Read this blog to learn more about the kind of documents you would require to start your own business in India.
If you are going to start your new business, it is essential to know about the registration process and the documents required for the documentation. This will boost your venture and provide you with enough information about the documentation process. It will also improve your legalities to operate your business most successfully. This article will discuss the documents you need to start your new business in India.
Documents Required for Business Registration in India
The documents required for registering your business may differ according to your company. However, if you are a start-up company, here are the documents you must submit for business registration. If you want to register your business under the Government of India, proper documentation is essential to avoid legal issues. The documentation differs according to your freelance business and individual ownership of the business.
1. Agreement With Company Shareholders
Whatever business you own, the investment of shareholders is essential to back up your business. They are like the backbone of any start-up, even an established organisation. Several companies offer share percentages to the shareholders. It means that shareholders play a significant role in any business. They also have the right to make vital decisions for the company’s improvement and control.
The agreement of the shareholders is considered a legal statement. The legal statement or agreement takes place between the company and the shareholders of the company. The agreement’s primary purpose is to ensure the terms and conditions while preserving the rights of both parties.
The shareholder agreement makes clear guidelines for the company and the shareholders. The agreement in the upcoming time provides solutions to settle the disputes and smoothly operate the business.
What the Shareholder Agreement Deals With
A shareholder agreement consists of
- The proportion of shares held by the shareholder
- If the company provides several categories of shares to the shareholders
- The new rules and regulations of shareholding in the market, if any, from which the company can get long-term consequences.
- The company’s board of directors’ authority to control the violation of the agreement or transfer of shares.
- The rules for transferring shares.
Guidelines mentioned in the shareholder agreement to settle disputes, change terms of shareholding, or process of exit from the shareholding agreement.
2. Cofunders’ Agreement
If your start-up company has multiple founders or co-founders, you must need a legal document to validate the legalities of the company. A co-funders agreement or a founder agreement is thus an official agreement or contact that takes place between the co-founders of the firm.
The primary motif for the agreement in the written format is to mention their responsibilities, details of ownership, and investment details related to the funders. If your company has co-founders, you must sign the agreement in the initial days. The agreement will make a clear guideline and detail the roles and responsibilities that are associated with the co-founders.
Process of Getting Shareholder Agreement and Founders Agreement
The agreement process of shareholder agreement and founders agreement is the same. The process of documentation is as follows:
- The company details and its objectives for business
- Details of the company owners
- Details of founder and share capital
- Objectives and purposes of the co-founders
- Exit policy and dissolution and resolution process of disputes for shareholders and co-founders
- Salary of the co-founders
- Provisions based on miscellaneous factors
3. Incorporation Certificate
The incorporation certificate is a legal documentation process to validate the company’s formation objectives and working procedure. Here are the components associated with an incorporation certificate.
- The name and abbreviation of the company
- A statement stating the purpose of the company of doing business
- The registered address of the company and the registered agent as well
- The details of the incorporated company of the applying company, if any, under the Companies Act of 2006.
Applying process for incorporation certificate
Director Identification Number (DIN)
The Companies Act 2006 states that every company director must have a DIN or Director Identification Number. You have to create your account, update it on the MCA website, and submit your DIN application.
Digital Signature Certificate (DSC)
According to the Information Act 2000, every company’s document needs a valid digital signature. The signatures must be original ones. The digital signature certificate is a fast process to submit the documents electronically.
Applying an Incorporation Certificate
On the last step in your application, you must mention your company’s name and details. You have to fill out some forms, including Form 1, Form 18, and Form 32.
PAN card of the company
PAN card registration is essential for an Indian or foreign company doing business in India. You can apply for your company’s PAN with the following documents:
- Your valid identity proof or proof of your address
- Photocopy of MCA or Ministry of Corporate Affairs approved no-objection certificate
- Photocopy of incorporation certificate
NOC or No Objection Certificate
A company, individual, or corporation can issue a No Objection Certificate (NOC), which is a legal document. The signee of the certificate states that he has no objection to the objective terms and conditions related to the partnership with the company. The legal document can also be produced at the time of disputes and the legal procedure of the company.
The Application Process for a No Objection Certificate
You must contact a legal expert or lawyer to get the No objection Certificate. The certificate is available in printed form on stamp paper and even on regular letterhead.
The Commercial Tax Department issues the TIN or Tax Identification Number if your company applies for it. The 11-digit TIN is essential to validate your business’s terms and smooth functioning. The TINN number is VAT registered and validates your company’s goods and services business. The documentation process for applying to get the TIN may be different according to the terms and guidelines of the application of different Indian states.
Documents Required to Get the Tin Number
- Valid proof of Identity
- Prof of the address of the applicant
- Proof of address of the owner of the business
- Registered office address of the company
- Passport size photographs of the owner of the company
9. No Disclosure Agreement
When the business ideas is designed between two parties mentioning proper maintenance of the confidential information, it is known as a non-disclosure agreement. The purpose of the agreement is to secure confidential information of the company.
Applying Process for a No Disclosure Agreement
You can contact your business lawyer to get the No Disclosure Agreement. The agreement does not require to be printed on stamp paper. Your company’s letterhead is enough to print it.
The GSTIN number is 15 digit number that is linked to the PAN number of the company. The full form of GSTIN is the Goods and Services Taxpayer Identification Number. The Indian government has made it mandatory for companies with an annual turnover of more than RS. 20 lakh to have a valid GSTIN number to perform business in India. If your company is registered as a dealer, it is mandatory for your company to file the GST returns and liability of GST. The Valid GSTIN number also validates your company’s loan application.
So, here are the essential documents required for starting your business in India and registering your start-up company. Contact reputed lawyers of Vakilsearch for the best legal assistance in your business registration process or in solving disputes related to business registration.