Get an Incorporation 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 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 a 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, 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 the 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
|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 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||Has to wait until they receive the business certificate or registration certificate|
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.
Company registration certificate download – Download here
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 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 out a form with all the 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 to the ROC or Registrar of Corporate 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 submit the documents electronically.
If the person who is starting the business already has a digital signature, then you can just check the validity of the DSC as the validity of the DSC is either one or two years.
Step 3: Company Registration on the MCA website
Visit the official 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 payments and you will be a registered business user. The process of creating a new account is very easy, and simple and no fee is charged.
Step 4: Applying for a Company Incorporation Certificate
This is the final and important step in the process of registration and it includes entering the company name, office location, and address, as information about the 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 of the company name 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.
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.
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FAQs on Company Registration
Companies must register their business in India to open a current bank account for business transactions. For legal verification, most banks require the incorporation document and memorandum of association.
As a requirement for maintaining compliance with the law, every company in India must register.
A sole proprietorship may be run without registration, but in order to gather and file state taxes, you must register with your local government. As long as your company is legitimate and complies with all licensure and tax requirements, there is nothing wrong with operating an unregistered business.
According to the GST Act, all small enterprises are required to register for GST. If you are a manufacturer with an annual turnover of more than Rs. 40 Lakhs, you must strongly contemplate obtaining a GST for small businesses.
For Company Registration, a copy of the proposed Directors' PAN cards will be required. A permanent Account Number, or PAN, is a unique identifier issued by the Indian Department of Income Revenue.
Yes, the private business will also submit form INC-6 in order to become an OPC. When a private company is converted into an OPC, its paid-up share capital cannot be greater than fifty lakh rupees, nor can its average yearly turnover be greater than two crore rupees.
A sole proprietorship is not required to register with the government or any other body, unlike a company.
Private and non-profit organizations that are registered without members must pay R125 for business registration. A non-profit organization must have a minimum of three (3) directors, while a private business must have at least one (1).
Having your company registered with the Corporate Affairs Commission has numerous advantages, including reassuring prospective customers that they are doing business with a legitimate company and giving the company's owner a leg up on competitors who haven't taken the time to register.
Registration is the procedure by which a business submits the required documents to the Securities and Exchange Commission (SEC), describing the specifics of a proposed public offering.