Why Should You Register Your Business in India?
The formation of a company in India can provide you with a multitude of advantages, including the generation of cash, the transfer of shares, the acquisition of tax advantages, and many more. Is it true that you can register your business without leaving the comfort of your own home? At first glance, the procedure of registering your entity on your own could appear to be somewhat hard. Please allow me to simplify this complicated process for you so that you can register your company in just six easy steps.
First Step: Acquire a DSC
The first thing that has to be done in order to complete the registration process online is to acquire a Digital Signature Certificate (DSC). This ensures that all of your documents may be submitted electronically in a way that is both authentic and safe. It will be necessary for you to acquire either a class 2 or a class 3 DSC, depending on the kind of business you run. For the purpose of obtaining a Digital Signature Certificate, one must approach any one of the Licenced Certifying Authorities.
Submit an application for the DIN
A Director Identification Number, also known as a DIN, is a one-of-a-kind eight-digit number that is issued in accordance with section 153 of the Companies Act. In accordance with the Companies Amendment Act of 2006, it is mandatory for all directors of a company to obtain a DIN. You are able to submit an application for a DIN on the internet, and if the Central Government decides to accept your application, you will receive your DIN within a month.
MCA Portal Registration is the third step.
In order to complete the MCA portal, the director of the company is required to create a user account. Once the director has registered for the site, they will have access to the SPICe+ form, which will allow them to register the firm.
Application to Determine the Availability of Names
The application for a distinctive name for your business is required. Your company name should always be descriptive of the things or services that you offer, whether they be products or services. In order to avoid having your application denied, you are required to name a corporation in accordance with the standards provided by the MCA. You can use the company name search facility to determine whether or not a particular name is available for use by the firm if you already have a name in mind.
The submission of charter documents is the fifth step.
When it comes to the registration of a corporation, the preliminary documents that are required are the Memorandum of Association (MoA) and the Article of Association (AoA).
It is commonly believed that the MoA serves as the organization’s constitution. It provides documentation on the fundamental components of the company’s structure, as well as its activities and goals. In addition to this, the MoA establishes its relationship with the outside world.
The AoA can be thought of as the “user manual” of the company. The rules and regulations that govern the management of internal affairs, such as the management of financial records and the selection of directors, are all mentioned in this document.
Obtaining a PAN and TAN is the sixth step.
In order to complete any significant transaction, you are required to provide your Permanent Account Number (PAN), which is a 10-digit alphanumeric number. The NSDL website or authorised agencies are the places to submit your application for a PAN online.
Individuals who are responsible for collecting or deducting taxes are assigned a Tax Deduction Number (TAN), which is a 10-digit alphanumeric number. It is essential to have TAN in order to file TDS returns. There is a fine of ₹10000/- that you will be required to pay if you do not submit an application for a TAN card. To submit your application for a TAN, go to the website of the NSDL.
Upon receiving permission, one is able to acquire a Certificate of Incorporation that includes both a PAN and TAN. Using the Certificate of Incorporation, you are able to formally open a current bank account and start the operations of your firm.
If the process continues to be difficult for you, you might want to consider enlisting the assistance of the professionals at Kompany Services in order to register your entity in a hassle-free manner.