We see many youngsters taking the Entrepreneurial route and not only that many NRI’s are returning back to India with aim to start their own company. In this how to guide I am going to detail on how to register a company in India and share information on how to start a private limited company in India. As per the companies act 1956 PRivate limited companies need to have minimum of two directors and maximum of any number of directors. Identify the initial set of directors who will be floating the company together.It is very important when you start a company you are partnering with most trusted person’s who is going to be with you during the highs and lows of the company. Discuss with your partner(s) on the vision and mission of the company and make sure they are synched up. The whole registration process of company can done by individuals themselves but I would suggest to consult with company secretary/chartered accountants who will speed up your registration process for a nominal fee for their consultancy services.
How to register a company in India?
Follow the below steps to register a Private limited company in India
1. Identify the directors of the company – (Minimum 2 and Maximum no restrictions)
2. Apply for Director Identification Number DIN for all the directors. If Directors have DIN this step can be skipped. DIN is a unique number provided to directors of the company and needs to be applied online by filing eForm DIN-1. The cost to get DIN number is Rs.100. Visit here to apply for DIN
3. The Director’s need to have Digital Signature.Digital Signature can be obtained from any third party companies which are approved to provide Digital Signature. Once you have obtained the Digital Signature the same has to be registered with ROC. To Register your DIN Visit here
4. The next step is to register a company name. You need to have a set of six names so that if the first priority is not available the next option will be checked for. During this process they will check if the name you have applied for is already taken or whether it is available. Name Registration can be done online by submitting Form1A. Download the form here and carefully fill in the details and click Submit.
5. The next step is to Incorporate the company. To Incorporate the company you need to first formulate the Memorandum of Association Articles of Association which details the main purpose of the company, the areas of services/focus,share capital money,directors involved etc will be listed in this document.A minimum of Rs.1,00,000 as Share Capital is required to start the company and these shares will be split amongst the directors.You will also need to pay Stamp duty for these company documents which can be done online also along with eFiling. Once these documents are ready you need to submit the Form1.
6. When you file Form1 along with it file Form 18 using which you will register the register office of the company and Form32 using which you will appoint Managing Director, Secretary etc.Director.During the filing of Form 1 consent document of initial directors is required. After submission the documents will be reviewed and approximately the status of application will be known in a week’s time
7. Once you get the Company Incorporated open a current account on company’s name by submitting the approved company letter along with board resolution.
When you have finished all the steps and received approvals you can then start your actual operations . In this How to register a company guide I have compiled all the steps to make the registration process more easier. Best Wishes on your new entrepreneurial journey and do let me know in comments if you have any suggestions or improvements for this guide