How To Register A New Compfny Online

Dislocated almost which company structure to choose? Try out our tool to decide!

Picking the right company construction for your business is as of import as whatsoever other business-related action. The right business structure will permit your enterprise to operate efficiently and meet your required business organization targets. In Bharat, every business must register themselves every bit part of the mandatory legal compliance. Before we larn how to register a visitor, let's attempt and understand the types of business structures in India.

Comparative List of Different Types of Business Structures in Bharat

Hither is a comparative list of the popular business organization structures in Bharat.

Company type	Ideal for	Revenue enhancement advantages	Legal compliances
Limited Liability Partnership	Service-oriented businesses or businesses that have low investment needs	Benefit on depreciation	Business concern tax returns to exist filed ROC returns to be filed
One Person Company	Sole owners looking to limit their liability	Tax holiday for first 3 years under Startup India Higher benefits on depreciation No tax on dividend distribution	Business concern returns to be filed Limited ROC compliance
Private Limited Company	Businesses that take a loftier turnover	Tax holiday for first 3 years nether Startup Bharat College benefits on depreciation	Business taxation returns to be filed ROC returns to exist filed An audit is mandatory
Public Limited Company	Businesses with a high turnover	Tax exemptions under	Business tax returns to be filed. Mandatory Audits

What are the types of business organization structures in India?

Permit'due south effort and understand the types of business organization structures available in India. Here is a listing of some of them:

One Person Visitor (OPC)

Recently introduced in the year 2013, an OPC is the best way to first a company if there exists only one promoter or owner. It enables a sole proprietor to behave on his work and still exist part of the corporate framework.

Limited Liability Partnership (LLP)

An LLP is a separate legal entity where the liabilities of partners are just express only to their agreed contribution. An LLP is established under the Limited Liability Act, 2008 with the Registrar of Companies (ROC).

Private Limited Company (PLC)

A PLC in the eyes of the law is regarded equally a separate legal entity from its founders It has shareholders (stakeholders) and directors (company officers). Each individual is regarded as an employee of the visitor.

Public Express Company

A Public Express Company is a voluntary association of members which is incorporated under company law. It has a separate legal existence and the liability of its members are limited to the shares they hold.

Yous tin choose what business construction suits your business needs all-time and accordingly register your business concern.

Other forms of business concern structures include Sole proprietorship, Hindu Undivided Family, and Partnership firms. Please comport in mind, that these structures do not come under the ambit of company police.

Why is it important to choose the correct business structure?

It is of import to cull your business construction advisedly as your Income Revenue enhancement Returns will depend on it. While registering your enterprise, remember that each business structure has different levels of compliances that demand to exist met with. For case, a sole proprietor has to file only an income taxation return. Notwithstanding, a visitor has to file an income taxation return as well equally annual returns with the Registrar of Companies.

A visitor'due south books of accounts are to be mandatorily audited every year. Abiding by these legal compliances requires spending money on auditors, accountants and revenue enhancement filing experts. Therefore, it is important to select the correct business structure when thinking of visitor registration. An entrepreneur must have a clear idea of the kind of legal compliances he/she is willing to bargain with.

While some business structures are relatively investor-friendly than others, investors will e'er prefer a recognised and legal business organisation structure. For instance, an investor may hesitate to give coin to a sole proprietor. On the other hand, if a good business organization idea is backed past a recognised legal structure (like LLP, Company, etc) the investors will be more comfortable making an investment.

How to choose a business structure while applying for company registration in Republic of india?

Let's take a expect at some important questions every entrepreneur must inquire himself before he/she finally decides upon a business organization structure.

How many owners/partners will your business have?

If you are a unmarried person who owns the entire initial investment required for the business concern, a One Person Visitor would be ideal for you. On the other mitt, if your business has 2 or more owners and is actively seeking investment from other parties a Limited Liability Partnership (LLP) or Private Limited Visitor would adjust you all-time.

Should your initial investment determine your selection of business structure?

