If this is making you feel sick about setting up a company in India, then you have some good news coming your way. There are various platforms that offer expert services to help owners establish their businesses. The Government has also taken some measure towards easing the process by offering digital services.

Moreover, gaining in-depth knowledge of the prerequisites for owning a business in India can help you launch your company faster and more successfully.

How to Set Up a Company / Business in India

Setting up business in India starts with the process of registration. Owners usually prefer registering their business as a private limited company due to the advantages that this form of a company has. However, owners may also opt for an unlimited liability company. Once the name of your company is approved by the Registrar of Companies, you need to submit the other required documents. What lies at the end of this process is your journey of entrepreneurship.

Legal Requirements for Setting Up a Company in India

The Companies' Act of 2013 has laid down four major steps to achieve a private limited company registration. You need to obtain a Digital Signature Certificate (DSC), and ensure that the documents you submit online are digitally signed by you. Obtaining a Director Identification Number (DIN) is another important step. For this, the people you as Directors need to submit their PAN card, address proof, or bank statement during registration. The next step is to file for a eForm or a New User Registration. Finally, you need to incorporate your company for setting up business in India.

Documents Required

There are certain documents that are required for setting up a company in India. These include:

• Address proof (either a driving license, Aadhar card, voter ID, or passport), PAN card, and bank account statement of the Directors and shareholders of the company.
• Residential proof of the owners of the company. For this, you can submit the electricity bill, telephone bill, mobile bill, or bank statement.
• Proof of residence of the premise that you choose for the operation of your business. In case you hire an office space, you will need to provide a No-objection certificate from the landlord along with a copy of the rental agreement.

Procedures and Compliances for Setting up a Business in India

The first and foremost rule to follow for a startup registration in India is checking the availability of the company name. You can check it from the portal of the Ministry of Corporate Affairs or MCA. In case the name you select is already registered, you can apply for a different name on the same application. You are also required to obtain the Digital Signature Certificate and submit Form INC 32 to the Registrar of Companies (RoC) for incorporating the company. In addition, the Memorandum of Association and the Articles of Association should also be filed.

Business Setup Services in India

To assist aspiring entrepreneurs in setting up their own companies, a number of experts offer their services. From selecting a name for your company to obtaining approval with the submission of the necessary documents, these experts can walk you through the entire process. This helps in fastening the process of owning a business and brings less stress for you.

What Investors Should Take into Consideration When Setting up a Company in India?

When you are setting up your company, ensure that you file the statutory documents of the company, such as the articles of association and the memorandum of association. These documents should be signed by a minimum of two subscribers, and they need to mention their father's name, address, occupation, and details of the shares that have opted for. The whole process should be witnessed by at least one person, and the documents must be stamped with the stamp duty. The date mentioned on the documents should not be prior to the date of stamping. These are some crucial steps that determine how smooth will the registration process be.

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