The Indian Entertainment Industry, which is a critical and extremely major component of the country's overall Media & Entertainment (M&E) Industry, is undeniably hugely profitable, owing to its predicted enormous growth possibilities and returns in the near future. More information about this industry may be found in the section below. This page is about our services for registering an entertainment company in India and establishing its business/service.

Entertainment Company Registration

A Limited Liability Partnership, a Private Limited Company, or a public limited company would be the most appropriate kind of firm for secure and progressive participation in India's entertainment sector (mostly films and television). These Indian entertainment firms may be involved in film production, distribution of films, establishing any television station, creating television shows and soaps, and various other operations related to the film and television industries.

Scope of Work in the Entertainment Industry

The entertainment industry is a significant component of any country's larger Media and Entertainment (M&E) industry. The following are the most important broad segments of the M&E industry:

• Films,
• Television,
• As well as Print Media

Other minor areas include radio, advertising (television, internet, out-of-home, and others), music, animation, gaming, visual effects (VFX), and so on.

India's Media and Entertainment (M&E) Industry has been one of the country's most important and fastest-expanding industries, rising at a CAGR of more than 18.5% between 2011 and 2017. The size of the Indian M&E market is guessed to increase at a CAGR of over 14%, reaching around US$38 billion by 2021, up from roughly US$23 billion in 2017.

Entertainment Industry’s Expected Rate in Future

In terms of the Entertainment Industry in India, it has made significant leaps in the previous two decades. It is currently predicted to reach roughly US$62 billion by 2025, with an average growth rate above 12%. Because films are the most important form of entertainment in India, the Indian Film Industry has been steadily increasing and advancing. It now ranks among the highest in the world in concern of films produced (over 1000) per year in several regional languages. 

The Indian film industry, overseen and promoted by the Film Federation of India, is expected to develop at a pace of roughly 10.5% between 2016 and 2021, compared to the global average of around 4.5%. Bollywood accounts for more than 45% of India's total film income. On the other side, India is currently the world's second-largest television market and one of the world's largest DTH markets.

The revenue share of India's television sector was predicted to increase from roughly 44% in 2016 to over 48% by 2021. Therefore, the expected CAGR of India's television sector throughout this time (2016-2021) is about 15%.

The Government of India has been supporting the rapid and consistent expansion of India's media and entertainment industries with frequent initiatives and fillips from time to time. These boosting initiatives include expanding the FDI limit in the Cable and DTH satellite platforms from 74% to 100%; digitising and organising the Cable Distribution sector; and awarding India's film industry industrial status, strengthening its access to institutional finance.

Documents Required for Entertainment Company Registration

The documents that are required to be presented for registering an Entertainment Company in India are as follows:

• Directors' passport photographs
• Directors' PAN Card Copies
• Directors' Aadhaar Card/Voter Identification Card
• Electricity and water bills (Business Place)
• A copy of the property paperwork (If owned property)
• Rent agreement copy (If rented property)

Different Types of Business Structures in India

The different types of business structures in India are

Limited Liability Partnership

Limited Liability Partnership registration is ideal for service organisations requiring less capital to start. A Limited Liability Partnership company requires a minimum number of partners to form an LLP. Compared to Private Limited Company Registration, the essential compliances linked with MCA, GST, and Income Tax are substantially fewer with this Company creation. Raising contributions is a little more difficult compared to a private limited company. Employees of LLP companies are not eligible for ESOPs.

Private Limited Company

Private Limited Company Registration is suitable for businesses looking for high yearly sales and marketers looking for outside finance. A private limited company requires a small number of people to form a business. Compared to other types of formations, the obligatory compliances linked with MCA, GST, and Income tax are excessive with this Company formation. A Private Limited Company provides a quick and clean mechanism for raising finance within the agency. Employees of a private limited company may be granted an ESOP.

One-Person Company

One-Person Company Registration is beneficial for the commercial owner business who is looking for a criminal shape of the company and wants to limit their legal liability while still having complete control over the agency. Under this Private Limited Company, a minimum of one individual is required to form an agency, and one nominee is required to form a company. Compared to other types of formations, the mandatory compliances linked with MCA, GST, and Income tax may be substantially lower with this Company formation. This Private Limited Company provides a solid foundation for raising cash within the organisation. Employees of Private Limited Companies are not eligible for ESOPs.

