Startup Legal Docs

Startup Legal Docs

Legal Documents required for Every Startups in India. Know well about the Startup India Scheme

With startups spurring all across the nation, the need for registered business is at an all-time high. With the introduction of new rules and easing of doing business, registering a company has been “super easy!”

On the other hand, the various initiatives like Startup India programs, an increasing number of individuals have been encouraged to lead and create businesses. Here is everything you need to know about how to register a company in India.

Before delving right into the topic, let us understand a few things!

What is a Company?

an organization that sells goods or services in order to make money

Cambridge English Dictionary

Legally, a Company is a type of business organization registered and incorporated under the law (in India – Companies Act, 2013). Once registered, a Company is an artificial legal person, which enjoys an existence different from its owners. 

It is this feature of a Company that makes it the most attractive type of business organization. Let us understand the unique characteristics of a Company.

What are the characteristics of a Company?

Let’s understand what makes Company unique and different from other forms of business organization?

Limited Liability

In a Company, the owners' liability is limited to the amount invested by them into the Company.

Separate Legal Entity

Once registered, Company is a separate legal entity and enjoys an existence separate from its owners.

Perpetual Existence

As a separate legal entity, the life of the Company does not depend on the life of its owner. It has perpetual existence.

What are the different types of Companies?

A Public Limited Company is a Company in which the general public are shareholders of the Company.  These could be listed on the stock exchange or unlisted company. Public Company require at least 7 (seven) shareholders and 3 (three directors) to start with.

A Company which controlled and owned by a Private group of people. Law prohibits invitation of investment from the general public. This requires 2 (two) shareholders and 2 (two), directors. The shareholders and the directors can be the same persons.

This is the newest entrant in the types of companies. Any Company requires at least 2 people. However, to promote the corporate culture even amongst smaller businesses, the Government introduced One Person Company. As the name suggests, this type of Company can be formed by a single person and enjoy the benefits of a Company. 

The law defines Section 8 Company, as a Company which is engaged in promoting research, social welfare, religion, charity, commerce, art, science, sports, education, and the protection of the environment or any such other object. Further, the profits earned cannot be distributed as dividends and can be applied for the promotion of the objectives of the Company.

So, how to register a Company in India?

What are the steps to register Company in India?

The steps involved in registering a Company vary slightly from one type to another. However, broadly these remain the same (except for Section 8 Company, which requires certain approvals).

Step 1

Apply for Digital Signature

It is a type of encryption that helps establish the authenticity of the documents and identity of the sender.

Step 2

Name reservation

After obtaining DSC you need to apply for reserving the name of your Company. To check the availability of name here

Step 3

Apply for registration

Post name reservation, fill EAOA, EMOA, E-declarations including e-applications for PAN, TAN, PF, and ESI. apply for final registration.

Step 4

Incorporation Certificate

Once the application is approved an incorporation certificate is issued by the Regional Registrar of Companies.

To read in detail about each of the steps mentioned above, head to our blog –> Detailed view of steps involved in Registering a Company in India.

FAQs on Company Registration in India

Apart from limited liability, what attracts investors is easy transferability of shares, and also being a regulated organization certainly lends quite some credibility to the Company.

Yes, broadly the process remains the same. However, since some of the documents (id proofs, the address proofs, etc) would be issued by a foreign government, to establish the authenticity, the same needs to be signed by consular or apostille as per the Hague Convention.  However post-registration an additional approval/filing with Reserve Bank of India shall have to be done.

Yes, as per the Companies Act, 2013 it is mandatory to have at least 1 (One) resident director. A director is said to be a resident of India if he/she has spent more than 180 days in India.

Documents required from an individual for registering the Company :

  1. Photo 
  2. PAN - mandatory for Indian
  3. ID Proof, other than PAN
  4. Address Proof - latest telephone bill, mobile bill, bank statement, electricity bill.

Documents required from a shareholder who is a Company?

  1. Registration certificate of the Company.
  2. A resolution passed by the Company authorizing the registration of a Company.
  3. Address proof of the Company.
  4. In the case of holding Company, the resolution must state the name of the shareholders, directors, shareholding pattern.
  5. Address proof of the Company's registered office.

Need more details? Contact us!

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