Starting an organisation in India is a thrilling endeavour. However, it also comes with certain legal obligations. Getting a Company Registration Certificate is one of the most critical phases in starting a company. Along with validating your agency, this certificate gives different felony benefits. In this blog, we can walk you through the stairs of acquiring a Company Registration Certificate in India, so you have all of the expertise required to begin.
What is a Company Registration Certificate?
A Company Registration Certificate is also known as a Certificate of Incorporation (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 it completes the registration process. This certificate of incorporation is proof that the business has been 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, allowing us to complete the new company registration process in a few days. Also, as mentioned above, there 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.
Company Registration Certificate
Types of Companies Registered in India
Generally, there are 5 types of companies that can be registered in India and each one holds its own way of registration process, documentation, and business aspects.
- Private Limited Company Registration
- Limited Liability Partnership or LLP
- Sole Proprietorship
- One-person company or OPC Registration
- General Partnership
Differences Between Private Limited and Public Limited companies
| S. no. |
Private Companies |
Public Companies |
| 1 | Requires a minimum of two board members | Requires seven board members |
| 2 | Can have a maximum of 200 members | It 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 with the prospectus | an issue of the prospectus is free in a public company |
| 5 | No obligation of a statutory meeting | It is obligatory for a statutory meeting |
| 6 | Can commence business immediately after registration | Have to wait until they receive the business certificate or registration certificate |
Eligibility criteria
You must know the qualifying requirements before starting the registration process. Any person or group of people may join a company in India, provided they meet certain standards.
- A Private Limited Company must have at least two shareholders and two directors minimum. A Public Limited Company must have three officers and a minimum of seven owners.
- Two requirements are minimum age—at least 18 years old—and residency in India for at least one director.
- Business Objective: The company should not be involved in illicit activity as it needs a legitimate one.
Process of 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 their business activities and to function as 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 to success soon; so, it is always essential and crucial to go forward by following the proper rules and regulations of the country.
1. Availability Check of Names
Your company’s name should reflect your corporate identity, so it is crucial to select the appropriate one. You must also find out if your selected company name is open before filing.
- A name search may be done online using the Ministry of Corporate Affairs (MCA) website. This instrument will let you ascertain if your suggested name is already in use.
- Rules for Name Assignment: Follow the MCA’s suggested naming rules for your name. Avoid names that can mislead the public or that too closely resemble current businesses.
2. Integration Documents
After you have your name, you need to get ready the required incorporation paperwork. Usually, these materials are needed:
- The Memorandum of Association (MoA) outlines the organization’s objectives, a spectrum of commercial activities, and shareholder responsibilities.
- The Articles of Association (AoA) provide the policies and procedures regulating internal corporate management.
- Along with identity proof—like a passport or Aadhar card—you will also have to provide address proof—like power bills—of every director and owner.
- The Digital Signature Certificate (DSC) DSC requires an electronic paper signature throughout the registration procedure.
3. Filing the Application
Your paperwork in order will let you start to apply for business registration. These are the steps:
You must complete the relevant paperwork, including Form SPICe (Simplified Proforma for Incorporating Company Electronically). You may turn in this form online via the MCA site.
The registration procedure entails a charge that varies depending on the kind of business and its approved capital. Make sure you pay the necessary costs when you submit your application.
4. Obtaining the Certificate
The MCA will acknowledge your application after it is submitted. Depending on the thoroughness of your application and the registrar’s workload, the schedule for acquiring the Company Registration Certificate usually spans seven to fifteen working days.
Following the approval of your application, you will get the Certificate of Incorporation, your Company Registration Certificate. This paper is required to apply for many permits and create a bank account.
Post-Registration Requirements
Once you get your Company Registration Certificate, there are further actions to take:
- For tax reasons, your firm needs you to apply for a PAN for its permanent account.
- Based on your company’s operations, you may have to register for additional pertinent taxes, such as the Goods and Services Tax (GST).
Modification of Incorporation Certificate
Once a company has acquired its Certificate of Incorporation, it can legally conduct business as that entity. According to rule 29 of the Companies (Incorporation) Rules, 2014, a company that wants to change its name must first determine whether or not the desired name is available, hold an EGM, obtain a special resolution from the shareholders, and then submit an application to the Registrar for approval of the name change. Once the application has been accepted, a new Certificate of Incorporation will be issued by the Clerk.
The Certificate of Incorporation will not be updated if the company’s location is changed. The business must submit the necessary paperwork and update its main records. Therefore, the address listed on the Certificate of Incorporation must be the one in effect on the date of incorporation, and it is not possible to alter it after the fact.
Conclusion
The formal establishment of your company rests heavily on getting a business formation license in India. Following the described procedures—ensuring eligibility, confirming name availability, preparing the needed paperwork, sending the application, and finishing post-registration requirements—you may effectively handle the registration process.
Starting a company might be difficult, but with the proper information and help, you can achieve your business ambitions. Should the process seem overwhelming, think about visiting an expert to guarantee a smooth registration experience. Your company registration certificate will help you start your business and promote yourself in the Indian market.
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