Table of Contents
COMPANY REGISTRATION – START-UP REGISTRATION
The first step in start-up registration is choosing the correct and suitable form of business. Such a choice will directly impact their business name, the extent of liability towards business, liabilities towards tax filing & statutory dues. The main factors for the operational and financial success of the company, depending on the business structure.
ALTERNATIVES OPTION OF BUSINESS STRUCTURES IN INDIA
|
BASIS |
SOLE PROPRIETORSHIP |
PARTNERSHIP |
LLP |
PRIVATE COMPANY |
ONE PERSON COMPANY |
|
NO. OF MEMBERS |
ONE |
TWO PARTNERS |
TWO DESIGNATED PARTNERS |
TWO MEMBERS |
ONE MEMBER |
|
LIABILITY |
UNLIMITED |
UNLIMITED |
LIMITED |
LIMITED |
LIMITED |
|
NO. OF DIRECTORS |
NIL |
NIL |
NIL |
TWO |
ONE |
|
DIN AND DSC |
NOT REQUIRED |
NOT REQUIRED |
REQUIRED |
REQUIRED |
REQUIRED |
|
PAN CARD |
YES |
YES |
YES |
YES |
YES |
|
MINIMUM CAPITAL |
NIL |
NIL |
NIL |
NIL |
NIL |
|
MAXIMUM MEMBERS |
ONE |
ONE HUNDRED |
NO LIMIT |
TWO HUNDRED |
ONE |
|
NOMINEE |
NOT REQUIRED |
NOT REQUIRED |
NOT REQUIRED |
NOT REQUIRED |
REQUIRED |
How Do We Help/Support with New Company Registration?
Start-ups are contributing more towards increasing the number of company registration in India. The cost of registration of a company depends on two main factors namely the type of company to be incorporated and the scale of operation. Starting a Company is quite a tedious job and costly process, but with the help of experts, the same is a cakewalk.
Documentation Needed New Company Registration
- Copy of PAN card and Aadhaar card of all the directors giving their name in MOA.
- Passport size photograph of all the directors giving their name at the time of incorporation.
- Document providing proof of the registered office address like the copy of Rent agreement, in case the land is taken on rent, otherwise, sale deed of the property duly stamped and executed.
- Electricity and water bills containing the full name and address of the place of business operations.
- If the property is rented, NOC from the landlord will also be required.
Steps for incorporating the company:-
- The first step of getting a company incorporated is obtaining the approval of the name from the Registrar of Companies. A company may adopt any name which is not prohibited under the Emblems and Names (Prevention of Improper Use) Act, 1950. The government has launched a web service RUN (Reserve Unique Name) for reserving the name of a proposed company. We can directly submit the application for reserving name online within few minutes (there is no requirement to download e-form like INC-1, and attaching DSC), has been launched for reserving the name of a new company or for change in name of the existing company earlier there was INC-1 for reservation of name of a new company or for change in name of an existing company. The application form fee shall be Rs.1000/- perform for reservation of name by using the RUN web-form.
THE APPROVED NAME IS VALID FOR A PERIOD OF:
20 days from the date of approval (in case name is being reserved for a new company) or
60 days from the date of approval (in case of change of name of an existing company)
- The preparation of MOA is the next step in the incorporation of a company. It is the law of the company, which states its objects and scope and the company's relation with the outside world.
- Other than MOA, the promoters will also prepare the AOA of the company. It contains rules and regulations relating to the internal management of the company.
The following other documents are also prepared:-
- Taking consent from directors and filed it with ROC.
- Promoters have to execute the power of attorney in favour of one of them.
- Form of DIN, PAN & TAN.
- Form for the first director.
- Form for the address of the registered office.
- At the time of registration, prescribed registration fees and the filing fees for each document filed for registration are to be paid at the Registrar’s office.
Also, we can incorporate a company in India through the
Simplified Performa for Incorporation Company Electronically (SPICE)
MCA will bring new specified procedures for the incorporation of a company under the companies act, 2013. Ministry of corporate affairs introduces E- Form INC-32 by a notification under the SPICE Scheme. SPICE means Simplified Performa for Incorporating Company Electronically.
The SPICE form will be introduced to bring the facility of preparing Electronic MOA & Electronic AOA. This facility is introduced first time in Indian history for the incorporation of the company. Now there is no need to prepare manual MOA & AOA.
Before this SPICE form if any person wants to incorporate any company then he has to apply by filing different forms for DIN, PAN, TAN, approval of name availability, registered office address, first director form, etc.
Now it is mandatory to file E-Form INC-32 for the incorporation of a company in India. If the company is a Producer Company and having more than 7 subscribers then E-Form INC-7 has to be filled and if subscribers of Producer Company are less than 7 then it has to file E-Form INC-32 for incorporation.
According to the notification given by MCA, companies who are incorporated by filing E-Form INC-32 then company cannot incorporate by filing E-Form INC-7 on or after 29th December 2016. So, it is compulsory to file E-Form INC-32 for the incorporation of the company from the date 29 December 2016.
SPICE Form (INC-32) has the following features:-
- The maximum number of allowed subscribers is seven. If subscribers are more than seven then E-Form INC-7 is filled and normal incorporation procedures of E-Form INC-7 are applied.
