Starting one’s own business is always a huge deal, but many people start business without first incorporating a business. Is this a good idea? What risks do we take on when we go into business without first forming a separate company?

India is home to over 20 lakh private limited companies, making it the most preferred business entity in India. All such companies are regulated by the Ministry of Corporate Affairs as per the guidelines of the Companies Act, 2013. The Indian government has greatly simplified the steps to incorporate a business in India. Doing so has helped entrepreneurs register their dream company in India with ease. Such steps have been taken to ensure that entrepreneurs get the required encouragement to start the company of their dreams. But, how can individuals incorporate a business in India? In this article, we will take an in-depth look at the process of company registration in India, and how Vakilsearch can help individuals with the same.

Benefits of Company Registration

Registering your business is always the best thing to do as it brings with it taxation benefits, credibility, the ability to quickly scale or expand your business, and a considerably hastened process of sanctioning business loans. It also allows you to hire full-time employees and pay them according to state laws. Also, in terms of the protection, it provides you, Private company registration, especially as a private limited company or a limited liability partnership means that you can be reasonably protected for bad debts and other legal actions since your identity is separate from the identity of the company, and that brings with it the veil of corporate identity. 

How to Register a Company in India

To register a company online has never been easier thanks to legal service providers, such as Vakilsearch. The government too has taken the necessary steps to make business registration simple and straightforward. The process of business incorporation is what makes businesses legally valid and independent as an entity in India. In most cases, to register a company in India a company requires a minimum of two people to act as shareholders and directors.  

To begin the process, the directors will have to obtain their Digital Signature Certificates and Director Identification Numbers. Next, the entrepreneurs will need to obtain a company PAN card, address proof documents, and other financial statements. Once the entrepreneurs have the required documents, they may file an application to register their company after finding a suitable name for their business venture. The Ministry of Corporate Affairs then reviews the application and the supporting documents to verify the company. If the officials are satisfied, the entrepreneurs will receive a certificate of registration in about a week or two. 

What to Know About Incorporation of a Business in India

1. Entrepreneurs can choose between several options when it comes to incorporating their business in India. Some of the most popular options are partnership firms, private or public limited companies, limited liability partnerships, sole proprietorships and one-person company
2. On average the process of business registration takes around ten to fifteen days if all the documents are in order. Likewise, the processing time usually depends on how many documents entrepreneurs have ready, and how many applications the government officials have to process
3. The Ministry of Corporate Affairs provides the incorporation certificate as a PDF via their official website. Companies may download a soft copy of the certificate and use a printout of it as a hard copy 
4. Entrepreneurs should conduct an online name search before filing an application to ensure their proposed name is unique and original. All applicants may provide up to two names in the application for registration. In case these are rejected by the MCA, applicants may re-submit the application with two new names
5. It is important entrepreneurs register their company in India as it allows them to open a current bank account to carry out their business transactions. Most banks ask for the incorporation certificate and the company’s memorandum of association to verify the company’s legal status.

Documents Required to Incorporate a Business in India Online

Here’s a quick look at the various documents entrepreneurs need to submit to the MCA to incorporate a business in India:

1. PAN card of all directors
2. Address and ID proof of all directors: Passport, Aadhaar card, Driving license, Ration card, Voter’s ID
3. Proof of possession of the business premises or registered office. It includes property registration certificate, lease/rent agreement, authorization from landlord, electricity, gas or water Bill, or property tax receipt 
4. Digital signature certificates of all directors
5. Duly filled SPICe+ application

Benefits of Business Incorporation in India

1. Since the company exists as an independent entity, entrepreneurs can share and transfer ownership with ease
2. Makes it easier for business owners to raise capital and secure funding
3. A Private limited company letterhead provides entrepreneurs with limited liability protection, helping stakeholders mitigate risk
4. Since the company has an independent existence, it enjoys continuous or perpetual succession. Further,  allowing it to continue existing separate from its founders and directors
5. Moreover, after successful incorporation, companies can file for an obtain PAN: https://web.umang.gov.in/landing/department/my-pan.html and TAN, which helps them register with the government for tax purposes
6. Pvt ltd company Incorporation helps make a business an artificial judicial person as per the Companies Act, providing it with a wider legal capacity
7. As per Indian law, companies have the right to own, acquire, sell and transfer both tangible and intangible assets

How Vakilsearch Can Help?

Each year, Vakilsearch helps thousands of entrepreneurs all over India build the company of their dreams. We facilitate online registration for young business owners to complete all the formalities and obtain a registration certificate with ease. All you need to do is reach out to our team, and we will schedule an appointment for you with our legal experts. Additionally, once they understand your specific needs, we will formulate a plan regarding what certifications you will need to kick-start your business. With us by your side, you will be able to complete registering your business in less than ten days. 

Additionally, we also offer a slew of compliance services to ensure that your company stays on the right side of the law. Some of the compliance requirements we help you meet are as follows:

1. Statutory Auditor appointment within 30 days of incorporation
2. Obtaining the commencement certificate from the MCA
3. Income tax returns online annually via Form ITR-6
4. File annual returns AOC-4 and MGT-7 without fail 
5. Complete the DIN and KYC procedures

Do reach out to us at Vakilsearch in case you have queries or require further assistance