Company Registration India
How do I register a company in India? The Nsc India online platform for company registration can help you complete the process in 10 days easily.
Private Limited Company is the most popular type of business entity in India. Over 20 lakhs companies have been registered in India as of October 2020 and 12 lakhs companies are classified as active. All companies registered in India are governed by the MCA (Ministry of Corporate Affairs) under the Companies Act, 2013. Each year Nsc India helps register thousands of companies across India. The company registration process can be completed online on Nsc India in less than 10 days with assistance from experienced incorporation experts.
Why register a company?
Entrepreneurs register a company in India to create a business that is well regarded by customers, suppliers, bankers and the Government. By setting up a company, an Entrepreneur has the ability to create a small or large business that can easily raise capital and scale seamlessly to any size.
How is a company better than a proprietorship?
The ownership of a company is represented by shares. Thus, the ownership of a company can be shared or transferred to any other Indian or Foreign legal entity or person. The directors of a company are also easily replaceable. Hence, on a company allows an Entrepreneur to easily raise capital and transfer ownership without any hassles.
How does a company limited liability?
A private limited company provides limited liability protection to its shareholders. In case of any unforeseen losses, statutory or legal liabilities, the shareholders of the company will not be held responsible. Only the Directors of a private limited company are held responsible in most instances for various statutory liabilities.
How can a company raise funding?
A company can raise equity capital from persons or entities interested in becoming a shareholder. Entrepreneurs can raise money from angel investors, venture capital firms, private equity firms and hedge funds. A company can also raise debt financing from banks, financial institutions and NBFCs easily.
How to Open Private Limited Company Bank Account
A private limited company is recognized as a separate entity with a dedicated PAN. Using the PAN and incorporation certificate of the company, an Entrepreneur can within days open a current account in any bank.
Reasons to Register a Company in India
Entrepreneurs choose to register a company due to various reasons. Two of the main reasons is that a company is a distinct legal entity having perpetual succession. Hence, a company is not affected by the death, insanity, or insolvency of an individual member. The following are some of the top reasons to register a private limited company in India.
Separate Legal Entity
As per Law, a company is an artificial judicial person established under the Companies Act. A company is a separate legal entity from its Directors and Shareholders. Hence, a company enjoys a wider legal capacity, to own property and incur debts – while the individual company members owe no liability towards the company’s creditors for debts.
Perpetual Succession
Perpetual succession means continuing or enduring forever., A company is considered to be legally active until it is wound up by its members through a legal process. Hence, perpetual succession denotes continuous existence of a corporation or company till it is dissolved legally. Thus, a company is unaffected by death or departure of any member.
Limited Liability
Limited liability is a legal responsibility towards a limited amount of debts. The liability of the members with reference to company’s debts are limited i.e.; limited to the face value of the share purchased by them. This limited liability protection is often not afforded to Directors of a company – who are held responsible for operation of a company.
Transferability of Shares
The ownership of a private limited company is determined by the number of shares held by its shareholders. Shares of a company can be transferred to any other person or legal entity in India or abroad, subject to the articles of association of a company and the shareholders agreement. The easy transferability of shares is one of the top reason, Entrepreneurs opt to register a company.
Owning Assets
A company can acquire, own, transfer any type of tangible or intangible asset in India. A shareholder is not eligible to claim the company’s property, as they are not owners of the company. A shareholder merely has an interest in the company arising under the articles of association of the company, measuring a sum for liability.
Equity Raising
A company is the only type of legal entity which can help the promoters raise equity funding from Angel Investors, Private Equity Firms and the Stock Exchange. A private limited company would suffice for raising equity funds from Angel Investors and Private Equity Investors. In case of listing or allotment of shares to more than 200 shareholders, a Limited Company would be required.
A Step-by-Step Guide to Company Registration Process
Nsc India can incorporate a company in less than ten days, subject to government processing times and availability of all documents.
