Startups are the new trend for this generation. There is a new company coming up every now and then. You can start a company with an innovative idea and build a strong customer base through social media campaigns. But entering the hustle and bustle of the business world is not that easy.
Registering your startup as a Private Limited Company is the standard rule here. At the same time, it is a complicated and lengthy procedure. This article gives you the necessary details for registering your company as a Private Limited firm.
DIN and DSC registration
The foremost step of all in the registration of a Private Limited company is obtaining the DIN and DSC. The DIN stands for Director Information Number. It is registered online by applying for the form which includes all the personal details of the company director or owner. A hardcopy of the form has to be sent to the Ministry of Corporate Affairs for verification. The DSC stands for Digital Signature Certificate. The procedure for obtaining the DSC is same as that for DIN. The two registrations are required for giving a unique identity to the company and the owner.
The next step is the short listing of names for the company or startup. One name in the minimum and six names at maximum can be applied for. It is advisable to conduct a clearance search for any other similar names that already exist. The shortlisted name(s) should be unique and attractive. The name registration process takes around 4 to 5 days to complete.
One of the most important steps of the registration process is the drafting of the Memorandum of Associations (MOA) and the Article of Associations (AOA). The former is the document which defines the company’s association and rapport with the shareholders. The latter is a document containing the company’s objective and the duties. It is basically a layout of the working structure of the enterprise. These two documents are obligatory for registering as a Private Limited Company.
There are different sets of documents required by the government from different categories of business owners. The company directors are categorized into 3 main groups:
- Indian National Residents
- Non-Residential Indians
- Foreign Residents.
A blank document with a sample signature is required along with a voter’s id or driver’s license or passport. Further, a passport size photograph along with either a bank statement or electricity bill or mobile bill is required.
All these documents should be scanned copies of the original. However, the most important document is the PAN card. The name registered for the PAN card will be used for all purposes regarding the company. Therefore, any errors in the name should be sought out and corrected.
The bills of utility should be the latest edition or else the application will be rejected. There are 5 requirements for address proofs:
- Electricity/water bill
- Rental receipt
- Rental contract
- Sales deed
- No objection certificate.
Duties and fees
After collecting all the required registrations and documents, you need to submit the fees and duties as required by the government. The payment process can now be done online at the Ministry of Corporate Affairs’ web portal. There are a few taxes and fee charges required for this registration. Once all the duties and fees are paid, the Ministry starts the verification process for the company’s form. They may ask for making a few changes before sending in their final consent.
Once all the modifications required by the MCA are made, the form gets the assent. The Ministry sends a digital certificate which identifies your company as a Private Limited Firm. This certificate is the legal identification for your business. The Ministry will approve the form over a period of 5 to 7 days.
Registering your company or startup as a Private Limited Company is necessary. It does not only give you a legal identification but also provides many benefits. The company obtains its separate legal identity and enjoys undisrupted working. The transferability of shares and profits among shareholders is easy and simple. The process of registration for a Private Limited firm is long and complex; however, with a little professional help, you should be able to sail smoothly.
About Author : The Author Lokesh Sharma is working as Marketing Manager at QuickCompany.in a leading website for Company Registration in India.