How to Register a Company in Aurangabad?

Aurangabad, a key industrial hub in Maharashtra, is home to thriving MSMEs, startups, and large-scale industries. Registering a company ensures legal recognition, builds brand trust, and unlocks funding opportunities. Governed by the Companies Act, 2013, the registration process is streamlined through the Ministry of Corporate Affairs (MCA), to formalize your business journey. In this guide, you will learn how to register a company in Aurangabad with step by step process.

What is a Company Registration or Incorporation?

Company registration or incorporation is the official process of setting up a business as a legal company under the Companies Act, 2013. In India, this process is governed by the Ministry of Corporate Affairs (MCA). It gives businesses legal recognition, which helps to operate, raise funds, and build trust. Once incorporated, a company becomes a separate entity and distinct from its owners. It is useful for entering contracts, owning assets, suing, or being sued in its own name.

Types of Business Registration in Aurangabad

In Aurangabad, Maharashtra, entrepreneurs can choose from various business registration types. Each is tailored to specific needs and regulatory frameworks.

Here are the types of Business Registration in Aurangabad:

1. Sole Proprietorship

A sole proprietorship is a simple type of business run by one person. The owner and the business are seen as the same in the eyes of the law. This means the owner is personally responsible for everything the business does like profits, losses, and even debts. It is an easy way to start small and work independently. It implies unlimited personal liability for business debts. This structure is straightforward to establish, with minimal regulatory compliance. In Maharashtra, obtaining a Gumastha license (also known as a Shop and Establishment Act license) is mandatory for proprietorships to operate legally. 

2. Partnership Firm

This structure involves two or more individuals who agree to share the profits and losses of a business. While registration of a partnership firm is not compulsory in Maharashtra, it is advisable for legal enforceability of the partnership deed. The partners have unlimited liability which means personal assets can be used to settle business debts. 

3. Limited Liability Partnership (LLP)

An LLP combines features of partnerships and companies. This offers limited liability to its partners while allowing them to manage the business directly. It requires registration with the Ministry of Corporate Affairs (MCA) and is governed by the Limited Liability Partnership Act, 2008.

4. One Person Company (OPC)

A One Person Company (OPC) is designed for solo entrepreneurs who want to run a company on their own. It gives them the advantages of a private company such as limited liability and a separate legal identity. OPCs must be registered with the Ministry of Corporate Affairs (MCA) under the Companies Act, 2013.

5. Private Limited Company

A private limited company is a popular business structure where the company is legally separate from its owners. This means the personal assets of shareholders are protected from business debts. It needs at least two directors and shareholders and can have up to 200 members. This helps to raise funds through shares and must be registered with the Ministry of Corporate Affairs (MCA).

6. Public Limited Company

A Public Limited Company is ideal for larger businesses that want to raise money from the public by selling shares. This company can have unlimited shareholders that allow anyone from the public to invest freely. It needs at least three directors and seven shareholders. This type of company must follow strict rules and be registered with the Ministry of Corporate Affairs (MCA).

7. Section 8 Company

A Section 8 Company is a type of non-profit organization registered under Section 8 of the Companies Act, 2013 in India. It is established to promote charitable activities such as education, arts, science, sports, environment, social welfare, or other public benefits. Unlike regular companies, a Section 8 Company does not distribute profits to its members; instead, it reinvests earnings to further its objectives.

Documents Required for Company Registration in Aurangabad

Registering a company in Aurangabad, Maharashtra involves the submission of specific documents to comply with legal requirements.

Here is a list of the documents required for company registration in Aurangabad:

1. Directors and Shareholders:

• PAN Card: A copy of the Permanent Account Number (PAN) card for each director and shareholder.

• Identity Proof: Any one of the following for each director and shareholder, includes an Aadhaar card, Voter ID, Driving License, Passport (for foreign nationals), etc.

• Address Proof: Any one of the following, not older than two months, for each director and shareholder. It includes a Bank statement, utility bill (electricity, water, gas, or internet), mobile bill, etc.
• Photographs: Recent passport-sized photographs of all directors and shareholders.

2. Registered Office:

• Proof of Address: Any one of the following for the company's registered office, including Utility bill (electricity, water, gas, or internet), Property tax receipt, Sale deed or property registration document (if owned), etc.
•  Rental Agreement and No Objection Certificate (NOC): If the office space is rented, provide a rental agreement along with an NOC from the property owner.

 3. Additional Documents:

• Director Identification Number (DIN): For all directors. 
• Digital Signature Certificate (DSC): For all directors.
• Memorandum of Association (MoA) and Articles of Association (AoA): These documents outline the company's objectives and rules.

