5 Steps of Registering Your Company in India

Registering your company online beneath the proper business system is a vital judgment. Selecting a suitable business system for your company is as vital as any other business-connected movement. The proper company structure will permit your firm to function efficiently and meet your needed business marks. In India, every company must register itself as part of compulsory legal obedience. 

4 different types of Company Structures in India

LLP Company - is ideal for service-related companies or companies that have lower investment requirements. Tax advantages are also there as it gives advantages on depreciation and also other legal rules or orders like filing of business tax returns & ROC file returns.

One Person Company - It is ideal for single owners who are looking for limiting their liabilities and also tax advantages as it provides a tax leave for the first three years under Startup India Higher advantages on minimization as there is no tax on dividend distribution. Some legal orders are also there like business returns must be filed and also limited ROC compliance should be reported within the due date.

Private Limited Companies - are ideal for huge turnover and also have tax holidays for the first three years on minimization as there is no tax liability on dividend distribution. Business tax returns are to be filed and ROC returns. An audit is compulsory

Public Limited Companies - also feature the same advantages and characteristics as the private limited companies except for the fact that in a public limited company there is a tax exemption that is not there in a private limited company.

3 essential advantages of selecting a proper business or company structure

• It is essential to select your business or company structure cautiously as your Income Tax Returns will rely on it. While registering your business, determine that each company structure has various levels of rules and orders that need to be satisfied. For instance, an owner has to file just an income tax return. However, a business has to file an income tax return as well as yearly returns with the Registrar of Companies.
• Business books of funds are to be compulsorily audited every year. Staying by this legal obedience needs expending money on auditors, accountants and tax filing experts. Hence, it is crucial to choose the proper business structure when considering company registration. An entrepreneur must have an exact idea of the type of legal obedience he/she is keen to deal with.
• While some company structures are moderately investor-friendly than others, investors will always favour a renowned and legal company structure. For instance, an investor may pause to give money to an isolated proprietor. On the other hand, if a promising business idea is backed by an acknowledged legal structure (like LLP, Company,) the investors will be more relaxed making an investment.

5 Effective Steps for Company Registration

Step 1: Digital Signature Certificate (DSC)

As the registration procedure of the company is totally online, Digital signatures are needed to file the documents on the MCA website. DSC is compulsory for all the suggested directors and subscribers of the Memorandum of Association and Articles of Association.

DSC can be acquired from government-acknowledged certifying officers. 

Step 2: Director Identification Number (DIN)

The Director Identification Number is an identification number for a director and it has to be acquired by anyone who desires to be a director in a firm. The director identification number of all the suggested directors of the company along with the name and the residence proof are to be supplied in the company registration form. It can be received while filing the SPICe+ form.  

SPICe+ is a web-based business registration form, through which the director identification number can be acquired for the utmost of 3 directors. If there are more directors in the company and they do not have an identification number, the company can be combined with three directors and it has to select new directors after incorporation. The selected directors can acquire the identification number by filing the DIR-3 form since only the suggested directors of a current company can apply for the DIR-3 form.

Step 3: Registration on the MCA Portal

To apply for the company registration, the SPICe+ form is to be filled out and submitted on the MCA website. To fill out the SPICe+ form and attach the documents, the director of the firm has to register on the MCA website. After registration, he/she can log in and will acquire access to the MCA website services which contain filing e-forms and considering public documents.

Step 4: Certificate of Incorporation

Once the registration application is served and presented along with the needed documents, the Registrar of Companies will analyse the application. Upon confirmation of the application, he will give the Certificate of Incorporation of the Company.

The Certificate of Incorporation is given with PAN and TAN as assigned by the Income Tax Department. Electronic correspondence with a Certificate of Incorporation as an extension along with PAN and TAN will also be mailed to the applicant.

Step 5: Documents required for Company Registration

The public papers that are to be presented for registration of LLP, One Person Company, Private Limited and Public Limited Company are:

Records of the Directors and Shareholders of the firm/ Partners of the LLP

Proof of identity of all the business directors and shareholders and partners in case of LLP. Any one of the below-mentioned records can be introduced as proof of identity:

• Pan card
• Aadhar card
• Driving license
• Passport 

Proof of residence of all the directors and shareholders. Any one of the below-mentioned documents can be introduced as residence proof:

• Latest 2 months telephone bill 
• Latest 2 months electricity bill
• Bank account statement having the residence details 
• Director Identification Number and Digital Signature Certificate of all the directors

Documents of the Company/LLP

Proof of registered office address of the company. The below-mentioned documents must be introduced as address verification of the company:

• Tenancy or rental contract between the owner and company or LLP
• A letter or No Objection Certificate from the owner of his/her consent to use the office or premises as the LLP’s or company’s registered office. 
• Sale agreement of the company or LLP office premises in the name of the company or LLP
• The Memorandum of Association includes the motives of the company for which the company is going to be combined and the liability of the partners of the company.
• The Articles of the Association lays down the by-rules on which the company will work.

4 trending ways to choose a company structure while applying for company registration in Kolkata

• The number of partners or owners your company will have - If you are a single person who holds the total initial asset needed for the company, a one-person company would be perfect for you. On the other hand, if your company has two or more proprietors and is vigorously pursuing investment from other parties a Limited Liability Partnership (LLP) or Private Limited Company would fit you best.
• Your initial investment decides your choice of a company - If you want to expand short originally, it would be smart to go in for an Isolated Owner, HUF or Partnership firm. But, if you are confident that you will be able to retrieve the setup and observation expenses, you can choose a One Person Company, LLP or a Private Limited Company
• Wish to carry the whole liability of the Company - Company structures like a sole owner, HUF, and partnership firm has limitless liability. This means, that in case of any insolvency in loans, the total money will be retrieved from the partners or members in profit sharing ratio. The risk to private investments is high in these cases. Whereas, Companies and LLPs have a fixed liability clause. This means that the liability of its partners is limited to the amount of donation made by them or the worth of shares each partner holds.
• Income Tax rates are applicable to businesses - The income tax rates are usable for sole ownership and a HUF is the standard slab rate. In the case of sole ownership, the business earnings are clubbed with the person's other income. But in the case of other commodities like partnership firms and companies, a tax rate of 30% is relevant.

Online Legal India helps you throughout the process of company registration-related matters and even provides you with the service of online company registration in Kolkata for your comfort. The CA experts are there to help you out with your company registration problems at nominal charges.

You can directly talk to the experts through our website by filling out a brief application form and upon receiving your information, our team will connect with you shortly. They will examine your problem and will direct you through the entire process of company registration. Online Legal India is there with you to help out in every circumstance.