Are you thinking of starting your own business? The process of leaving a full-time job and starting a business is one the biggest decision of life. You no longer get a permanent monthly salary in your bank account. You’ll think a lot about negative things that can happen. It is natural. But don’t worry and take that risk. Only by taking risks and making changes to your life, you can grow and move forward. Before starting your own company or firm, you should have little knowledge about your new company registration process and types of structures.
IN INDIA, WE GOT FIVE BUSINESS STRUCTURES
Here are the different type of companies.
- Private Limited Company, Public Limited Company
- Sole proprietorship
- Partnership firms
- Limited liability Partnership(LLP)
WHY SHOULD I REGISTER MY COMPANY?
An example can understand the importance of registering your company: one person does an unregistered business of making clothes. Soon his business gain popularity and people start to know his work by his name, Joe’s clothes and demand for his item increases. By seeing this, another person registers the company by the same name and starts selling his product with the name Joe’s clothing. What can he do now? Nothing, because another person’s got business which is legal and registered. So get ready for your new company registration process before someone else takes your credit. You can complete your company or firm Registration online now.
THINGS YOU’LL NEED IN COMPANY REGISTRATION PROCESS
- Documents like Adhaar card, PAN
- The registered office where all legal documents will come
- Bank account for business other than your personal account
- Approved name of the business
- DSC (Digital Signature Certificate)
- DIN (Director Identification Number)
- MOA (Memorandum of Association)
- AOA ( Article Of Association)
COST OF COMPANY REGISTRATION PROCEDURES
- 2500 for sole proprietor company
- 5000 for partnership firm registration
- 7000 for LLP/LLC
COMPANY REGISTRATION PROCESS DETAIL
- LLP/LLC Obtain DPIN: IF YOU HAVE DIN there is no need to get DPIN. You can get both from the DIR-3 form. Submit your original and self-attested copy of KYC documents along with the DIR-3 form. You will get DPIN in 3-4 working days.
- Every partner has to obtain his own DPIN or DIN
- Get DSC: Go to the MCA portal and check certified authorities’ details. With these certified authorities, you can apply for DSC. You will get your DSC in 3-7 working days. By clicking on the director, in the portal they will verify the details you had submitted in DIN.
- Once you have DPIN and DSC you have to register in the MCA portal
- After Registration, you have to apply for name approval
- For the name you have to fill form 1 and for incorporation form 2
- Ensure you have a Limited Liability Partnership agreement within 30 days of filling forms
- Submit LLP agreement and fill form 3
- DSC: obtain DSC from any certified authority
- Fill a SPICe form, SPICe+ has launched too, for new entrepreneurs to make the new company registration process easy and quick. In this form, there are 2 parts, A and B
- Part A is for name approval. You can check if your entered name is available or according to guidelines by auto-check
- Part B has four main documents
- Incorporation forms
- After finishing all the forms and converting them into PDF, attach DSC with it and upload in MCA portal
- Upload an electronic version of AOA, MOA if your company has less than seven members and all of them are in India
- Submit declaration that you are following every norm and abiding compliances
- Optimal documents depending on the type of business are required like IEC for import-export business
- After adding attachments and submitting the form, fill the AGILE form
- The AGILE form needs GST number, bank account details, ESIC, EPF, and professional tax depending on your state
- Documents have to be submitted and verified by CA, advocate.
- For the company registration procedure of PLC maximum of 2 members and 2 directors are required.
- Get DSC
- SPICe form
If you are a resident of India and living in India you can fill e-forms. There is no need to upload manual forms of AOA, MOA. You can do a completely online firm registration procedure
- Own and run by one individual, no legal separation between owner and business so company registration process is simple
- Like individual tax, you have to pay your company tax
- For any legal documents, you need GST certificate, EPF, and ESIC
- License/Practicing license
- Shops and establishment act certification if you run a shop
Registration of Partnerships firms
A partnership deed is an agreement between partners and legally binds them by rights, duties. It helps to avoid misunderstandings.
Contents of partnership deeds include
- Nature of firm
- Nature of business
- Business place
- Date of commencement
- Profit-sharing ratio
- Rules for any change
For Registration of partnership firm, you will need
- Partnership deed
- PAN card
- Legal registration (GST, MSME registration)
- Bank account
- Now you can easily do firm Registration online
- PAN card
- Aadhar card
- Email id and mobile number
- The electricity bill for address identification
Benefits of Registration of partnership firm
- You can sue co-partner in case of dispute
- Claim tax benefits if your firm is gone through procedures of Registration of partnership firm
- You don’t have to rely on the honesty of co-partner and can claim your right.
UDYAM registration is a new process of MSME registration, making small company registration procedures easy and free of cost.
Now you know all the information required for your new company registration process and firm registration online. Online firm registration procedure/company registration procedure is easy, quick, and time-saving and just a few clicks away. You can also check the status of an online company registration procedure by going to the MCA website.