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The steps of online company registration process have significantly simplified the establishment of businesses. The days of physical document submission and the burden of paperwork are gone. This is made possible through online business registration in India.
In today’s digital era, there are specific Indian government online sites that allow entrepreneurs to register their businesses. Whether you are at home or in any state in India, the online business registration is turning dreams into reality. Whether you want to register your business as an OPC, Pvt Ltd, or LLP, you can register online.
However, before moving to the online company registration steps, you need to first understand the rules and regulations of the authority. Let’s explore this page to learn the process for company registration in India, including different types of companies and steps.
Why Choose Online Business Registration in India?
Before discussing the online business registration steps, let’s first understand what the benefits are:
- Convenience: The online company registration process for business establishments eliminates the need to visit physical government offices. It directly decreases waste convenience as well as time.
- Speed: Unlike the physical registration for business, the online steps significantly decrease the time taken for approval and incorporation. In the old days, it took a couple of months for approval, but now it happens in a few days.
- Transparency: The online process allows the applicants to track their application and receive updates on the registration portal. This is a way to ensure transparency through the company registration in India. The property of transparency reduces the hidden costs and also increases approval chances.
- Cost-Effectiveness: The online steps eliminate the need for physical government office visits and document submission. The online submission saves the travel expenses as well as the consultancy fees and mailing costs.
- Efficiency: Digital forms and integrated applications reduce errors. It makes the online submission process more streamlined.
The Online Company Registration Process in India
For company registration in India with any business legal framework, there is a common step. The things that you should know during the registration:
Digital Signature Certificate (DSC)
For a business director and the shareholders, the DSC acts as a digital identity. This certificate allows the business directors to sign the paperwork digitally to ensure security. The designated directors need to obtain the Class 3 DSC.
Director Identification Number (DIN)
For the proposed directors, the DIN is a unique identification for them. Up to three directors are eligible to apply for a DIN by using the SPICe+ form. This marks the major one for the registration of a business.
Unique Company Name
To form a business in India, it is essential to select a name for your organization. But it is important to understand that the name must be unique and not already taken by an existing company. For the selected company name approval, submit it on the MCA online portal. If the name aligns with the MCA’s naming guidelines, the name authority grants the name approval.
Registered Office Address
Your company needs a valid address in India. A rented property can be proposed as the registered office, but not a commercial property. Obtain the No Objection Certificate from the rented office owner and the utility bill as proof.
(MoA) and (AoA): These are two very crucial legal documents.
Memorandum of Association: A company’s objectives and powers are outlined in the MoA. It works like a constitution for a business.
Articles of Association: A company’s internal rules and regulations are mentioned in the AoA. This is required to maintain company management. It demonstrates the responsibilities of directors, how the profit will be shared, and many more.
Types of Company Registration and their specifics
There are various company structures in India. Depending on the type of company and its requirements, an appropriate legal structure must be selected. Let’s take a look to know how many legal structures there are in India:
Private Limited Company Registration: This is known as a closely held company with limited liability. This business legal structure allows the entry of a minimum of two members and can be increased up to 200. The shares of such companies cannot be traded among the general public. The personal assets, like a car, savings, and other financial things, are safeguarded by the pvt ltd company registration legal framework.
The key requirements for Pvt. Ltd. formation are
- At least 2 directors is required, with one director must Indian citizen
- Minimum of 2 shareholders.
- No minimum paid-up capital requirement.
LLP Registration (Limited Liability Partnership): The LLP company registration provides a hybrid business structure, as it combines benefits of partnership management with those of a company. It is one of the most preferred legal frameworks by professionals and service providers due to its limited liability benefit. Unlike the old partnerships, it provides more flexibility in ownership.
The Key Requirements for LLP Registration:
- Must have at least two directors
- The proposed partner must be an Indian citizen
- There is no minimum capital requirement for LLP registration in India
One Person Company (OPC) Registration: This type of company is established by a single individual. An OPC registration in India can operate the business with limited liability advantages. According to the Companies Act of 2013, the financial things of the individual OPC owner are protected from financial liabilities.
The Key Requirements for Nidhi Company Registration:
- Must have one director and shareholder.
- The director and shareholder can be an individual person
- The nominee’s name will be registered, and they will later be appointed as the owner after the sudden event with the original owner.
- Fill out the Form INC-3 for the nominee consent
Nidhi Company Registration: The Nidhi company legal structure was introduced under the Companies Act of 2013 to encourage savings for community members. The registered Nidhi companies are known as non-banking financial companies. Such a company allows its members to borrow and lend money. The principle of mutual benefit is fundamental to such companies.
The Key Requirements for Nidhi Registration:
- Must have a minimum of 7 members
- Required minimum of 3 directors
- Minimum equity share capital of ₹5 lakhs.
Section 8 Company Registration: The legal structure of a Section 8 company was established to promote the education, social welfare, and charity objectives. The non-profit companies are registered under Section 8 of the Companies Act. However, the profit of the Section 8 company registration is not used by its members, but it is used for further changes or other objectives.
The key requirements for Section 8 company registration are
- Must have at least two directors
- No minimum capital requirement
- Profit cannot be provided to its members
Required Documents for Company Registration in India
For online company registration, you need to prepare several business registration documents. The documents that you need to provide are
- The identity proof, like a PAN card, Aadhaar card, passport, or driving license.
- Address proof, like a utility bill, electricity bill, telephone bill, not older than 2 months
- The business registration documents (depending on the legal company structure, e.g, sole, Pvt Ltd, LLP, or other).
- For the registered office ownership proof, rent agreement, NOC, and latest utility bill.
- Details of the business bank account
- If the turnover is more than the specific threshold, you need to provide the GST registration certificate.
Final Thoughts | Register Now and Begin Your Entrepreneurial Journey!
The online company registration process, whether as LLP, Nidhi, Section 8, or Pvt Ltd in India, has truly democratized entrepreneurship. The online registration reduces the extra cost investment, simplifies the process, and speeds up approval. In today’s digital era, company registration is more easily achievable. Register your company now by navigating the online process to start your entrepreneurship journey.
Frequently Asked Questions
1. How many days will it take to register a private limited company in India?
Ans. For the private limited company registration, the process takes 10-18 working days. However, the timeline depends on the document processing and approval by MCA.
2. Which portal is used for business online registration?
Ans. The primary platform for online company registration is the MCA portal, which is operated by the Ministry of Corporate Affairs.
3. Is a GST certificate required for Section 8 company registration?
Ans. Generally, no. However, the Section 8 registered business that is involved in trade and commerce requires a GST registration certificate.
4. How much is required for company establishment in India?
Ans. To build a company in India, you need to invest a minimum of Rs 6,000 to 30,000. It can be increased on the basis of the requirement during registration.
5. How is a CA beneficial for a company?
Ans. For any company type, the CA is required to maintain the audit, which is mandatory.
