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If you want to register for a company or startup in India then you need to register or record it in Indian Official records i.e. Ministry of Corporate Affairs (MCA). This is the first mandatory step for this procedure. If you can’t visit the corporate office for any reason then you can register your company or startup online. To register for your company or startup firstly you should be clear about the name and type of your startup. Before confirming any business type , you should have a clear understanding of the business you are going to start, like the goals and objectives of the business.

Steps to register a Company or Startup in India :

There are four important steps to register a Startup in India :

1. Obtain DSC :

Digital Signature Certificate is nothing but the digital or electronic form of a physical certificate. Examples of physical certificates are Drivers’ license, membership card or passport. The purpose of these certificates is to behave as the identity of an individual. For example, a driving license is the proof of a driver that he/she can drive legally in a particular country. Similarly, a digital certificate behaves like the same. Here you can represent the certificate electronically to prove your identity, to retrieve information or services on the internet or to sign some documents digitally.

2. Obtain DIN :

Direct Identification Number is a 8 digit unique number which is required for any directory of a company. DIN has been introduced in India by Companies Amendment Act, 2006.

3.  Login to the MCA Portal.

4.  Then do your registration for your company.

Different types of business/Company in India :

1. One-person company :

Such companies are created when there is only 1 owner. Many startups & young entrepreneurs like to work as one person. But they can only have 1 shareholder, which is a disadvantage when compared with other private companies.

Benefits of One-person company :

• Can manage easily.
• A good control on the company.
• Not much compliances in comparison to private companies.
• Easy to get loans from banks.
• Legal recognition.

Details Required while Registration :

1. Proof of registered office.
2. Article of Association(AoA).
3. Memorandum of Association(MoA).
4. Affidavit and consent of the director.
5. Declaration about all the compliances.

2. Partnership Firms :

The word partnership means a person who shares or takes part in activities of another person.  It is a closely held form of a business. The want or why of this firm arises from limitation from sole proprietorship.

Benefits of Partnership Firms:

• Convenient to form.
• Flexible.
• More easy to wind up.
• Annual return is not necessary to submit in the MCA portal.
• Risk is shared between partners only.

Details Required while Registration :

• Name of all the partners and firm.
• Address of all the partners and firm.
• Date of starting of the firm.
• Rights of all partners in a firm.
• Salary of all the partners.
• Profit share ratio of the partners.
• Money that is invested in a firm.

3. Sole Proprietorship :

It is an individual entrepreneurship; aka sole trader ship or a proprietorship where a single individual manages, owns and controls the company. rights and there is no legal distinction between the business entity and the owner. It is a one person company where a single person is the owner of the company who pays personal income tax on the profits earned by the firm and also is single handedly responsible for the loss and the risks of the firm.

Benefits of Sole Proprietorship :

• Government registration is not required.
• Government paperwork is also not required.
• Not required double taxation.
• Pay income tax only on your income.
• The Profit that you earned is only yours.
• Not required to fill compliances.

Details Required while Registration :

• Aadhaar Card.
• PAN Card.
• Bank Account.
• Registered office proof.

4. Limited Liability Company :

A limited liability partnership (LLP)  is a partnership in which some or all firm partner’s liability is limited to the amount they put in the business. LLP means that if a partnership fails, then the creditors cannot go for a partner’s personal assets or income. It has a partnership structure where the liability is limited to the amount they put in a business.

Benefits of Limited Liability Company :

1. Paperwork is less as compared to other companies.
2. More flexible.
3. Profit sharing is much more flexible than other companies.
4. Flexible in terms of tax.
5. Does not need to follow business structure to run the organization.

Details Required while Registration :

• Name of all the partners and company.
• Address of all the partners and company.
• Date of starting.
• Rights of all partners.
• Salary of all the partners.
• Profit share ratio of the partners.
• Money that is invested in a company.

5. Private Limited Company :

This company has a minimum of two people who handle it. This isn’t under the government and is run by a small number of company members. This company is a closely held organization and is an unlisted company.

Benefits of Private Limited Company :

• Tax benefits.
• Shares are easily transferable.
• Can get funds from public platforms.

Details Required while Registration :

1. Proof of registered office.
2. Article of Association(AoA).
3. Memorandum of Association(MoA).
4. Aadhar Card.
5. PAN Card.
6. Electricity bill.
7. Bank statement.

September 4, 2021