How to Register a Business in India
A guide on how to register a business in India.
When it comes to register a business in India, a lot of people complain of hurdles to be crossed. Instead of complaining of hurdles, what you need to do is to get relevant information about what it takes to register your business in India.
Like any other countries, there are rules, regulations and procedures that need to be followed. For anybody that wants to register a private limited liability company, below are the steps you need to follow:
Obtain Director Identification Number (DIN).
This application form (DIN-1) can be completed online from the Ministry of Corporate Affairs website for you to obtain provisional DIN. After you must have completed the form, you need to print and sign it. You then send it to the Ministry of Corporate Affairs for approval with identity and residence proofs. Your proof of identity must be authenticated by individual recognised by law to do this. The person can be a Public Notary, Gazette Office of the Government, Chartered Accountant or Company Secretary. For the proof of your identity, you can use Account Number Card, Driving License, Passport or Voters Card. For the residence proof, you can either use your driver’s license, voter card, passport, electricity bill or telephone bill. You need to submit your passport photograph along with your DIN application form. After your documents have been verify and approved, you will be issued a permanent DIN.
Read Also: A Guide to Starting an Online Business From Home
Obtain Digital Signature Certificate Online
India now has new electronic filing system but you must obtain a Class-II Digital Signature Certificate for you to be able to use the new electronic filing system under MCA 21. You can obtain the Digital Signature Certificate from any of the authorised agencies. The fee varies from one agency to others.
Reserve the Company Name
You need to reserve the company name with the Registrar of Companies online. Before you file a particular name, it is advisable that you have done a thorough research on your own so as to ensure that your company’s proposed name is not existing or similar to the existing names. Also, you need to ensure that the name does not infringe any registered trademark. You also need to describe the nature of the business of the company in few words. If the name is approved, it will appear on the Ministry of Corporate Affairs website within two days. If the name is not approved, you need to repeat the name reservation process.
Payment of Stamp Duty and Filing of Incorporation Documents
Once your company name has been approved, you can now go ahead to pay the applicable fee and the stamp duty. The fee depends on your company’s authorised capital while the stamp duty depends on your location. At this stage, you will file the company’s Memorandum and Articles of Association along with the proof of payment of fee and stamp duty.
Issue of Certificate of Incorporation
This stage is very exciting. It is like a dream comes true. Once the MCA verifies that all your filing document are correct and duly signed, you will be issued a Certificate of Incorporation. This makes your company a legal entity.
Read Also: How to Start a Business in India
There are other processes you need to take to be able to do business in India. The steps discussed above only focused on how to register a business in India.