How to Register a Company: A Step-by-Step Guide for Startups

How to Register a Company: A Step-by-Step Guide for Startups

Having a successful business is one of the ways to become financially independent and gather respect in society. You need to go through various steps to start a business, and the first one is registering your business. Registration of your business helps you become verified in the market as a genuine proprietor and gives you legal advantage, liability protection, and access to funding, among other benefits. If you also want to register your business, you have come to the right place!! We will brief you on all the steps of the Company and Startup Registration in Bangalore process:

Step 1: Decide on the Type of Business Entity

The first step is to know the type of business entity you want to set up that aligns with your goals and aspirations. Businessmen in India set up various business structures, such as sole proprietorships, partnership firms, limited liability partnerships (LLP), private limited companies, and public limited companies. All of these have their advantages and disadvantages, so make sure you go through them to select whichever suits your business model, long-term plans, etc.

Step 2: Choose a Unique Name

Choosing a name for your business is a crucial step in setting it up. An interesting name will either make or break your business. Your name will play an important part in the branding and marketing of your business. You have to make sure that the name you choose is not already in use and that it is in line with the guidelines provided by the Ministry of Corporate Affairs (MCA). Also, verify that a domain name is available so you can set up your company’s website to establish an online presence.

Step 3: Obtain the Director Identification Number (DIN) and Digital Signature Certificate (DSC).

To register a company in India, the directors of the company have to obtain a Direction Identification Number (DIN) and a Digital Signature Certificate (DSC). DIN is a unique identification number allotted to individuals intending to become directors of a company, while a DSC authenticates electronic documents filed with the MCA. These documents are essential for online company registration and ensure the security and authenticity of the information provided.

Step 4: Prepare the Required Documents

Prerequisite documents to register a company, i.e., identity proof, address proof, photographs, and PAN card copies of directors, should be collected and ready. Moreover, documents like a Memorandum of Association (MOA), Articles of Association (AOA), and a disclosure by the directors are also required to be drafted and signed as per the prescribed structure.

Step 5: Apply for Name Approval

Apply to the ROC (Registrar of Companies) through the website of the MCA (Ministry of Corporate Affairs) for name clearance. The selected name has to comply with the naming instructions established by MCA and shouldn’t violate the rights of brands that are already known and registered. This term will be held for 20 days, and during this time, one should file documents to begin the process of incorporation.

Step 6: File incorporation documents

After the name is approved, prepare the incorporation documents, including the proposed MOA, AOA, and other forms for the ROC. Confirm that the data that has been given is correct and complete to avoid any possible delays or rejections during the registration. File as prescribed and pay stamp duty and other charges based on the requirement.

Step 7: Obtain a Certificate of Incorporation

Once the ROC has completed checking the incorporation documents, it will indeed issue a Certificate of Incorporation, which is the document confirming the legality of the company's existence. The certificate is also firm evidence of the company's registration, whereby the certificate bears important details on the registration date, registration number, company’s name, and type of company.

Step 8: Apply for PAN and TAN.

After obtaining the Certificate of Incorporation, apply for a Permanent Account Number (PAN) and a Tax Deduction and Collection Account Number (TAN) for your company. PAN is essential for various statutory compliances and financial transactions, while TAN is required for deducting and remitting taxes on behalf of employees and vendors.

Step 9: Register for GST.

The next step after the incorporation certificate is retrieved is to proceed and apply for the Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for your enterprise. TAN is very much necessary for statutory compliance and financial trade, while PAN is concerned about taxes.

Step 10: Comply with ongoing requirements

If your business operation values more than the stipulated threshold amount, get yourself registered for Goods and Services Tax (GST) through the GST portal. GST registration is compulsory for business forms that are involved in the supply of goods and services, leading to easy compliance with indirect tax rules.

Lastly, the incorporation of a company is a major step for startups as they begin their entrepreneurial journey. The company registration process can be navigated by following this stepwise and with our support. Our experts at Mind Your Tax will provide you with end-to-end support to register your business hassle-free so that you can make your company and startup registration in Bangalore dreams come true!!