How To Register The Company Name In India

Dislocated about which company structure to cull? Try out our tool to decide!

Picking the right company structure for your business is as important equally any other business organization-related activity. The right business structure will allow your enterprise to operate efficiently and meet your required business targets. In Bharat, every business concern must register themselves as part of the mandatory legal compliance. Earlier we acquire how to annals a visitor, let's endeavor and empathise the types of business concern structures in India.

Comparative List of Different Types of Business Structures in Bharat

Here is a comparative listing of the popular business concern structures in India.

Company blazon	Platonic for	Tax advantages	Legal compliances
Limited Liability Partnership	Service-oriented businesses or businesses that have low investment needs	Do good on depreciation	Business tax returns to be filed ROC returns to be filed
One Person Company	Sole owners looking to limit their liability	Tax holiday for starting time 3 years under Startup India Higher benefits on depreciation No revenue enhancement on dividend distribution	Business organisation returns to be filed Limited ROC compliance
Private Express Company	Businesses that have a high turnover	Revenue enhancement holiday for first 3 years nether Startup Republic of india Higher benefits on depreciation	Business concern tax returns to exist filed ROC returns to be filed An audit is mandatory
Public Express Company	Businesses with a loftier turnover	Tax exemptions nether	Business tax returns to be filed. Mandatory Audits

What are the types of business structures in India?

Let's try and understand the types of business concern structures available in India. Here is a listing of some of them:

One Person Company (OPC)

Recently introduced in the year 2013, an OPC is the best way to get-go a company if there exists merely ane promoter or owner. Information technology enables a sole-proprietor to carry on his work and still exist role of the corporate framework.

Limited Liability Partnership (LLP)

A separate legal entity, in an LLP the liabilities of partners are merely limited only to their agreed contribution. An LLP is established under the Limited Liability Act, 2008 with the Registrar of Companies (ROC).

Private Limited Company (PLC)

A PLC in the eyes of the law is regarded as a separate legal entity from its founders It has shareholders (stakeholders) and directors (visitor officers). Each individual is regarded every bit an employee of the visitor.

Public Limited Company

A Public Limited Visitor is a voluntary association of members which is incorporated nether company law. It has a split legal existence and the liability of its members are limited to shares they concur.

You lot can cull what business organisation structure suits your business needs best and accordingly annals your business.
Other forms of business structures include Sole proprietorship, Hindu Undivided Family, and Partnership firms. Delight bear in mind, these structures do not come under the ambit of company law.

Why is it important to choose the right business structure?

It is important to choose your business organization structure carefully as your Income Tax Returns will depend on it. While registering your enterprise, remember that each business structure has dissimilar levels of compliances that need to exist met with. For example, a sole proprietor has to file simply an income tax render. Even so, a company has to file an income revenue enhancement return as well as annual returns with the Registrar of Companies.

A company's books of accounts are to be mandatorily audited every twelvemonth. Abiding by these legal compliances requires spending money on auditors, accountants and tax filing experts. Therefore, it is important to select the right business construction when thinking of company registration. An entrepreneur must accept a clear idea of the kind of legal compliances he/she is willing to bargain with.

While some business structures are relatively investor-friendly than others, investors will ever prefer a recognised and legal business construction. For example, an investor may hesitate to requite money to a sole proprietor. On the other paw, if a good business thought is backed past a recognised legal construction (like LLP, Company, etc) the investors will be more than comfy making an investment.

How to cull a concern structure while applying for company registration in India?

Let'southward take a look at some important questions every entrepreneur must inquire himself earlier he/she finally make up one's mind upon a business structure.

How many owners/partners will your business concern have?

If you are a unmarried person who owns the entire initial investment required for the business, a One Person Company would exist ideal for you. On the other hand, if your business has ii or more owners and is actively seeking investment from other parties a Limited Liability Partnership (LLP) or Private Limited Company would suit you all-time.

Should your initial investment determine your choice of business structure?

