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Today, thriving India is one among the most suitable, profitable, and preferred destinations in the whole world for business establishment in diverse economic sectors. Therefore, ours globally admired full-service law firm of India, is offering highly beneficial and precious information about how to register a company in india, and other tasks for establishment of the business of the company, in any targeted part of the country, by Indian and foreign people and entities. The Ministry of Corporate Affairs (MCA), the Government of India, is the supreme governmental body for registration and regulation of all sorts of companies in entire India. And, pivotal and the most magnificent company law in India is the Companies Act of 1956. For supervising, registering, and regulating companies and all business activities of these, a Registrar of Companies (ROC) who works under MCA, is properly appointed in every major State of India under the Section 609 of this supreme company law of India.
Selection of the Type of a CompanyWise selection of the most appropriate form of a company is the very first step for starting a business or profession in any desired field of occupation and economy. Today, the most prominent, popular, and highly preferred categories of companies in all across India are – the sole proprietorships, private limited companies, limited liability partnerships, public limited companies, and the unlimited companies. The first three forms of companies are undoubtedly the most famous in India and abroad. Here, we are exclusively offering detailed information about the formation and registration of the private and public limited companies in India, for doing business in any fields of the broad sectors of business and commerce, professions, industries, and services. The registration process of an unlimited company is almost the same as that of the limited companies.
A private limited company is run and managed privately, and is not authorized by the law to offer its shares to the public investors, or trade on the stock exchanges, and therefore, lesser disclosure is to be made by a private limited company. On the other hand, a public limited company is fully authorized to sale its stocks to public investors and trade on the stock exchanges, and are therefore required to make more disclosure to public (as compared to the private limited companies), as per the rules and regulations given in the SEBI Act of 1992.
Requirements for Formation of CompaniesTo form a private limited company, needed are at least two members or partners, and two directors. And, the minimum paid-up capital required is INR-1 Lakh, at the time of incorporation of the company. On the other hand, to form a public limited company, required is seven shareholders at the minimum, and three directors; the minimum paid-up capital is INR-5Lakhs at the time of company incorporation. The maximum number of members allowed to a private limited company is 50; there being no upper limited to the maximum number of shareholders to a public limited company in India.
Checking the Availability of any of the Proposed NamesBefore filing the application for company registration, availability of and approval to any one of the proposed company names is ensured. For this purpose, the Form-1A is utilized, and sent to the ROC of the State, where the company is planned to be located. At least four and a maximum of six proposed names are permitted, in order of preference/priority. The availability or non-availability of any of the selected names is declared generally in a week. After ensuring the availability of any name, the concerned applicant is given a maximum of six months time, for filing application of company registration, along with MOA and AOA, and other documents and information. For a private limited company, the proposed names must end with the wording 'Private Ltd.', and this wording for a public limited company is 'Limited'.
Making of DINs and DSCsThe Director Identification Number (DIN) which was introduced for the first time in the Indian Companies (Amendment) Act of 2006 (inserted in Sections 266A to 266G), is recommended for all Directors of a company, while at least one Director must have a DSC (Digital Signature Certificate). The Information technology Act of 2000, recommends the use of Digital Signature for authentic and secure online or electronic filing or submission of forms, on behalf of the concerned company. These DINs and DSCs are registered and authenticated by the Ministry of Corporate Affairs (MCA), the Government of India, through its web portal (www.mca.gov.in/-).
For Acquiring a DIN, a person has to make an application through the Form DIN-1. The following information and documents are required for DIN:
The digital signature certificate can be acquired from any Licensed Certifying Authority (CA), as per the Section 24 of the Indian Information Technology Act, 2000. The extensive list of all licensed certifying Authorities, together with their individual contact address is obtainable from the portal www.mca.gov.in/-. After obtaining the DSC, a signatory is required to register his/her digital signature with MCA. For these purposes, demanded are a completed DSC Application Form, and above-mentioned documents.
The procedures for registration of both the private limited companies and the public limited companies are also the same. For this purpose, the following forms are to be completed and submitted the ROC of the concerned State of India:
After examination of all above-listed forms, the Registrar of Companies of the concerned State issues a digitally signed certificate of company incorporation to the directors of the company. After approval of the proposed company name, about one month is taken by all processes of company registration. Again, after getting the certificate of company incorporation, a public company also needs to acquire the certificate of commencement of business, before starting its business operations and activities.
Obtaining PAN and TANThe Permanent Account Number (PAN) is essential for making payment of tax in accordance with the Indian Income Tax Act of 1961. Whereas, the Tax Account Number (TAN) is recommended when a company is required to deduct or collect taxes at source, as per the Section 203A of the Indian Income Tax Act, 1961. All companies and firms which are required to make financial transactions in forms of salaries to employees, consultancy fees, contractual payments, taxable project fiances, and so on, essentially need TAN registration. Thus, for issuing TCS/TDS certificates, filing TDS/TCS returns, and making TCS/TDS payment Challan by a company, this TAN is indispensable. The Income Tax Department of India has now recommended quarterly submission of TDS and TCS Statements by the concerned business or professional entities.
These PAN and TAN registrations are well-facilitated and responsibly regulated by the National Securities Depository Limited (NSDL) of India. The Application Forms for PAN and TAN registrations are Form-49A and Form-49B, respectively; which are to be submitted to any TIN Facilitation Centers.
Enrolment Under the Concerned Shops and Establishments ActProper and prompt enrolment under the Shops ad Establishments Act of the concerned State, is very securing and beneficial. A company or its business is made protected by the local government and thus become quite reputed. For this purpose, contact is to be made with the Office of Inspector appointed under this Shops Act of the State, along with all necessary details about the company, its businesses, its location, and other pertinent things. Employment of workforce, governmental protection, and benefits of governmental policies are well-facilitated by registration under this Shops Act.
VAT RegistrationThe VAT (Value Added Tax) Registration is essential for making commercial transactions by a company. After VAT registration with the concerned State Commercial Tax Office, a unique identification number is called the TIN (the Tax Payer's Identification Number), granted to the applicant company to facilitate proper and prompt VAT collection. The following application form and the documents are to be submitted along with the prescribed VAT registration fee: