Many first-time entrepreneurs are convinced that there is a lot of paperwork involved in starting a company. This is not true. Registering a company in India is easy and can be done completely online, in just four steps. We will cover all you need to know about starting a company, including the documents you require, investment requirements and cost of registration. We will also be covering the different types of business entities. There are several ways to get started as an entrepreneur. A single owner, a partnership with your spouse or friend, a private limited company with investments and silent partners and the list goes on and on.

There are various forms of business entities in India: Private Ltd Company Public Ltd Company Unlimited Company Sole proprietorship Joint Hindu Family business Partnership Cooperatives Limited Liability Partnership(LLP) Liaison Office Branch Office Project Office Subsidiary Company Private Ltd Company A private company has the following features: Restricts the right of the shareholders to transfer their shares. Has a minimum of 2 and a maximum of 50 members. does not invite the public to subscribe to its share capital. Must have a minimum paid up capital of Rs. 1 lakh or such a higher amount which may be prescribed from time to time. Public Ltd Company : A public Ltd company has the following characteristics: It allows the shareholders to transfer their shares. Has a minimum of 7 members, and for maximum, there is no limit. it invites the general public to subscribe to its shares. Must have a minimum paid up capital of Rs 5 lakh or such a higher amount as may be prescribed from time to time. ​ Unlimited Company: Unlimited Company is a form of business organization under which the liability of all its members is unlimited. The personal assets of the members can be used to settle the debts. It can at any time re-register as a limited company under section 32 of the Companies Act. ​ Sole proprietorship: A sole proprietorship is a form of a business entity where a single individual handles the entire business organization. He is the sole recipient of all profits and bearer of all loses. There is no separate law that governs sole proprietorship. Joint Hindu Family: Joint Hindu Family is a form of business organization wherein the members of a family can only own and manage the business. It is governed by Hindu Law. Partnership: The partnership is “the relation between persons who have agreed to share the profits of the business carried on by all or any one of them acting for all”. It is governed by the Indian Partnership Act 1932. Co-operatives: Co-operatives are a form of voluntary organization, wherein the members work together for the promotion of the interests of its members. There is no restriction on the entry or exit of any member. It is governed by the Cooperative Societies Act 1912. Limited Liability Partnership: Under LLP (Limited Liability Partnership) the liability of at least one member is unlimited whereas rest all the other members have limited liability, limited to the extent of their contribution in the LLP. Unlike a general partnership, this kind of partnership does not get terminated by the death or insolvency of the limited partners. It is governed by the Limited Liability Partnership Act of 2008. Liaison Office: Liaison Office is a kind of representative office which is set up to understand the business and investment environment. It is barred from taking up any commercial/industrial/trading activity and its role is limited to aggregation of information and promotion of exports/imports. It has to maintain itself out of inward remittances received from the parent company. Branch Office: Foreign companies which are into manufacturing and trading activities abroad are permitted to set up branch offices in India for various purposes like rendering of professional and consultancy services, export/import of goods etc. Branch offices are not permitted to carry out manufacturing activities on their own. RBI is the statutory body that grants permission to foreign companies for setting up branch offices in India. Project Office: Foreign companies can set up temporary project offices in India for carrying out activities related to that specific project. Subsidiary Company: In India the sectors where 100% foreign direct investment is permitted there foreign companies can set up wholly-owned subsidiary. The wholly-owned subsidiary can be either of the following business entities: Private Ltd Company Public Ltd Company Unlimited Company Sole Proprietorship ​ Choosing a form of business organization Regulatory requirements and statutory bodies involved in starting a business Companies Act 1956 - It is “an act to consolidate and amend the law relating to companies and certain other associations”. It regulates the formation, functioning, the winding up of the companies and also the relationship between the company, government and public. Ministry of Corporate Affairs-It regulates the Companies Act 1956 and other allied acts. The ministry governs the following acts: The Partnership Act 1932 The Chartered Accountants Act 1949 Companies Fund Act 1951 The Companies Act 1956 The Chartered Secretaries Act 1980 The Monopolies and Restrictive Trade Practices Act in 1969 The Companies Amendment Act 2006 Office of Registrar of Companies - The responsibility of the Registrar of Companies is to register the companies for their respective states and Union Territories and ensuring that the companies abide to the legal requirements of the Companies Act. Company Law Board The Ministry of Environment and Forest -It is the major administrative entity for: Governing and ensuring environmental protection Designing the environmental policy framework in India Undertaking conservation and survey of flora, fauna, forest, and wildlife The Environment Protection Act- It is an all-inclusive legislation which affirms the Central Government to protect and improve environmental quality control and reduce pollution from all sources. Under the Act, the Central Government shall have the power to take all such actions which it considers necessary or appropriate for the purpose of protecting and improving the quality of the environment and for abating environmental pollution. RBI-It regulates and controls the monetary system of the country. SEBI-It is a statutory body that controls the Indian capital market.

