Are you about to kick-start your own business? Is your entrepreneurial dream nearing realization? Nothing provides additional epinephrine rush than being your own boss. Thus, whereas we wish you all the great luck in your new venture, this post can assist you start by listing down vital tips about the company registration method in India.

In India, company registration is additionally cited as incorporation of company or formation of a business. Registering your company makes your business a distinguished entity and offers it a legal existence. The company registration method in India is undertaken by the Ministry of company Affairs.

According to the statistics, nearly seven lakhs corporations are registered in India and new applications are being filed each day. It’s crucial to be up on by the registration method and this post lays out a stepwise guide to the methods of company registration in tambaram,Chennai.

1) Apply for Director Identification number (DIN)

The first step towards the company registration method in India begins by getting the distinctive number. Per the businesses modification Act 2006, all administrators in an exceedingly company (existing also as intending directors) have to be compelled to acquire their Director number (DIN).

DIN is a distinctive 8-digit number that’s issued beneath the Companies Act Section 153. The necessities for DIN embody full name, father’s name, DOB, identity proof, address and its proof, PAN card copy and 2 pictures of all the administrators projected.

The application form is offered on-line on the official web site of the ministry of company affairs (MCA Website) because of the DIN-1 form. All business owners must register themselves at the MCA web site and acquire a login ID. The DIN-1 form should be duly filled and uploaded soon after paying the applicable fees. The DIN form is charged a nominal INR hundred and takes about a day for execution.

2) Apply For Digital Signature Certificate (DSC)

The genuineness of the documents and knowledge provided within the DIN-1 form will solely be assured by obtaining a legitimate digital signature on all the documents submitted within the e-filing method.

The company registration in tambaram,Chennai needs each business to accumulate a Digital Signature Certificate (DSC) to confirm a secure way to get the documents submitted electronically. The requisites for application of digital signature includes projected directors’ full name, father’s name, DOB, address with proof, PAN card copy, identity proof and a photograph.

However, corporations ought to acquire DSC solely from agencies that are appointed by the Controller of Certification Agencies (CCA). Some  of the government listed CCA are agencies like MTNL, IDBRT, nCODE Solutions, TCS and SAFESCRYPT to name a couple of.

A DSC is distinguished for each business entity and can not be shared by businesses. Ordinarily this digital certification is valid for an amount of 1 or 2 years, and when it ends, it ought to be revived by the CCA once more. The application fees for a DSC vary from INR 800 – 5999 counting on the structure of the organization and therefore the validity time. It always takes 2-3 business days to get a DSC form.

3) Filing for new user registration

It is necessary to get registration on the MCA portal. You must create a user account for filing an eForm, polishing off completely different transactions and paying the prescribed fees. The Ministry of company Affairs doesn’t charge any fee for making an account.

4) Filing for Charter Documents

In a company registration method, the candidates are needed to make charter documents like Memorandum of Association (MOA) and Articles of Association (AOA).

Memorandum of Association (MOA) – The document contains all the main points of the registering company needed throughout the incorporation method. It conjointly provides details relating to the objectives and powers of the company and conjointly the link between the outsider and therefore the company. The document once created can’t be amended.

Articles of Association (AOA) – This document specifies the foundations and rules arnumberd by the company. It provides details concerning the management, conduct and bye-laws governing the inner affairs of the company. The AOA acts as an auxiliary to the document, yet it can, however, be amended, if needed.

5) Application for company name

The projected name must be distinctive and descriptive of the merchandise and services offered by the business. It provides them with a distinguished entity from their competitors within the same field. The Ministry of company Affairs (MCA) has recently initiated a RUN (Reserve Unique Name) net service for incorporating an organization.

However, this service can be used just once. Because of a similarity in names or failure to abide by the businesses Incorporation Rules, once rejected, RUN can’t be re-used.

Hence, you want to certify that the projected name is exclusive and fulfils all the rules prescribed. Just in case of rejection, the person should re-file another RUN form when paying the prescribed fees.

6) Register alternative Details

The next step within the company registration in Chennai includes registering the company name & address and spot for appointment of administrators, secretary and manager.

Form-1 should be correctly filled and submitted for incorporating the company name on the MCA web site. It’s obligatory to provide a minimum of four various names for your company. The proposed name ought to conjointly abide by all the provisions listed beneath the Companies Act, 1950. Following this, you want to opt for one in every of them and method with filing form -18 and Form-32 for company’s address and appointment of administrators, secretary and manager severally.

Once the forms are submitted they’re verified by the involved agencies. The whole method is completed in about 8-10 days. On being approved by the MCA, the status of your company registration is approved.

7) Effort PAN and TAN

The last step in the company registration in tambaram,Chennai is getting PAN (Permanent Account Number) for your company. PAN ought to solely be obtained from approved agents who are appointed by the Union Trust of India (UTI) Investors Services Ltd or the National Securities installation Ltd. (NSDL). The method sometimes takes about seven days and prices up to INR 70.

After PAN, you furthermore have to get a TAN (Tax Account Number) for your company. It is obtained from any Assessing Officer at the taxation Department of your state. This takes a week’s time and prices are around INR 60.

Following this, you’re needed to register the company with the workplace of Inspector, Shops and Establishment Act (State/Municipal). The form provides details concerning the manager’s and employer’s name, the establishment’s name, communicating address, and the legitimate class. It ought to be sent to the office of the local shop inspector along with applicable fees. It’s obligatory to register the Establishment Act within a month of commencing your business.

