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Company Registration in India

In this world, before starting something or buying something new, we always have to register it on our name before getting started with it. No matter it's your new house, car, or your new business. Yes, you heard it right, your new business also needs to be registered. There were a lot of people who must be saying that we heard about car registration and house registration, but we heard about business registration in India for the first time.

If you are also one of them or you are going to start a new business, then do follow this article. As in this article, we are going to discuss how to register a company in India. Moreover, we will also have a look at various other things, which are related to this company formation in India.

What does business registration in India mean?

As we have mentioned that whenever we are buying or getting started with something new, we have to get it registered to our name so that everyone can know that the particular thing is yours. The same is the case with business registration in India. If we want to let people know who is the owner of that specific business, then we need to register a company in India on our name.

There are several benefits you can get by registering a company in India, let us have a look at the list of those benefits-

  • By registering a company, you would be able to get all the legal rights of that business. With the help of which, you would be able to do several things that un-registered businesses can't do. Moreover, with these legal rights of your business, you would be able to show the real existence of it and hence would be able to work correctly.

  • Once you can register a company in India, then you would be able to work regularly, and hence the company rules and rights will last forever. A lot of people do not know that those who don't get their business registered they do not have the rights and permissions to work. If they keep on working without company registration, then they can face criminal charges regarding this mistake of theirs.

  • With the help of company registration, you would be able to easily transfer the shares of that particular company on your name. This means this company registration works as an essential document, and whosoever will have that company registration document, they would be able to get the company's shares easily.

  • The next benefit of having a company registration is that you would be able to know about your own property, which you have. In case you face any problems regarding letting people know that the property is yours, then, in that case, this company registration document will work.

  • If you sold your company to someone else, then all the work that you would need to do is to change the name of the owner of the company registration documents, that's it. You would not have to handle any further chaos.

Although there are several benefits of company formation in India, but the above listed are some of the most important ones.

Different types of company registration-

Before heading towards how to register a company in India, let us first have a look at different types of company registration. There are a total of 4 types, let us have a look at them one by one-

  1. One Person Company- You may have heard about One Person Companies before; these are the type of companies, which contains only one person and hence that one person is responsible for the whole work of that company. In this type of company registration that one person will be the only one who will have a company registration document and no one else.

  1. Limited Liability Partnership- In this type of business, there contains several partners in it, and the company registration is formed according to their contributed percentage in that company. This means if you invested around 50% in a company, then under company registration documents, you will be the owner of 50% only.

  1. Private Limited Company- Under PVT ltd company registration in India, there are several stakeholders which are also called shareholders. 

  1. Public Limited Company- In this business type also there exist shares, and every shareholder is the owner up to a certain percentage only.

How to choose the perfect type of company registration for yourself?

There are several questions that you need to ask yourself with the help of which you can find out the perfect type of company registration for yourself. Here is the list of those questions-

  • The first and most important question you need to ask yourself is how many owners will your business have. With the help of this question, you would be able to know that is your company a One Person Company or anything else.

  • The next question is that if your business is not an OPC, then how many owners or partners does it have. Not only that, but you should also know that how much percentage those partners have invested in that company. Based on this, you would be able to create your company registration, as every partner would be able to get the perfect percentage of shares that they invested. 

I am sure that with the help of these two questions, you may have got what type of company registration you need to get. Now, if you are aware of the company registration type, let us now have a look at how to register a startup/company in India.

How to register a company in India?

There are a total of four steps in online company registration in India, with the help of which you can do the business registration in India.

  • The first step is that you need to get the Digital Signature Certificate; this certificate would be useful in the case of submission of electronic form documents.

  • The next thing you should get is the Director Identification Number.

  • The third step is to create an account on the MCA website by using the new registration feature.

  • Apply for the registration of a new company.

With the help of these four steps, you would be able to register a company in India. Although you would need several documents also, here is the list documents you required during the process. 

  • Copy of formal letter regarding company name.

  • Identification number of all the directors of that company.

  • Digital signature certificate.

  • Form-1 is going to be used for the incorporation of a company.

  • Form 18 for the address of your company.

  • Form 32 for names of directors, managers, and secretaries of the company.