Starting a business is quite easy right?
Land, Labour and Capital. But there is more to getting started than this. In a
country like India, where startups are popping out every next day, you need to
protect yourself and your business from frauds and duplicity and make your
company legally sound.
But wait! Not every company needs to be
registered. If yours is a sole proprietorship, i.e. you are the sole entity who
earns the profit and pays the bills, then you are good to go without any
registration.
To register any business practice in India,
there has to be at least two partners and a minimum authorized capital of Rs.
One lakh. Registration is also mandatory for public limited companies. All
companies are registered under the Companies Act, 1956 and are granted a
certificate of incorporation by the registrar.
So, to put it in simple words, while your
local pan shop does not need a registration, your neighborhood food shack run
by brothers does require one. So here’s how you can get a private limited company
registered.
APPLY FOR A NAME APPROVAL
APPLY FOR A NAME APPROVAL
Your name is your
trademark. To get your name approved you have to propose at least 6 alternative
names as per name guidelines, just in case any is already taken. You also need
to submit documents relating to your authorized capital, Return on Capital and
details about your partners, like pan card, address, Director Identification
Number and Digital signature. With these details you will need to fill up
e-form 1A on this site www.mca.gov.in and upload it. Now all you need to do is, wait for
around a week to get ROC approval, if approval is declined you need to apply
again in the same procedure.
DRAFT MEMORANDUM AND
ARTICLES
After getting your company
name approved, you need to fill up Form 1, 18 & 32 within 60 days. For
this, you will need documents like your office address proof, No Objection
certificate from the landlord, if any, an affidavit, consent letter and
subscriber details.
FILE INCORPORATION FORMS
After getting hold of the
required documents and filling up the above mentioned forms, you need to upload
them and pay for the basic government fees and stamp duty fees. Your company
approval shall be done within the following week.
So now you know how you can
easily get your company incorporated. But if you are still not clear, you can
always search on Google and find many organizations whose sole purpose is to
get companies registered. So go on and make your startup legit.