phoenixtax October 8, 2020India is one of the most incredible places for new capitalists because of its outsized opportunity and the easy and convenient registration process. Don’t know how to start a new company in Chennai? Then it is good to hire a tax consultant to help you know the stress-free way to establish and register your new company in just a few notes with all proper necessary documents under the Indian Companies Act, 2013 and Companies incorporation Rules, 2014. Before starting a new company we should decide under which structure we are going to start up either it may be a partnership firmed or sole proprietorship, so based on the structure of the required document our tax consultants in Chennai will help you with the process.
TYPES OF COMPANY REGISTRATION IN INDIA
Sole Proprietorship
Partnership Firm
One Person Company
Limited Liability Partnership
Private Limited Company
Public Limited Company.
So despite so much of challenges, detriments, investments, risk factors, and target customers, hope you have decided the type of business now, so let us quickly see the process and the required documents for our company registration.
PROCEDURE OF COMPANY FORMATION
Sole Proprietorship
The sole proprietorship is one of the tranquil business types in which a single person can operate his own business. It is not a legal entity and he can refer himself as the owner for his business and he is fully responsible for his credits and debts. The compliance under this business type is very minimal and easy to fulfill.
Let us know the procedure to register a sole Proprietorship,
- PAN number is mandatory for any new startup.
- Naming your business is more important than anything, since it may create a standard in the future, so choose a name that is scalable and your domain related.
- We should open a bank account in the name of the business.
- It is always safer to register as a Small and Medium Enterprise (SME) under MSME Act, which is not mandatory, but it may be beneficial to be registered under the same.
- Based on your turnover if it is more than Rs.20 lakh, you may also apply for a GST.
Documents Required:
- Utility Bill of the business place
- KYC documents of the Bank
- The license issued by the workshops and Institution Act
- Income tax returns of the Proprietor
For the opening of a Bank account, the Identity proof and address proof of the company proprietor is mandatory along with any 2 other documents.
Partnership Firm
A partnership firm is the most beneficial and supportive form of business type, two or more people go on working together in this business type, the investment ratio can be mutually agreed by the partners as well the profit and loss are divided as per the agreement.
To register a Partnership firm, the following procedures:
1. Name and address of the firm along with all the partners’ details
2. Nature of the business type
3. Capital contribution details by all partners and the date of business commencement
4. Capital contribution details need to share in the agreement
5. Profit/loss dividing ration need to share in the agreement
6. Any additional finance applied for the company development need to be mentioned
7. Commission, salaries, or any other benefits applicable within partners need to mention
8. Each partner’s duties and commitments towards the business need to be mentioned clearly, whether active or sleeping partner
9. Retirement and death benefit need to be included based on the investment ratio and security of the company.
10. Signing authority can be taken by both partners or can authorize anyone among the partners.
Documents Required:
- Partnership registration Application under Form 1
- Affidavit copy has to be provided
- The original Partnership deed has to be certified and submitted
- Proof required for the place of business commencement (proprietorship documents or rental/lease agreement)
Private limited Company:
Almost many companies incorporated are registered under Private Limited Company. One of the general business type chosen by most of the entrepreneurs to get various benefits under the Private Limited company incorporation rules. The registration process is fully online and it required a minimum of two stakeholders and directors.
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Unique & Legal Identity for business– a personal company is registered beneath the legal entity with a continual existence. It will own a separate checking account, license, contracts, assets, and liabilities and a PAN variety in its distinctive name.
Limited Liability– a personal company provides liability protection to its shareholders. Just in case of any unforeseen liabilities, it might be restricted to the corporate and not impact the shareholders.
Perpetual succession– non P public Company is made as a separate company entity within the eyes of the law. And, the lifetime of the corporate doesn’t return to associate finish even with the death of all members and therefore the lifetime of the business continues.
Relaxed and open inter mutability of shares– because the control of an organization is described by shares, the ownership of an organization is transferred to the other legal entity or person in an Asian nation or abroad simply – partially or whole. The administrators can even get replaced to confirm business continuity. Members will simply transfer the shares of the non-public company as they need to easily file and sign the share transfer kind and provides it to the client of shares at the side of share certificates.