- Step 1: Dedicated incorporation expert assigned for the engagement
- Step 2: Collection of information and documents for company registration from client
- Step 3: Application submitted for digital signatures to eMudhra
- Step 4: Name approval request submitted to MCA
- Step 5: Incorporation documents drafted based on the MCA approved name
- Step 6: Signing of incorporation documents by all Directors & Shareholders
- Step 7: Submission of incorporation documents to MCA for approval
- Step 8: Company incorporated with incorporation certificate & PAN
- Step 9: Other process or services begin as per customer requirement
Documents required for Company Registration
To register a company, various documents are to be submitted to the MCA as follows:
PAN Card: PAN Card copy of the proposed Directors of the Company will be required for Company Registration.
Address Proof: The address proof submitted must have the name of the Director as mentioned in the PAN Card and the most current address of the Director.
Residential Proof: The residential proof must also contain the name of the Director as mentioned in the PAN Card and must not be older than two months.
Registered Office Proof: In addition to providing identity, address and residential address for the Directors, proof must be provided to validate the registered office address of the Company.
- The registered document of the title of the premises of the registered office in the name of the company; OR
- The notarized copy of lease / rent agreement in the name of the company along with a copy of rent paid receipt not older than one month;
In addition to the above, the following must also be provided as proof of registered office:
- The authorization from the Landlord (Name mentioned in the Electricity Bill or Gas Bill or Water Bill or Property Tax Receipt or Sale Deed) to use the premises by the company as its registered office. This is usually referred to as NOC from Landlord; AND
- Proof of evidence of any utility service like telephone, gas, electricity, etc. depicting the address of the premises in the name of the owner or document, which is not older than two months.
Document submission
Identify the 2 directors and submit their documents as given to the below.
- Identity Proof- PAN (Indian Nationals ) or Passport (Foreign nationals)
- Proof of Address- Passport / Drivers License / Election ID / Ration Card / Aadhar ID
- Proof of residence- Bank Statement / Electricity Bill / Phone Bill
Name Approval
The proposed name is applied and obtained from the Ministry of Corporate Affairs. Upto 2 names can be provided. In case of rejection of both names, an opportunity is provided for re-submission of the form with 2 more names.
Digital Signature
Digital signatures must be obtained for the proposed directors of the company. Digital signature is required for signing of the incorporation application. However, digital signature is not required for obtaining the name approval.
SPICe+ form application
On obtaining the digital signature, the incorporation application can be submitted in the SPICe form with the MCA. There is no requirement for obtaining the RUN name approval for submission of SPICe Form.
Company Incorporation
Company is incorporated along with the incorporation certificate, PAN and TAN within 2-3 business days.
Company current account
Nsc India has exclusive relationships with top Banks in India wherein we will open a zero-balance current account digitally through our platform. Based on your choice of Bank, we can forward the request digitally to the Bank for opening the company’s current account from the comfort of your home in any city or town in India.
Register your company and get LEDGERS accounting software.
Company Compliance
All companies registered in India are required to maintain compliance under various regulations. Failure to maintain compliance can lead to penalty or disqualification of the directors.
Nsc India can help you with accounting and maintaining of statutory compliances for the company at a very affordable price point.
Some of the important compliances for companies registered in India are given to the right. Please note that additional forms will also be applicable as per government notification.
Other than these mandatory compliances, there are others that need to be done depending on the company’s timeline. Nsc India also assists in increasing authorised capital, changing registered office, change in directors and others.
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Statutory Auditor appointment
30 days of IncorporationThe board of directors must appoint a p0ractising Chartered Accountant within 30 days of incorporation.
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Commencement of Business
180 days of IncorporationThe capital mentioned in the MOA [Memorandum of Association] must be deposited in a bank and commencement certificate must be obtained from MCA.
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Income Tax Filing
30th SeptemberCompanies registered in India must file income tax return each year in Form ITR-6.
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Annual Return
31st OctoberCompanies registered in India must file MCA annual return each year in forms AOC-4 and MGT-7.
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DIN KYC
30th AprilThe DIN KYC procedure must be completed each year for the directors of the company