If you want to spend less initially, information technology would be wise to get in for a Sole Proprietor, or HUF or Partnership business firm. Merely, if you are sure that yous volition be able to recover the setup and compliance costs, you lot can opt for a One Person Company, LLP or a Individual Limited Company

Willingness to carry the entire liability of the business

Business structures like sole proprietor, HUF, and partnership firm have unlimited liability. This ways, in case of any default in loans, the unabridged money will be recovered from the members or partners in profit sharing ratio. The adventure to personal assets is loftier in these cases.

Whereas, Companies and LLPs have a limited liability clause. This means that the liability of its members is restricted to the corporeality of contribution made by them or the value of shares each member holds.

Income Tax Rates Applicative to businesses

The income tax rates applicable to a sole proprietorship and a HUF are the normal slab rates. In the case of a sole proprietorship, the business organisation income is clubbed with the individual's other income. Only in the case of other entities similar partnership firms and companies a tax rate of 30% is applicable.

Plans of getting money from investors

Every bit mentioned earlier, it is difficult to get investments when your concern construction is unregistered. Entities like LLP and Individual Limited Company are trusted when it comes to investment. Brand sure you cull the right construction, seek the assist of an expert so that y'all register under proper guidance.

How to Register a Company in India?

Registering a company in India is at present a simple iv-pace process-

Step 1: Digital Signature Certificate (DSC)

As the registration process of the company is completely online, Digital signatures are required to file the forms on the MCA portal. DSC is mandatory for all the proposed directors and the subscribers of the Memorandum of Association (MoA) and Articles of Association (AoA).

DSC can exist obtained from government recognised certifying authorities. The list of such certified authorities tin exist accessed here. DSC can likewise exist obtained online in just two days from here. Class 3 category of DSC must be obtained past the directors and subscribers of MoA and AoA.

Stride 2: Director Identification Number (DIN)

The Managing director Identification Number (DIN) is an identification number for a manager and it has to exist obtained by anyone who wants to exist a managing director in a company. The DIN of all the proposed directors of the visitor along with the name and the address proof are to be provided in the visitor registration form. DIN can exist obtained while filing the SPICe+ form, i.due east. visitor registration class.

SPICe+ is a spider web-based company registration form, through which DIN tin exist obtained for a maximum of iii directors. If there are more directors in the company and they practise not have a DIN, the company can be incorporated with three directors and it has to engage new directors later on afterward incorporation. The appointed directors can obtain DIN by filing the DIR-3 form since only the proposed directors of an existing company can use for DIN in the SPICe+ form.

Stride 3: Registration on the MCA Portal

To apply for company registration, the SPICe+ class is to be filled out and submitted on the MCA portal. To fill out the SPICe+ grade and submit documents, the director of the company has to annals on the MCA portal. Subsequently registration, the director can log in and volition obtain access to the MCA portal services which include filing e-forms and viewing public documents.

The visitor must also reserve its name by submitting two proposed names in the Part-A of the SPICe+ grade. The reservation of the name is essential because if the company name is similar to the proper name of an existing/registered visitor, LLP, trademark or it contains words prohibited under the Companies (Incorporation Rules) 2014, the SPICe+ form volition get rejected.

If the SPICe+ form gets rejected due to non-approval of the company name, the applicant has to re-file another SPICe+ form for the reservation of a new proper name by paying the prescribed fee. Yet, afterwards the approval of the name filed in Role-A of the SPICe+ form, it will be reserved for a menstruum of xx days inside which the company must fill Part-B of the SPICe+ form and submit the form online. The bidder must provide the details of the company and directors in the Part-B of the SPICe+ form, attach documents, attach DSC, check the class and submit it.

Step 4: Certificate of Incorporation

Once, the registration awarding is filled and submitted along with the required documents, the Registrar of Companies will examine the application. Upon verification of the application, he volition issue the Certificate of Incorporation of the Company.

The Certificate of Incorporation is issued with PAN and TAN as allotted by the Income Taxation Department. An email with a Document of Incorporation as an attachment forth with PAN and TAN will as well be sent to the applicant.

