The Indian business environment is very dynamic and perilous, especially when starting a company in the country. If you have the right idea and follow the proper planning, legal structure, and registrations, then you can make your idea a successful business. India has a flourishing startup culture, strong government and an emerging digital economy- one of the perfect locations to start up. This blog will take you through every step involved in setting up a company in India starting with deciding form of business, followed by its registration and operation.
Understanding the Business Structure in India
The first step is to decide the type of business structure you want to establish. This depends on your business goals, size, liability preferences, and taxation.
- A Private Limited Company is one of the most preferred forms of Start-up companies and growing businesses. It is externally fundable, it grants limited liability and a separate legal entity.
- Limited Liability Partnership (LLP) has the advantages of both the partnership and the company, incorporating a partnership flexibility and the limited liability. It can be used with small service-based companies.
- Partnership Firm is a simple-to-form entity, in which two or more individuals participate in the commitment, sharing and profits. Small local businesses and/or those that run in family set-ups are ideal.
- Sole Proprietorship is under one individual. It is applicable in low-risk businesses that have small capital and do not require formal registration.
- One Person Company (OPC), where an individual may initiate and manage a company like a corporation.
Eligibility to Start a Company in India
You must meet some simple prerequisites to qualify to register a startup or a company in India. It must be a partnership firm that should also be registered, a private limited company, or an LLP. It should be less than the 10-year age gap since incorporation. The following requirement is that the annual turnover of the business must not go above INR 100 crore during any financial year. Your company should seek innovation, development, or improvement of products or services or have a scalable business model, including the potential of the receipt of employment or the creation of wealth. Finally, it should not have been established as a result of restructuring an old firm.
Steps to Start a Company in India – Legal Procedure
You could register a business in India:
- Directors should sign documents online by applying a Digital Signature Certificate (DSC).
- Get registered with a Director Identification Number (DIN) with the MCA portal.
- Select a distinctive name for the company and have it registered with the Registrar of Companies (ROC).
- Prepare primary documents such as MOA & AOA (in the case of a company or LLP).
- Incorporate a file and the SPICe+ form on the MCA portal and attach documentary requirements.
- Get Certificate of Incorporation (COI) and Corporate Identification Number (CIN).
- Obtain PAN and TAN.
- GST registration (when necessary) is dependent on the turnover or type of business.
- Obtain other licenses such as Shop & Establishment, Professional Tax, or Import Export Code as needed.
This is the simple process of initiating a business in India.
Bank Account and Capital Set up
Once the incorporation certificate has been obtained, open a current bank account in the name of the company. This is mandatory to handle business dealings and accounting. In case a company needs financing, it can raise capital through equity investment, loans, or venture capital. Make sound records of any share allocation as well as filings made to MCA.
Post-Registration Compliance
Registration is not the only start of any company. Compliance is continuous because it is necessary to work legally and not receive fines.
Have proper books of accounts, make annual returns, hold board meetings and make all the regulatory filings on time. There are also the labour laws that companies should meet, environmental regulations and other licenses related to the particular sector.
Benefits of Registering a Company in India
The main advantages of registering a business are that it gives legal existence, protection against limited liability, access to government schemes, and stands as a credible entity in the market. Startup India is a program to bring many benefits to start-ups registered under it, such as tax benefits, availability of funds and expedited patent filing.
How Can Kanakkupillai Help You Start Your Company?
It might be extremely intimidating to start a company due to the number of legal and procedural requirements. Due to this, professional help can be of the utmost help. Kanakkupillai make it easier to get yourself registered through assisting you in selecting the proper structure of business, ensuring compliances, and having the registrations without any trouble. They can handle your company so that your start-up has the proper footing, legally, no matter whether it is your first time or you have been a serial entrepreneur.
Conclusion
The process of registering a company in India entails awareness of the legal system, selection of an appropriate organisational structure, and compliance with state and governmental requirements. Planning and assistance of a professional will allow you to create your own business with confidence and move forward on your entrepreneurial path. The start-up generation and the governmental initiatives provided by India make the environment attractive to new companies. When you are willing to proceed to the next step, address professionals like kanakkupillai in order to be sure that you comply with all the demands and start the establishment of a company without hesitation and without violating regulations.
