Trying to register company in India without the help of a good CA/CS would be time consuming and tiring. Though the process involved are now online, it still involves approval from ‘local authorities’ (ROC) which is being done manually. So to be on the safer side, hire a CA and let him do his job. These are the inevitable steps required to be completed in India to register a private limited company.
1) Register the Director Identification Number (DIN) for all directors involved through www.mca.gov.in (1 week)
2) Apply for Digital Signature (any one of the director). Digital signature is essential to sign any document which has to be submitted to ROC ( 3-5 days)
3) Register a unique name for the company using www.mca.gov.in (2 days)
4) Register the company with the name, promoters, and communication address.
Draft one paragraph about the Objective of the company,
Declare the Paid up and Authorized capital of the company. (Minimum paidup capital required: Rs. 1 Lac)
P.S: Authorized capital corresponds to numbe of shares. More the authorized capital, more the stamp duty which has to be paid to govt. Eg: If authorized capital is Rs. 5 Lacs, then stamp duty will be around Rs. 17,000
5) Print the Memorandum of Association and Articles of Association, Get the Letter of Incorporation issued from Registrar of companies via snail mail. (1 week)
6) Get the unique metal seal for the company (2 days) and also 3 rubber stamps (1) Company address, 2) Authroized signatory, 3) Round stamp with company name
7) Start a Current Bank account for company transactions and transfer the paid-up capital amount to that account from each director / shareholder’s accounts. (10 days) P.S: To start a current account you will have to submit the company PAN card. In most cases, the copy of PAN card application form / receipt would do.
8) First issue the Share certificates to promoters and then to other subscribers
Approx. expenses to start a company in India
Rs/- 100 : DIN no.
Rs/- 500 : Registering the name of the company
Rs/- 5600 : Fee to govt.
Rs/- 2500 : Memorandum of Association (printing)
Rs/- 2450 : Digital Signature (Personal)
Rs/- 1000 : Metal Seal, Share Certificates
Rs/- 8000 : Professional Fee
Rs/- 17000: Stamp duty for Authorized capital of Rs. 5 Lacs
Rs/- 1,00,000: Minimum Paid-up capital for a pvt. Ltd company in India
Total: ~ Rs/- 1,38,000
Tips for startups:
1) Donot keep both paidup and authorized capital same. In that case, you will have to transfer the shares for issuing to other share subscribers
2) 2 or 3 Board resolutions have to be passed in the initial days. (to start bank account, Authority to issue shares, Issuing shares etc.). Try to keep all of them in the first board meeting itself (this would be mostly done on paper)
Optional but important steps:
Register a unique domain name in internet (Rs. 600 for .in and Rs. 400 for .com)
If you dont have much activity in initial days, save on stationary. Visiting cards could be printed using MATT card (Rs. 25 for an A3 sheet) which would give you around 100 cards for 50 Rupees
P.S: The charges may vary from state to state. Charges shown here applies to starting business in Ahmedabad, Gujarat. All of this could be done easily with a Company Secretary.