India is the new ecosystem for startups and budding entrepreneurship, in 2022 alone DPIIT recognized over 26 thousand startups in India. This shows that the people of India are ready to get out of the regular 9-5 culture and start something new and something of their own. The journey of starting a startup begins with an idea, but the actual materialization of your business will happen when you have registered it and can begin your operations. And it’s here in the registration process many entrepreneurs become confused but don’t this whole article is here to explain to you how to register a startup in India. So, let’s get started
The Companies Act of 2013 provides incorporation, regulation, and company winding-up information. Under this Act, you can register various types of companies in India. Each type of company has its unique features, ownership structures, and legal requirements.
The following are some types of companies under the Companies Act of 2013:
Obtaining a Director Identification Number (DIN), a Digital Signature Certificate (DSC), and submitting the required paperwork to India’s Ministry of Corporate Affairs (MCA) are all steps in the process of registering a business under any of these categories.
One Person Company (OPC) is a type of private company that needs only one Director for incorporation. OPCs are ideal for sole proprietors who want to enjoy the benefits of an LLP. The registration process for an OPC is like that of a private limited company.
OPCs have certain limitations, such as:
A Private Limited Company (Pvt. Ltd.) is the most common type of company registered in India. It is a company that has two to 200 Directors. Only the owners of a Pvt. Ltd. have ownership status. Its shares cannot be traded or made available to the public.
Pvt. Ltd. companies are ideal for small and medium-sized businesses. Unlike LLPs, Pvt. Ltd. companies have certain advantages over other types of companies. They have a separate legal entity status and can raise funds from investors.
A Public Limited Company (PLC) has seven or more shareholders. The total number of stakeholders is unlimited. Shares of a PLC are available to the public. It can raise capital from the public through an initial public offering (IPO).
PLCs are subject to more regulatory requirements than Pvt. Ltd. companies. They have certain advantages over other types of companies. PLCs can raise large amounts of capital, thus, attracting a wide range of investors.
How to register a startup in India? The company must be a “Business Entity.” The company must be registered as one of the following:
For startup registration in India, you must submit the following documents to the authorities:
Ensure that all the mandatory documents are complete and accurate before submitting. This will help avoid any delays or rejections in the registration process.
How to register a startup in India can be a daunting task, but following the right procedure can make it a hassle-free process. The following is a step-by-step guide on how to register a startup company in India:
With a DSC, you can file documents online for company registration for startups. The process to get a DSC is as follows:
Each director of the company needs a unique Director Identification Number (DIN). The process for a DIN is as follows:
The next step is to register the company on the MCA portal by filling out the required forms. The process to make a new registration on the MCA portal is as follows:
Once approved, the Registrar of Companies (RoC) issues an Incorporation Certificate. It is a legal document that certifies that the company is registered. The process to receive the Incorporation Certificate is as follows:
Registering a startup in India requires careful planning and attention to detail. It can take many weeks to finish the procedure. Although time-consuming, establishing a company is worth the wait. The steps outlined in this article can help entrepreneurs set up their startups. You can follow these steps and do a bit more research on other necessary information related to your niche of startup.
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The cost of registering a startup in India depends on the type of company you are forming. You must also calculate the authorized capital and service provider fees. The government fee for registration can range from Rs. 4,000 to Rs. 10,000, and professional fees can range from Rs. 5,000 to Rs. 50,000. Other expenses may include legal fees, stamp duty, license, and permit fees.
Yes, anyone can register a startup in India by following the correct startup registration process. Your company must have a unique business idea and be registered as a Pvt.Ltd., LLP, or OPC. It must have a turnover under Rs. 100 crore.
Non-resident Indians and foreign nationals can also register a startup in India. Certain conditions include:
1. Having an Indian resident director.
2. Complying with the Foreign Exchange Management Act (FEMA) regulations.
Startups in India pay corporate tax on their taxable income, which is currently set at a rate of 25%. They also need to register for and pay GST on goods or services sold. Additionally, they must contribute to the EPF scheme if they have over 20 employees. Most states also levy a professional tax on companies based on their number of employees.
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