- A maximum of twenty directors is allowed.
- Maximum three directors are allowed for filing applications for Director Identification Number.
- In this form name of the company can also be applied.
- DSC of the subscriber is affixed on the INC-33 (E-MOA) For automatically generating the date of the sign by the form.
- Applying for PAN / TAN will be compulsory for all the companies that are incorporated through the SPICE form.
The following difficulties are faced while filing SPICE Form (INC-32):-
- For foreign subscribers, it is difficult to incorporate the company without violating rule 13 of the companies’ rules, 2014.
- If the company name is approved already in E-Form INC-1 then whether the company can apply for incorporation in E-Form INC-32 or not
- If both the person doesn’t have DIN No. whether they can apply for the incorporation of the Company. Or one person mandatorily requires having DIN for filing of this form
- For the incorporation of a producer company, this form is filled or not.
- If any company wants to incorporate through INC-7 then how the company can do so.
The following documents are attached with the SPICE E-Form (INC-32):-
- E-MOA & E-AOA are required to be attached.
- INC-9 Affidavit and declaration by first subscriber and director (on duly authorized Stamp Papers).
- DIR-2 declaration from first Directors along with Copy of Proof of Identity and residential address.
- NOC from the owner of the property.
- Proof of Office address (Conveyance/ Lease deed/ Rent Agreement etc. along with rent receipts);
- Copy of the utility bills (not older than two months)
- Declaration from the director's nonacceptance of Deposit. (On duly authorized Stamp Papers).
- In the case of subscribers/ Director does not have a DIN, it is compulsory to attach Proof of identity and residential address of the subscribers
- E- 49A and E-49B will be filed through the MCA website (filed form will be generated by the SRN of INC-33 E-MOA).
Incorporate a new company in a progressive country like India and take the following benefits:-
- In-country like India, you have complete ownership of your company.
- You can also take exemption from taxes in startup companies if eligible.
- For the foreign person, one special benefit is he does not have to require physically present in India he can operate from outside India except one time present at the time of incorporation.
- For incorporation, you have to open a bank account and you have the benefit that ownership of the bank account is your own company name.
- In-country like India, the Privacy of your all operations is maintained.
- Annual fees are nominal in India.
- You have permission to be traded in foreign or can do international business easily.
- You can purchase properties in India in your company name.
- Even you can easily set up the operation of an international company.
- For foreign people, one more benefit is they can easily get a business visa for India residency.
You can get the above benefits by incorporating your entity in a progressive country like India and also you can get extra benefits in setting up your corporate bank account easily through Rajput Jain& associates.
FAQs ON COMPANY FORMATION
Q.: What are the factors affecting the choice of business?
There are many types of business organisations as discussed above, thus, the choice of the most suitable business structure depends on factors like ownership, availability of capital resources, the scale of business, number of members, degree of risk, liability etc.
Q.: What is SPICe+ Form?
SPICe is a short form for Simplified proforma which is a platform for incorporating a company electronically and as its name suggests, it acts as an application form for company registration. SPICe+ form is an updated version of SPICe form and the same be applicable from 15th February 2020.
Q.: What are the major differences between SPICe and SPICe plus?
SPICe is a platform provided by MCA, for Name reservation, Incorporation & DIN allotment in company registration.
SPICe+ or SPICe plus on the other hand is a more detailed form of SPICe, as it helps in coordinating with 3 central ministerial approvals and provides a bunch of 10 services that are essential for company registration in India, namely -
- Name reservation
- Incorporation of a new company
- Applying for DIN allotment]
- Profession Tax (Maharashtra)
- Bank Account Opening
- TAN
- EPFO
- ESIC
- GSTIN
Q.: Is company registration compulsory in India?
As per the companies’ act, 2013, any entity to be formed as a company, is required to take registration with the Registrar of companies before commencing with their operations. Also, to avail the benefits associated with different forms of companies, one must get itself registered for reaping the same.
Q.: What is the working provision of a Private Company?
Every company is unique in the sense of its work. However, the regulating authority is the promoter(s) who has the final say in the functioning of the company. A private limited company works directly under the purview of its owner’s discretion. Since the management is undertaken by the Board of Directors, the decision-making becomes fast & smooth, unlike a public limited company.
Q.: What is the total time duration for company registration?
After successful submission of the documents and application fee, it usually takes on an average of 7-10 days to get the certificate of incorporation.
Q.: How to check the status of a company registration application?
Once the applicant makes the final fee payment, an acknowledgment number is generated. Thus, the applicant can check the status using the number on the MCA portal. The status can also be checked using the CIN of the company.
How Rajput Jain & associates offer services for helping you information of the company in India it is a one-stop solution for you:-
- Get the most comprehensive and perfect Company Formation advice.
- Helping in set-up your branch company out from your Global entity structure easily.
- Helping in getting your Commercial License and acquire your India residence visa
- You can take advantage of Accounting & GST / Tax Consultancy & Advisory Services
- Easily get Tax Agency Appointment
- You can get easily the perfect Financial Auditor for your existing company
- You can get all the services before and after the incorporation of the company.
Regards
