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How to Register A Startup Company in India: Step by Step Guide [2022]

Are you wondering How to Register A Startup Company in India? Here is a step by step guide on documents required, business structures & how to choose right company type for your startup in 2022.

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How to Register A Startup Company in India: Step by Step Guide [2022]

Startups are more like a roller coaster ride. A startup is widely known as a newly set-in business by an individual or a group of people.

A startup works on the idea of innovating either products or services in the market. For registering a startup in India, you don’t have to visit any corporate office. Much to your surprise, you can register the startup/company from your home.

Some preliminary requirements for registering a startup include getting a DSC (Digital Signature Certificate) and DIN (Director Identity Number) and e-form. Check out the four major steps on how to register a startup company in India.

Digital Signature Certificate (DSC): It is necessary to submit digital signatures in the documents which are used for filling the electronic form. The digital signatures help in ensuring that the documents which have been submitted with the electronic form are authentic.
Director Identification Number (DIN): According to the new insertions in the sections of the Companies Amendment Act, 2006 from 266A to 266G, you must acquire a DIN or Director Identification Number.
You need to make a new account on the Ministry of Corporate Affairs or MCA portal.
After following the above-mentioned steps, you can now apply for your startup to get registered.

Table of Contents

Documents necessary for the registration of your startup

You must have an original copy of a letter related to the availability of your startup/company name. This formal letter must be issued by ROC.
You must have Director Identification Number or DIN of the directors.
You must have a Digital Signature Certificate or DSC.
You must have a FORM-1 which is required for incorporations of your startup/company
You must have a FORM-18 which has the details about the address of the proposed startup/company
You must have a FORM-32 which has particulars of proposed managers, secretary and directors.

Business structures in India

Before registering your startup, you must be clear about the business type and the name of your startup. There are different kind of business structures for different companies in India. Check out the five main kinds of companies which you are allowed to register in India:

Sole proprietorship
One-person company
Partnership company
Limited liability company
Private limited company

Sole proprietorship

A sole proprietorship is a very easy form of registering a startup in India. There is only one person called a sole proprietor who has the complete ownership of the startup.

The documents required to register for a sole proprietorship company are Aadhaar card, PAN card, Bank account and Registered office proof.

For registering your startup, you need to reach out to a Chartered Accountant and get a registration certificate.

One-person company

One Person Company is a new kind of Business Structure which was brought forward by the Indian government by 2013. Before 2013, one individual was not allowed to incorporate a startup. At least two directors were required to incorporate a startup.

For registering One Person Company in India, you need to approach Chartered Accountant and get a certificate of Incorporation. You will require the following documents to registering the startup:

Digital Signature Certificate (DSC)
Director Identification Number (DIN)
Application for Name Approval of the startup
Memorandum of Association (MoA)
Articles of Association (AoA)
Proof of registered office
Affidavit as well as the consent of the director
You will need a declaration to certify all compliances are completed
You need to file all forms with Ministry of Corporate Affairs (MCA)

Partnership firm

This type of business structure is perfect for people who are thinking of starting a company with partners. You will need the partnership deed or agreement which will have all the details regarding duties, obligations and profits shared between partners of the new partnership firm.

The partnership agreement will consist of the following details:

There will be name as well as address of the partners of the startup
There will be the name and address of the partnership firm
Starting date of the partnership firm
Details regarding capital that each partner invested in the firm
Profit share ratio that must be shared among partners
Salaries/commissions which will be paid to the partners
Rights of all the partners of the firm
Duties, obligations of all the partners of the firm
Any other clause which has been mutually agreed by the partners

Limited Liability Company

Limited Liability Company (LLC) is one of the most flexible business structure in India. Limited Liability Companies have a limited life and aren’t liable for giving business debts.

For registering a Limited Liability Company, follow the steps mentioned below:

You should file an e-form to get a DPIN (Designated Partner Identification Number)
You will be needing a Digital Signature Certificate while registering on the Ministry of Corporate Affairs (MCA) portal
You need to get the approval for the name of your Limited Liability Company by MCA or Ministry of Corporate Affairs
Once you have received the approval from MCA, you can now fill the incorporation form for registering your Limited Liability Company
Receive your Limited Liability Company agreement

Private limited company

A Private Limited Company is not allowed to raise funds or capital from the public. There must be at least 2 and not more than 200 members in the Private Limited company.

For registering a Private Limited Company in India, follow the steps mentioned below:

You must apply for a DIN or Directors Identification Number. To get this, you will require a PAN card, phone & electricity bill, Aadhaar card, and bank statement.
Now fill an application for getting the name of your company registered
After applying for name registration, you should draft MOA (MOA will have details about the objects of your company) and AOA (AOA will consist of rules & regulations of your company)
Now fill the SPICE-E form available on the MCA platform.

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