It's crucial to stay on the right side of the law when starting a business. Legal mistakes can lead to penalties and other consequences that can be detrimental to your company. The last thing that you want is getting penalized over a legal mistake that you were not even aware of!
Prerequisites
Before registering a company in India, there are a few pre-registration requirements that need to be met. These include:
- Choosing a suitable name for the company
- Choosing a suitable domain for the company name
- Obtaining a Digital Signature Certificate (DSC)
- Choosing a suitable Business Structure
- Finding a Good Professional
How to choose a great company name
Choosing a company name is an important decision that can impact the success and growth of your business. So choose a name which is simple, unique, relevant to your target audience and does not contain offensive or reserved words.
How to choose a domain for your business
Choosing a great domain name for your business can be an important step in establishing your online presence and building your brand. In this age it makes no sense to reseve a company name whose domain has already been taken. Find the domain in the .com or .co or any popular TLD extension, if the domain has already been taken go back to the board anf find a new name.
Choose a Business Structure that will suit your needs
In India, businesses have a variety of options when it comes to choosing a company structure. There are six main types of companies you can register in India:
- Sole Proprietorship
- Partnership Firm
- Limited Liability Partnership (LLP)
- One Person Company (OPC)
- Private Limited Company (Pvt Ltd)
- Public Limited Company (Ltd)
If you are planning to raise money from Investors, Venture Capitalists, Private Equity Firms or from Foreign Investors you have to register your company as an Limited Liability Partnership or Private Limited Company or Public Limited Company.
Read this to learn in depth about how to choose a business structure that will suit your needs. Choosing the right business structure is an important decision that should be made with careful consideration of your business goals and needs. If you are just starting out as a single business owner you can start with a Sole Proprietorship. The same goes for two partners. If two partners are just starting to out to do business, a Partnership Firm registration is all it takes to get started. What matters more is the business and the product rather than the shiny outfits of the corporate registrations. But if you really need the legal protection and recognization of an entity then you have to choose LLP or OPC or PVT LTD company.
Also if your revenue exceeds certain amount or you are doing inter-state business or registering your firm in e-commerce portals like Amazon or Flipkart etc. you have to register for GST
How to Register a Company in India?
Register a company in India in 4 simple steps
Step 1: Digital Signature Certificate (DSC) Step 2: Director Identification Number (DIN) or (DPIN)Step 3: Filing Forms on the MCA PortalStep 4: Certificate of Incorporation
Documents required for Company Registration
PAN Card, Aadhaar Card, Passport for Non-residents, Utility bill for address proof, Rent agreement for office, NOC from landowner, etc.
What is the Cost of Company Registration?
Plan Amount for Sole Proprietorship Registration - ₹999*
Plan Amount for Partnership Firm Registration - ₹999*
Plan Amount for LLP Firm Registration - ₹4999*
Plan Amount for OPC Registration - ₹5999*
Plan Amount for Pvt Ltd Company Registration - ₹6999*
In summary, there are several company structures available in India, each with its own advantages and disadvantages. Businesses should carefully consider their needs and goals before choosing a company structure to ensure that they select the one that is best suited to their needs. Company registration involves a lot of steps and processes. So it is advised to hire a Professional to incorporate a company.