Which Registration is Required to Start a Company?

Business

Which Registration is Required to Start a Company?

Registrationwala

The term “company” can be used to refer to a pvt ltd company, public ltd company, one person company or any other company registered under the Companies Act 2013 - the primary law for governing companies in India. The Registrar of Companies (ROC), i.e., a govt. body under the Ministry of Corporate Affairs, is responsible for regulating and registering companies in the country.

Therefore, if you want to start your own company in India, you need to register your business with the registrar. Apart from this, you need to register with several other authorities as well, to ensure your business can operate in a smooth and legitimate manner. In this blog post, we shall explain all the necessary registrations and certifications you need to secure to start a company in India.

Why Should You Start a Company?

Starting your own company allows you to be your own boss. It allows you to get financial freedom as you no longer need to depend on someone else to pay you a monthly salary. Additionally, you contribute to the economy by creating job opportunities and helping the country grow. 

Your company can provide unique and innovative solutions to clients and generate a substantial amount of profit in return. This is especially true if you outperform your competitors in the market. All of these factors make starting a business quite an appealing opportunity.

Registrations and Certifications Required to Start a Company

The following registrations and certifications are required to start a company in India:

1. Company Registration

Before you start a company, you need to pick the right business structure/model for your company on the basis of your needs. If you want to be the sole owner of the company, you can go for the One Person Company model. However, if you want to start a company with other individuals, you can choose the private limited company model. To attract investors, you can choose a public limited company model. Requirements for each company can differ significantly from one another. If you need assistance in choosing the right model, you can connect with Registrationwala’s company incorporation consultants.

After choosing the structure/model, you can go ahead and initiate the company incorporation procedure. For this, you need to visit the official MCA portal and file an application there with the help of the prescribed form known as SPICe+. The full form of SPICe+ is Simplified Proforma for Incorporating Company electronically.

Enter all the required information in the form and attach incorporation documents like the Memorandum of Association and Articles of Association. After this, you can file the form upon successful payment of the prescribed application fee. Once your application is reviewed and approved by ROC, your company will be a legally registered entity in India and a certificate of incorporation will be issued in the name of your company.

2. Certificate of Commencement of Business

The certificate of commencement of business is a mandatory requirement to commence business operations. To secure this certificate, you must file an application with the Registrar of Companies using the prescribed form known as Form INC-20A. 

The form needs to be filed within 180 days from the company's incorporation date. After filing this form, the ROC will acknowledge the filing and issue the certificate of commencement of business. The company can then legally commence its operations. 

3. Trademark Registration

While trademark registration isn’t a legal requirement per se, a company can benefit from it greatly. It grants the company the exclusive right to use a specific trademark for goods or services and prevents its competitors from using similar marks without permission. 

This protection helps the company to establish brand recognition and reputation and build trust among customers/distributors/retailers. It also prevents counterfeiting of products. 

Additionally, a registered trademark is a valuable asset that can enhance the company's overall value. It establishes ownership as well as rights to the brand and facilitates market expansion, including into international markets. 

4. Shop and Establishment Certificate

Another requirement to start a company in India is the shop and establishment certificate. This certificate generally needs to be obtained within 30 days of commencement of business activities.

Each state/union territory in India has its own version of the Shops and Establishments Act. As a result, the shop and establishment certificate is issued on the basis of the specific Act applicable to the state/union territory where the business is located.

5. GST Registration

GST Registration is a mandatory requirement for certain businesses. If the annual turnover of a business exceeds the threshold limit of Rs. 40 lakhs for goods or Rs. 20 lakhs for services, then it is mandatory for such a business to register under the GST system. 

The GST registration process is an entirely online process. To complete this process, the applicant needs to visit the official website of GST and fulfill all the necessary steps there. Upon successful registration, the business receives a Goods and Services Tax Identification Number, which needs to be quoted in all the tax invoices of the business.

Conclusion

To start a company in India, you need to complete the company registration process with the ROC and secure a certificate of incorporation. Apart from this requirement, you need to fulfill other requirements such as securing the certificate of commencement of business, shop and establishment certificate and GST registration (if the business annual turnover exceeds the threshold limit). Apart from this, it is recommended to secure trademark registration. It isn’t a legal requirement but it is extremely important to protect a brand’s identity and enhance its reputation in the market. For assistance in starting a business, connect with Registrationwala’s expert team! 

Frequently Asked Questions (FAQs)

Q1. Why is it recommended to secure trademark registration for a company?

b Trademark registration isn’t a mandatory requirement for a company. However, many experts recommend this registration as it grants a company the exclusive rights to its brand and prevents others from using similar marks without permission.

Q2. Can I operate a company without registering it with ROC? 

A. No. A company in India must register with the ROC to be legally recognized. Without ROC registration, a business cannot operate as a company.

Q3. What is the due date for filing the commencement of business certificate?

A. The due date for filing the commencement of business certificate is within 180 days from the company’s incorporation date.

Q4. When does it become mandatory for a business to obtain GST registration?

A. When the annual turnover of a business exceeds the threshold limit of Rs. 40 lakhs (for goods) or Rs. 20 lakhs (for services), it becomes mandatory to obtain GST registration.

Q5. How many members and directors are required to form a pvt ltd co?

A. A minimum of two members and two directors are required to form a pvt ltd company.

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