How to Register a Company in India

India is a land of opportunity for potential businessmen. If you register a company in India, you will reap the benefit of owning a business in a highly populated market. The country has the potential to be one of the leading economies of the world. However, it is important to note that launching an establishment in this country is not as easy as other countries.

India is the world’s second most populous country in the world with over 1.3 billion people, and it is projected to be the world’s most populous country by 2027. With such population, registering a company in India can be considered a great move. India has the third largest army in the world. It has an abundance of natural resources including coal, iron ore, bauxite, copper, and uranium.

Hindi is the official language spoken in India

To register a company in India, you should follow these simple steps.

1. Get Digital signature certificates DSC and director identification numbers DIN for the company’s directors.
2. Record the incorporation forms SPICe INC-32 and DIR 12 with the registrar of companies roc through the ministry of corporate affairs MCA portal
3. Get the PAN and TAN for your corporation
4. Get the certificate of incorporation and the company’s PAN and TAN
5. Get the company’s GST registration
6. Get any other licenses or permits that may be required for your business

The Ministry of Corporate Affairs (MCA) portal is where all individuals or corporations must input their documents which must have been recorded with the Registrar of Companies (ROC) already. A distinctive identification number handed out by the ROC to every person selected as a director of a corporation is known as the director’s identification number

It is used to identify and track a company’s directors.  Both DSC and DIN are mandatory for filing the incorporation forms SPICe INC-32 and DIR-12 with the ROC. You can get the DSC and DIN by submitting an application online on the MCA portal. Identity and address verification is a necessary  procedure in getting the DIN and DSC which may take a few days to complete.

Next, you have to record in the incorporation forms SPICe INC-32 and DIR-12 on the Ministry of Corporate Affairs portal with the ROC. SPICe Simplified Proforma for consolidating a company digitally is a form that combines several forms mandatory to integrate a company into a single form.

It is used to list a new corporation or to convert a company already in existence into a limited liability partnership or one man’s business. The first directors of the company are selected using the INC-32 which also provides necessary details about their selection. The form used in supplying the details of the first directors of a company is the Dir-12, through which the directors’ identification numbers can also be acquired.

The forms have to be registered online by the anticipated directors and with the vital documents and fees. Once the forms have been submitted, the application will be reviewed by the ROC and the moment it confirms that everything is done accordingly, the certificate of incorporation will be released. It is important to make sure all the information made available is accurate and every requirement is met, otherwise the procedure for the registration could be delayed or rejected.

The PAN Permanent account number and TAN should be acquired next, alongside the collection of the new account number for your company. TAN is issued to deductors and collectors who are expected to deduct or collect taxes.  Taxes cannot be collected from a company with a TAN. The income tax department of India issues an exclusive 10-digit identification number, also known as the PAN to individuals and corporations which is now the means identifying the company for tax purposes.

The official website of the income tax department of India allows for the online application of Your company’s PAN and TAN. The process of getting PAN and TAN involves identity and address verification and it may take a few days to complete. Once you have obtained the pan and tan, it is important to use them in all financial transactions and tax filings.

Next, obtain the certificate of incorporation: The registrar of companies issues a documents which serves as an attestation that the company has been legally registered and exists as a separate legal entity known as the certificate of incorporation.

It contains the company’s name, the company’s registration number, alongside the date in which the company was incorporated, in addition to other vital information. This certificate is mandatory for opening a bank account, applying for licenses and other official purposes. Once the application has been evaluated by the ROC and all the requirements are met, the certificate of incorporation will then be released.

It is important to keep the certificate safe as it serves as a legal evidence of the company’s legal existence.

Step 5 is to obtain the company’s GST goods and services tax registration:  A consumption-based indirect tax is also known as the GST, and it is necessary for the supply of goods and services in India.

The VAT, service tax, and excise duty has now been replaced by the GST. The Companies required to list for the GST are those that are involved in the supply of goods or services and have an annual income above a certain threshold.

 The nature of the company determines the threshold, alongside the state in which the business is located.  A corporation can simply do an online registration on the GST portal for the GST registration. Details about the nature of the business, as well as the company’s PAN and TAN, including the goods or services that will be supplied by the company must be included in the application.

The approval of the application will determine if the The GST registration official document should be given to the company. One must be updated with the GST policy, and file the GST returns regularly, as the GST process can be time consuming, so as to avoid punishment.

You should then get hold of any other licenses or permits that may be essential for your business. Additional licenses or permits might be required for an organization to run, depending on the nature of its business.

In other words, the Ministry of Industry and Commerce issues licenses to businesses producing or importing particular kinds of goods, while the Food Safety and Standards Authority of India may issue a license to a company is involved in food services.

 Likewise, a company concerned with the healthcare sector for operations may be mandated to get a license from the Medical Council of India.

 To make certain that the company is operating legally and within the guiding principle set by pertinent authorities, one must research and understand the regulations and licenses needed for your specific business before starting the operations. You should consult with a professional or the relevant authorities to know more details and to make sure that you are following all the rules and regulations

To register a company in India, It is important to make sure that all the information made available is precise and all the requirements are met in order to avoid delays or rejection. Ensure that you keep yourself updated with the rules and regulations and consult with a professional or with relevant authorities to ensure the company is operating legally.