For starting a business, one has to select a structure it shall be operated in. It can be a sole proprietorship, Partnership or a Company. The selection must be made after scrutinizing the pros and cons of the structure and type of business. Example- an individual, who wants to operate alone, has an option of sole proprietorship and One-person Company; a group of individuals who want to operate without forming any legal entity have an option to form an LLP or partnership.
Though it is hard to argue that if a business has to be started with an aim to expand in the future and have stability in operations, the structure best suited is a Company. Thus, for those having long-term plans which involve a good amount of investments, registration as a company is the best option.
What is the procedure for company registration?
- Obtaining the Digital Signature Certificate for all the proposed directors which will be required to file the application for company registration, return filings, ROC compliances etc.
- The proposed name can be reserved for Private Limited Company Formation in India either through
- Reserve Unique Name (RUN) service on the MCA portal, or
- Along with SPICe form, as explained in the next step,
- Simplified Proforma for Incorporating Company Electronically (SPICe)- this form integrates 5 different services being Name Reservation, Allotment of DIN, Incorporation of New Company, Allotment of PAN and TAN.
- Then the Registration Certificate shall be issued along with CIN, PAN and TAN.
What are the documents required for registration of Private Limited Company?
- Memorandum of Association and Articles of Association,
- Affidavit and declaration by first subscriber(s) and director(s)
- Proof of office address - A conveyance/lease deed or rent agreement with receipts and NOC, whichever applicable along with copy of utility bills.
- PAN card, proof of identity and address of all directors.
