4 Steps to Register your Startup in India

 StartupFreak

Registering your company is what will finally give your startup a legal existence. Before registering it can

be a sole proprietorship or a partnership but once you take the decision to register, your company takes a
life of its own and can be closed only by legal intervention. Registering a Company is a long and

tedious procedure though, which will be quite heavy on both your pocket and on your time, if you want to

do it all yourself. But none the less becoming an owner of a registered company brings its own advantages
and very less disadvantages to you.

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You may be very excited about your business plan and invest all that you have and take some more from

friend and family and try to crystallize your Idea. But imagine a case if some unusual stuff happens, any

accident, anybody sued your company or a financial loss happens, not only you, but your family also will
be in a very bad situation. There are many other reasons, but to protect yourself and your family this is

the most important one.

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Do you sell a Product/Service, imagine a case your Product /Service caused any harm to anybody, or your
customer or you partner caused a harm which you are not responsible but will be held responsible for.
Your company goes bankrupt in lawsuits and due payments. Its always better to safe gaurd your company
by registering it.

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If you grow above your friends and family support, you may need private equity or a venture capitalist,

who will make sure that they give money only to the registered companies most of the times. All investors
will look at protection of an incorporation and an exit strategy.

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Existence of the company continues, no matter which director or member comes and goes. The company
is closed only when by complying with the provisions of Law. Also when you want to transfer the entire

shareholding to another person, it’s actually a very easy process and the easy change in management and
ownership which will save the time and money (stamp duty) of promoters.

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Minimum two directors and two shareholders are required.

Shareholders/directors cannot transfer their shares as per the articles of association.

Maximum number of shareholders is limited to fifty.

General public cannot buy shares or debentures of a private limited company

 Deposits is allowed only from the members and directors
(or their relatives is allowed)

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If you can take out some time from building your business and want

to save some money by getting the Company registration done

yourself, then i will show you in very simple steps on how to go about

it.

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Detailed process on incorporating the company using INC29 by Vakilsearch. 

Now a days we like to get everything done on internet, good news is that you can do 70% of the

registration work on internet itself and some offline work is also involved. There are two important
government website which makes your life a bit easier in getting some things done from comfort of your

home. So lets list the thing which can be done online first.
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 For More detailed explanation on how to apply for the same read this article – APPLY for DIN in 4 easy

steps

Website : http://www.mca.gov.in/MCA21/index.html

Amount : For DIN –   100 and for DSC –  400- 2650 (more details
–http://www.mca.gov.in/MCA21/certifying-new.html)

Time : For DIN 1 Day and for DSC 4 Days

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You have to file basically 4 types of forms to get these two work done. first apply for company name on

FORM 1A and wait for the company name approval from ROC(Registrar of Company) and then apply for

certificate of Incorporation by filing FORM 1, FORM 18 and FORM 32.

Website : http://www.mca.gov.in/MCA21/RegisterNewComp.html

Amount : For name Approval   500, For Certificate   4000- 10000

Time : For name Approval 2 days and for Certificate 7 days

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Scanned copies of the following has to be attached with the FORM 1 to get the Certificate of Incorporation

mentioned above.
 Copy of Form 32 along with consent letters of Directors of the Company

Signed and stamped copies of the Memorandum of Association(MoA) (  200)

Signed and stamped copies of the Articles of Association(AoA) (  1000- 4000)

Power of Attorney from subscribers on judicial stamp paper of      100

Identification of subscribers

must be attached to Form 1 mentioned above.

Memorandum of Association(MoA) – This documents should contain how much capital you want to raise
by issuing shares and what for that capital will be used for present and future purposes.

Articles of Association(AoA) – This defines the internal clauses and functioning of the company.
Once these to are prepared they are sent for verification to the registrar and then they are stamped(stamp

duty varies) and signed and sent to the concerened registrar office.

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For More detailed explanation on how to apply for the same read this article – APPLY for TAN in 4 easy

steps

Website : https://www.tin-nsdl.com/

Amount : For PAN –   94 and for TAN –   62

Time: 7 days
This whole process may take 30-40 days, there are other formalities to be completed like getting a rubber
stamp for your company, register for VAT and professional Tax, Employees provident fund and medical

insurance etc. But unlike Public Limited Company you can start your operations once you get the

Certificate of Registration and finish rest of the work simultaneously.

Hope i have made the process more simple and understandable, incase you have more doubts you can

ask in the comments and we will try to solve it for you in a freakingly simple way!

Image 1 

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1. Trademark-Registration-in-india-simplified

2. How-to-register-llp-in-india

3. Understand-corporate-structure

(77) (7) (7)

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