Whether you’ve started a company on your own or with a few partners, you should register it as soon as possible. Registration certifies your company as a legal entity. It limits your personal liability and makes it easy to raise equity and take loans whenever required. Today, you don’t have to wade through the paperwork on your own. You can work with company registration consultants for the same. Let’s look at the role they play at every stage of the process.
Understand the Type of Business Structure Best Suited to You
Companies in India can be registered as a One Person Company, a Limited Liability Partnership (LLP), Private Limited Company (PLC) and a Public Limited Company (PLC). A consultant can help you understand the differences between the 4 business structures and what the impact of each will be for you. To choose a business structure, you will have to take into account the number of owners/ partners, your initial investment, extent of liability you are willing to bear, income tax rates, plans for future investment, etc.
Choose a Name for The Company
Your registration application will need to carry the name of your company. If there is a company already registered with the same name in your class of products or services, your application will be rejected. This means a loss of time, effort and money. Company registration consultants can help you check your company name against the list of registered companies to ensure its uniqueness. The suffix to your company name depends on the type of business structure chosen. For example, a private company will be named XYZ Pvt. Ltd while a public company would be listed as XYZ Ltd.
Prepare for Documentation for Application
It is always best to have all documentation in order before you start the application process. Registration consultants can help ensure that your paperwork is complete and in admissible order. Basic document requirements include identity and address proof for all company owners. Identity proof may be in the form of your passport, Aadhaar card, Pan card or driving license. To prove your address, you can submit a copy of your electricity bill, bank statement or telephone bill. In addition, your company needs to have an address in India. An electricity bill, property tax receipt or rental agreement could be submitted to prove the same.
In addition, all directors of the company need to submit their Director Identification Number (DIN) and Digital Signature Certificate (DSC).The consultant will help you acquire these documents and minimize the amount of time and effort needed on your part.
Register the Company on the MCA Portal
The application for company registration can be submitted online at the MCA portal. If you work with a registration consultant, they will first create a profile for the company director on the portal. Next, they will complete the forms and submit the same online. This portal can be used to submit all supporting documents and view them as and when needed. The forms needed include:
- Form 1: Declaration of compliance
- Form 18: Notice of situation of registered office of the company
- Form 32: Particulars of the Company Director, Manager or Secretary
There may be additional forms required depending on the company structure. Processing fees are also payable at this stage. These fees are nonrefundable. Hence it is important to get all your documents in place.
Acquire the Certificate of Incorporation
Once the application has been accepted, it will be examined by the Registrar of companies. Once satisfied that all the documents are correct and meet the regulations, Next the company will be issued a Certificate of Incorporation.
The steps for company registration are technically quite straightforward and you can do it on your own. But, would this be the best use of your time? Do you want to spend your time and energy putting documents together or would you rather spend it developing your products and services? Company registration consultants take care of all the documentation and filing so that you don’t have to. They are also more experienced in the process and hence have a lower risk of missing a document or making an error in filling the form that could cause delays in your company registration.