India is one of the most rapidly growing countries for entrepreneurship and business innovation. Therefore, it presents a very attractive destination for future entrepreneurs. But to establish a company in India, each entrepreneur needs to meet some legal obligations. Familiarity with such obligations will definitely ensure smooth take-off and compliance with the laws of India. This article describes the most significant processes and legal procedures for company registration in India- including the necessary steps and licenses.
Selecting the proper business structure
You should first determine which business structure you prefer the most to fit your needs. In India, there are several kinds of business entities that are popular:
- Private Limited Company
- Public Limited Company
- Limited Liability Partnership (LLP)
- One Person Company (OPC)
- Sole Proprietorship
Every structure has differences in legal requirements, tax implications, and liabilities protected. A Private Limited Company or LLP is the most common choice of the majority for most growing businesses.
Steps to Register Company in India
The following are the steps involved in registering a company.
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Obtain a Digital Signature Certificate (DSC)
DSC is a digital signature that is necessary, for the purpose of submitting e-documents to the MCA. Directors and authorized signatories must obtain a DSC from accredited agencies.
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Get a Director Identification Number (DIN)
DIN is a unique identification number. All directors of the proposed company are mandated to have this number which could be done either online submission of application on the MCA portal.
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Naming Reservation
Registering a company name would ensure legal protection, prevent other businesses from being similar, and will be helpful in establishing the company’s brand identity. You can register your company name through “RUN (Reserve Unique Name)” service offered by the MCA portal. The name of the company should be unique as per the naming guidelines issued by the MCA.
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Filing the Incorporation Papers
Submit the incorporation documents with Memorandum of Association and Articles of Association and SPICe+ form(Simplified Proforma for Incorporating Company electronically Plus).
The Registrar of Companies (RoC) would then issue the Certificate of Incorporation(COI) once approved. It will assure the legal existence of your company.
Additional Licenses You Might Need
Depending on your business activities, you may need extra licenses to operate legally.
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Trademark filing
Whether you are running a business in Chennai or across India, protecting your brand identity is crucial. Trademark registration in Chennai would ensure that a business name, logo, or even phrase be safe from infringement. The Trademark Registration Process can be accomplished through filing an application with the Controller General of Patents. You need to submit logo Designs, Trademarks with the form, and these applications can usually be completed on the internet.
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Registration under Import Export Code
If your business is importing and exporting to other foreign countries, then you must obviously do the Import Export Code Registration with the Directorate General of Foreign Trade. The code is unique to your business and requires processing time of around 5-7 working days.
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MSME Registration
For small and medium-sized enterprises, an MSME Registration is beneficial. This registration opens up government schemes, subsidies, and better loan opportunities. It also categorizes a business according to its scale and investment and helps businesses availing specific benefits from the government. You can get help with MSME registration in Chennai to make the process easier.
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Apply FSSAI License Online
If you are in the food production, handling, or distribution businesses then getting a license from the Food Safety and Standards Authority of India (FSSAI) is mandatory. The Fssai license apply online process involves filling out the relevant application form, submitting the required documents, and paying the prescribed fee.
Post-Registration To-Do List
Once your company is operational, there are continuous compliance obligations necessary to maintain your business’s good standing. Here’s a checklist to help:
File Annual Returns: Every year, file the financial statements and annual returns with the MCA.
Make Tax Payments in Time: File income tax and GST returns periodically to avoid penalty.
Hold Board Meetings: Hold and record regular board meetings as required by law.
Maintain Proper Record Keeping: Maintain statutory registers and other documents.
Audit Your Accounts: Review your financial statements often with the auditor.
It may seem burdensome, but this ensures that your company remains compliant and avoids any legal issues.
Conclusion
Registration and compliance can be very overwhelming. But relax, we have a solution for it. At Chennai Accounts, we can help you to get registered along with tax filing and other financial services. So you need not bother with the process as we can handle everything for you.
Our team makes sure all the paper works are completed in the given time frame accurately. Our professional guidance takes care of this whole process smoothly from the stage of registration to compliance. Let us reduce your stress for the setup of your business, so you can focus on what truly matters to grow your business.
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