How to Start a Company and step by step guide to registering company in India :-

In India today, there are many such companies in the country, which are at number one, but there are many companies which are struggling till date, because in today’s time there is so much competition in the market, that non any one able to make balance in market.

Today we will tell you in detail what a company is and how it works, as well as how many types of company are there.

What is a company?

When a few selected trained officers run an organization together, it becomes a company. The company is formed by the shareholders present in the company to sell and buy goods or to exchange services. Some companies are associated with for-profit organizations and some companies also work for non-profit organizations.

A single person cannot run any company, he needs many workers to run that company, for which he provides employment to many people. Companies have the right to buy shares of other companies and name them and can sue other companies if needed.

In addition, a company borrows money from the market for its capital growth and also collects money by selling its shares. If seen legally, then all types of companies have the same rights and responsibilities.

Also, they have some legal rules as a responsibility, which is mandatory for them to follow. If any company violates the rules made by the law, then it is a punishable offense for them.

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Types of Company

There are generally many types of company, which are as follows: –

One Person Company: – A company is also formed on the basis of members, but sometimes it happens that some people are thinking of starting their own business, but at that time they do not have suitable capital. In such a situation,he single-handedly invents a new company to encourage young entrepreneurs and gradually promotes his business.

Private Limited Company: – A private company is a company in which two or more persons are registered under the Companies Act and form their own company. They set up a business and start a company knowing about all the trained things related to it.

Public Limited Company: – A company which is formed by a minimum number of 7 members with legal items is called a public company. There is no limit to the maximum number of members in this company, as it is a registered company. This company has complete freedom to sell and buy its shares independently. When a person joins a public company, he too falls under the public company.

Limited Liability partnership: – A company is one which is started and run by some partners. To run any company, 2 or more partners are entitled to get ownership of that company.

Company Features

Fake Person: – A company also acts like a person, the way a human being is first born according to the will of God. In the same way, a company takes birth according to the wishes of the human being. Just as a man’s life goes on, he grows, eats, drinks and sees sorrow and happiness in life, in the same way a company also has to suffer all kinds of sorrows i.e. loss and profit. Those who harm them also benefit.

Independent Company – Independent company is such a specialty of a company. Under which any company forms an entity separate from its members. He can keep the entire property in his own name and can make and break any contract at any time. In that company, the company owner has so much freedom that he can sue others for any kind of mistake. And other companies can also sue that company if any troublesome situation arises.

Away from all effects – A company is one that has no effect on natural effects. In simple words, even after the death of any member and operator of any company, its insanity or property is completely ruined, a situation has no effect on a company.

Limited Liability – Many members are present in a company. Those who take the shares of that company annually in their name and become members of that company. The entire guarantee of any person who takes shares from the company is limited only to the guarantee given by the company.

Share transfer facility – One of the greatest features in a public company is that it can freely transfer the shares it holds in the hands of anyone. Now under any circumstances, if the owner of a company wants to sell and buy the shares he has taken, then he can also buy and sell his shares through exchange.

Ownership and management – In general, the number of members in a public company is limited and this means that a public company has a large number of members. Who are not able to participate in every task and management in the company from day to day. Therefore, a board of management of a company is created, which runs the company completely. The main directors of the company are elected by the members of the company through the election process, so they are given full ownership of the company’s management.

Why it is Necessary to Register Your Company?

It is very important to register any one company to run it smoothly. Let us know what are the main reasons why you benefit from registering a company and why you should register a company.

Registration of the company gives the main identity of the company: – To run a company, it is very important to get it registered. Because it gives the company a unique identity. If the company is legally registered, then it is easily able to convince consumers on your enthusiasm. By legal registration, your company gets a legal name, address and identity. If you register your company with your preferred name, then you also get to know if someone has used this name for their company before and if you have chosen that name for your business. No person can use that name for their company name.

This protects you from personal liability: – When you register a company, even if it is in your name, you do not have to personally compensate for any loss in the company. In simple words, a lawsuit for any heavy damages like any property can be filed in the court, but the person who owns a registered company is not fully responsible for it. If your company is registered, then assume that there is an outstanding loan on your company or there is an outstanding amount of the company that you have to pay, in such a case if you are unable to pay and there is a big loss in your company, So it cannot be compensated by selling any item of your house because your company is registered.

It is easy to attract customers: – It is not easy for any customer to trust any company or product manufactured by him, but the members present in the company make the product so attractive that it attracts customers and gives them confidence. It becomes very easy to give.