If you want to spend less initially, it would be wise to get in for a Sole Proprietor, or HUF or Partnership house. But, if you lot are sure that you lot will exist able to recover the setup and compliance costs, you can opt for a I Person Company, LLP or a Private Express Company

Willingness to behave the entire liability of the business

Business organization structures similar sole proprietor, HUF, and partnership house take unlimited liability. This ways, in case of any default in loans, the entire money will exist recovered from the members or partners in turn a profit sharing ratio. The gamble to personal assets is high in these cases.

Whereas, Companies and LLPs have a express liability clause. This means that the liability of its members is restricted to the amount of contribution made past them or the value of shares each member holds.

Income Tax Rates Applicable to businesses

The income tax rates applicable to a sole proprietorship and a HUF are the normal slab rates. In the instance of a sole proprietorship, the business income is clubbed with the individual's other income. Just in the case of other entities like partnership firm and company a revenue enhancement charge per unit of xxx% is applicable.

Plans of getting coin from investors

Equally mentioned earlier, information technology is hard to get investments when your business structure is unregistered. Entities like LLP and Individual Limited Company are trusted when information technology comes to investment. Make sure you cull the right structure, seek the help of an expert so that you annals under proper guidance.

How to Register a Visitor in India?

Registering a visitor in India is at present a simple 4-step process-

Step 1: Digital Signature Document (DSC)

Every bit the registration process of the visitor is completely online, Digital signatures are required to file the forms on the MCA portal. DSC is mandatory for all the proposed directors and the subscribers of the Memorandum of Association (MoA) and Manufactures of Association (AoA).

DSC tin can be obtained from government recognised certifying regime. The list of such certified regime can be accessed here. DSC tin besides be obtained online in only two days from here. Grade three category of DSC must be obtained by the directors and subscribers of MoA and AoA.

Step two: Manager Identification Number (DIN)

The Manager Identification Number (DIN) is an identification number for a director and it has to be obtained by anyone who wants to be a manager in a company. The DIN of all the proposed directors of the visitor along with the name and the accost proof are to exist provided in the company registration form. DIN can be obtained while filing the SPICe+ grade, i.east. company registration course.

SPICe+ is a spider web-based company registration course, through which DIN can be obtained for a maximum of iii directors. If there are more directors in the company and they practice non have a DIN, the company can be incorporated with three directors and it has to engage new directors subsequently on after incorporation. The appointed directors can obtain DIN by filing the DIR-3 form since only the proposed directors of an existing company can apply form DIR-three.

Footstep 3: Registration on the MCA Portal

To apply for company registration, the SPICe+ form is to be filled out and submitted on the MCA portal. To fill out the SPICe+ class and submit documents, the director of the company has to register on the MCA portal. Later registration, the director can log in and will obtain admission to the MCA portal services which include filing e-forms and viewing public documents.

The company must likewise reserve its name by submitting two proposed names in the Part-A of the SPICe+ class. The reservation of the proper name is essential considering if the company name is similar to the name of an existing/registered company, LLP, trademark or information technology contains words prohibited nether the Companies (Incorporation Rules) 2014, the SPICe+ form will go rejected.

If the SPICe+ course gets rejected due to non-approving of the visitor name, the applicant has to re-file another SPICe+ form for the reservation of a new name by paying the prescribed fee. Notwithstanding, after the approval of the name filed in Part-A of the SPICe+ form, it volition be reserved for a period of 20 days inside which the visitor must fill up Function-B of the SPICe+ grade and submit the form online. The bidder must provide the details of the company and directors in the Part-B of the SPICe+ form, attach documents, attach DSC, check the form and submit it.

Step four: Certificate of Incorporation

In one case, the registration awarding is filled and submitted along with the required documents, the Registrar of Companies volition examine the application. Upon verification of the application, he will consequence the Certificate of Incorporation of the Visitor.

The Document of Incorporation is issued with PAN and TAN as allotted past the Income Taxation Department. An electronic mail with Document of Incorporation as an attachment along with PAN and TAN will also exist sent to the applicant.

