How to start a company, process to register a company in India

How to start a company, process to register a company in India
How to start a company, process to register a company in India

A company is one that is formed by a few trained people, which is used to sell and buy different types of goods or to provide or take services. In today’s time, there are many such companies in India, which are at number one, but there are many such companies, which are struggling till date, because in today’s time there is so much competition in the market, that no one Even the market is not able to balance. Today we will tell you in detail what is a company and how it works, as well as will tell you how many types of company are there.

Company’s (What is a Company)

When a few selected trained officers run an organization together, it becomes a company. The company is formed by the shareholders present in the company to sell and buy goods or to exchange services. Some companies are associated with for-profit organizations and some companies also work for non-profit organizations. A single person cannot run any company, he needs many workers to run that company, for which they provide employment to many people. Companies have the right, that they can buy shares of other companies and make them in their name and can also sue other companies if needed. Apart from this, a company also borrows money from the market to increase its capital and also collects money by selling its shares. If seen legally, So all types of companies have equal rights and responsibilities. Along with this, they also have some legal rules as a responsibility, which it is mandatory for them to follow. If any company violates the rules made by law, then it is a punishable offense for them.

Types of Company

Generally there are many types of company, which are as follows:-

One Person Company :-

A company is also formed on the basis of members, but sometimes it happens that some people are thinking of starting their business, but at that time they do not have suitable capital. In such a situation, they single-handedly invent a new company to encourage young entrepreneurs and promote their business gradually.

Private Limited Company :-

A private company is a company in which two or more persons are registered under the Companies Act and form a separate company. They set up a business and start a company knowing about all the trained items related to it.

Public Limited Company:-

A company that is formed by a minimum number of 7 members with legal objects is called a public company. There is no limit on the maximum number of members in this company, as it is a registered company. This company has full freedom to sell and buy its shares freely. When any person joins the public company, then he also comes under the public company.

Limited Liability partnership :-

A company is such that it is started and run by some partners. To run any company, 2 or more partners are entitled to get ownership of that company.

Company Features

  1. Fake Person: –   A company also acts like a person, just as a human being is first born according to the will of God. In the same way a company is born according to the will of man, means it is established. Just as a man’s life goes on, he grows, eats, drinks and sees sorrow and happiness in life, in the same way a company also has to suffer all kinds of miseries and pleasures i.e. loss and profit. Those who harm them also bring benefits.
  2. Independent Company – An independent company is such a characteristic of a company. Under which any company forms a separate entity from its members. She can keep the entire property in her own name and can make or break any contract at any time. In that company, the company owner has so much freedom that he can sue others for any kind of mistake. And other companies can also sue that company if any troublesome situation arises.
  3. Away from all influences A company is such which is not affected by natural influences. In simple words, even after the death of any member and operator of any company, he is completely ruined by his insanity or property, there is no effect of that circumstance on a company.
  4. Limited Liability There are many members present in a company. Those who become members of that company by taking the shares of that company annually in their name. Any person who takes shares from the company, his entire guarantee is limited only to the guarantee given by the company.
  5. Share Transfer Facility – One of the biggest features in a public company is that they can freely transfer the shares held by them to anyone. Now under any circumstances, if the owner of a company wants to sell and buy the shares held by him, then he can also buy and sell his shares through exchange.
  6. Ownership and Management Generally the number of members in a public company is more limited, this means that a large number of members are present in a public company. Those who are not able to participate in day to day management in every work and management in the company. Therefore, the Managing Director of a company is prepared, who operate the company as a whole. The main directors of the company are chosen by the members of the company through the election process, so they are given full ownership of the management of the company.

Why it is necessary to register your company

For any one company to run smoothly, it is very important to register it. Let us know some of the main reasons why you benefit from registering a company and why you should register a company.

  • Registration of the company gives the main identity to the company: It is very important to register any company to run it. Because it gives a unique identity to the company. Once the company is registered legally, it is easily able to give consumers confidence in your enthusiasm. By registering legally, your company gets a legal name, address and identity. If you register your company under your preferred name, then you also get to know whether this name has been used by any person for his company or not and if you have chosen that name for your business then No person can use that name for his company name.
  • It protects you from Personal Liability: When you get a company registered even if it is in your name, you do not have to personally compensate for any loss in the company. In simple words, any property like any heavy damages can be filed in the court, but the person who is the owner of a registered company is not held fully responsible for it. If your company is registered then suppose there is any loan outstanding on your company or there is an amount due to any company which you have to pay, in such case if you are not able to pay and there is a big loss in your company, So it cannot be compensated by selling any item of your house because your company is registered.
  • It is easy to attract customers:– It is not easy for any customer to believe in any company or the product manufactured by it, but the members present in the company make that product so attractive that to attract and trust the customers. It becomes very easy to get.
  • Easy to get investors for your company :   To run any company, it requires complete financial amount. In such a situation, no one person can raise enough amount nor can raise enough resources to run a company. In such a situation, the company needs some investors or it takes a loan from a bank to fulfill its needs, for which it is very important to register that company. If a company is not registered, then no investor invests his/her amount in such company. Before inviting an investor to invest in your company, you are required to get your company registered.
  • To sustain the business for a long time: Some people start their business on a small scale, at that time they do not register their business. In such a situation, no one can guess how long he will be able to run his business. If you want to run your business for a long time, and he keeps his future plans ready in advance, then it is necessary for him that you must register your company.