Company Registration- There are four steps for registering a Company-: STEP 1: Create an account on the MCA portal - New user registration To begin the process, you must create an account on the MCA Portal. This can be done at absolutely no cost. To register yourself on the MCA portal, click on this registration link: MCA New User Registration STEP 2: Acquire Director Identification Number (DIN) Every director is required to have a DIN as per the Amendment Act 2006. To get a DIN, one needs to file an eForm DIN-1.The DIN-1 form is available on the official site of the ministry of corporate affairs. The link is here (DIN-1 is an interactive pdf form with submit option). After filling DIN-1 Form, one should upload the filled form by clicking to eForm upload button on MCA website and should pay the applicable fees.After getting the DIN, the director needs to intimate his/her company by using DIN-2 Form.The company should intimate the Registrar of Companies (ROC) about all directors’ DINs through DIN-3 Form.If there is any change in DIN or need for any updating address, personal details etc, the director should intimate this change by submitting the eForm DIN-4 Form. STEP 3: Acquire Digital Signature Certificate (DSC) One can acquire his/her Digital Signature certificates from government-listed agencies such as MTNL CA, TCS, IDBRT, SAFESCRYPT, NIC, nCODE Solutions etc. To check out their prices, go here.Apply for Class II DSC or above, as per MCA requirements listed here. STEP 4: Apply for Company Registration This is the final step in company registration. It includes naming of your company, registering the office address, notice of situation of office and notice for appointment of company directors, manager andsecretary. It also addresses the take and pay for their qualification shares. Startup India scheme recognizes three types of registered companies as eligible for the benefits under the scheme a) Private Limited b) One Person Company c) LLP A) For Pvt. Ltd. or OPC Apply for the name of a company to be registered by filing Form INC-1. INC-1 Form INC-7 for application for incorporation of a company other than OPC or Form INC-2 for application for Incorporation of OPC Notice of situation or change of situation of registered office based on the option chosen in Form INC-7, via INC-22.Particulars of appointment of directors and the key managerial personnel and the changes among them, via DIR-12 B) For Pvt. Ltd. or OPC using SPICe In case your company has fewer than three directors and seven shareholders, you may apply for registration through the SPICe form, which integrates several steps into one form. Apply for the name of company, application for incorporation and particulars of appointment via INC-32 Apply for eMoA and AoA via INC-33 and INC-34. After submitting these forms, once the application has been approved by MCA, you will receive a confirmation email regarding the application for incorporation of a new company, and the status of the form will get changed to Approved. C) For Limited Liability Partnership (LLP) Apply for the name of a company to be registered by filing Form 1.Application for incorporation of a company (LLP) via Form 2.Filing of LLP agreement within 30 days through Form 3.After submitting these forms, and the application has been approved by the MCA, you will receive a confirmation email regarding the application for incorporation of a new company, and the status of the form will be changed to Approved.Detailed procedure for approval of the proposed company name: For obtaining the name for your new company, an application in Form-1A needs to be filed with the Registrar of Companies (ROC) of the state in which the Registered Office of the proposed company is to be situated to ascertain the availability of a name along with an official service fee of Rs.500.You have to provide four alternative names for the proposed company. Your company name shall not resemble the name of any other company already registered or violate the provisions according to Act, 1950.In this form you have to fill name and addresses of directors (minimum 2 for a private company and 7 for a public company). You have to mention main objects of the company and authorized capital.In about 10 days, the ROC will inform you about approval or objections. If there are any objections, then ROC will suggest you with some available names and let you choose among them. If your ompany name is approved, then you will receive a formal letter regarding the confirmation of the same. Keep the same which will be required during registration process of the proposed company.If you find any difficulty or encounter any problem while obtaining the company name then do contact us, we will help you to sort out your problem. Post-Incorporation Formalities: Obtain a TAN card. Obtain a Permanent Account Number (PAN). Obtain Shops and Establishment Act Registration, if required. If required, apply for Import Export Code from Director General of Foreign Trade. If required, apply for Software Technologies Parks of India (STPI) registration. If required: RBI approval for foreign companies investing in India and FIPB approval.

Documents Required for Company Registration For Directors & Shareholders: Copy of PAN Card (Passport, in case of foreign national) Copy of Voter’s ID/Passport/Driver’s License Copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill Passport-sized photograph Specimen signature (blank document with signature [directors only]) Note: One director must self-attest the first documents. For NRIs and Foreigners, all documents must be notarized (if not from Commonwealth) or apostilled (if from a Commonwealth country). Office Address Proofs: Copy of Latest Electricity or Water Bill Copy of Notarised Rental Agreement in English Copy of Latest Rental Receipt Copy of Sale Deed/Property Deed in English (in case of owned property) Copy of No-objection Certificate from property owner

Cost of Company Registration Registering a company has two costs attached to it: namely, the government fees, which are fixed, and the professional fees, which varies depending on who you choose to do the work for you.Government fees has came down to zero as The Ministry of Corporate Affairs (MCA) recently declared that no fees for incorporation of a company will be charged for Simplified Proforma for Incorporating Company Electronically (SPICe) forms, e-Memorandum of Association (e-MoA) and e-Articles of Association (e-AoA). This move will further encourage startups to formally register their businesses as companies will save on a few thousand rupees. However, companies will have to pay the necessary Stamp Duty, which again, is applicable at a rate depending on the state of incorporation.Professional charges are typically lower online and higher offline. You could spend between Rs. 6000 and Rs. 50,000 in etting your company registered, depending on whether you get it done via an online service rovider or a highly experienced chartered accountant.

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