The Indian startup ecosystem has grown tremendously in recent years. The government has been coming up with innovative ways to ensure the process of company registration occurs smoothly. In keeping with the recent trend of paperless transactions, the government has been working towards moving this process online. Ever since February 23rd 2020, the government has made the process of company registration a lot more user friendly and entirely online. In this article, we will look at the new online company registration process, and why it is so helpful.
What is the new online company registration process?
The government has been trying in recent years to make the process of company registration faster and easier for business owners. As a part of such efforts, the Ministry of Corporate Affairs has moved the entire process online and has offered many benefits to entrepreneurs. Effective from February 2020 these benefits will help make the company registration process simpler and more efficient for everyone. Hence, this new online company registration process will help make it easier for entrepreneurs to incorporate their businesses legally. However, it is best if young entrepreneurs utilise experienced service providers, such as VakilSearch to make sure the process concludes smoothly.
Why register as a Private Limited Company?
The private limited company is one of India’s most popular business structures, and registration for the same occurs as per the Companies Act, 2013. Such companies exist as independent legal entities and are formed of two or more shareholders and directors. This business structure allows founders the benefit of limited liability protection while also enabling them to hold assets. Incorporating as a private limited company also helps business owners improve their company’s name and credibility. This will help make it easier to attract new investors and raise capital, as and when required.
New Company Registration Online Requirements
Here’s a quick look at the various eligibility criteria entrepreneurs have to meet to complete the company registration online process anywhere in India.
- Must have a minimum of two Shareholders and Directors, and they can be the same persons.
- All the directors must be individuals, as corporations are not allowed to act as designated directors.
- Must have a maximum of 200 shareholders if incorporating as a private limited company.
- All the designated directors must have a digital signature certificate and director identification number.
- The company must have a registered office address in India that serves as its official communication address.
Procedure for New Company Registration Online
There are not many changes in the new company registration online process when compared to the old system. However, the introduction of the AGILE Pro and SPICe+ forms from February 23rd 2020 have made certain registration mandatory. Entrepreneurs must now mandatorily apply for Professional Tax, Provident Fund, Employees’ State Insurance Corporation, and a
Bank Account along with incorporation, whereas GST registration is optional. Additional changes in the online company registration process are as follows;
- The business owners must apply to reserve a name for the company with the Ministry of Corporate Affairs. Each application form can contain a maximum of two names, and the proposed names must abide by MCA Rules.
- Next, all the company shareholders and directors must apply for a Digital Signature Certificate.
- Along with this, the entrepreneurs must meet with a legal expert and start drafting the required legal documents. The business must start preparing other documents, including FORM INC9, DIR, Memorandum and Articles of Association and the required NOCs. After finalising these documents, they must be signed and authorised by all the directors.
- Lastly, the team must apply for incorporation with the MCA via the SPICe+ and AGILE Pro forms for Company Registration. These forms will also help with applying for and obtaining company PAN and TAN. Additionally, they also help with obtaining registration under the Employee Provident Fund Organisation, Employees’ State Insurance Corporation, and Professional Tax.
- The forms will also help companies open a Bank Account, and they may also use the same to obtain a GSTIN if required.
- After filing the required applications, the business owners must pay the required fee and stamp duty as per the concerned Registered Office.
- After verification from the MCA, the business will receive a Certificate of Incorporation, while the rest of the registration will take around 15 days from the date of incorporation.
New Company Registration Online Documents Required
- Passport Size Photograph of shareholders and directors
- Identity Proof of all directors and shareholders – Voter ID/ Aadhaar Card/ PAN Card/ Driving License/ Passport
- Address Proof of all directors and shareholders – Bank Account Statement/ Electricity, Telephone, Water, Gas, Landline Bill not older than two months
- Email ID and valid mobile number of of all directors and shareholders
- Details regarding the educational qualification and place and date of birth of all directors and shareholders
- DSCs and DINs of all directors and shareholders
- Address proof of registered office address;
If rented: Utility bill from not older than two months/ NOC from the owner/ Rental Agreement.
If owned: Utility Bill/ Property Registration document in the company’s name.
Read more : Private limited company registration