Setting up a company in India can be a complex process, but with the right guidance and support, it can be made simpler. Here are the essential steps that you need to follow to set up a company in India:
Step 1: Choose the Type of Company
The first step in setting up a company in India is to choose the type of company. The most common types of companies in India are private limited company, public limited company, and one person company (OPC). Each type of company has its advantages and disadvantages, and it is essential to choose the type of company that best suits your business needs.
Step 2: Obtain Director Identification Number (DIN) and Digital Signature Certificate (DSC)
The next step is to obtain the Director Identification Number (DIN) and Digital Signature Certificate (DSC). The DIN is a unique identification number assigned to the directors of the company, and the DSC is used to sign the documents electronically.
Step 3: Register the Company Name
Once the DIN and DSC are obtained, the next step is to register the company name with the Registrar of Companies (ROC). The name should be unique and should not be identical or resemble the name of any existing company.
Step 4: File the Articles of Association (AOA) and Memorandum of Association (MOA)
The AOA and MOA are the legal documents that define the objectives, rules, and regulations of the company. These documents need to be filed with the ROC along with the application for company registration.
Step 5: Obtain the Certificate of Incorporation
Once the AOA, MOA, and other required documents are filed with the ROC, the company registration process is initiated. Upon successful completion of the registration process, the ROC issues a Certificate of Incorporation, which is proof of the company’s legal existence.
Step 6: Register for Goods and Services Tax (GST)
All companies with a turnover of over Rs. 20 lakhs per annum are required to register for Goods and Services Tax (GST). The registration can be done online through the GST portal.
Step 7: Register for Employees’ Provident Fund Organization (EPFO) and Employees’ State Insurance Corporation (ESIC)
If the company has employees that crosses the limit, it is mandatory to register for the Employees’ Provident Fund Organization (EPFO) and Employees’ State Insurance Corporation (ESIC). The registration can be done online through the respective portals.
Step 8: Obtain Business Insurance
Business insurance is essential to protect the company from unforeseen events such as natural disasters, accidents, theft, etc. There are various types of business insurance policies available in India, and it is essential to choose the one that best suits the company’s needs.
In conclusion, setting up a company in India requires compliance with various legal and regulatory requirements. Therefore, it is advisable to seek the assistance of a professional service provider to ensure a smooth and hassle-free process of setting up a company. With the right approach, setting up a company in India can be a rewarding and profitable experience.