How to Incorporate a Company in India the Right Way

What's the Difference Between a Company and a Business?

The Indian government is taking pride in continuously improving the business setting in order to attract more and more investors, both foreign and local. In fact, the administration is considering its favorable business climate a major achievement.

According to the latest World Bank 2020 report, the country’s ranking stood at 63rd position in terms of ease of doing business, which is a major improvement from 134th rank in 2014. This made India one of the 10 countries that registered the most notable improvement in the recent performance.

To arrive at this point, the government has been implementing initiatives seen enhancing the ease of doing business. These include starting and closing a business and tax payments.

These are the kinds of developments that investors are always on the lookout for, prompting them to study how to incorporate a company in India.

Steps on How to Incorporate a Company in India

If you still have no idea on how to incorporate a company in India, here is a detailed procedure. Remember that the earlier steps involve registration of the company itself.

Accomplishing digital signature certificate. Applying for a digital signature certificate of the company directors is the first step to be completed. It is an electronic signature that allows you to complete the online company registration process more quickly. You have to wait for two days to secure your digital signature certificate after submitting your application.

According to the Information Technology Act of 2000, the digital signature should be attached in every document to be submitted in electronic form to ensure authenticity and security.

Securing director identification number. The directors are required to obtain director identification number, in accordance with the amendment act of 2006. In accomplishing this, you must file a director identification number electronic form supplied by the Ministry of Corporate Affairs.

The directors, upon receipt of the official director identification number, should inform the company. Should a director need to change some information like personal address and contact details, among others, he or she can do so with proper documentation.

Filing the registration via digital platform. You can submit your electronic form filing through the online portal of the Ministry of Corporate Affairs. You can also settle the fee via the platform.

Incorporating your company. Finally, the moment has come to discuss incorporation. The last part of the online company registration is the incorporation of the company name, not for appointment of managers, secretary, and directors. This, as the company register the official place of work.

Here are the documents needed:

  • Digital signature certificate
  • Form-1 for incorporation of company
  • Form-32 for managers, secretary, and directors
  • Director identification number of the directors
  • Original copy narrating the company name availability
  • Form-18 for the address of the company

Choosing the Name for Your Company

Naming a company might come easy for some, but others are finding it challenging because there are many things to consider. You have to make sure that you are not making a rush decision when naming your company because you might regret it later. Here are some of the things you need to remember when naming your company:

  • Select a name that is catchy and easy to remember so you can build your brand more easily. It is wise to avoid complex words.
  • The chosen name should embody the nature of business of your company so there can be an easy recall.
  • Do not choose names that are somehow similar to other existing brands. You might get sued for doing so.
  • Check if your selected name is still available.

Does your company need professional help? Contact 3E Accounting India today. We are an India business service provider and our team is willing to help you in your every need.