How to Register Company In India? Company Registration Guide 2019 By Editorial Staff

The majority of entrepreneurs who want to start a business do not know how to register a company in India. It is important to register a company in India for several reasons.

Without registration of the company in India, you can not operate a company in India: it is illegal and can cause some legal problems.

In recent years, the central and state government has taken some steps to help entrepreneurs to register a company in India with ease.

A faster procedure is to assist start-up businesses and small businesses to come on board and get legal status.

Registering the company also has several benefits. You can increase business, successful schemes, subsidies, grants and other benefits from the government.

And you get protection under the various laws of India when you are operating with the right company registration in India.

How to register a company in India in 2019? Continue reading.

company registration
Company registration in India in 2019
There are several companies registration process of registering a company in India. It depends on the type of company that you want to register. Follow these simple steps to register a company in India in 2019.

Step 1: Choose Your Company Structure

Currently, the Indian government allows five types of structure of the company. Decide carefully on the structure of your company as it will play a major role in issues such as taxation, court cases, responsibility, profit sharing and loan finance and many others.

Here are five major corporate structure allow the Indian government in 2019.

Sole Proprietary Company
Hindu undivided family
Limited Liability Partnership
Private Limited Company
Public Company Limited
Let us look at the benefits of each of the five structures of the company.

Sole Proprietary Company

It is the best form of a company if you do not have a partner and is the only entrepreneur. Since 2013, the Indian government allows one person to own and operate a company.

Sole Proprietary Company A is ideal for start-up entrepreneurs.
This corporate structure provides a three-year tax holiday, if you register as a start-up.
Also, you are exempt from paying taxes on dividends paid to investors in your company.
You can file taxes with minimal compliance under the Registrar of Companies Act.
As a sole proprietor, you are responsible for preventing defaults on loans and respond to lawsuits.

Hindu undivided family

This is a very unique form to register a company. You will need a 'karta' or deeds before registering a company HUF. A 'karta' can broadly be described as the General Counsel of your family, your authorization to represent them in all aspects of the business.

Companies A HUF is ideal when you do not want to take external stakeholders and want to run the family-owned business.
All members of HUF equally responsible for paying the tax. No tax holiday.
The advantage of a company HUF shared among all family members.
Taxes can be individually or collectively. It depends on various factors such as other sources of income of the family members.
All the company's shares remain with the family. Therefore, there is no possibility of an outsider taking over the business in the case of 'karta' died.
A HUF company's balance sheet must be certified by a Chartered Accountant annually.

Limited Liability Partnership

You can opt for the Limited Liability Partnership or LLP if your company started with a small investment.

For LLP, you need one or more partners.
Each pair is equally responsible for the liabilities of the company.
LLP structure also allows you to initiate Joint Ventures with local or foreign partners.
You get the tax benefits of depreciation. filing tax returns require full compliance with the Registrar of Companies Act.
All partners are equally responsible for the loan, bank loans, and defaults and lawsuits.

Private Limited Company

This is the most popular form of corporate structure in India. In fact, many people prefer a private limited company is HUF because it imparts a better image for clients and suppliers.

Ideal for businesses that will have a high turnover.
Company Pvt Ltd was formed under the Indian Start-ups get a tax holiday scheme to three years from the beginning.
Tax depreciation is available for the first three years.
An account Private Limited Company must undergo internal and external audit proper.
tax filing must fully comply with the Registrar of Companies Act.
Public Company Limited
A Public Company Limited is one of the very high investment and may involve domestic and foreign partners.

A Public Company Limited offering of shares to all investors. An investor has the right to sell their shares to others, after the necessary permission from the Board of Directors.
Type the company has a very high turnover.
distribution of profit depends on the number of shares that each stakeholder has.
Public Limited Company can go for an Initial Public Offering (IPO) and offer some of its shares to the public, after completing the necessary formalities with the Government of India and the Securities and Exchange Board of India.
After the IPO, shares of Public Company Limited will be traded on the stock exchanges in India.
After deciding the structure of your company, here's how to register and comply with the law.

Step 2: How to Apply Company

Generally, there are five ways to register a company in India in 2019. I will list all of this. Regardless of how you choose, the process of registration of similar companies.