Funding-A company will raise equity capital from persons or entities inquisitive about turning into a shareowner. Entrepreneurs will raise cash from angel investors, risk capital companies, non-public equity companies, and hedge funds.
Raising the foreign investment– within the non-public company, associate NRI or foreigner will build an investment while not government approval. Thus, the raising of foreign investment is simpler during this kind of corporate than others.
Steps to register the Private Limited Company in India
1. DSC:
The first and foremost step is to get the Digital Signature Certificate (DSC) from the Ministry of Corporate Affairs (MCA) for the proposed directors of the company, please be noted that when you are obtaining for company name approval the digital signature is not required. It takes a maximum of 5 business days to get the digital signature. This digital certificate is valid for up to 2 years from the date of issuance. An e-MOA and e-AOA are mandatory to be filed by the directors and affixing Digital Signature Certificates along with those articles through which the Director Identification Number can the obtained through online application.
Documents required
Passport size photograph of the applicant,
Self-attested Address proof of the applicant,
Self-attested PAN card of the applicant
2. DIN:
Obtaining the director identification number (DIN) is one of the most key processes of incorporation of the company, one DIN is enough to be a director for any number of companies. The DIN obtained can be used for employment for any other company and nomination as Designated Partner in the LLP. Applying for the DIN is fully based on the mutual agreement between the partners since this is a onetime unique number given until you surrender or withdraw from it.
Documents required
Passport size photograph of the applicant,
Self-attested Address proof of the applicant,
Self-attested PAN card of the applicant.
3. Name Approval :
Any registering company has to file for name approval, the company has to decide and give names for approval from the MCA, in case of any rejection u have to resubmit the form with another 2 names with an additional fee, you can apply and check for the name approval via RUN (Reserve Unique Name) or SPICe INC-32). Ministry of Company Affairs has reported SPICe Form (INC-32) and fills the accompanying needs with the advantage of a single application:
· Application for a share of DIN
· Booking of the company name
· Incorporation of a new company
· Application for PAN and TAN
The certification of a professional (Chartered Accountant, Company Secretary, Cost Accountant, or advocate) is required and he certifies that all the evidence in the SPICe Form (INC-32) is correct.
4. Apply PAN and TAN :
Along through the SPICe Form (INC-32), you can also apply for the company’s PAN and TAN by using forms 49A for PAN and 49B for TAN. These forms will be auto-generated after the proposal of the SPICe Form (INC-32). You only have to copy it, affix digital signatures, and upload both forms on the MCA portal.
One Person Company:
One person company could be a new conception introduced by the Ministry of Company Affairs that permits one enterpriser to control a company entity with liability protection. OPC Registration makes the enterpriser a separate legal entity distinguished from the corporate and has liability. And, the corporate has its assets and liabilities, the promoter and their property is detached and not in person vulnerable to repay the debts of the corporate.
You can contact professionals through Chartered accountant online for all variety of business Registrations in Bharat sort of a non-public Ltd. registration, Individual Company Registration, Ministry of Micro, Small, and Medium Enterprises (MSME) Registration, etc. and marginal legal and regulative compliance and Chartered Accountancy Services in India.
Rivals and insulate you from the threat:
- Now you have an option to register your company under your home address
- Later to the company startup, you may also add up your family member in the company neither as a director too, even the share can be changed or transferred.
- Though we do everything online, it takes a minimum of 15 days to register the Private limited company based on the required documents we provided and also the approval time taken by the government.
- The registration fees are not common for all the company’s, it may vary based on the company scope, share capital, the board of directors list, and also few service expenses like consultant fees charged by the professional CA, Directory, lawyers and form filing fees.
- You can also join your family member or friend who is an NRI or foreign national as a stakeholder or even as a director.
Wish you the best of luck in your upcoming startup and hope this information was very clear to make your business registration easier and a great beginning.
To know the benefits of Company registration.