With this, we have covered the basics of how to register a company.

Documents required for Company Registration

The general documents that are to be submitted for registration of LLP, I Person Visitor, Private Limited and Public Express Visitor are equally follows:

Documents of the Directors and Shareholders of the company/ Partners of the LLP

Proof of identification of all the company'southward directors and shareholders (partners in case of LLP). Any one of the below documents tin can be submitted every bit proof of identification:
- Pan card
- Aadhar bill of fare
- Driving license
- Passport
Proof of accost of all the directors and shareholders (partners in case of LLP). Whatsoever one of the below documents tin be submitted as accost proof:
- Latest telephone bill (not older than two months)
- Latest electricity pecker (not older than 2 months)
- Bank business relationship argument having address
DIN (DPIN in case of LLP) and DSC of all the directors (partners in case of LLP)

Documents of the Visitor/LLP

Proof of registered office of the visitor. The beneath documents must be submitted as accost proof of the company:
- Tenancy/rental understanding betwixt the landlord and company/LLP
- Letter or NOC from the landlord of his/her permission to utilize the role/premises every bit the LLP's/company'southward registered office.
- Auction deed of the company/LLP office bounds in the proper noun of the visitor/LLP
The Memorandum of Association (MoA) which contains the objects of the company for which the company is going to be incorporated and the liability of the members of the company.
The Articles of the Association (AoA) which lays down the by-laws on which the company will operate.

For more than details about documents required for incorporating a One Person Company, read our article on documents required for 1 person company registration.

For more details about documents required for incorporating a Private visitor, read our article on documents required for private express company registration.

For more details most documents required for incorporating a Public visitor, read our article on documents required for public limited company registration.

For more details about documents required for incorporating an LLP, read our article on documents required for LLP registration.

How ClearTax Helps in Simplifying Company Registration Procedure?

With ClearTax, you can establish your company seamlessly in just 10 days (subject to departmental approvals). Our company registration package includes:

Name approval of your visitor
Obtaining DIN for ii directors
Filing SPICe+ form
Payment of Stamp Duty for authorized upper-case letter up to Rs.one lakh except for the states of Punjab, Madhya Pradesh and Kerala
Issuance of Incorporation Document along with PAN and TAN
Opening of current business relationship for your company

The company registration from ClearTax is completely online and thus, you tin can salvage time and money every bit you practice not take to visit our office. Plus, you tin can annals your company in merely 4 unproblematic steps, which are:

Step ane: P urchase the plan

Buy our company incorporation plan that suits y'all the best. You lot tin can even chat with our experts by inbound your email, telephone number and clicking on the 'Asking a Callback' push button. You can also contact us by sending an email with your queries at enquiries@cleartax.in. Our experts volition contact you and articulate all your queries.

Step 2: Upload the documents on our website

Upload the required documents on our website. The uploaded documents are volition be stored safely in our vault and 100% privacy is maintained.

Step 3: Certificate verification by our experts and signature of documents

Our experts will verify the documents uploaded by you. Yous will demand to attest your signature on the documents.

Stride 4: Our experts will file the form on the MCA portal

Our experts will file the company incorporation form on behalf of you on the MCA portal. Afterwards the visitor incorporation grade is filed on the MCA portal, the ROC and the respective departments will verify the forms submitted by our expert. The verification process takes effectually x days (field of study to departmental approval and reverts from the respective departments).

Our experts volition follow up with the corresponding authorities till you receive the Incorporation Document. After the verification process is consummate, yous volition receive the Incorporation Certificate along with PAN and TAN in about 10 days.

