LEGITIMATE investors would never go into clandestine business. Those who are looking to reap long-term benefits would always opt to engage under a legal business venture. It embarks on the need to register the company in the host country — in this case, India.
With a population of over 1.35 billion people, India is certainly a good place to put up an investment. Aside from the number of potential clients, there are also lots of smaller businesses which could be tapped as conduits, seen to help take products and services farther.
However, legal investments have to undergo legal procedures, one of which is company registration process.
But how can register a company in India?
Company Registration Process In India
Unlike in many other countries, registering a company in India requires just four fundamental steps, as provided for by its Ministry of Corporate Affairs.
- First and foremost is to think of a business name which would be used in filling up a Reserve Unique Name (RUN) form. This will ensure that no two companies would have identical names for their respective businesses.
- Next step is for a business group to obtain Digital Signature Certificate (DSC) along with Director Identification Number (DIN) and Form SPICE INC-32 (E Form used for Company Registration)
- From there, the business group will have to create an account on MCA portal by going to their website @ mca.gov.in
- The final step is to process India Company Incorporation application
Once approved, the business group becomes a newly-registered company in India.
However, getting past these steps would also entail expenses, just like in another other government around the world.
The Cost To Register A Company In India
Collection of registration fees is normal and part of the procedure to guarantee a business group is enlisted by the government of the host country as a legitimate company.
Based on 19 circular issued by India’s governing agency, start-ups under the category of sole proprietorship would incur a cost of registration pegged at around Rs 2,500. Under the category of partnership firm, the cost would be somewhere around Rs 5,000. Incorporating a private (LLP or LLC) company with a minimum authorized capital of Rs 1,00,000, registration cost is Rs 7,000.
The Need For Help
Admittedly, the procedure is not as easy as it looks. It is important to note that registering a company in India requires the help of licensed and duly accredited professionals as the procedure is deemed as both technical and legal.
While the Indian Ministry of Corporate Affairs has reduced the procedural layers for the registration of companies, its pre-registration proper remains complicated, thus requiring the help of professional business advisors to do the painstaking tasks.
No need to worry though. Our team of experts forming 3E Accounting India, are willing to take the challenges posed by the issuance of the new procedure applicable from 1st Jan 2019 to date.
