What is a company registration certificate in India?
There was a period of time when the process of company registration required a lot of time and effort. Gratefully, the registration process of a company has become easy with simple steps in recent years and importantly the entire documentation process can be done online. Today, we take a look at what is a company registration certificate in India and how to get it under the MCA.
It is mandatory for any new business to acquire a company registration certificate by pursuing the official procedures and guidelines proposed by the Ministry of Corporate Affairs (MCA). If you are planning to start a business or are you a newbie and want to know all the information about the registration and COI, then go forward reading ahead.
What is a Company Registration Certificate?
A Company Registration Certificate is also known as Certificate of Incorporation or COI or Letter of Incorporation. It is a legal document or certificate issued by the Ministry of Corporate Affairs to a company in India after successfully completing the registration process. This certificate of Incorporation is proof that the business has registered under the Registrar of Companies.
This mandatory legal document has to be received at the time of company or business formation. According to the rules and regulations from the Ministry of Corporate Affairs or MCA, our country has made the process very easy and simple to complete the new company registration process in a few days of time. Also, as mentioned above, here is no need to visit any Govt. office to register the company, you can do this process from any part of India, as the complete documentation process takes place electronically.
Types of Companies registered in India
Generally, there are 5 types of companies which can be registered in India and each one holds its own way of the registration process, documentation and business aspects
- Private Limited Company
- Limited Liability Partnership or LLP
- Sole Proprietorship
- One person company or OPC Registration
- General Partnership
Differences between Private Limited and Public Limited companies
|1||Requires a minimum of two board members||Requires seven board members|
|2||Can have a maximum of 200 members||Can have any number of members.|
|3||Complete restriction on the transferability of shares||No restriction on the transferability of shares|
|4||Prohibits an issue of the prospectus||an issue of the prospectus is free in a public company|
|5||No obligation of a statutory meeting||It is obligatory of a statutory meeting|
|6||Can commence business immediately after registration||Has to wait until they receive the business certificate or registration certificate|
Acquiring a Company Registration Certificate
The process of acquiring a company registration certificate holds 4 important steps, they are
- Obtaining a Digital Signature Certificate (DSC)
- Obtaining Director Identification Number (DIN)
- Finding a New user registration or an eForm
- Incorporating the company
It is mandatory for new startups or companies to acquire a business registration certificate to start its business activities and to function a business without any legal issues. There are several business opportunities that may suit you, they come under your budget and you might be on the path of success soon; so, it is always essential and crucial to go forward by following the proper rules and regulation of the country.
Step 1: Applying for DIN or Director Identification Number
This is the first and foremost step in any company registration process in India. According to the Companies Act, 2006 it is mandatory for every business owner or director of the business to obtain their Director Identification Number or DIN.
- Visit the official website of MCA and create an account to start the registration process. Download the appropriate application form, fill the form with all needed details and submit it. Next, you have to pay the applicable fees for this process.
- Inform the company once the DIN has been issued.
- Then, the company should suggest the ROC or Registrar of Corporate about the DIN information.
- If there is any requirement to edit or change the DIN details, then the director of the company must inform and submit a different form to edit the changes.
Step 2: Obtaining DSC or Digital Signature Certificate
As per the Information Act 2000, it is essential to obtain a valid DSC or Digital Signature Certificate as it is needed to assure that the submitted documents are original and reliable. A valid digital signature has to be attested on all the documents that are been submitted. And this is the only possible way while submitting the documents electronically.
If the person who is starting the business already has a digital signature, then you can just check the validity of DSC as the validity of the DSC is either one or two-years.
Step 3: Company registration on the MCA website
Visit the officially portal of MCA http://www.mca.gov.in/mcafoportal/loadUserRegistration.do?link=loadUserRegistration, and create a new account. By creating a new account you can use this account for all further different transactions such as for online fee payment and you will be a registered business user. The process of creating a new account is very easy, simple and no fee charged.
Step 4: Applying for a company incorporation certificate
This is the final and important step in the process of the registration process and it includes entering the company name, office location and address, information about directors of the company, manager and secretary. Besides, additional details for the distribution of company shares if required.
There are two types of Form 1 available
Form -1: This form is used for the purpose of declaration for incorporation of a company; the details which are entered in the form should match with the details entered in the application of Form -1A.
Form -1A: This form is used to check the availability or to change the company name.
This form 18 is used for the purpose of changing the address of the company’s previously registered office. Submission of all genuine details is mandatory in this form.
This form is used to appoint new directors, managers, and secretaries for the company.
On presenting all the above-mentioned forms, the MCA will check, review and approve the application and a further substantiation email regarding the confirmation will be updated with an email. After completing the process, the Company registration certificate will be issued by the MCA officially which means that your business has been registered formally and you can proceed with your business activity without any issues. Visit Kanakkupillai and get your company registration certificate today!