Do-It-Yourself: As the term implies, you can go about registering your own company. Unfortunately, there is a great flipside to this company registration process: You will spend enough time, effort and money shuttling between various government departments to obtain the necessary documents. You could fall prey to illegal brokers who will offer to speed up your application.
Through Your Lawyer / Chartered Accountant: This will be the best way to go about registering companies in India in 2019.
The reason: they will provide a single-window solution, utilizing the expertise, skills and contacts to register your company.
Online: Currently, it is very easy to register a company online. Visit the website of the Ministry of Corporate Affairs and access the necessary forms. Fill out and submit online with the required fee.
Online Agent: With the start-up culture is gaining ground in India, many agencies offer registration services company in India.
A simple search on Google will reveal dozens of institutions. You can opt for this method as well. However, make sure that the online agent is legitimate and has a proven track record in the company register.
Otherwise, you may be the victim of a scam. Some offer a complete set of application services for only Rs.4, 999 and so on. Read the terms and conditions carefully.
Registration City: This means getting a license under Shops & Capital City Act of the municipality in which you are going to start a business.
In Mumbai, this permission is known as 'Gumasta'. It allows you to register and run a business legally. And you are entitled to take advantage of various government schemes as well.
This may sound very simple and economical. However, the operation of a company to license only the city has a severe disadvantage as well.
Currently, most employers enlist the services of a lawyer, Chartered Accountant or institutions to register a company in India.

There is a very strong reason to hire a third party to register a company in India instead of registering online or DIY.

Importance of Lawyer / CA or the Agency

Ministry of Corporate Affairs has a complex website where you can register a company online. However, this process is very complex. Each newcomer will be confused by the process.

To start with, the newcomers would not know where to start. MCA web site says you need a digital signature to file online company registration in India.

And to get a digital signature you should visit the official source. And to add to the confusion, a website company that provides digital signature itself is very confusing.

Unfortunately, single-window registration companies to companies in India simply does not exist.

Instead of going through the hassle, it's best to ask your Chartered Accountant, Lawyer or hire an external agency will register your company in India in 2019.

They may cost a little money. But it certainly will help you register a company faster and with almost no headache.

Additional requirements for the Company Register

Here is something very important: it is not just enough to register a company name and address registration unless that is all you are looking for. To actually operate the company, you will need a myriad permits and licenses.

Depending on the nature of your company's business, there are some other mandatory registration and distance you will need.

For example, opening a bar and restaurant in Mumbai need more than 40 different licenses, the distance and the registration certificate companies from various authorities from the local fire department and city offices to New Delhi by the Food Safety and Standards Authority of India (FSSAI).

Therefore, it is better to take the following additional steps before you register a company in India.

Steps Before You List a

As I mentioned before, you never know who authorized the company you will need a permit and certification of other than the Ministry of Corporate Affairs. So follow these simple steps.

Visits Chamber of Commerce & Industry
India has several chambers of commerce and industry with offices and branches in every major city.

Visit them and find around leeway you will need when registering a company. Here's another example of what the licensing and registration you will need.

Department of Labor and Employment of the Center or the state government for a license to employ staff or workers, depending on the nature of your business.
Factory Registration Department of the state where the company is located, if you are going to produce any goods and own or operate the plant.
city ​​permit or license from the Industrial Development Corporation where your offices and factories, if any, will operate
Permission of the local fire department declared office / factory / place in accordance with fire safety standards.
In big cities however, the general license may be available to owners of commercial buildings or societies.
Registration of companies in India and distance from various departments if the company you will be dealing with hazardous materials such as chemicals and waste products.
environmental permits depends on the nature of your business.
The list could be quite long. Therefore, I suggest you contact the chamber of commerce and industry to get a list of documents you need to register a company in the field of business.

Search American Investor Friendly
Registering your business in investor-friendly countries is also a good idea. Several Indian states woo investors and entrepreneurs to register a company and operating from their territory.

They did it to generate jobs for citizens, building infrastructure, promoting local raw materials and enable overall development.

These countries have a focus area in which they encourage employers to offer a range of benefits such as free company registration in India, the liberation of the license fee for the first few years, the subsidized with cheap electricity and water supply and more.

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