How to Register a Company in Aurangabad?

To register a company in Aurangabad, Maharashtra, you need to follow certain steps set by the Ministry of Corporate Affairs (MCA) and the state government.

Here is the step-by-step process to register a company in Aurangabad:

To register a company in Aurangabad, Maharashtra, you'll need to prepare the following documents:

Step 1: Obtain a Digital Signature Certificate (DSC)

To register a company, all proposed directors need a Digital Signature Certificate (DSC). It is used to sign documents online and is issued by authorized agencies after verifying identity and address proofs.

Step 2: Obtain a Director Identification Number (DIN)

Each director must get a unique Director Identification Number (DIN). They can apply for it online on the MCA portal by filling out Form DIR-3 and submitting identity and address proofs.

Step 3: Name Reservation

As a director, you must propose one or more company names through the RUN (Reserve Unique Name) service on the MCA portal. Ensure the names comply with the Companies (Incorporation) Rules, 2014, to avoid rejection. 

Step 4: Drafting Incorporation Documents

You need to draft the Memorandum of Association (MoA) and Articles of Association (AoA), which outline your company’s goals and rules. These documents must be stamped according to the Maharashtra Stamp Act before submission.

Step 5: Filing for Incorporation

To officially register your company, you must fill out and submit the SPICe+ (INC-32) form on the MCA portal. Next, you need to attach the MoA, AoA, and other required documents. This single form helps with incorporation and related services.

Step 6: Payment of Fees

You must pay the required registration fees based on the company's authorized capital.

Step 7: Certificate of Incorporation

Once successfully verified, the Registrar of Companies (ROC) issues a Certificate of Incorporation. This confirms your company’s legal status and includes a unique Corporate Identity Number (CIN) for identification.

Step 8: Post-Incorporation Compliance

It includes:

• Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN): You must apply for PAN and TAN online through the NSDL website.
• Goods and Services Tax (GST) Registration: If applicable, you need to register it through the GST portal.
• Professional Tax Registration: You should register it with the Maharashtra State Tax Department.
• Shops and Establishments Registration: Register under the Maharashtra Shops and Establishments Act through the local municipal corporation. 

Step 9: Additional Registrations

Based on your business type and employee strength, you may need to register with the Employees' Provident Fund Organization (EPFO) and the Employees' State Insurance Corporation (ESIC). These help provide social security benefits like provident funds and health insurance to employees.

Step 10: Open a Bank Account

To start business transactions, open a current bank account using your company’s Certificate of Incorporation, PAN, and other required documents in the company’s name.

Benefits of Company Registration in Aurangabad

There are various benefits of company registration in Aurangabad. Some are mentioned below:

• Separate Legal Entity

Upon registration, a company becomes a distinct legal entity, separate from its owners and shareholders. This status allows the company to own assets, incur liabilities, and enter into contracts independently. Consequently, the company can sue or be sued in its own name. It provides a clear distinction between personal and business affairs. 

• Limited Liability Protection

Shareholders benefit from limited liability, meaning their personal assets are safeguarded against the company's debts and obligations. Their financial responsibility is confined to the amount they have invested in the company. This ensures that personal wealth is not at risk due to business liabilities. 

• Enhanced Credibility and Trust

A registered company often enjoys greater credibility with customers, suppliers, and potential investors. The formal recognition and compliance associated with registration signal a commitment to legal and ethical business practices. It fosters trust and confidence among stakeholders.

• Access to Funding Opportunities

Registered companies have improved access to various funding sources, including bank loans, venture capital, and government grants. The formal structure and legal recognition help to attract investors and secure financial support for business expansion and development. 

• Perpetual Succession

The company's existence is not affected by changes in ownership or management. It continues to operate regardless of the status of its shareholders or directors. It ensures business continuity and stability over time.

• Tax Benefits

Registered companies may be eligible for various tax advantages and incentives offered by the government, which can lead to significant savings and improved profitability.

• Brand Building and Market Presence

Operating as a registered entity enhances your brand image and market presence. It demonstrates professionalism and commitment. It can be crucial in attracting and retaining customers in a competitive market.

Conclusion

Registering a company in Aurangabad offers a strategic edge through legal recognition, limited liability, tax benefits, and enhanced credibility. It facilitates access to funding and ensures business continuity. With its growing industrial ecosystem, Aurangabad is an ideal location for entrepreneurs seeking long-term growth and a stable business foundation. Throughout this article, you have learned about how to register a company in Aurangabad. If you have any queries regarding the process, contact Online Legal India to get assistance.