In ara of Startup, Entrepreneurs come up with a new idea, most of the startup founder and cofounder are coders, designers, marketers, and folks from different professions. One critical thing that most startups aren’t the best in the basic legal compliances when it comes to starting and registering a business.
Let me tell you how important company registration and its compliances. As we know legal compliances are very important for every startup business, because of the day by days legal compliances and it’s fine are getting complicated, if we fail to do all legalities then it is hard to play in long term. There are several steps to be taken to register a Company.
1. Apply for Digital Signature Certificate
A Digital Signature Certificate (DSC) is a secure digital key that certifies the identity of the holder, issued by a Certifying Authority (CA). It typically contains your identity (name, email, country, APNIC account name and your public key). Digital Certificates use Public Key Infrastructure meaning data that has been digitally signed or encrypted by a private key can only be decrypted by its corresponding public key.
• Digital Signature Certificate (DSC) Applicants can directly approach Certifying Authorities (CAs) with original supporting documents, and self-attested copies will be sufficient in this case
• DSCs can also be obtained, wherever offered by CA, using Aadhar eKYC based authentication, and supporting documents are not required in this case
• A letter/certificate issued by a Bank containing the DSC applicant’s information as retained in the Bank database can be accepted. Such letter/certificate should be certified by the Bank Manager
2. Apply For DIN (Director Identification Number)
Any person (not having DIN) proposed to become a first director in a new company shall have to make an application through eForm SPICe. The applicant is required to attach the proof of Identity and address along with the application. DIN would be allocated to User only after approval of the form.
Any person intending to become a director in an existing company shall have to make an application in eForm DIR-3 and should follow the following procedure:
- Supporting Documents: Attach the photograph and scanned copy of supporting documents. i.e. proof of identity, and proof of residence as per the guidelines.Physical documents are not required to be submitted at DIN cell.
- Digital Signature: Form DIR-3 is mandatory to be signed by the Applicant and shall be verified digitally by a Company Secretary in full time employment of the company or by the Managing Director or Director or CEO or CFO of the existing company in which the applicant is intended to be appointed as a director.
3. Choose your company name
Choosing a name is the first step to register a company. Just as building a business is not easy, coming up with a name for your business is equally difficult. It takes time to find a name relevant for your business and rushing into a name for the sake of getting the website live does more harm than good. The name should be unique and make sense for your business. you can also search to get a website domain with a known extension like .com, in, .org, for educational Institute .ac.in ect.
Think of Google or Microsoft.
To avoid messing up with the name of your company, take into consideration the following points before registering the company name:
- Choose a name that is easy to remember, pronounce and is short enough to communicate your brand to the customers. Stay away from complex words so that it’s easy to convey the name even on phone.
- The name should reflect the mission of your business. Let the name showcase what the company is all about and the products your company sells. The last thing you’d want is people to think of cars when your business is into selling food.
- Choosing a brand name that sounds similar to an existing player is a bad idea. Hire a lawyer or Company secretory/ Chartered accountant to review the name before you register the company. In many cases, brands have had to change their names because of extreme similarities. You don’t want to face this when you’ve spent millions of dollars over marketing the brand.
- Check if the domain name is available or not. In this age where a brand has to be present online, if the domain name is already taken by someone else, it doesn’t make sense to choose that company name.
4. Prepare MOA, AOA & other Legal documents for Filing
Incorporating a company through Simplified Proforma for Incorporating Company electronically (SPICe -INC-32), with eMoA (INC-33), eAOA (INC-34), is the default option and most companies are required to be incorporated through SPICe only.
5. Get your Company Incorporation Certificate
After all the above Complication of registration process, Registrar of company (RoC) approve and issue a Certificate of Registration. You will get the below-listed document. DSC, DIN, COI, Memorandum of Association, Article of Association, PAN, TAN and other Banking Document