Checklist for Company Registration

Minimum number of directors/partners, which are as follows:
- Minimum of i managing director for OPC
- Minimum of two directors for PLC
- Minimum of three for Public Limited Visitor
- Minimum of ii partners for LLP
Minimum number of members in a company, which are equally follows:
- Minimum of one fellow member for OPC
- Minimum of ii members for PLC
- Minimum of seven members for Public Limited Visitor
DSC for all designated directors/partners.
DIN for all directors of a company/DPIN for all designated partners of LLP.
Name of the company/LLP, which is not similar to whatever existing name of a company, LLP or trademark.
Authorised capital in example of an OPC, PLC or Private Limited Company.
Capital contribution past the partners of the LLP, in the instance of LLP.
MoA and AoA in case of an OPC, PLC or Private Limited Visitor.
LLP understanding between the partners, in the case of LLP.
Proof of registered office of the visitor/LLP.

What is the Cost for Visitor Registration?

Program amount for OPC Registration – ₹6999*

Plan corporeality for LLP Registration – ₹6999*

Plan amount for PLC Registration – ₹7999*

* Prices shown above may vary. Delight click here to contact our experts for complete pricing details.

Toll of Public Limited Company Registration – Rs.10,000 – 30,000*

*The price varies depending on the authorised capital, professional fees, stamp duty and the number of directors and members.

Benefits of Visitor Registration in India

A company registration provides many advantages. A licensed company makes it genuine and enhances the business organization' credibility.

Protects against personal obligation, and defends confronting other threats and losses.
Builds goodwill and also supports more customer allure
Gives reliable investors bank credits and adept investment with ease.
Provides cover of the responsibleness to protect the visitor'due south assets
Bigger commitment to wealth and greater stability
Increases the ability to develop and abound large

For a detailed agreement about the advantages of obtaining a company registration, read our article on the Advantages of Company Incorporation.

Name and Upper-case letter of the Visitor

Selection of Company Proper name

The proper name of the company should be proposed in the Grade SPICe+ 32 awarding. Only one preferred name along with the significance of keeping that name tin can be given in the Form SPICe+ 32 application.

The type of entity and one proposed name for the company is to be entered for reserving the name of the company. The proposed proper noun should non be similar to the existing name of any company or LLP or Trademark. If the name gets rejected, another name tin exist submitted by applying another Grade SPICe+ 32 awarding and paying the prescribed fees.

An OPC should have the proper noun in the grade of "XYC (OPC) Private Limited". Similarly, a private company should have the name in the form of "XYZ Pvt. Ltd." and a public visitor proper noun in the form of "XYZ Express".

Uppercase of the company

There is no requirement of minimum paid-upwardly capital to start a private limited company or a one-person company. However, the public express company must take a minimum paid-upwards capital of Rs.5 lakh.

The paid-up upper-case letter ways the amount of money a visitor has received from shareholders in substitution for shares of the visitor. It is created when a company sells its shares in the market directly to investors, usually through an Initial Public Offer (IPO).

The authorised capital of any company must be Rs.i lakh. The authorised capital ways the maximum corporeality of share capital that the visitor is authorised past its Memorandum of Association to issue to its shareholders. The authorised capital must be mentioned in the MoA.

Compliances to be followed by the Company

Once, the company is registered there are certain compliances to be followed by the visitor annually. The company needs to follow compliances such as the Company is required to appoint its start accountant within xxx days of incorporation In the kickoff board meeting. Every company must conduct minimum of four board meetings during the agenda yr at stipulated intervals.

It has to maintain and file of profit and loss account, annual return and balance sheet every fiscal year together with an auditor'southward report before the due date with the Registrar of Companies. Every company is required to maintain certain Statutory Registers.

For more details about compliances to exist followed by the company, read our commodity on Compliances nether the Companies Act 2013.

The company needs to file sure annual forms with the Registrar of Companies. Details of all forms along with the due date of filing these forms are given in our commodity ROC Compliance Agenda.

Summary

Company registration involves a lot of processes. Before registering a visitor one should decide on the structure of the visitor, i.e. if the company is to be registered as an OPC, LLP, PLC or Public Limited Company. After deciding on the construction, the company name must be decided and the directors of the visitor need to obtain DIN and DSC earlier applying for visitor registration.

