7 May 2019, 13:10 — 4 min read
Background: Choosing the right business structure is an important prerequisite for your enterprise to run efficiently and meet its goals. From Private Limited Company and One Person Company (OPC) to Limited Liability Partnership (LLP) and Public Limited Company, you can register your business as any of these entities. The important thing to remember is that your income tax returns will depend on the type of business structure you opt for. To boost the economy and promote startups, the government of India has simplified the registration process. In this article, Gigi K discusses the startup friendly company registration process.
The Government of India re-engineered the entire process of company registration and now it is possible to register a company in one to two working days. The whole process has been reduced to single filing of all documents electronically using e-memorandum and e-articles.
The only exception to this rule are companies promoted by foreign nationals and entities incorporated outside India.
The simplified steps of incorporating a company known as SPICe (Simplified Proforma for Incorporating Company Electronically) by Indian nationals/entities are as given below:
1. Optional filing of name application in RUN (Reserve Unique Name) in the Ministry of Corporate Affairs (MCA) portal.
2. Company registration filing consists of preparation and filing of the flowing e-forms:
e-Form INC-32 – SPICe application
e-Form INC-33: e-Memorandum of Association (SPICe MoA)
e-Form INC-34: e-Articles of Association (SPICe AoA)
All the documents executed and attested as per documentation requirements has to be attached to the e-Form INC-32 / 33/ 34 and the e-forms to be digitally signed with the Digital Signature Certificate (DSC) of all the proposed shareholders /representatives.
3. The CRC (Central Registrar of Companies) verifies the application and if found the documents are in order, the Central Registrar of Companies shall register the company and issue the following:
In case of incorporation involving foreign nationals, instead of e-memorandum and e-articles, promoters shall execute all documents in physical form and legalized based on the country requirements.
You can download all the SPICe e-forms here.
Looking for more articles on company formation and registration? Check out our other articles:
How to form your own startup: A legal perspective
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By Amy Radin