COMPANY REGISTRATION PROCESS
The Ministry of Corporate Affairs on the occasion of 69th Republic Day has announced major changes in Company Registration process. Some of the changes include:
- A new web service RUN is launched for name reservation of company
- DIN number will not be required for filing application for incorporating a company
- Simplified procedures by reducing various other forms and now only one E-Form must be filed for incorporation of company
- The time for incorporating a company has also been reduced
- Introducing electronic Spice AOA and MOA
RESERVE UNIQUE NAME (RUN) FORM
Now for making the name application of a company it is done through this online web service RUN. It has unique features as no DIN is required for filing such form. A person can write the name of company and its objects and submit the form. Two Preferable names can be given at the time of making RUN application and one resubmission is allowed if the name is rejected by the MCA. If the name of the company is unique and as per the Incorporation Rules than the approval will be received within 1-2 working days. If the MCA finds the name is resembling with any other company than it can reject the same. The Applicant will get one more chance for resubmission if the same is rejected by the MCA. If the name is approved than the applicant will receive a mail on the mail id registered at the time of making application.
DIN APPLICATION WITH SPICE
DIN means Director Identification Number, any applicant who is planning to incorporate a new company can now apply for DIN only through SPICE form. The details of directors for whom DIN is to be allotted must be filled in SPICE form along with PAN. Once the company is incorporated DIN would be given to each Directors. The Directors who are already having a DIN can use their DIN at the time of making application for incorporation.
TYPES OF COMPANY REGISTARTION
- Private Limited Company
- Public Limited Company
- Limited Liability Partnership Company
- One Person Company
- Minimum 2 directors are required for private company and 3 for public limited
- Minimum 2 Shareholders
- Two DIN and digital signature for all the shareholders.
- Name Approval by RUN
- Memorandum of Association and Articles of Association
- Permanent Account Number
- Tax Account Number
- Identity Proof and Address Proof of proposed directors
- Registered Address business proof
BENEFITS OF COMPANY REGISTRATION
- Fast and easy procedure with the concept of ease of doing business
- Best options for the startups for business growth
- Online process and no physical submission of any documents
- A corporate legal identity enjoys a greater goodwill in the market
- Easy compliance and legal formalities with simplified procedures
- Company registration can now be done within 1 week with less documents
- Private Limited company is one of the most prevalent and popular type of corporate entity in India. The new concept of Small Company introduce in the companies act 2013 has less compliance than any other companies.
- Once the company is registered it becomes a separate legal entity in the eyes of law.
- A registered company can easily avail loans from banks and other financial institution.
- Government has also launched various schemes for encouraging the ease of doing business. Some of the schemes and programs launched by the government are Startup India, MSME, Udyog Aadhaar, Digital India, etc. This schemes various incentives and benefits to small companies and other innovative industries.