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Anees Innovation and Solutions Architect, India
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Articles Related To Net Framework


Picking the right company structure for your business is as important as any other business-related activity. The right business structure can allow your enterprise to control efficiently and meet your required business targets. In India, each business should register themselves as a part of the necessary legal compliance. Before we tend to learn how to register a company, let’s try and understand the types of business structures in India.

Types of business structure in India:

  1. One Person Company (OPC): It is the simplest way to start a company if there exists only 1 promoter or owner. It allows a sole-proprietor to hold on his work and still be a part of the company framework.
  2. Limited Liability Partnership (LLP): This kind of business structure was essentially formed to provide limited liability to its owners. To become a partner of LLP doesn’t involve a huge lengthy complicated method. It’s simple to form as well as simple to become a partner. In it, each partner has limited liability to the extent of capital contributed by them. They don’t have to suffer on behalf of its other partners.
  3. Private Limited Company: A Private Limited Company is that company which is owned privately by the individuals. It is more flexible and easy to form than a Public company. It can be formed with just 2 members and 2 directors. But there is a restriction in the maximum number of its partners which is restricted to 200. The number of shareholders is limited to 50 only. A Private company cannot invite public to apply for its shares. This kind of company is more preferred by investors because they can buy/sell stakes easily.
  4. Public Limited Company: A Public Limited Company is that company which is owned by public or in which the public can subscribe. The minimum number of directors is 3 and the minimum number of shareholders is 7. There is no limit on the maximum number of shareholders. The shareholders have limited liability to the extent of the face value of its shares and the premium respectively.

Steps for registration of new company

Obtain Director Identification Number

Director identification number is a unique number allotted by Central Government to any person assuming to be a director or existing director of company in India. Director identification number is 8 digit unique number which has a lifetime validity, details of director are maintained in database through this number.

Whenever a return, an application or any information associated with a corporation or company are going to be submitted under any law, the director signing such return, application or information will mention his Director Identification Number underneath his signature.

Procedure to obtain DIN: There are three different forms

1.      Spice Form (Application Of First Directors In Case Of New Companies): SPICe form is used by the first directors of new companies. The intended person who has not obtained DIN shall make an application through eForm SPICe. The documents which  need to be attached are

·         Proof of identity

·         Proof of address

2.      DIR-3 Form: Any person intending to become a director in an already existing company shall have to make an application in eForm DIR-3 for allotment of DIN.

·         Procedure to obtain DIR-3 Form: The form shall be mandatorily signed by the applicant and the same shall be verified digitally by a:

·   Company Secretary (who is fulltime employment of the company)

·   Managing director or manager.

·   Chief Executive Officer or Chief Financial Officer.

Two supporting documents need to be attached that is:

·   Photograph of the concerned applicant.

·   Proof of identity and Proof of residence.

3.      DIR-6 Form: DIR-6 Form is used by the directors when there are any changes in the particulars of the directors. The form shall be signed by the applicant and certified by a Chartered Accountant, Company Secretary, Cost accountant (whole time practice), Director of an existing company.

Obtain Digital Signature Certificate

A Digital Signature Certificate is a secure digital key that is issued by the certifying authorities for the purpose of validating and certifying the identity of the person holding this certificate. Digital Signatures make use of the general public key encryptions to create the signatures. A digital signature certificate (DSC) contains information concerning the user’s name, pin code, country, email address, date of issuance of certificate and name of the certifying authority.

A Digital Signature Certificate (DSC) explicitly associates the identity of an individual/device with a two keys - public and private keys. The certificate contains data about a user's identity (for example, their name, pincode, country, email address, the date the certificate was issued and also the name of the CA. These keys will not work in the absence of the other. They’re used by browsers and servers to encode and decode data concerning the identity of the certificate user.

The private key is stored on the user's computer hard disk or on an external device like a USB token. The user retains control of the private key; it will solely be used with the issued password. The public key is disseminated with the encrypted data. The authentication method fails if either one of these keys in not available or do not match. This means that the encrypted information cannot be decrypted and so, is inaccessible to unauthorized parties.

Procedure to obtain digital signature certificate

  1. Submission of DSC Application form duly filled in by the applicant. Any individual applying for a Digital Signature Certificate is required to fill an Application Form for online submission and verification of personal details by the certifying authority.
  2. Producing Photo ID proof
  3. Producing  Address proof
  4. To fill in the Application form the please log in to the website of the Certifying Authority.

Register a Company Name

Tips for naming your startup company:

  1. Avoid hard to spell, you don’t want potential customers getting confused concerning how to find your business on-line. You would like to avoid having to continually correct the misspelled version of your name. Keep it simple.
  2. Don’t pick a name that could be limiting as your business grows.
  3. Once you have determined a name you like, do a web search on the name. You will find that someone else is already using that business name.
  4. Use the most secure “.com” domain name for your business rather than alternatives such as .net, .org, .biz, or other possible domain extensions.
  5. You want the business name to convey something meaningful and positive related to your business.
  6. Make sure you are personally happy with the name.

To register your company, you will file your completed application online with the Indian government’s Registrar of Companies, or RoC. The RoC, which is under the jurisdiction of the Ministry of Corporate Affairs, oversees the incorporation of new companies and the administration of businesses under the statutory regulations of the Companies Act.

Check online to see if your choice of company name is available. Before you file your application to register your company, it’s a good idea to have your company names firmly in place to ensure the registration process isn’t hindered.

Get Certificate of Incorporation

A Certificate of Incorporation (COI) is a legal document that is issued by Ministry of Corporate Affairs (MCA) once a Company is successfully registered with them. The COI is a proof that the company is now registered with the Registrar of Companies (ROC).

COI issued consists of a date which depicts the date from which the company is deemed to be official registered. It can then commence its business and start working. Unlike sole proprietorship registration of private limited company is mandatory. It is the duty of the promoter to apply for a COI.

Obtain Permanent Account Number

Permanent Account number (PAN) refers to a ten-digit alphanumeric number, issued in the form of a laminated card, by the income tax Department in India. it is a must to have a PAN number for all those who file their income tax returns, because from 2005 onward, it has been made mandatory by the income tax Department to quote the PAN on return of income as well as on all correspondence with any income tax authority in the country.

Registration of GST

GST is the biggest tax reform in India, tremendously improving ease of doing business and increasing the taxpayer base in India by bringing in millions of small businesses in India. By abolishing and subsuming multiple taxes into a single system, tax complexities would be reduced while tax base is increased substantially. Under the new GST regime, all entities involved in buying or selling goods or providing services or both are required to register for GST. Entities without GST registration would not be allowed to collect GST from a customer or claim an input tax credit of GST paid and/or could be penalized. Further, registration under GST is mandatory once an entity crosses the minimum threshold turnover of starts a new business that is expected to cross the prescribed turnover.

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