With this, we accept covered the nuts of how to annals a company.

Documents required for Company Registration

The general documents that are to be submitted for registration of LLP, One Person Company, Private Limited and Public Limited Company are as follows:

Documents of the Directors and Shareholders of the visitor/ Partners of the LLP

Proof of identification of all the company's directors and shareholders (partners in case of LLP). Any one of the below documents tin exist submitted equally proof of identification:
- Pan card
- Aadhar card
- Driving license
- Passport
Proof of address of all the directors and shareholders (partners in example of LLP). Any one of the below documents can be submitted equally address proof:
- Latest telephone beak (not older than 2 months)
- Latest electricity bill (not older than ii months)
- Bank account statement having address
DIN (DPIN in example of LLP) and DSC of all the directors (partners in example of LLP)

Documents of the Visitor/LLP

Proof of registered office of the visitor. The below documents must be submitted equally address proof of the company:
- Tenancy/rental agreement between the landlord and company/LLP
- Letter or NOC from the landlord of his/her permission to use the office/premises every bit the LLP'southward/company's registered part.
- Sale human activity of the company/LLP part premises in the name of the company/LLP
The Memorandum of Association (MoA) which contains the objects of the company for which the company is going to be incorporated and the liability of the members of the company.
The Manufactures of the Association (AoA) which lays down the by-laws on which the company will operate.

For more than details about documents required for incorporating a One Person Visitor, read our article on documents required for one person company registration.

For more details about documents required for incorporating a Private company, read our article on documents required for private limited company registration.

For more details about documents required for incorporating a Public company, read our commodity on documents required for public limited company registration.

For more details almost documents required for incorporating an LLP, read our article on documents required for LLP registration.

How ClearTax Helps in Simplifying Company Registration Process?

With ClearTax, yous can establish your company seamlessly in just 10 days (subject to departmental approvals). Our company registration packet includes:

Name approval of your company
Obtaining DIN for two directors
Filing SPICe+ form
Payment of Postage Duty for authorized capital upwardly to Rs.1 lakh except for us of Punjab, Madhya Pradesh and Kerala
Issuance of Incorporation Document along with PAN and TAN
Opening of current account for your company

The company registration from ClearTax is completely online and thus, you can save time and money as y'all practise not accept to visit our office. Plus, you can register your company in just 4 simple steps, which are:

Pace 1: P urchase the program

Buy our company incorporation plan that suits you the best. Y'all can fifty-fifty chat with our experts by inbound your email, phone number and clicking on the 'Request a Callback' button. You lot tin can likewise contact usa by sending an email with your queries at enquiries@cleartax.in. Our experts volition contact you and articulate all your queries.

Step 2: Upload the documents to our website

Upload the required documents on our website. The uploaded documents are will be stored safely in our vault and 100% privacy is maintained.

Step 3: Certificate verification by our experts and signature of documents

Our experts will verify the documents uploaded past you. You volition need to attest your signature on the documents.

Footstep iv: Our experts volition file the form on the MCA portal

Our experts will file the company incorporation form on behalf of you on the MCA portal. After the company incorporation form is filed on the MCA portal, the ROC and the respective departments volition verify the forms submitted by our expert. The verification procedure takes around x days (subject area to departmental approval and reverts from the respective departments).

Our experts will follow up with the respective authorities till you receive the Incorporation Certificate. After the verification process is consummate, y'all volition receive the Incorporation Certificate forth with PAN and TAN in near 10 days.

