the business because the name will distinguish them from their competitors. Recently, the MCA has launched a Reserve Unique Name web service for incorporating a company name. This service can only be used once so the owner should propose a unique name and ensure that all the prescribed guidelines are fulfilled.   

Register Company's Other Details - Next owner needs to register the company name and address along with a notice for appointment of directors, secretary, and manager. To incorporate the company name on the MCA website owner needs to carefully fill the Form-1 and need to provide at least 4 alternative names for the company abiding by all the provisions listed under the Companies Act, 1950. Next, the owner needs to choose one name and process with filling Form-18 and Form-32 for the company's address and appointment of directors, secretaries, and managers. After submission, the forms are scrutinized by the concerned agencies that take around 8-10 days, and on being approved by the MCA, the status of the registration form changes to approved.  

Obtaining PAN and TAN - The last step of the company registration process in India is to obtain a Permanent Account Number for the company from authorized agents appointed by the Union Trust of India Investors Services Ltd or the National Securities Depository Ltd. After PAN, the business also needs to obtain Tax Account Number for the company from any Assessing Officer present at the Income Tax Department of the state where business is starting.

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