You must be acquainted with the many alternatives accessible as well as the benefits they bring in order to make such choices. You might want to know what is the procedure for forming a corporation in India.  In this blog, we'll go over all you need to know about forming a business in India, as well as why business owners should do so.

Types of business structures

The basic types of business structures in India accessible to business owners for company registration are as follows:

Private limited company - Registration with the MCA and the Registrar of Companies is required.

Limited liability partnership (LLP) - A new type of partnership that must be registered with the Registrar of LLPs.

One person company - A one-person business is comparable to a private limited company in that it just takes one person or shareholder to get started.

Partnership firm - A basic partnership firm must be established with the Registrar of Firms in India.

Sole proprietorship - The most basic business format, with no formal registration process and just one person required to get started.

Eligibility criteria for company registration

• There must be at least two stockholders and directors. Shareholders and directors, on the other hand, might be the same person.
• At least one of the directors must be an Indian resident, meaning that he or she must have spent at least 182 days in India in the previous year.
• Every company must have a registered office address from which to do business.
• To authorise online filings, the company's directors will require a digital signature certificate, as well as a director identification number.
• The business owners will be responsible for drafting the necessary legal papers, such as a shareholder's agreement, a memorandum of agreement, and a letter of agreement.

Documents required for company registration

• Identification and mailing address PAN card, Aadhaar card, voter ID, passport, driving licence – evidence of all directors and shareholders
• All directors have a unique identifying number.
• All directors' digital signature certificates
• Statement of bank account
• Proof of business location – rental agreement, property registration certificate
• NOC from the landlord for rented spaces
• Photograph of the filmmakers in passport size.

The procedure of company registration

Let's have a look at the steps involved in company registration.

Step 1

First and foremost, business owners must confirm that they match the eligibility requirements for forming a certain business organization. The best approach is to contact a company incorporation specialist, such as Online Legal India, for advice on what business structure to register as.

Step 2

Once the entrepreneurs are convinced they match the eligibility requirements, they may begin obtaining the necessary legal papers.

Step 3

Using the MCA's online portal, the founding members and directors must apply for a Digital Signature Certificate and a Director Identity Number.

Step 4

Furthermore, entrepreneurs must now submit an application to reserve a name for their business. They have the option of sending up to six preferences via an application form. The MCA will do a name search online and then assign a suitable name based on its availability.

Step 5

The business owners must next consult a lawyer to write the company's legal documents, which include a Memorandum of Association and articles of incorporation.

Step 6

The businessmen are now ready to file for incorporation with the RoC by submitting the INC-7, INC-22, and DIR-12 forms.

Step 7

After submitting an application, the entrepreneurs must pay the requisite stamp duty and processing charge to the RoC. The regional RoC office will then evaluate and verify all of the information before issuing the firm with a certificate of incorporation.

Why should you register your business online?

• Have your own legal identity and life
• Obtain permanent succession, which assures that the company's activities are not hampered by external occurrences
• Additionally, benefit from restricted liability, which helps shareholders and directors preserve their investments
• Provides companies with the option of purchasing or leasing their property
• Allows for the free transfer of ownership of a firm from one person to another

How Online Legal India Can Help?

As you can see, forming a corporation in India is a lengthy and difficult procedure. That is why, in order to complete the procedure as soon as possible, you must seek support and direction. Our team of professionals will also be able to assist you every step of the route, ensuring that you acquire your certificate of incorporation as soon as possible.

We also offer services to keep you compliant at all times and assist you in filing your taxes on time. So, what do you have to lose? As a result, join together with us at Online Legal India to successfully launch the business of your dreams in India.