If you are registering a startup or a new business in India then first and foremost, there are some official procedures a startup or a company has to follow in order to register them in Indian official records, MCA (ministry of Corporate Affairs) has to made registration process online few years back, please find below on how to go about these process when you want to register your company:
One don’t need to visit corporate office, you can apply for registration just sitting at home.The registration includes some must follow rules and some registration like Digital Signature Certificate(DSC), Director Identity Number(DIN) and filing for an e-form.
These are four major steps:
- Acquiring Digital Signature Certificate(DSC)
- Acquiring Director Identification Number(DIN)
- Filing an eForm or New user registration
- Incorporate the company
Know the basics first:
When it comes to company registration, Every firm will have following two options:
- Private company:
- Public company:
The main differences between Private and Public companies are:
- Minimum number of Board members required for a private company is two and for a public company is seven.
- Private company can have maximum of only 50 members, but a public company can have any number of members.
- A private company can start its business as soon as it is incorporated but the public company shouldn’t start its business until it receives business commencement certificate.
- Private company shouldn’t sell it’s shares to anyone or shouldn’t make any invitation to people regarding a company shares, but a public company can invite people to buy it’s shares by issuing a prospectus.
- Private company may have two directors, but a public company must have at least three directors.
Step 1: Acquire Director Identification Number(DIN)
This is the first process in registration that each director of the company should obtain their identification number. As per the amendment act 2006, acquiring a DIN is compulsory for every director i.e. as such every existing and intending directors have to obtain their DIN. To get DIN one need to file a eForm DIN-1. The DIN-1 form is available on Official site of the ministry of corporate affairs
- Register yourself on MCA Website first and have a login id. After filling DIN-1 Form, one should upload the filled form by clicking to eForm upload button on MCA website and should pay applicable fees.
- After getting generated DIN one should intimate their company about DIN. The director can intimate their company about DIN by using DIN-2 Form.
- Then company should intimate the Registrar of Corporates(ROC) about all director’s DIN through DIN-3 Form.
- If there is any change in DIN or need for any updation like change of address, personal details etc, then director should intimate this change by submitting the eForm DIN-4 Form.
Step 2: Acquire Digital Signature Certificate(DSC):
In order to ensure the security or authenticity of documents filed electronically the information act 200o demands a valid digital signature on the documents submitted electronically. This is the only and safest way that one can submit their documents electronically. The digital signature certificate should be acquired by only those agencies which are appointed by the controller of certification agencies (CCA). One should not use DSC given by any other agency which is not approved and it’s illegal to use others DSC as yours or the false one.
One can acquire his/her Digital Signature certificates from these government listed agencies like TCS, IDBRT, MTNL, SAFESCRYPT, NIC, nCODE Solutions etc.
If you already have a digital signature then you can use the same, no need to apply for another. But do check for your digital signature validity, agencies issue DSC’s with one or two year validity after expiry you have to renew it.
Step 3: Create a account on MCA Portal – New user registration
This is about having a registered user account on MCA Portal for filing a eForm, for online fee payment, for different transactions as registered and business user. Creating an account is totally free of cost.
Step 4: Apply for the company to be registered.
This is the final major step in a registration of your company which includes incorporating company name, Registering the office address or notice of situation of office and notice for appointment of company directors, manager and secretary. And also regarding the take and pay for their qualification shares.