Checklist for Visitor Registration

Minimum number of directors/partners, which are equally follows:
- Minimum of one director for OPC
- Minimum of two directors for PLC
- Minimum of three for Public Limited Company
- Minimum of 2 partners for LLP
Minimum number of members in a company, which are as follows:
- Minimum of one member for OPC
- Minimum of 2 members for PLC
- Minimum of seven members for Public Limited Company
DSC for all designated directors/partners.
DIN for all directors of a company/DPIN for all designated partners of LLP.
Name of the company/LLP, which is not similar to whatsoever existing proper noun of a company, LLP or trademark.
Authorised majuscule in case of an OPC, PLC or Private Limited Visitor.
Capital contribution by the partners of the LLP, in the instance of LLP.
MoA and AoA in instance of an OPC, PLC or Private Express Company.
LLP understanding betwixt the partners, in the example of LLP.
Proof of registered part of the company/LLP.

What is the Cost of Company Registration?

Program corporeality for OPC Registration – ₹6999*

Plan amount for LLP Registration – ₹6999*

Plan amount for PLC Registration – ₹7999*

* Prices shown above may vary. Please click here to contact our experts for consummate pricing details.

Cost of Public Express Company Registration – Rs.10,000 – xxx,000*

*The cost varies depending on the authorised majuscule, professional fees, stamp duty and the number of directors and members.

Benefits of Company Registration in Bharat

A company registration provides many advantages. A licensed visitor makes it genuine and enhances the business' credibility.

Protects against personal obligation, and defends against other threats and losses.
Builds goodwill and also supports more than client attraction
Gives reliable investors bank credits and practiced investment with ease.
Provides encompass of the responsibleness to protect the visitor'south assets
Bigger commitment to wealth and greater stability
Increases the ability to develop and grow big

For a detailed understanding of the advantages of obtaining a company registration, read our article on the Advantages of Company Incorporation.

Name and Majuscule of the Company

Option of Company Name

The proper name of the company should be proposed in the Form SPICe+ 32 awarding. Only one preferred name along with the significance of keeping that name tin be given in the Course SPICe+ 32 application.

The type of entity and ane proposed proper noun for the visitor is to be entered for reserving the name of the company. The proposed proper noun should not exist like to the existing name of any company or LLP or Trademark. If the name gets rejected, some other name can be submitted by applying another Form SPICe+ 32 application and paying the prescribed fees.

An OPC should have the name in the grade of "XYC (OPC) Private Limited". Similarly, a private company should accept the name in the class of "XYZ Pvt. Ltd." and a public company name in the form of "XYZ Limited".

Upper-case letter of the visitor

There is no requirement of minimum paid-upward capital to start a private limited company or a one-person company. However, the public express company must have a minimum paid-up capital of Rs.five lakh.

The paid-up uppercase means the amount of money a company has received from shareholders in exchange for shares of the company. It is created when a company sells its shares in the market direct to investors, usually through an Initial Public Offering (IPO).

The authorised capital of any visitor must be Rs.1 lakh. The authorised capital means the maximum amount of share capital letter that the company is authorised by its Memorandum of Association to effect to its shareholders. The authorised majuscule must be mentioned in the MoA.

Compliances to be followed by the Visitor

One time, the visitor is registered in that location are certain compliances to be followed past the visitor annually. The company needs to follow compliances such equally the Visitor is required to appoint its outset accountant within 30 days of incorporation In the beginning board meeting. Every company must conduct a minimum of 4 board meetings during the calendar year at stipulated intervals.

It has to maintain and file of profit and loss account, almanac return and balance sheet every financial year together with an accountant's report earlier the due appointment with the Registrar of Companies. Every company is required to maintain certain Statutory Registers.

For more details about compliances to be followed by the company, read our article on Compliances under the Companies Act 2013.

The visitor needs to file sure annual forms with the Registrar of Companies. Details of all forms along with the due date of filing these forms are given in our commodity ROC Compliance Agenda.

Summary

Visitor registration involves a lot of processes. Earlier registering a company one should decide on the structure of the company, i.east. if the company is to be registered every bit an OPC, LLP, PLC or Public Limited Company. Later deciding on the structure, the visitor proper noun must be decided and the directors of the visitor demand to obtain DIN and DSC earlier applying for company registration.