The company registration in Chennai is a legal procedure that every business owner has to abide by. The stipulated time for the company registration method, together with the approval of the name, DIN and alternative requisites, takes approximately seven operating days. However, currently all the documentation is combined in a private form with the MCA to change the method. This undoubtedly comes as a chunk of fine news for businesses in Chennai searching for enlargement.

Types of Companies:

  1. Public company
  2. Private company
  3. Limited liability company
  4. Partnership companies
  5. Individual company
  6. Sole ownership
  7. Section eight company

Public Company

Public firms are those firms whose shares are purchased by the final public. There’s no limit for such firms to sell their shares. A Tax authority claims that for a corporation to be referred to as a Public company should possess a minimum of three directors, where one of the directors should be Indian resident. Moreover, minimum seven shareholders with no cap on the most limit and a minimum of five lakhs capital fee, with a registered workplace in India.

Documents required:

  • Identity proof
  • Address proof
  • PAN Card of all administrators and shareholders
  • Director number
  • Digital Signature Certificate
  • Utility Bill
  • NOC from the owner
  • Memorandum of Association
  • Articles of Association.

Private company

Private restricted firms are those firms that need registration as a personal entity. The shares of personal restricted firms are distributed among their shareholders to safeguard their assets. The whole of all the shares commanded by the shareholders can represent the whole capital of the corporation. Unlike public restricted firms, the shares of personal restricted firms cannot be sold-out or listed for the final public, says a Tax Consultant in Chennai. For a corporation to be entitled as a personal company, it should possess minimum two to fifteen directors, wherever one in all the directors should be an Indian resident. For a company registration in Chennai it should have authorized capital of Rs.1,00,000 and minimum 2 to maximum 200 hundred shareholders, with a registered workplace in India.

Documents required:

  • Director number
  • Digital Signature Certificate
  • PAN Card
  • Address proof
  • Residence proof
  • Memorandum of Association
  • Articles of Association

Limited Liability Partnership

Limited liability Partnership or widely called as LLP, could be a company that provides the entrepreneurs limited liability protection, identifying personal and business assets. These styles of firms enjoy separate legal status positions, says a Tax Consultant in Chennai. The liability of every partner is determined by the quantity of share capital, providing a lot of protection compared to sole ownership. A company is eligible to be referred to as an LLP, if it’s authorizing capital amounting to Rs. 1,00,000 and a minimum of the delegated should be an Indian resident. There’s no cap on the most range and a minimum of two partners should be there for a Company Registration in Chennai a minimum of one individual partner should be out there if the remainder are company bodies. Every partner should have a united contribution and no demand for shared capital.

Documents required:

  • ID proof of partners
  • Address proof of partners
  • Address proof of firm
  • Digital Signature Certificate

Partnership companies

Businesses whose operations are handled by partners who have united for his or her role and share in profits are aforementioned to be partnership companies. A partnership deed consists of the functions, duties, powers, and number of shares held are clearly outlined in a verbal contract. A Tax Consultant in Chennai claims that, if they need a sound and registered partnership deeds they will operate with or without license and these companies comprise the horizon of the Indian Partnership Act, 1932. These companies should possess a minimum of two to maximum of fewer than partners to work with a registered workplace in India, partnership deeds signed by all partners.

Documents required:

  • PAN Card
  • Address proof of partners and firm
  • Partnership Deed
  • GST registration
  • Bank account details.

Individual Company

Individual companies suit tiny businesses. This was enclosed in the Companies Act, 2013 to facilitate tiny entrepreneurs who would like to run business single handedly. Entrepreneurs of such businesses enjoy liability protection as they don’t have partnership with anyone else, with a separate position. If a corporation has to be registered as one Person Company, says a Tax Consultant in Chennai, it should have one lakh INR as authorized capital with an Indian citizen and resident. Throughout incorporation the promoter should appoint a nominee and monetary businesses cannot be incorporated as one person company.

Documents required:

  • Director number
  • Digital Signature Certificate
  • PAN Card
  • Address proof
  • Address proof of the corporate
  • ID proof of administrators and shareholders
  • Company rent agreement

Sole ownership Company

In sole ownership company business operations are commanded by an individual. In such companies, the corporate and owner are thought of as one entity and will be considered as sole liability for profit and loss. These firms cause unlimited business liabilities. The tax filings and accounting reports can bear the name of the owner because it is registered beneath the name of the owner. These firms do not require a separate registration method for a Company Registration in Chennai

Documents required:

  • Aadhar card
  • PAN card
  • Registered workplace proof
  • Bank account details

Section Eight Company

Section Eight firms are popularly called Non Profit Organizations. These firms principally work for charitable activities. These firms promote arts, science, literature, education, caring for the indigent, and protecting the surroundings. Profits attained by these firms don’t seem to be divided among their members, rather they use it to realize their objectives. A company is referred to as Section eight Company if it has a minimum of two shareholders and minimum of two directors where they will be shareholders too, provided a minimum of one in all the directors is an Indian resident. No minimum capital is needed however should possess a registered workplace in India for a Company Registration in Chennai

Documents required:

  • Digital Signature Certificate
  • Memorandum of Association
  • Articles of Association
  • Passport Size images
  • Members’ Id Proof like Aadhar Card, Passport, Voter Id
  • Details of Director (When the Members ar different Companies/LLPs)
  • Address proof
  • Director number