How to register a Startup in India?
What is Startup?
A startup or start-up is a company or project initiated by an entrepreneur to effectively develop a scalable business model. A startup is a new company founded by one or more entrepreneurs in order to develop a unique product or service and bring it to market. A startup can be registered in the following models.
- Private Limited Company
- One Person Company (OPC)
- Limited Liability Partnership (LLP)
Most of the startups are registered as Private Limited Companies in India due to the benefits available under the Companies Act, 2013. If you are confident that the proposed company name is avialable, you can apply for registration in SPICe form with out applying step by step process. But, it is suggested to apply step by step process to avoid rejections by MCA.
Company Registration Process.
Name ApplicationThrough MCA Portal
Your proposed company's name should be unique, it should not be similar to an already registered company. You should thoroughly check the status of Name Availability before making an application. The company name should contain Key or Coined word, Object and Type of Entity. The following table shows an example:
Key or Coined Word Object Entity Type Flipkart Online Services Private Limited Reliance Industries Limited
You need to check it on MCA portal and you also need to check whether the key or coined word used in company name is already regisrted under Trademarks Act or not. Ministry of Corporate Affairs (MCA) has revised Rule 8 of Companies (Incorporation) Rules, 2014 on May 10, 2019. You are kindly advised to refer revised name availability rules before making any application for Company Name Reservation in RUN or SPICe. Click here for Revised Name Availability Rules.
You can apply company name onlline on MCA portal by loging into your account. For this, you need to create an account on MCA Portal. You can create an account on MCA portal at Register section. Select user category as Registered User. Once you create an account on MCA potal, log in to your account, select MCA Services section. On MCA Services section you can find company name application RUN service. Click RUN Service, select company type as new company (others) for Private Limited Company, enter the proposed company name, significance of the key word and objects in comments section and then submit. It will ask you to pay the challan amount of Rs. 1,000/-. Pay the callan amount. Once the payment is confirmed, the MCA Portal will generate the Challan. You need to wait for a day or two and the name will be approved by the MCA officials subject to Rule 8 of the Companies (Incorporation) Rules, 2014. The name approval letter will be sent to you through email.
Digital Signature CertificateThrough eMudhra Certifying Authority
Company Registration is completely online and you need to sign the documents digitally. Class II digital signature certificate (DSC) is rquired for all the shareholders to register a company. The shareholders have to sign the Digital Signature Application (DSC) Form. Signature is not required if their mobile number is linked with their Aadhaar card. CompaniesHouse will process the application and you will get the Digital Signature Certificate (DSC) with in half an hour. During the DSC issuance process, you need to verify your mobile and do the video recording. Our consultants will guide you how to verify your mobile and how to do video recording.
IncorporationThrough MCA Portal
Once the name is approved and DSC is generated, you can prepare the floowing documents:
Directors Documents MCA Documents PAN, Id and Address proofs eForm SPICe Form INC-9 eForm SPICe MOA Form DIR-2 eForm SPICe AOA NOC from owner & power bill eForm AGILE
Get the above MCA documents attested by a professional (ie. a Practicing Company Secretary or a Chartered Accountant) and upload the documents with MCA portal. Once you upload the documents, MCA will generate challan, you can now pay that challan amount and save the challan for your records. Wait for 3 or 4 working days, then MCA will verify the documents filed and issues the Certificate of Incorporation. You can also get ePAN and eTAN along with the Certificate of Incorporation.
Start BusinessThrough CompaniesHouse
CompaniesHouse experts will help you in getting your Company registered. Once you get your Certificate of Incorporation, we will provide you all the documents required for opening Company's current banking account. You can now open your account and deposit the Share Capital amount and submit the declaration of Commencement of Business in eForm INC-20A with MCA and start your business.
You need to register with other departments depending on the nature of business your Company carries. For example if you are a taxable dealer of supply of goods or services, you need to register under Goods and Services Tax Act, if you are an importer or exporter, you need to get Import Export Code (IEC) with the office of Director General of Foreign Trade (DGFT) etc.,.
CompaniesHouse is an MCA authorised Company Registered Agent and the object of CompaniesHouse is to minimise the cost in Company Registration throughout India.