You can find a multitude of benefits from register a company, including the generation of capital, the transfer of shares, and the obtaining of tax benefits, and so forth.
It might seem like a complicated task to register your company all by yourself, but it is rather simple if you follow these 6 simple steps. To get started, all you need is a little information about your company and the mandatory documents.
Step 1: Obtain DSC
It is important that you obtain a Digital Signature Certificate (DSC) as the registration process will take place online. Depending on the type of company that you are registering with, you will need to obtain a class 2 or a class 3 Digital Signature Certificate. The purpose of the DSC is to ensure that all of your documents are authentic and secure in electronic form. For getting a Digital Signature Certificate, one has to approach one of the Licensed Certifying Authorities.
Step 2: Request a DIN
In accordance with section 153 of the Companies Act, a Director Identification Number (DIN) is a unique eight-digit number assigned to each director of a company. Accordins with the Companies Amendment Act 2006, every director of a company must obtain a DIN. If you apply for DIN online, you will receive your DIN within a month if your application is approved by the Central Government.
Step 3: Register for the MCA Portal
It must be noted that the directors of the company have to register a user account on the MCA portal. Once they have registered on the portal, they will be able to access the SPICe+ form and register the company there.
Step 4: Request for availability of a name
In order to be able to operate, you need to choose a unique name for your company. This name must be descriptive of the products or services you provide. You must follow the guidelines provided by MCA when naming a company, if you fail to do so, your application might be rejected. It is possible to check the availability of a company name if you already have one in mind with Vakilsearch’s company name search service.
Step 5: Charter documents must be submitted
There are two documents that are required for the registration of a company: the Memorandum of Association (MoA) and the Articles of Association (AoA).
In some ways, the Memorandum of Association is the constitution of the organization. It describes the underlying structure, its purpose, and objectives of the business organization. The Memorandum of Association also explains how the company will interact with external parties.
There are a lot of rules and regulations to be followed in order to run the company successfully and efficiently, such as how to deal with the finances and appointing directors. The terms of the Agreement are like the ‘user manual’ of the company.
Step 6: Obtain your PAN and TAN
You need a Permanent Account Number (PAN) before you can perform any important transactions, and you can obtain this number online through the website of the National Savings Deposit Limited (NSDL) or through an authorized agent.
In order to file your TDS returns, you must have the Tax Deduction Number (TAN), which is a 10-digit alphanumeric number that is assigned to those persons who collect or deduct tax. If you do not have the TAN card, you will be liable to pay a fine of 10000 rupees. You can apply for your TAN by visiting the NSDL website.