How to Register a Company?

Author : CA Naveen Kumar | Published On : 20 Mar 2023

Registering a company in India can be a complicated process. Certainly, there are several legal requirements that must be fulfilled. For sure, a layman does not know about all of them. Nor does he/she know how to fulfill these requirements.  The process can be quite daunting and time-consuming because it involves a lot of paperwork. This is where business compliance consultants come in. They can help you defeat the complexities involved in the registration process. With their support, your company can easily be in compliance with all applicable laws and regulations.

Steps to Register a Company

The process of registering a company generally involves the following steps:

  • Choose a Unique Name for Your Company

The first step in registering a company is to find out a unique name for your business. The name must not already be registered with the Registrar of Companies (ROC). If you are in India, you can check the availability of your selected name by searching the ROC's online database.

  • Obtain a Digital Signature Certificate (DSC)

A digital signature is an electronic version of a signature. In this case, the DSC is required for all directors of the company. This certificate is used to sign electronic documents and filings with government agencies.

  • Have a Director Identification Number (DIN)

Like a DSC, each director of the company must have a DIN. It refers to a unique identification number that defines all directors of companies in any country within the prescribed time period as notified.

  • File for Incorporation

Once you have both DSC and DIN, your next step to register a company is to file for incorporation with the Registrar of Companies (ROC). For it, you will need to submit several documents. These can be your company's Memorandum of Association (MOA) and Articles of Association (AOA).

  • Apply for a Permanent Account Number (PAN)

A PAN is required for all companies operating in India. This number is used for tax purposes. The Income Tax Department of India monitors every financial transaction through it.

  • Request for a Tax Account Number (TAN)

Procuring a TAN becomes necessary if you plan to hire employees for your company. This number is used to deduct taxes from employee salaries.

  • Register for Goods and Services Tax (GST)

However, getting it is necessary for all who deal in services and products. If your company's turnover is above a certain threshold, you will need to register for GST. It's a kind of tax, which is levied on the sale of goods and services.

  • Register for Professional Tax

Professional tax is a state-level tax. It is imposed on all businesses and professionals operating in certain states in India. You will need to register for professional tax, which is deducted from the gross salary of employees by an employer.

As said at the beginning of the post, a business compliance consultant can help you with each of these steps. He/she ensures that your company complies with all applicable laws and regulations. As an owner, you should also be aware of these laws or regulations. The next section is for you to understand the main ways to comply with the Companies Law. However, the business compliance consultant should be there to support you. 

How a Business Compliance Consultant Help in Company Registration

Here are some of the ways that a consultant can help:

  • Choosing the Right Legal Structure

A business compliance consultant can guide you in choosing the right fit legal structure for your company. However, this will depend on a variety of factors, which can be the size of your business, the industry you are in, and your long-term goals.

  • Drafting Legal Documents

These professionals can help you draft legal documents such as your MOA and AOA. These documents are critical to the registration process, and it's crucial to draft them professionally and correctly.

  • Filing Paperwork

These compliance experts can show you ideal ways to file the necessary papers for registration with the Registrar of Companies (ROC) and other government agencies. You should have these documents.

  1. Documents Required
  2. Registered office proof
  3. GST registration certificate
  4. Articles of Association (AOA)
  5. Digital Signature Certificate (DSC)
  6. Proof of payment of registration fees
  7. Director Identification Number (DIN)
  8. Memorandum of Association (MOA)
  9. Address proof of directors and shareholders
  10. Identity proof of directors and shareholders

Certainly, it's not a cakewalk and you may have to wait for weeks. But, there is a way to eliminate long duration, which is to consider hiring a provider of business compliance services. This step can help streamline the process and ensure that everything is filed correctly.

  • Ensuring Compliance

The compliance specialists help you understand that your company follows all compliance, applicable laws, and regulations. It covers a range of regulations, including tax compliance, labor compliance, and compliance with environmental and other regulations.

  • Managing Ongoing Compliance

These experts are able to manage ongoing compliance with all applicable laws and regulations. This can include filing annual reports and maintaining corporate records. Also, they ensure that all licenses and permits are up-to-date.