In an era of startups and growing online businesses, picking the right company structure for your business is as crucial as any other business-related activity. Starting a company can be an intricate and, at times, complicated process. In India, every business must register with the Ministry of Corporate Affairs (MCA). Official company registration in India is the first step towards a successful business life. Over the years, the ease of company registration and its related legal compliances have improved significantly. The government of India has made constant efforts to ensure that there is a unified and seamless process.

What exactly is the Company Registration Process

Company registration is a crucial process for starting a business. There are various company types in India, so businessmen need to select the right type of Company for their business. The right business structure allows the enterprise to operate efficiently and meet your required business targets.

Business registration simplifies the process of starting the business, reduces legal and administrative formalities, and minimizes the initial investment by the entrepreneurs in terms of time and money.

Benefits of Company Registration

Registering a company provides various benefits. It can help your business in the following ways:

Business is considered a separate legal entity.

Unlike non-separate business entities in India, the Company exists as a separate business entity from its owners and directors as per the regulations of the Companies Act 2013. This means that the business can enter into contracts, own assets, sue or be sued in its own name, and more.

Protects from personal liability and ensures protection from other risks and losses

Since the business is its own entity, it has no link to its owners, directors, stakeholders and so on. Thus, the liability owed by the business is only limited to the business assets and not the personal assets of the involved parties.

Better dealing with suppliers, industries, vendors, and customers.

Registering the business lends credibility and legitimacy to your enterprise. It demonstrates to potential customers, partners, and investors your serious commitment to the business and your willingness to comply with legal requirements.

Building Credibility with Banks.

Before granting loans and credit facilities, banks and financial institutions in India demand businesses to be registered. Registering your business aids in establishing your credit history and enhances the likelihood of obtaining loans and credit.

How to register a company in India?

Company registration is an intricate yet critical process to acquire a company registration number in India through which the business gets a legal infrastructure and authority to do business in the country. The company registration process involves various steps: -

Apply online on the Ministry of Corporate Affairs (MCA) website and collect all documents.

Since the company registration process has now gone fully online, Digital Signatures are required to file and upload forms on the MCA portal.

Digitally Signed Certificate (DSC)

A Digitally Signed Certificate (DSC) is mandatory for all the proposed directors and members mentioned in the Memorandum of Association (MoA) and Articles of Association (AoA). Digital certificates can also be obtained from government-recognized certifying authorities.

Director Identification Number (DIN)

The Director Identification Number (DIN) serves as an identification number for individuals aspiring to become directors in the prospective Company. In the company registration form, all proposed directors must furnish their DIN, along with their name and address proof. DIN acquisition is possible during the filing of the SPICe+ form, which is the company registration form.

SPICe+

SPICe+ is a web-based company registration form that facilitates obtaining DIN for up to three directors. If the Company has more directors without a DIN, it can be incorporated with three directors initially. Later, the Company must appoint additional directors post-incorporation. These appointed directors can obtain DIN by submitting the DIR-3 form since only proposed directors of an existing company can apply for DIN through the SPICe+ form.

Registration on the MCA Portal

To apply for company registration, the SPICe+ form must be filled out and submitted on the MCA portal. To successfully fill out the SPICe+ form and other documents, the director of the Company must register on the MCA portal.
After registration, the director can log in and obtain access to the MCA portal services, which include filing e-forms and viewing public documents.

Company Name Reservation

The Company must also reserve its name by submitting two proposed names in Part A of the SPICe+ form.
It is imperative to choose a company name carefully, as any name that is similar to the name of an existing company or has words prohibited under the Companies (Incorporation Rules) 2014, the SPICe+ form will get rejected, and the user will have to start over.

After the approval of the name filed in Part-A of the SPICe+ form, it will be reserved for a period of 20 days, within which the Company must fill out Part-B of the SPICe+ form and submit the form online. The applicant must provide the details of the Company and directors in Part-B of the SPICe+ form, attach documents, attach DSC, check the form and submit all the documents.

Certificate of Incorporation

Once the registration application is filled out and submitted along with the required documents, the Registrar of Companies will examine it. Upon verification of the application, he will issue the Certificate of Incorporation of the Company. The Certificate of Incorporation is issued with PAN and TAN as allotted by the Income Tax Department. An electronic mail with a Certificate of Incorporation as an attachment along with PAN and TAN will also be sent to the applicant.

Conclusion

In conclusion, navigating the landscape of company registration in India demands thorough understanding, meticulous planning, and adherence to legal requirements. Establishing a company marks the commencement of a journey filled with opportunities and challenges. By embracing the intricacies of registration processes, entrepreneurs can unlock the potential for growth and innovation within the vibrant Indian market.