Later on choosing the company proper noun and obtaining DIN and DSC, the visitor registration form must exist filed on the MCA portal. The SPICe+ grade, i.e., company registration form, must be filled, the required documents must be uploaded and submitted online on the MCA portal along with the prescribed fees. Afterwards verification of the SPICe+ form, the ROC will consequence the visitor incorporation document. The incorporation certificate is proof of registration of the company and the visitor volition come into being as a split legal entity.

Frequently Asked Questions on Company Registration

Where can I register my company?

If you intend to annals a new visitor in India, you must submit an application to the Ministry of Corporate Affairs (MCA). Y'all make the awarding online at the MCA portal remotely too. For registration, you'll need a Digital Signature Certificate(DSC), and Director Identity Number(DIN), among other things.

What happens if my company name is already taken?

The Ministry of Corporate Affairs (MCA) that maintains a tape of registered company names, y'all'll take to access that directory and cheque if your visitor name is already registered. If the company name appears in the company registration directory, you'll accept to choose another name. If y'all have already made an application, you'll have to make another application for a dissimilar name that is previously non registered.

Tin a foreign national be a director of a visitor?

Yep, equally per the Indian company police, a foreign national can be a director of a visitor registered in India. However, he must fulfil all the criteria laid down in the Human action. The most important existence allotment of a Manager Identification Number (DIN).

Whatsoever person, including a foreign national, appointed as a Director cannot act in the capacity of a Director unless he/she gives information technology formally in writing. This can exist washed by filing Form DIR-2 within thirty days of being appointed as the director.

How many days does it take to register a company?

The new changes brought about by the MCA have fabricated information technology piece of cake to register companies of any nature with the government. Provided that you accept all your documents in place, it can take anywhere between 10 – 15 days to register your company formally.

Is a physical presence of a person needed for company registration?

The entire process is completed online, so y'all don't accept to exist nowadays at any particular place for registration. A scanned copy of the documents must be submitted via mail. At the business address, they receive the visitor incorporation certificate from the MCA.

How do I check if my company is registered or not?

Yous can check the status of the company registration on the MCA website. To check the status of your company, you need to get to the 'MCA Services' tab and select the 'View Company/LLP Master Data' from the drop-downward list. Then enter the company's CIN and click 'Submit'. The verbal status of your company will be displayed.

Is the company registration process completely online in India?

Yes, the company registration is completely online. A company or an LLP tin be registered only through the MCA portal. The scanned documents of the visitor/LLP are sent by mail to the MCA and they are processed at the Cardinal Registration Centre (CRC) which acts equally a defended back office for Company and LLP Registration procedure. Upon completion of registration, the visitor/LLP receives a digitally signed Certificate of Incorporation which tin can be verified by all the stakeholders on the MCA website.

Does a private limited company accept continuous being?

Yes. Since a individual limited visitor has perpetual succession, it has continuous existence. Perpetual succession means a company will continue to be a legal entity irrespective of the death of the founder/promoter or whatsoever director of the visitor. Thus, a company will be in existence until it is dissolved for the reasons stated in the Companies Act, 2013 or until the Board and shareholders make up one's mind to wind upwards or close the company.

Is it necessary to take a company's books audited?

Yep. Every visitor, whether private or public or i person company, must mandatorily conduct statutory audits of its books. The company must get its book audited every year from the auditor of the company and the audit report must exist submitted by the auditor to the Board before conducting the company AGM.

What are articles of association and memorandum of clan?

The manufactures of association lays down the internal rules and regulations of the company. It consists of the appointment of directors, inspect and accounts, borrowing powers, winding up process, etc. The memorandum of association contains the v essential details about the visitor, which are company name, registered office, liability of members, object for which the company is formed and uppercase details. The articles of association are subordinate to the memorandum of association of a company.

Can the director of a private express company be a salaried person?

Salary is not directly provided to a managing director of a private limited company. However, the Companies Deed, 2013 provides that directors can exist given remuneration past the company. Remuneration means whatsoever money or its equivalent given to the director for the services rendered by him. Thus, the bacon provided to a director will exist known as remuneration provided by the company for the services rendered by him/her.

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