With a population of more than a billion and still growing, India offers a big, inherent and dynamic potential market to explore. If you are interested in doing business in this market, you need to establish your company’s legal presence in India by registering your business and filing appropriate form with appropriate Indian authorities.
Preparing to do Business in India
Familiarize yourself with India and its culture. Before you register your company in India, it is a good idea to get acquainted with some basic facts about the country, your population and business practices, if you are not familiar with the country or have not visited.
If you are not familiar with the general scenario in India, then knowing about the scenario from its society and customs to business practices, after knowing the scenario, your business registration and operation of the country will be smooth.
For example, companies in the United States often trade on transactions, whereas Indian business is still largely based. Knowing the right network of people is likely to make your business more than focusing on specific transactions.
Knowing cultural differences is also important. For example, cows in India are considered sacred animals. Thus, if you are interested in selling beef in India, you would want to know where and where this type of business is possible.
If you have little or no information about them, then introduce yourself to the Indian business authorities. All companies in India come under the Companies Act of 1956, which allows the government to regulate all facets of a business from its establishment to liquidation.
To register your company, you will enter your full application online with the Registrar of Companies of Indian Government or ROC. ROC, which is in the jurisdiction of the Ministry of Corporate Affairs, incorporates the administration of new companies and businesses under the statutory rules of the Companies Act.
Choose the possible name for your company In order to register a company in India, you must first have a unique company name approved by RoC.
It is a good idea to have at least four possible names for your company in case of another institution registered under that name with RoC.
If you are not familiar with both by working hard on language and culture, you can avoid choosing the names which can stop Indian customers or be rejected by Indian officials.
For example, you can not use a name that has a connection with government or international organizations.
To attract more customers, consider customizing the name in the Indian market.
Check online to see if your company name is available or not. Before you file your application to register your company, it is a good idea to keep your company firmly in order to ensure the registration process.
Ministry of Corporate Affairs holds a website where you can check whether other companies are registered under a certain name.
Apply online with the Ministry of Corporate Affairs for DIN (Director Identification Number) Before you can register your company, you have to apply for DIN. This unique number assigned by the Ministry of Corporate Affairs identifies the present or desired director of your company in India.
Form DIR-3 and DSC, which you can find online on the Ministry of Corporate Affairs’s website, will allow you to apply for online DIN. For both documents, you will need information including your passport, proof of address, educational qualification and current business. You also need a passport size photograph.
Register online for DSC (Digital Signature Certificate). DSCs are digital equivalents of physical or paper certificates and can be presented to prove your identity to access information or services on the Internet or to digitally sign certain documents.
You can register online for your DSC on the Ministry of Corporate Affairs’s website.
It is necessary for the Corporate Affairs Ministry that all the companies have a DSC as the companies will enter all the applications online.
To obtain DSC you need identical identification documents, which you do for DIN, including proof of passport and address.
Preparing Your Application for Registration
Gather your app content After checking your company names and obtaining your DIN and DSC, you are ready to prepare the registration application of the company to apply online with RoC.
All the required forms that you will enter online with your completed application, you can find online as well as on the website of the Ministry of Corporate Affairs.
Complete e-Form 1A This form controls your company’s naming.
You must list at least four possible names and maximum six in order of priority.
To apply for the company name, the file will approve the name of the company on the basis of eForm 1A online ROC availability and suitability.
RoC usually takes two days to approve one of your name options.
You will be charged a fee of 500 rupees while filling this form.
After RoC approves your company’s name, you have six months to file online for your company registration.
Memorandum of Association (MoA) and Articles of Association (AOA). Either you or your legal counsel may draft these documents, which includes information about the company’s business objectives and daily work.
The Memorandum incorporates business objectives of the company.
The association articles contain details of the company’s daily operations, including its management.
Each document should be signed by at least two members of the company in their handwriting. It is also necessary that a witness be present for the signature.
File MoA and AoA online by RoC. Once you draft these documents, you can file them online with the ROC for VCT.
Print MoA and AoA. After the ROC approves your MoA and AOA, print out the documents to prepare them for notarizing.
Notify MOA and AOA You will submit these documents to the appropriate stamping authority for the Indian Geographical Area in which you register your company.
Once you have a notarized copy, you can scan these documents and file them online with your other complete application materials.
Make registration and filing fees online. To pay these fixed fees on the website of the Corporate Affairs Ministry, you need to complete before registering your application with RoC for filing your application.
The required fee is based on your company’s capital asset.
Filing Your Application for Registration
Find the relevant RoC office to file your application. You will enter your registration application online for Indian state in which you want to register your business.
ROC maintains such offices across India that are responsible for specific states and regions.
Gather your completed application documents. You will need to prepare the documents you have to prepare for registering your company with RoC, for uploading to the Corporate Affairs Ministry’s website. Remember, you will register your company online on the website of the Corporate Affairs Ministry.
RoC considers a full application to include the following documents in a duplicate: a sealed mosa; AOA; A copy of any agreement specified in the articles; A copy of the letter from the ROC on the availability of the name of the company; E-form number 1 for corporate incorporation; And payment receipts for registration and filing fees.
Enter your application one with RoC. Now that you have collected all the necessary application materials, then you are ready to file electronically with ROC to register your company.
You will file on the website of the Corporate Affairs Ministry. You have a prompt to upload all the app contents; Receipt of payments from DNI and DSC to MoA, AOA and registration fee.
Collect certificate of incorporation. If the documents are satisfactory then the RoC will issue your application veto and certificate of incorporation.
If the ROC application is not satisfactory, you will be informed which documents are missing or for any other information which you have to make available on the application form.
When you make the necessary corrections, you can re-enter your application.
Run the business! Once the RoC incorporates your certification, then you are ready to start a business in India.