Many individuals want to start their companies but are worried about the paperwork. People believe one must stand in long queues and navigate through other complexities to start business ventures in India. Those days are long gone, and one can now easily register a company online in India. Individuals who know nothing about the incorporation process can even reach out to company registration services for a seamless experience. An experienced third party will allocate experts for the incorporation of your company.
Opening a company in India has a lot of advantages, from tax benefits to reputation. Read on to understand the reasons for registering a company online in India.
How to register a company online in India?
Before knowing the perks of registering a company, one must know the process to register online. A new company must be registered with the Ministry of Corporate Affairs in India. Visit the official website of MCA for company registration.
Here are the simple steps for registering a company on the MCA online portal:
- Create your user account on the MCA online portal.
- Generate your DIN (Director Identification Number).
- Fill out the SPICe+ form (Part A and Part B).
One part of the SPICe+ form is related to the company name registration. You must acquire NOC from previous name owners if the company name is already taken. After getting the company name, one must submit Part B of the SPICe+ form. It is the incorporation application with all the company details and documents. All of the above processes will be completed online on the MCA portal without visiting any physical office. While registering a company online, one must produce e-copies of several documents, like
- PAN card of director(s).
- A document for address proof like a passport, driving license, voter ID card, etc.
- A document to prove the current address, like recent electricity, telephone, or mobile bill.
- A document to prove the company’s office/premises exists.
- Electronic signatures of director(s).
- MoA (Memorandum of Association).
- AoA (Article of Association).
If you are to open a subsidiary of a foreign firm in India, a few more documents might be required. Don’t forget to submit the company registration fee to the government online. After submitting all the details and documents, you must wait until the concerned ministry issues an incorporation certificate for your company. After this, the company is now legally allowed to begin operations in India.
Why register a company online in India?
The reasons for registering a company online in India are as follows:
- Save Time
For physical registration, one must visit a ROC (Registrar of Companies) office. Also, the process required submitting physical copies of documents and application forms. Business owners are often hurried by the lengthy paperwork for the incorporation process. Not to forget, they might visit the incorporation office multiple times. By registering a company online, business owners will save time.
- Flexibility
Registering a company online is more flexible than physical registration. One can start filling out the incorporation form at any time.
- Faster Processing
After submitting the incorporation application with the required documents, the certificate of incorporation is issued by the ministry. The ministry processes both online and physical incorporation applications simultaneously. However, an online application for company incorporation is more likely to process faster. Since individuals do not visit physical offices, the registration process is shorter. For the same reason, the certificate of incorporation will be processed faster online.
- Enhanced Transparency
You will have control over the online company registration process. Individuals can track the status of their incorporation application online. The application status can also be tracked on the MCA online portal.
- Availability of External Support
Some individuals might face issues registering a company online. However, there are many third parties offering company registration services. A reliable CA firm can offer company incorporation services. It will have the expertise required to handle incorporation processes. A third party will also help reduce the overall incorporation costs.
- Reserve the Company Name
Sometimes, individuals register for a company to reserve a business name. Competitors might use the business name in the future. Other business owners cannot use the name when the company is registered.
- File Tax Deductions
Tax authorities allow businesses to claim tax deductions. A company can write off taxes for several operational expenses. An individual is not free to write off taxes compared to a company.
- Securing funds from investors
Registering a company allows you to secure funding from investors. You can discuss your business plan with potential investors and obtain the necessary capital.
Look for an experienced CA firm for company registration services at lower costs. Register your company online on the MCA portal now!
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