How to Register a Company

For any company to be legally registered, it is mandatory to follow a process which is as follows:-

  • A Korea Number is issued at the time of registration of the company under the Indian Companies Act, which is a unique identification code by the DIN ((DIRECTOR IDENTIFICATION NUMBER) Ministry of Corporate Affairs. A person who wishes to become the manager of the company. , it is his identity. To get this code, you have to go to the MCA portal and fill in the e-form dir-3. For which you also have to deposit an application fee of Rs.500.
  • In the second step, you have to get the Digital Signature Certificate DIGITAL SIGNATURE CERTIFICATE (DSC). If you want your company’s registration work to be completed quickly, then it is very important for you to get this certificate. After this, you are also required to fill a form while doing business registration, from this, all these facilities are provided by the government to every company authorized by the Government of India such as Tata Consultancy Services, National Informatics Center, MTNL Trustline, e-mudra. Huh. To register a company, you have to fill your application for registration of your company by visiting the office of DSC, a company that is authorized by the Government of India. If you fill the application by B.Sc, then all the expenses incurred at the time of application depend on the basis of the company. According to e-mudra, its price has been kept at only Rs 899.
  • In the third step of this process, in which name you have to register your company, first of all, you should check that name through the MCA portal, that the name you want to register is already in the name of any other company. But not registered. If the name you thought is not registered in the name of any company, then you can keep that name as the name of your company, after that you have to fill an inc-1 form. It simply means that the name you thought has been registered for your company cannot be used by any other person.
  • According to the Companies Act 2015, some main rules and laws have been implemented for a company. According to him, the Memorandum of Association and the Articles of Association are the two main business documents that each company must obtain at the time of registering the company. In general, in both these documents, full details of the guidelines and rules and regulations followed by a company are given. Which is mandatory as per the Companies Act 2015. Every company requires a lawyer or a chartered accountant to prepare some of the main types of documents. Both these documents have an important place for a company, so get them done only under the supervision of a trained person.
  • After all these procedures, you have to go to the MCA portal and submit another form, which is named Incorporation Form. Under this, if you want to register a One Person Company, then for that you have to fill and submit the E-Form 2 INC-2 properly. Apart from this, for other types of companies, you will have to fill e-Form INC-7.
  • During the process of the registration form, you are charged an amount which is stamp duty.
  • When the process of your registration is completed, you are given a document after payment of stamp duty along with a challan, you have to show it at the company registered office in the state in which you are going to set up your company.
  • After this whole process, when all your documents are completed and you fill the complete form, that all your documents are checked which takes about 2 days. Now you need to get an in-corporation certificate, for which you get an in-corporation certificate within a week on your registered email id. When you have received the Incorporation Certificate through your email id, then you must keep a photocopy of it with you, because you need that certificate in the future for all-important work.
  • If you want to open a current account in any bank in the name of your company, then you are also asked for a photocopy of the Memorandum of Association and Articles of Association.
  • When the registration process of the company is completed, then you must fill the online application for PAN card registration through NSDL online website so that you get a PAN card registered in the name of the company.

Other Required Documents for registering a company

  • To register a company, it is necessary to have a photocopy of the identity proof of all the managers present in a company as well as their address proof.
  • Along with other certificates, it is also mandatory to have a photocopy of the PAN card of all the managers at the time of registration of the company.
  • If you have bought your land for office, then its certificate, otherwise if you have taken any land for office on a mortgage or on rent, then photocopy of its certificate is also required at the time of registration.
  • If you have taken any land on rent, then it is mandatory for you to have no objection certificate obtained by its owner.
  • The person who wants to register the company, it is mandatory to present his own identity proof and also the certificate of his registered e-mail id there.
  • At the time of company registration, it is mandatory to submit a photocopy of the bank statement of the person owning the company and a photocopy of any other type of bill.

It does not take much time to establish any company in India, earlier it used to take more time to register it. But at present, this does not happen at all. Without registering any company, you cannot do successful business in it, so if you are laying the foundation of any company, then you must register it with it. After registration, you are ready to face the related problems in the future. A company is not run by a single person but with the cooperation of all the managers of the company. In order to run the same company in the long run, an important contribution is played by the consumers associated with that company.

FAQ

Q: What kind of company should I form?

Ans: A sufficient amount of capital is required to run any company and if you do not have the same, then you can get more profits by running a sole proprietorship company. If you want to give a big look to your business then you can start your business as a corporation.

Q: Where should a company be established?

Ans: The establishment of the company should be at such a place where you can easily get all the items according to the need of the company. At such a place, you will also have less trouble and you will also have to pay less charges.

Q: What should be the size of the business in the beginning?

Ans: Initially the size of the business should depend on your capital and your capability.

Q: What are the main business challenges while starting a business?

Ans: Lack of capital and cash flow, Choosing a good business plan, Good service and product, Working more than expected, Any criticism for your product, Finding good employees, Time management, Balance between work and life to make.

Q: Is it necessary for a company to require permit license and registration?

Ans: It is such a difficult task to organize a company, but getting its registration work is not a very difficult task. Registration of any company is useful to secure your future, so it is very important to register the company and get permits and licenses for it.

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