All know that successfully running a business involves many operations that must be coordinated if successful outcomes are to be anticipated. People who manage every aspect of their lives succeed later, while others will experience negative effects like unit shutdown.
One should carefully follow the essential procedures to register a company. But unfortunately, most business people begin conducting business informally without considering the company’s formal name and organizational structure.
Here are a few important things you must consider before registering a business:
- Understand the steps
Getting a Director Identification Number (DIN) is the first registration step. The next step is to obtain your Digital Signature Certificate (DSC) and register it on the portal. The ministry must then approve the company’s name after this. Once it is finished, you may file the incorporation form to register the business. No matter what kind of business you are registering, you must have a PAN as identification; an older power bill might serve as verification of your residence.
- Choose the company’s category.
Any of the following business models might apply to yours:
- Sole Proprietorship Company (SPC)
- One Person Company (OPC)
- Limited Liability Partnership (LLP)
- Partnership Company (PC)
- Private Limited Company (PLC)
It is advantageous to register a partnership company since the partner can bring a lawsuit against the company, its other partners, and third parties by including the PC as one of the parties. The OPC is an improved form of the SPC. It provides limited liability to the sole founder, who has full control and is registered with the Registrar of Companies (RoC) under the Ministry of Corporate Affairs.
- File for Name Approval
You must undoubtedly have a name for your firm when you plan to incorporate it. And the business name approval process must run without issues. Otherwise, it might halt the entire registration process. Use the RUN(Reserve Unique Name) e-form to submit a request for name approval for public companies, PLCs (public limited companies), OPCs, NBFCs, etc. Alternatively, company owners can use the SPICe forms to submit a request for name approval.
However, you must make sure the suggested name for your business does not conflict with an already-used company name before you even submit your request for approval. Since businesses frequently file trademarks using their company names, you must take this action to avoid legal issues. Utilise our free tool to do a Company Name Search and stay clear of any conflicts.
- File for Incorporation
Filing for incorporation is the last stage in the process. The Ministry of Corporate Affairs has streamlined the cumbersome company formation process through the Integrated Incorporation Form. This form streamlines the incorporation application filing procedure by combining the processes for obtaining the Director Identification Number (DIN), obtaining name approval, and name filing into a single step.
A second director’s DIN is no longer required, and there is no longer a need for a separate INC-22 file to indicate the location of the company’s registered office or a DIR-12 form to confirm the appointment of the first director, among other notable changes.
Conclusion
Considering these things will help you register a company with ease and comfort. It is vital to remember that the entire registration procedure is completed before a company’s launch. It is essential for the business’s and its workers’ well-being.
