Checklist for Company Registration in India
There is an online process available for the company registration that is regulated by the Ministry of the corporate affair (MCA). From anywhere in the world you can access the MCA web portal and register your company within a click of a mouse. In this article, we will discuss Checklist for Company Registration in India.
You are just required to fill the details asked in the online form and submit the few documents. However before going for the company registration, one must have a proper understanding of the types of company registration.
How many types of companies you can register, what are their advantages and disadvantages, what are the formalities that need to be fulfilled, and what category your business falls into? We will discuss the complete checklist for company registration in India.
Swarit advisors are the most prevalent name among the clients, if you are someone who is looking to register the company in India then you are at the right spot. You just need to contact us and one of our professionals will guide, educate and help you to get your company started.
Various types of Company Registration in India
There are basically three types of company registration in India, one person company registration, Private limited company registration, Public limited company registration. We will discuss in detail every type of company registration in detail one by one that will help you select the right business structure for better growth.
Private limited company registration
Let’s look at the private limited company registration process, documents required, and its advantages.
Process of Private Limited Company Registration
- Digital signatures
The first step is to obtain the digital signatures that would be needed during the filing company registration application and it is used to sign ROC e-forms, and E-income tax returns.
- Name approval
There has to be a unique name of your organization that must not resemble with any of the existing registered names. Digitally signed Name approval application (e-Form RUN) will be submitted to the ROC
- E-Form Spice-32
For the final incorporation of the private limited company you just need to fill the incorporation e-form along with the required documents.
- Opening a current bank account
Finally, a current bank account has to be opened in the name of the company in any of the authorized banks.
Documents required for the Private limited company registration
- PAN card of the all the members and directors of the company
- Aadhar card
- Election ID card/ Passport
- Scanned copies of photograph
- Bank statements of the last two months
- Rent agreement, in case you have a rented office space
- Utility bills such as electricity bill, telephone bill
Benefits of Private Limited Company Registration
There are several advantages if you register your company as a private limited company such as –
- Restricted liability
Restricted liability is a boon for the owner of the private limited company that ensures the limited liability towards the company. It means that if the company suffers from any loss then the personal assets of the member of the company won’t be touched.
- Perpetual existence
Private limited company continues to exist even after the shareholders’ withdrawal from the company due to any reason
- The capacity of business growth
Private limited company registration provides the scope of expansion as it is preferred by the investors for the investment. Members of the company can attract venture capitalists, angel investors, or any financial institutions for fundraising.
- Valuable Asset
As the private limited company is seen to be as a separate legal entity, so it adds more value to the company in comparison to the other firms
Private limited companies work on the guidelines that build faith and trust with customers and let the company work for long-term goals.
Hope you have a brief picture of private limited company registration by now.
Let’s move further with one person company registration, how it is registered, documents required and how it is different from other forms of company registration.
One Person Company Registration
One person company is also regulated by the Companies Act, 2013 to promote the people who have ideas and want to execute those ideas own their own as a company run by a single individual.
The basic steps for the incorporation of one Person Company are same as the private limited company registration. So we will directly look at the documents required for the registration of one Person Company and its features.
Documents required for the one person company registration
- Identity proof of directors and nominee directors that include PAN for main director and nominee director and both the main director and nominee director must be Indian nationals.
- Address proof of director and nominee director that include passport, drivers’ license, Aadhar, bank statement or electricity bill. The documents provided must be valid.
- Proof of registered office in India in which you have to submit the rental agreement or sale deed, a copy of electricity bill, property tax receipt, no objection letter from the landlord if you have a rented office space
- Digitally signed application and other documents both as hard and soft copy
Benefits of One Person Company Registration
- Individual organizer
One person company registration is considered to be a legal entity that is operated by a single owner with limited liability protection. In one Person Company registration, the owner of the company has full authority over the decisions taken inside the company and gives you total control. While if we look at the other forms of company registration, they require 2 or more members to start the company
- Separate legal entity
One person company is seen as a separate legal entity which has an attachment to its promoters in terms of ownership.
- Continual existence
One person company registration let the company exist and run uninterruptedly upon the departure or unfortunate death of a member. One person company continues to operate whatever be the circumstances.
There are banks and financial institutions that provide funding to the companies. So if you have a one-person company then you will be preferred over the partnership firms.
- Ownership transfer
One person company registration offers an easy transferability option. The owner of the company just needs to fill few a forms and other share transfer certificate. By just making the changes in shareholding, directorship and nominee information
- Property ownership
These types of companies are considered to be a pseudo-person that allows it to own the property on its name; the owned property can be machinery, building, intangible assets, land, residential property, factory etc. Member of the company is not liable to claim to the property owned by the company.
Public limited company registration
Public limited company registrations entail the trading of company shares in the share market and issuing of deposits. For starting a public limited company you must have at least 3 directors, 7 shareholders and the maximum 15 directors and the limit for directors can be increased by passing special resolution by the board; No minimum paid-up capital is required now for the public limited company registration.
The basic process of registering a public limited company is almost the same as of the other types of company registration.
Documents required for the Public Limited Company Registration
There are several documents that need to be handy if you are someone who is looking for the registration of the public limited company. Below is the list of documents required for the public limited company registration –
- Copy of PAN card of all the directors
- Passport size photograph of directors
- Copy of Adhar card/voter identity card
- Copy of rent agreement if you have a rented business place
- Electricity bill or water bill of the business place
- Copy of the property papers if you own the business place
- NOC from the landlord
Attributes of Public Limited Company
- Legal entity
Public limited company is considered to be a legal entity and juristic person that is established under the Act. This allows the organization to have a broad legal capacity, ownership of the properties and incur debts. Such debts cannot be extracted from the shareholders/ directors of the company.
- Existence of the company
Public limited companies have a perpetual existence that does not depend on the shareholders/ director’s bondage to the company, they may leave; however, the public limited company continues to function.
- Holding of a property
The Public limited company being the separate legal entity, a juristic person can own a property on owning its name and none of the directors or shareholders can claim to the ownership of the property.
- Borrowing funds
Once the company is registered as the public limited company, it has a broader capacity of borrowing funds. It allows the issuance of debentures, secured as well as unsecured and also have the benefit of accepting deposit from the public. Banks and financial institutions also prefer to lend money to these companies over partnership firms.
Till now we have discussed all types of company registration that exist in India. We talked about their features, process of registration and documents required for the company incorporation. Hope you have a clearer picture of company registrations in India. If you are looking to start a company in the future, this blog can definitely help you to make a better decision.
Expert help for Company Registration in India
Our professional team at swarit advisors helps clients to register their company day in and day out. They are thoroughly trained in their field of work to serve the clients in the best way possible.
If you have any further query regarding the company registration process or you want to know anything regarding the company registration India. Please contact swarit advisors. At the end let’s take a look at some of the frequently asked questions by our clients for you to have a better understanding and not to repeat the mistakes done by others in the past.
One of our clients was so worried about the time that he has to devote to get his company registered and it won’t be possible for him to be physically present for the company registration. So he kept on delaying the registration process.
Let us inform you guys there is no need of you to be physically present at our office or ministry of corporate affairs. Once you contact swarit advisors, it’s our responsibility to get your company registration to be done on time. If there is a need of any document to be collected from you, our team member will visit your office and ministry of corporate affairs as well.
In this way you can continue operating your business the way you were doing before; there won’t be any hindrances to your business.