Registering a business can be a very complicated process, which is why we’ve broken it down into simple steps for you to follow. Before you register your business, you must do all the other basic things like market research, finding a product fit and naming the business so that you don’t face roadblocks during the registration process.
You literally cannot register a business unless you have a name and know what products or services you’re planning to offer customers. So do get that part out of the way.
Registering a business at a brick and mortar location can be a huge pain. India is a country that has some amount of corruption and just to register your business, you may have to grease a lot of palms. It is far more convenient to do all of this online because the process of online registration is a transparent one.
The following are all the steps you need to take to register a business in India:
Visit the website of the Ministry of Corporate Affairs
To start the process of registering your business online, you need to go to the website of the Ministry of Corporate Affairs. On this website, there are two forms that you need to locate. One is called DIR3 and the other is called DSC. Fill out both these forms and then you can apply for the DIN online.
When filling out these forms, do keep in mind that there are certain documents that you will need as they have to be submitted. These documents include proof of address, current occupation, passport, and educational qualifications. You must also send passport size photographs.
Then you need to register for the Digital Signature Certificate, which is also known as the DSC. Without the DSC, you cannot file an application for registration online. As was the case for the DIN, you need documents to file for the DSC. These include passport, proof of address, passport size photo, educational qualifications, and current occupation documents.
Prepare the application
Once you have your DIN and DSC in place, you need to get on with the rest of the preparations for the application. You have to start with filling out the electronic version of the 1A form. This form is related to the company name. You have to send them at least 4 different company name options, although some people believe it is better to send 6. The names are then approved by the RoC based on their availability, and also whether they are appropriate.
The RoC can take 2 days to respond. When you are filling this form, you have to pay Rs 500 in fees. Once the name is approved, you have to file for the registration of the company within the following 6 months. If you wait longer, the process has to be started all over again.
Draft the MoA and AoA
Your next step is to draft the Memorandum of Association (MoA) and Articles of Association (AoA). These are legal documents and you can get in touch with lawyers in order to get them filed. The MoA lists out the different business objectives of the company. The AoA lists out the daily operations of the company and its management details. Each document has to be mandatorily signed by two people from the company. A witness needs to be present when the signing is happening.
When these documents are created, you have to send them to the RoC so that they can vet it. It the RoC approves of the documents, then you need to print them out so that you can get them notarized. Once that is done, you can file them with the rest of the documents that are needed to register your business.
Once all of this is done, you need to pay the registration fees so that the business can be submitted for registration. You have to register it in the state where you are working. If all goes well, the RoC will then give you a Certification of Incorporation that means that your business is a registered one. As soon as that is done, you can then start conducting your business.
Once your business is registered, you must undertake a few more additional steps that are mandatory. You have to file for a GST number. Then, you can use a service like Razorpay Invoices to help you generate GST-compliant invoices. This way, all the functioning of your business will be taken care of.
To find out how much GST you must pay for your goods or services, simply use an online GST calculator.
Though there are a lot of steps involved in registering the business, you should get it done as soon as possible so that you can get up and running.