Online company registration in India takes a lot of work and effort, but if you persevere, learn from your mistakes, and appreciate your successes, the rewards will soon come in.
It would be great to have a business plan outlining your company’s goals, funding, and setup. It is easier to begin if you are aware of your intended direction. Entrepreneurs who want to start their business must first obtain a licence. This article provides details on the procedure of online company registration in India.
There are two ways to register a company for an online business in India: A private ltd company or A public company. You must thoroughly understand the 2013 Companies Act to register your online business in India. Every company that wants to register must apply as per this Act.
Why Is It Necessary To Register An Online Company?
If you are operating a business, you must register it as a Pvt ltd company, firm, or LLP (Limited Liability Partnership). You could register the company as a sole proprietorship instead of doing an online company registration. If your goal is to run your own online store or sell products through online marketplaces, you should think about operating your retail business as a sole proprietor.
One of the highly advised ways to form a business in India is to register as a private limited company. This kind of business offers its stockholders limited liability and some ownership constraints. The company’s owners and managers are the partners of an LLP. Directors may be different from shareholders in a private limited company, however.
When conducting online business, you must keep an active account in your company’s name. You must ensure that your company is a legal entity to accomplish this. To prove this, you must register with the tax authorities and receive an establishment licence to confirm this.
You must register your business for your online store to accept payments online. You can combine your website with a reputable gateway using this technique. Additionally, online company registration helps you avoid legal issues and misunderstandings, and a registered firm is more likely to be trusted.
How to do Pvt. Ltd. Company Registration in India?
In India, forming a business is now simpler than ever. The company formation procedure has moved online, making it more user-friendly and ideal! You may easily find out every detail, whether you’re looking for information on a Pvt. Ltd. company registration or any other business structure, by paying attention to only four key factors.
What Is the Process Of Online Company Registration in India?
Startups in India benefit from online company registration since it gives them an advantage over others that haven’t. Your organization must comply with several regulations during a lengthy and complex registration process. However, as long as you have Lawgicalindia, our experts can assist you with every step of a private limited company registration process, so you don’t need to worry.
Step 1: Obtain a Digital Signature Certificate:
The first step is obtaining the concerned person’s Digital Signature Certificates (DSC). The Certifying Authority issues a token-sized Digital Signature Certificate, or DSC, valid for one or two years. When completing e-forms on the Ministry of Corporate Affairs’ online portal, DSCs become necessary (MCA).
Step 2: Obtain a Director Identification Number (DIN):
Anyone who wishes to serve as a director of an organization must obtain a DIN, which is an identification number for directors. To serve as a director in numerous organizations, one DIN is sufficient.
The DIN obtained may also be used to nominate a Designated Partner in an LLP and for appointment to another firm organization.
Step 3: Submit a name approval request:
There are two different options for name approval:
Option 1: Use the RUN (Reserve Unique Name) form to request name clearance.
Option 2: Submit a SPICe form to request name permission (INC-32).
Step 4: File the SPICe Form (INC-32):
With the benefit of a single application, the Ministry of Company Affairs has developed the SPICe Form (INC-32) to meet the preceding needs:
- Requesting to be designated as a DIN
- Reserving the name of the organization
- Incorporation of a different organization
- Submission of a PAN and TAN
The SPICe Form (INC-32) must have the endorsement of an expert, such as a Chartered Accountant, Company Secretary, Cost Accountant, or supporter, who attests that all the material is accurate.
Step 5: e-MoA (INC-33) and e-AoA (INC-34):
The terms “e-MoA” and “e-AoA” refer to electronic versions of the Memorandum of Association and Articles of Association, respectively. These forms are linked to SPICe Form (INC-32) and must be approved by the parties who support both the Memorandum of Association and the Articles of Association.
Step 6: PAN and TAN Application:
You can also apply for the company’s PAN and TAN using the SPICe Form (INC-32), forms 49A for PAN and 49B for TAN. After the SPICe Form has been accommodated, these forms will be automatically produced (INC-32). You must download it, digitally sign it, and then provide both documents to the MCA entry.
Documents Required for Online Company Registration
Private limited company registration in India is impossible without valid identification and address proof.
The following is a list of the documents that the MCA will accept for the online company registration procedure:
- A scanned copy of your passport or PAN card (foreign nationals & NRIs)
- Voter ID, passport, or driver’s licence scan
- A scanned copy of the most recent bank statement, phone, mobile, electric, or gas bill and
- A scanned copy of the notarized rental agreement.
- Scanned copy of the property owner’s no-objection statement
- Scanned copy of a sale or property deed (in case of owned property)
Note: Your residence can also be your registered office if you like.
Eligibility Criteria for Company Registration in India
- A Pvt. Ltd. Company registration can be done with as few as two directors and as many as fifteen.
- There can be no more than 200 members.
- If there are foreign owners or directors, at least one of the directors needs to be an Indian resident.
- A private limited company must have a minimum share capital of Rs. 1 lakh. However, there is no maximum paid-up share capital limit.
Benefits of Online Private Limited Company Registration
Online company registration has many benefits for Indian businesses and business stakeholders. These benefits are crucial for the future of the company and the firm’s owner, in addition to being financially advantageous. Several of the advantages mentioned include:
- Separate Legal Entity:
A registered company is a separate legal entity from its directors and shareholders and is recognized by the law as existing under the Companies Act of 2013. The individual company members’ liabilities are restricted to the debtors and creditors of the incorporated firm, which has its own assets, debuts, and legal processes.
- Perpetual Succession:
As the name implies, once a business is registered, its directors, members, and shareholders can all change without affecting the firm’s continued existence. The incorporation will continue to be in effect if the entity complies with the Companies Act.
- Transferability of Shares:
Once registered, a company’s shares can be easily transferred between various promoters, business stakeholders, and, in the case of a publicly traded firm, the general public. A private limited company has few restrictions, yet shares can never be prohibited.
How many days does it take for a Company Registration in India?
The time required for a company registration in India has dramatically decreased due to new regulations and modifications to the online company registration process. If the applicants have all the documents prepared, it typically takes the authorities between 10 and 15 days to review the paperwork and confirm the company’s registration.
Your reliable attorney, Lawgicalindia, offers a reasonably priced online company registration service in India. Here you can find information related to online company registration.
