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How to register a New Company / Firm in India?

How to register a New Company / Firm in India?

Author : Sonu Chaturvedi

Introduction:

How to register a New Company / Firm in India? What are the option available to one while starting Start-ups in India? India is very well known as biggest Market Place to sell Goods or Services worldwide, the reason is that On paper

Second largest populated country on this earth is India followed by China and Indian Men in Electronic gadget’s shopping and Indian Women in clothes and accessory’s shopping are number one.

What to do to get started?

In India for Profit making business there are five heads whereby one can register themselves namely,

  • Company under Companies Act, 2013.
  • Firm under Indian Partnership Act, 1932.
  • LLP under Limited Liability Partnership Act, 2008.
  • Cooperative housing Society under Co-operative Societies Act, 1912.
  • Hindu Undivided family (HUF) under Hindu succession Act, 1956.

After considering pros and cons of all available options, choose one and then get started with registration procedure which is definitely a tedious job as N number of registration, approvals and documentation is required. With changing time India is trying to reduce its Compliance to encourage more and more NRI and HNI investors.

To begin with let’s get starte with Registration of Company and Firms:
Company v. Firm:

Often people use both the term interchangeably which is not the case. Key difference is Company have separate legal entity whereas Firms does not have that feature.

Registration of firm under Indian Partnership Act, 1932

A partnership firm is a type of business whereby two or more people mutually can start business with minimal compliances and subject to maximum number of partners. Though the registration of partnership firm is not mandatory except for in state of Maharashtra and Gujrat but always legally advisable.

Step by Step Procedure for Partnership Firm Registration:

1- Submit an Application to the Registrar:

You need to duly Fill Form A (Physically or Online) and submit it to registrar in prescribe format within reasonable time frame.

Details required in Application:

  • – Name of the firm along with Name and address of all the respective partners.
  • – The business address of main and all branches of Firm.
  • – Joining date of partners and there Shares.
  • –  Duration of firm Date of Commencement of the respective business

2- File the Partnership Deed to the Registrar:

Partnership deed is nothing but the agreement of terms and conditions to be followed by partner during the course of partnership. Hence copy of deed shall be submitted to registrar.

3: Pay the Fees:

You need to pay or deposit the required fees and stamp duties.

4- Approval of the Application:

After the completion of above steps, if registrar feel that your application deems fit than they will issue a certificate of incorporation. And you are good to go.

Pro Tip:

For fast registration always keep all required documents handy 

2. Registration of Company under Companies Act, 2013

If you want to t register as Company under Companies Act,2013 then be ready to for all applicable compliances. No, this is not the case now.
If you want to get status of Company then simply get register with Ministry of Corporate Affairs (MCA) and this can be done on single click on www. mca.gov.in

For registration all promoters and directors shall have

  • – Digital Signature Certificate (DSC).
  • –  Director Identity Number (DIN) for filling an e-form.

[Though India has not reached a level whereby the claim of easiest process and minimal compliance is still not in practice so one need to be mentally prepare for getting registration done]

Step by Step Procedure for Company’s Registration:

How one can approach to MCA:

Now one can simply do this by SPICe Plus. SPICe is an abbreviation for Simplified Proforma for Incorporating a Company Electronically and as the name suggests it is an application form for incorporating/registering a company with MCA. And old SPICe form got replaced by advance SPICe plus PDF form.

About MCA SPICe Plus:

Form SPICe+ (SPICe Plus) – A Single Application Helps to get all approvals by just single form and it is further divided into two parts A& B respectively are as followed:

Part A of Form:

– Reservation of Name (If company is getting newly incorporated)

Part B of Form:

  • Incorporation of a new company (by filling Application)
  • Applying for DIN allotment (If Director doesn’t have existing one)
  • Bank Account Opening (On companies name)
  • TAN – Tax Deduction and Collection Account Number (10 Digit number for TDS)
  • EPFO (Necessary arrangements for Employees Provident Fund)
  • GSTIN (One Nation, One Tax is integrated payment of Indirect Tax so one need to get GSTIN number)
  • Memorandum of Association under Section 4
  • Article of Association under Section 5

List of documents required before submission of form:

  • DIN of all those directors of a proposed company
  • DSC – Digital Signature Certificate
  • Name Availability Certificate (Part A of Form can get skipped if one already have Name availability certificate from Registrar)
  • Memorandum of Association (MOA) and Article of Association (AOA) in electronic form.

Once you submit form subject to approval Company will get incorporated and you will get Certificate of Incorporation.

Sum it up:
Every time you get stuck in above procedure contact to registrar or MCA respectively in case of Firm and Company. The one who keep all documentation ready with help of Company Secretary (CS) or Lawyer can easily get started into business with above simple steps.

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