Getting investors for your company easily: – To run any company, it requires full financial amount. In such a situation, no one person can raise sufficient amount to run a company nor can he get enough resources. In such a situation, the company needs some investors or it takes a loan from a bank to fulfill its needs, for which registration of that company is very important. If a company is not registered, then no investor invests his amount in such a company. Before inviting an investor to invest in your company, you must register your company.

To maintain the business for a long time: – Some people start their business on a small scale, at that time they do not register their business. In such a situation, how long he will be able to run his business, how long it is not possible to guess. If you want to run your business for a long time, and it keeps your future plans ready in advance, then it is necessary for you to get your company registered.

How to Register a Company?

For any company to be legally registered, it is mandatory to follow a procedure which is as follows: –

At the time of registration of the company under the Indian Companies Act, a Korea number is issued, which is a unique identification code by the DIN ((DIRECTOR IDENTIFICATION NUMBER) MINISTRY OF CORPORATE AFFAIRS. A person who wants to become the manager of the company by that code , This is his identity. To get this code, you have to go to MCA portal and fill e-form dir-3. For which you also have to pay an application fee of Rs 500. Have to do it.

In the second stage, you have to get the Digital Signature Certificate DIGITAL SIGNATURE CERTIFICATE (DSC). If you want the registration of your company to be completed quickly, then it is very important to get this certificate. After this, you are also required to fill a form while doing business registration, this will be done by the Government of India authorized third party companies like Tata Consultancy Services, National Informatics Center, MTNL Trustline, e-mudra. All these facilities are provided by the government to each company. Huh. To register a company, you have to go to the DSC office of a company which is authorized by the Government of India and you have to fill your application for registration of your company. If you fill the application through BSC, then all the expenses incurred at the time of application depends on the company. According to e-mudra, its price has been kept at only 899 rupees.

In the third step of this process, on which name you have to register your company, you should first check that name through the MCA portal, that the name you want to register is already the name of another company But not registered If the name you think is not registered in the name of any company, then you can put that name after your company, after that you have to fill an inc-1 form. This simply and simply means that the name you think has been registered for your company, no other person uses this name.

According to the Companies Act 2015, some main rules and laws have been implemented for a company. According to him, Memorandum of Association and Articles of Association at the time of registration of the company are the two main business documents for the company which each company is required to obtain. Generally, both these documents give complete details of the guidelines and rules law followed by a company. Which is mandatory as per Companies Act 2015. Each company is required to have a lawyer or chartered accountant to make certain main types of documents. These two documents have an important place for a company, so get them made under the supervision of a trained person.

After all these procedures, you have to go to the MCA portal and submit another form, whose name is the denial form. Under this, if you want to register a forest person company, for that you will have to fill the e-Form 2 INC-2 properly and submit it. Apart from this, for other types of companies, you have to fill the e-form INC-7.

During the process of registration form you are charged an amount which is stamp duty.
When your registration process is complete, a document is given to you after payment of stamp duty along with an invoice. You have to show it to the company registered office in the state in which you are going to establish your company.

After this whole process, when all your documents are completed and you fill the complete form, after that all your documents are examined, which takes about 2 days. Now you need to get the in-corporation certificate, for which you get the in-corporation certificate within a week on your registered email id. When you get your certificate of Incorporation through your email ID, then you should keep a copy of it and keep it with you, because in future all the important work you need that certificate.

If you want to open a current account in any bank in the name of your company, then you are also asked for a photo copy of the Memorandum of Association and Articles of Association.

When the registration process of the company is complete, then you must fill the online application for PAN card registration through NSDL online website so that you can register a PAN card in the name of the company.

FAQ’s

Q: What kind of company should be formed?

Ans: To run any company, a substantial amount of capital is required and if you do not have it, then in such a situation you can get more profits by running a sole proprietorship company. If you want to give a big look to your business then you can start your business as a corporation.

Q: Where should a company be established?

Ans: The company should be established in such a place where all the items can be easily available according to the needs of the company. At such a place, you will also have less trouble and you will have to reduce the charges.

Q: What should be the size of the business initially?

Ans: Initially the size of the business should depend on your capital and your capacity.

Q: What are the main business challenges when starting a business?

Answer:

Lack of capital and cash flow
A good plan for business
Good service and choice of product
Work more than expected
Any criticism for your product
Finding good employees
Time management
Balancing work and life

Q: Is the permit license and registration required for the company?

Ans: Organizing a company is such a difficult task, but getting its registration done is not a very difficult task. Registration of any company is useful to secure your future, so it is very important to register the company and get permits and licenses for it.

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How to start a company and the process of registering a company in India