Public Limited Company

A public limited company is suitable for businesses looking for high yearly sales and marketers looking for funding from people and the general public. A minimum of 5 persons are required to form a Private Limited Company. Compared to other types of formations, the mandatory compliances linked with MCA, GST, and Income tax may be quite high with this Company formation. The Public Limited Company provides a straightforward and clear mechanism for raising cash within the agency. Employees of a Public Limited Company may be granted an ESOP.

How to Register an Entertainment Company in India?

If one wishes to start his/her entertainment company in India, then some steps are required to be fulfilled. The steps are listed below:

Obtain Digital Signature Certificate

To file the paperwork on the MCA site, digital signatures are necessary. All prospective directors and subscribers to the Memorandum of Association (MoA) and Articles of Association must have DSC (AoA). DSC is available via government-approved certification agencies.

Name Approval Application

In addition, the corporation must reserve its name by submitting two proposed names in Part-A of the SPICe+ form. The reservation of the name is required since the SPICe+ form will be refused if the business name is identical to the name of an existing/registered company, LLP, or trademark or contains phrases forbidden by the Companies (Incorporation Rules) 2014.

Registration on the Ministry of Corporate Affairs (MCA) Portal

The SPICe+ form must be completed and uploaded on the MCA site to apply for company registration. To fill out the SPICe+ form and submit documentation, the company's director must first register on the MCA portal. After registering, the director can log in and access MCA portal features such as filling out e-forms and accessing public records.

If the SPICe+ form is refused owing to non-approval of the company name, the applicant must re-file another SPICe+ form and pay the necessary cost to reserve a new name. However, once the name entered in Part-A of the SPICe+ form is approved, it will be reserved for a period of 20 days, during which the firm must complete Part-B of the SPICe+ form and submit it online. Then, the applicant must fill out Part B of the SPICe+ form with firm and director information, attach papers, attach DSC, verify the form, and submit it.

Company Incorporation Certificate

The Registrar of Companies will review the application after it has been completed and submitted, together with the appropriate documentation. He will issue the Company's Certificate of Incorporation after verifying the application.

The PAN and TAN assigned by the Income Tax Department are printed on the Certificate of Incorporation. The applicant will also receive an email with a Certificate of Incorporation attached and their PAN and TAN.

Mandatory Compliances for Entertainment Company

The mandatory compliances for Entertainment Company include the following:

Appointment of Statutory Auditors:

30 days following incorporation

Within 30 days after establishment, the board of directors should appoint a professional Chartered Accountant.

Beginning of Business:

One hundred and eighty days since the incorporation
The capital mentioned in the MOA [Memorandum of Association] should be placed in a financial institution, and MCA shall issue graduation certificates.

Income Tax Returns:

Every year on September 30th, Companies registered in India must file Form ITR-6 every 12 months to report profits tax returns.

Annual Profit:

Every year on the first of October,

Companies registered in India must file an MCA annual return every year in both AOC-four and MGT-7.

KYC DIN:

Every year on April 30th,

The DIN KYC procedure should be completed every 12 months by the administrators of the Entertainment Company.

Checklist for Entertainment Company Registration in India

The checklist for Entertainment Company Registration in India includes the following:

Two minimum directors are required:

A personal confined agency should have at least one administrator and no more than fifteen. In addition, at least one of the company's executives must be a resident of India.

Register your business name:

Your company's name should be distinctive. The suggested call should no longer be compatible with any present agencies or logos in India.

Minimum Initial Investment:

There is no minimum capital necessary for a company. However, a company must possess a minimum of Rs. 1 lakh in permitted capital.

Registered Address:

A registered agency's workplace no longer has to be an industrial location. As long as the registered workplace is a leased domestic, it is acceptable only after a NOC from the landlord.

Endnote

There are several steps involved in registering an Entertainment company. First, before forming a business, the structure of the firm should be determined, i.e. whether the company will be registered as an OPC, LLP, PLC, or Public Limited Company. After determining the structure, the business name must be determined, and the directors must get DIN and DSC before applying for company registration.

Following the selection of a business name and the acquisition of a DIN and DSC, the company registration form must be submitted to the MCA portal. The SPICe+ form must be completed, also known as the business registration form. The necessary papers must be uploaded and submitted online, and the prescribed payments via the MCA site.