As a legal entity, your company can own a property in its name and can enjoy perpetual succession. To register your company as a “separate legal entity” it is important that you incorporate it with the Registrar of Companies(ROC). This article will walk you through a simple 6-step process to register your company from the comfort of your home.
Why Register Your Company in India?
Company registration in India can fetch you immense benefits, from generating capital, transferring shares, obtaining tax benefits, and more. Did you know you can register your company right from your home? Registering your entity all by yourself might seem to be a complicated process. Let’s break down this complex task and you can register your company into 6 simple steps.
Step 1: Obtain DSC
As the registration goes online, the first step would be to obtain a Digital Signature Certificate (DSC). DSC ensures an authentic and secure way to submit all your documents electronically. Depending on the type of company, you will have to obtain a class 2, or a class 3 DSC. One must approach any one of the Licensed Certifying Authorities for getting a Digital Signature Certificate.
Step 2: Apply for the DIN
Director Identification Number (DIN) is a unique 8-digit number that is issued under the Companies Act section 153. As per the Companies Amendment Act 2006, all directors of a company have to acquire DIN. You can apply for DIN online, and if your application is accepted by the Central Government, you would receive your DIN within a month.
Step 3: MCA Portal Registration
The director of the company has to register a user account on the MCA portal. After registration to the portal, the director can access the SPICe+ form to register the company.
Step 4: Application for Name Availability
You must apply for a unique name for your company. Your company name should always be descriptive of the products you sell, or services you offer. You must follow the MCA guidelines for naming a company, if not your application might be rejected. If you already have a name in mind you can check the company name availability with Vakilsearch’s company name search facility.
Step 5: Submission of Charter Documents
Memorandum of Association(MoA) and Article of Association(AoA) are preliminary documents for the PVT limited company registration.
MoA is said to be the constitution of the organization. It documents the foundation of the company’s structure, its activities, and objectives. MoA also lays down its relationship with the outside world.
AoA is like the ‘user manual’ of the company. It mentions all the rules and regulations to manage internal affairs like handling financial records, and appointment of directors.
Step 6: Apply for PAN and TAN
Permanent Account Number (PAN) is a 10-digit alphanumeric number that is a must for all important transactions. Apply for PAN online through the NSDL website, or authorized agents.
Tax Deduction Number (TAN) is a 10-digit alphanumeric number provided to people who collect or deduct tax. TAN is important for filing TDS returns. If you fail to apply for a TAN card, you will be liable to pay a ₹10000/- fine. Apply for your TAN by visiting the NSDL website.
What Next?
Post-approval, a Certificate of Incorporation with PAN and TAN can be obtained. You can formally open a current bank account with the Certificate of company registration and begin your company operations.
If you still find the process complicated, maybe let the experts at Vakilsearch help you with a hassle-free registration of your entity.