Later on choosing the company name and obtaining DIN and DSC, the visitor registration course must be filed on the MCA portal. The SPICe+ form, i.due east., the visitor registration form, must be filled, and the required documents must be uploaded and submitted online on the MCA portal along with the prescribed fees. Subsequently verification of the SPICe+ form, the ROC will consequence the company incorporation certificate. The incorporation certificate is proof of registration of the visitor and the company will come into existence as a separate legal entity.

Frequently Asked Questions on Company Registration

Where tin can I register my company?

If you intend to register a new company in India, you must submit an application to the Ministry of Corporate Diplomacy (MCA). You make the application online at the MCA portal remotely too. For registration, y'all'll need a Digital Signature Certificate(DSC), and Director Identity Number(DIN), among other things.

What happens if my company name is already taken?

The Ministry of Corporate Affairs (MCA) maintains a record of registered company names, you'll have to access that directory and check if your visitor name is already registered. If the company proper name appears in the visitor registration directory, yous'll have to choose another name. If yous have already fabricated an application, you'll accept to brand another awarding for a unlike name that is previously not registered.

Can a foreign national be a director of a visitor?

Yes, as per the Indian company law, a foreign national can be a managing director of a company registered in Bharat. However, he must fulfil all the criteria laid down in the Human action. The most important being resource allotment of a Director Identification Number (DIN).

Any person, including a foreign national, appointed as a Director cannot human activity in the chapters of a Director unless he/she gives it formally in writing. This tin be done by filing Course DIR-2 inside xxx days of being appointed as the manager.

How many days does it take to register a company?

The new changes brought about by the MCA have made it easy to register companies of any nature with the government. Provided that you lot accept all your documents in place, it can take anywhere between 10 – 15 days to register your company formally.

Is a physical presence of a person needed for visitor registration?

The entire process is completed online, and so you don't have to be present at whatever particular place for registration. A scanned copy of the documents must be submitted via postal service. At the business organisation address, they receive the company incorporation document from the MCA.

How exercise I check if my company is registered or not?

Yous can check the status of the company registration on the MCA website. To bank check the condition of your company, y'all need to become to the 'MCA Services' tab and select the 'View Visitor/LLP Primary Data' from the drop-down listing. And so enter the visitor's CIN and click 'Submit'. The exact status of your company will exist displayed.

Is the visitor registration process completely online in India?

Yes, the company registration is completely online. A company or an LLP can be registered only through the MCA portal. The scanned documents of the company/LLP are sent past mail to the MCA and they are candy at the Central Registration Heart (CRC) which acts equally a defended dorsum office for Visitor and LLP Registration process. Upon completion of registration, the company/LLP receives a digitally signed Certificate of Incorporation which can be verified by all the stakeholders on the MCA website.

Does a private limited company have continuous being?

Yes. Since a private express company has perpetual succession, it has continuous existence. Perpetual succession means a company volition continue to be a legal entity irrespective of the death of the founder/promoter or whatever director of the visitor. Thus, a company will be in being until it is dissolved for the reasons stated in the Companies Act, 2013 or until the Board and shareholders determine to wind upwards or close the company.

Is it necessary to have a company'south books audited?

Yes. Every visitor, whether private or public or one person company, must mandatorily conduct statutory audits of its books. The company must become its book audited every twelvemonth from the auditor of the company and the audit report must be submitted by the auditor to the Board before conducting the visitor AGM.

What are articles of clan and memorandum of association?

The articles of association lays downward the internal rules and regulations of the visitor. It consists of the engagement of directors, audit and accounts, borrowing powers, winding up process, etc. The memorandum of association contains the five essential details about the company, which are company name, registered function, liability of members, object for which the company is formed and upper-case letter details. The articles of association are subordinate to the memorandum of clan of a company.

Can the director of a private express company be a salaried person?

Bacon is not directly provided to a director of a private limited company. However, the Companies Act, 2013 provides that directors can be given remuneration past the visitor. Remuneration means any money or its equivalent given to the manager for the services rendered by him. Thus, the salary provided to a director will exist known as remuneration provided past the visitor for the services rendered by him/her.

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