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How To Register A Company In India


Do you know How To Register A Company In India? If no, then this article is for you. The Companies Act 1956 sets down rules for the establishment of both public and private companies. The most commonly used corporate form is the limited company. A company is formed by registering the Memorandum and Articles of Association with the state registrar of companies of the state in which the main office is to be located.

This was impossible a few decades ago, but India has gone 90 percent digital and therefore online company registration is made easier. Every document can be filed electronically, and there is no need for people to visit the place of business registration in India.

Types Of Business Structure In India

  • Sole Proprietorship
  • One person Company
  • Partnership Company
  • Limited Liability Company
  • Private Limited Company

How To Register A Sole Proprietorship Company?

Before you Register, You need to have the following documents:

  • Aadhaar Card
  • PAN Card
  • Bank Account
  • Registered Office proof ( Rental agreement or utility bills will do)

Once you have these , you can approach any chartered accountant for a registration certificate and you are good to go.

How To Register One Person Company?

  • Obtain Digital Signature Certificate (DSC)
  • Obtain Director Identification Number (DIN)
  • Apply for Name Approval
  • Documents required:
  1. Memorandum of Association
  2. Articles of Association
  3. Proof of Registered office
  4. Affidavit and consent of Director
  5. A declaration that all compliances have been made
  • File all forms with Ministry of Corporate Affairs (MCA)
  • Collect your Certificate of Incorporation

How To Register Partnership Firm?

If you have decide to have partners in your business, the easiest way to go ahead with is to create a partnership firm. All you need is a partnership deed, which is an agreement between the partners. This agreement will contain all the duties and obligations between the partners and how profit will be shared.

You can Register the partnership firm Indian Partnership Act, 1932 but it is not mandatory and is at the discretion of the partners.

Limited Liability Company

LLC s are not liable for business debts like other business structures, and these have limited life. The paperwork in LLC is much lesser as compared to other registrations. This makes LLC more flexible and easier to form.

Private Limited Company

It has a minimum of two and a maximum of 200 members. A s the name suggests , it cannot raise funds from public, which means the company cannot publically issue the shares. There is no paid up capital required now to set up an LTD.

To avoid messing up with the name of your company , take into consideration the following points before registering the company name:

  • Choose a name that is easy to remember, pronounce and is short enough to communicate your brand to the customers. Stay away from complex words so that it’s easy to convey the name even on phone.
  • The name should reflect the mission of your business. Let the name showcase what the company is all about and the products your company sells.
  • Choosing the brand name that sounds similar to an existing player is a bad idea. Hire a lawyer to review the name before you register the company.
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