HOW TO REGISTER A COMPANY IN INDIA
The Companies Act, 2013 passed by the parliament has received the assent of the President of India on August 29, 2013. The Act consolidates and amends the law relating to companies.
The Companies Act, 2013 has been notified in the official gazette on August 30, 2013. Some of the provisions of the act have been implemented by a notification published on September 12, 2013.
Ever since the Prime Minister of the country, Narendra Modi, launched the Startup India program, there has been an incredible surge in the number of startups coming up.
With tax exemptions, benefits, and help provided by the government, more and more people are creating a company of their own. The most fascinating thing is that a majority of the startups have young founders and owners, which speaks volumes about the incredible creative minds that India has.
What is a Startup?
A startup is a business managed by a collection of a few people that solves a problem. Such companies come into formation when the founders find some negatives in the existing system they have been working in and intend to solve the issues by creating a new company of their own.
Eligibility Criteria for Startup:
Four major steps to register a company/ startup in India:
Step 1: Acquire Digital Signature Certificate (DSC)
The Information Technology Act, 2000 has provisions for use of digital signatures on the documents submitted in electronic form in order to ensure the security and authenticity of the documents filed electronically.
Step 2: Acquire Director Identification Number (DIN)
The concept of a Director Identification Number (DIN) has been introduced for the first time with the insertion of sections 266A to 266G of Companies (Amendment) Act, 2006.
Step 3: Create an account on MCA portal- New user registration @ mca.gov.in
Step 4: Incorporate or Apply for the company to be registered
Detailed Procedure for Registering a Startup in India:
Step 1: Incorporate your business
First things first, you need to incorporate your business as a Private Limited Company or a Limited Liability Partnership or a Partnership firm. You just need to follow the normal procedure that includes you filling up a form to get the registration.
Step 2: Register under Startup India
Now you need to register your firm or company as a startup in the Startup India scheme of the government. You just need to fill the form available for you on the Startup India website. You have to fill in all the details and upload a certain number of documents as well.
Step 3: Documents you need to upload in a PDF format only
Step 4: You need to mention if you need tax exemption
In India, startups do not have to pay income tax for the first three years but to avail of such benefits, the company must be certified by the Inter-Ministerial Board (IMB). This is where companies registered with DIPP get relaxation as the registration is enough to get the benefits.
Step 5: Self-certification of the following conditions
Step 6: Get your recognition number
On the application of this registration, you will get a recognition number with immediate effect. You get the certificate of registration or incorporation only after the authority goes through all your uploaded documents.
You need to be careful while uploading the data, as any discrepancy in it can cause you a huge fine of up to 50% of your paid-up capital or Rs 25,000 at the very least.
Now that you know the eligibility and registration criteria for a startup, enroll your company as well into the Startup India scheme and reap all the benefits provided by the government.
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