- Private Limited Company
- Limited Liability Partnership
- Sole Proprietorship
- One Person Company
- Section 8 Company
- Steps For Startup Company Registration India
- STEP 1: DIGITAL SIGNATURE CERTIFICATE (DSC)
- STEP 2: INC-29 FORM PREPARING AND FILING
- STEP 3: INCORPORATION CERTIFICATE
- Documents Required for Company Registration
This article covers the following for Startup company registration India:-
- What is Startup?
- Types of businesses which can be incorporated in India
- Need for company registration
- Steps for Startup company registration India
- Documents required for the company registration
Startups are newly established businesses which can be started by one individual or group of individuals. They either develop new product/ service or make innovative changes in the existing products/ service in something better. India is a treasure of talent. In order to improve Indian economy and attract talented entrepreneurs, the government takes many in steps to promote startups. Startup India Scheme is initiated under the leadership of Prime Minister Narendra Modi.
There are five types of company registration in India:-
Private Limited Company
A Private Limited company is a group of shareholders and capital made up of shares. An individual who has shares becomes the owner of the company and it can be transferred or sold. Business assets are separate from personal assets. Every shareholder is only responsible for his or her share of the total capital. They have to maintain records such as financial transactions, meetings, audits etc.
It is of three types:-
- Company limited by shares
- Company limited by guarantee
- Unlimited company
It is an agreement in which there are more that one individual is involved. The profits, roles, and responsibilities are divided in the proportion defined in the partnership agreement. In the case of loss, every individual is responsible solely. Even personal assets can be used to recover the losses.
Limited Liability Partnership
This concept is introduced in 2009. An Limited Liability Partnership.functions as a structured business model. It is a separate legal entity and Business assets are separate from the partner’s personal assets. Every partner has defined maximum liability according to his or her share capital in the
In a sole proprietorship, there is only one person involvement and responsibility for the entire business. He or she has to bear all losses. Even personal assets can be used to recover the losses. Business and owner is not separate from each other. Any profit from business adds to the owner’s income for tax purposes.
One Person Company
OPC or One person company introduces in companies act 2013. It supports entrepreneurs who want to start a venture and allows them to create a single person economic entity. The main advantage of OPC Registration is that there can be only one member whereas two members are required for incorporating and maintaining a Private Limited Company or an LLP.
Section 8 Company
It is an organization which is registered as a Non-Profit Organization (NPO). NPO/company has its objective of promotion of arts, commerce, charity, education, protection of the environment, science, social welfare, sports, research, religion and intends to apply its profits, if any, or other income in promoting its objects. It functions exactly like a limited company including all the rights and obligations that come with such a company. However, it cannot use the words “Section 8” or “Limited” in its name.
Steps For Startup Company Registration India
If you are planning to apply for startup (company registration)or new business in India then there are some official procedures for it. Nowadays, all the documentation process is online. You do not need to go to the government office for every procedure and query. MCA (Ministry of Corporate Affairs) maintains official records of the company registration.
To make the process easy and quick, form ( INC-29 ) introduces. Company registration has merged a few steps such as DIN, Incorporation Application and Business Name Approval into a single step or process.
Let’s see three major steps for Startup (private limited company registration) registration in India:-
- Obtaining DSC( Director Signature Certificate)
- Form INC-29 ( Preparation and filling)
- Incorporation Certificate
STEP 1: DIGITAL SIGNATURE CERTIFICATE (DSC)
There is an essential requirement of the Digital Signature Certificate in a Company. This is the first step towards the registration. In this, you have to apply for the digital signatures of the directors or DSC. DSC is a valid e-signature on the documents and submits online. This is the safest way and helps you complete the new company registration online. There are some provisions given by The Information Technology Act, 2000. It emphasizes for use of Digital Signatures and submitted in electronic form for documents. It is to ensure the security and authenticity of the documents filed electronically. All such filings are done under MCA 21 e-governance programme.
It Normally takes 2 days to obtain DSC after the submitting the documents.
STEP 2: INC-29 FORM PREPARING AND FILING
Now the next step towards Startup company registration India is INC- 29 form. This form requires certain documents for its preparation. Below are some documents regarding the INC-29 form which is as follows:-
- Director’s Identification Number ( DIN number )
- Name approval
- Memorandum and Articles of association ( MOA & AOA )
- Registered office verification
- Appointment letters and declaration
When you prepare your INC-29 form with the required documents, you have to file the forms for company formation. After that, you can move to the next step.
STEP 3: INCORPORATION CERTIFICATE
After submitting all the forms you will get Incorporation certificate. It is the legal document relating to the formation of a company or startup business.
Documents Required for Company Registration
- A Copy of PAN Card
- Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
- Voter’s ID/Passport
- Notarized Rental Agreement in English
- No-objection Certificate from the property owner
- Utility Bill for the registered address.
Visit Company Registration for more details and free expert consultation as to which business registration is suitable for your startup.