Starting your own company or business is an exciting thing in itself, Isn’t it? It indeed is. Besides pitching to prospects, closing deals, and meeting with investors along with developing the product takes up all your time, there are other aspects as well. There are things that one needs to keep in mind when he/she decides to build a start-up. Initially, your initial focus would be to give shape to your business idea and build a team that believes in your vision. However, the most fundamental and legal aspect when you embark on your journey as an entrepreneur is to get your company registered.
The reality is that most of the founders are coders, designers, marketers, and folks from different professions. One critical thing that most founders aren’t the best at is the basic legalities when it comes to starting and registering a business. So let’s dive deep into the process of getting a company registered in India.
Acquire Digital Signature Certificate (DSC)
The Information Technology Act, 2000 has provisions for use of digital signatures on the documents submitted in the electronic form to ensure the security and authenticity of the documents filed electronically.
You can use only the valid Digital Signatures issued to you. It is illegal to use Digital Signatures of anybody other than the one to whom it is issued. The DSCs are typically issued with one-year validity and two-year validity. These are renewable on expiry of the period of initial issue.
- Digital Signature Certificate (DSC) Applicants can directly approach Certifying Authorities (CAs) with original supporting documents, and self-attested copies will be sufficient in this case.
- DSCs can also be obtained, wherever offered by CA, using Aadhar eKYC based authentication, and supporting documents are not required in this case.
- A letter/certificate issued by a Bank containing the DSC applicant’s information as retained in the Bank database can be accepted. Such a letter/certificate should be certified by the Bank Manager.
Acquire Director Identification Number (DIN)
The concept of a Director Identification Number (DIN) has been introduced with the insertion of sections 266A to 266G of Companies (Amendment) Act, 2006. DIN is a unique Identification Number allotted to an individual who is appointed as a director of a company, upon making an application in form DIR-3 under section 153 & 154 of the Companies Act, 2013. In respect of a new company, an application for allotment of DIN shall be made only through SPICe e-form at the time of its incorporation.
Attach the photograph and scanned copy of supporting documents i.e. attested proof of identity and attested proof of residence as prescribed.
Physical documents are not required to be submitted to the DIN cell.
Form DIR-3 is mandatory to be signed by the Applicant and which shall be verified digitally by a Company Secretary in full-time employment of the company or by the Managing Director or Director or CEO or CFO of an existing company in which the applicant is intended to be appointed as a director.
Upon upload, make the payment of filing fee of eForm DIR-3. Only electronic payment of the fees shall be allowed (i.e. Net banking / Credit Card/Debit Card/Pay later/ NeFT). eForm DIR-3 will be processed only once the DIN application fee is paid.
After successful payment, an approved DIN shall be generated in case the details of the e-Form have not been identified as potential duplicate.
Verification of eForm: In case, details of eForm DIR-3 are found as potential duplicate, the same gets routed to DIN cell for back-office processing. Upon approval of the form, provisional DIN becomes approved DIN and would be available for further use.
Create an account on MCA portal- New user registration @ mca.gov.in
Click on the 'Register DSC' link available on the MCA portal homepage.
On the next screen, click on the 'Director' link on the left-hand panel and fill-up your DIN. Please ensure that the DIN is approved and typed correctly.
System shall verify that the DIN is valid and approved. If the DIN is filled incorrectly or DIN filled is not approved, the system will throw an error message to that effect.
Fill-up rest of the particulars and ensure that details filled are as per DIR-3. If the applicant has filed DIR-6, then fill the details as submitted in the DIR-6 form.
Click on the 'Next' button. The system would verify the details.
If the details filled do not match with DIR-3/ DIR-6, as the case may be, for the reason that you do not have your DIN application details, you can get the details from the company in which you are a director.
If the details are correct, the system would prompt you to select the DSC.
Click on the 'Select Certificate' button to browse and select the certificate. Please ensure that the selected DSC belongs to the applicant, whose particulars are being registered.
System shall validate the DSC. If the selected DSC is already registered against given DIN, the system will give an informatory message. If a different DSC is already registered against the given DIN, the system will ask if the user wants to update his/ her DSC.
Type the displayed system generated text for verification in the box provided.
Click on the 'I agree' button to agree to the declaration that details furnished are correct.
Click on the 'Submit' button to register your DSC.
Acknowledgement message is displayed to the user.
User can take a print-out of the acknowledgment.
The applicant can click on the 'Reset' function to clear the data in the fields.
Incorporate or Apply for the company to be registered
- Select, in order of preference, at least one suitable name up to a maximum of six names, indicative of the main objects of the company.
- Ensure that the name does not resemble the name of any other already registered company and also does not violate the provisions of emblems and names (Prevention of Improper Use Act, 1950) by availing the services of checking name availability on the portal.
- Apply to the concerned RoC to ascertain the availability of name in eForm1 A by logging in to the portal. A fee of Rs. 500/- has to be paid alongside and the digital signature of the applicant proposing the company has to be attached in the form. If the proposed name is not available, the user has applied for a fresh name on the same application.
- After the name approval, the applicant can apply for registration of the new company by filing the required forms (that is Form 1, 18 and 32) within 60 days of name approval.
- Arrange for the drafting of the memorandum and articles of association by the solicitors, vetting of the same by RoC and printing of the same.
- Arrange for stamping of the memorandum and articles with the appropriate stamp duty.
- Get the Memorandum and the Articles signed by at least two subscribers in his/her hand, his/her father's name, occupation, address and the number of shares subscribed for and witnessed by at least one person.
- Login to the portal and fill the following forms and attach the mandatory documents listed in the e-Form.
- After processing of the Form is complete and Corporate Identity is generated obtain Certificate of Incorporation from RoC.
- Once the above procedure is done, the Certificate of Commencement of Business may be obtained.
Finally, we have all that is takes to start running a business. You are now the captain of your ship. So, let loose the anchor in the sea and take control.
All is good, but isn't it tedious? You want to do business. Not understanding laws on what to do and what not to. So there are couple options that will get your done without involving you to understand all the laws.
Our own company has been registered by ApplyLegal. If you are in Raipur and nearby just give them a call. They may take care of all you legal and filings.
There are a lot of such startups/companies doing legal as a service. Just google you will find a list full of such companies. Just don't' get fooled by a pongy scheme or a fraud company.
Well, if you are an entrepreneur and looking to be an entrepreneur. We just have a forum for you. Join it and post your query.
We are in no way associated with the above companies/websites. Work with them at your own risk. We have also taken care to remove as error as possible but again please checkout the website of MCA. Anything listed there is more authentic and genuine. And we are not responsible for any of the losses caused by such.