9 Point Business Plan for Startups [Infographic]
Startupwala Team 23/05/2018
With lot of buzz around Startup and their great success stories, we happen to miss where all that starts from: Company Registration.
This Infographic guide has everything you need to know about registering a Company in India (step-by-step).
What is Company Registration? What is a Company? Infographic Company options for Registration in India? 6 Reasons Why you must Register your Company? Documents Required for Company Registration Company Registration Cost and fees in India Steps involved in Registering a Company? MCA Company Name Search Process 11 Myths & Truths on Company
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Company registration means legally getting the right to do business. In India, registration of company is also known as formation of business or incorporation of company.
Let us see what is this Company thing all about and then move on to Company Registration.
A business organization that makes, buys, or sells goods or services in exchange for money is known as a Company.
In simple words, company is a mode of doing business.
Your business setup need to be well thought of and the most important is to decide which form of business structure or vehicle to adopt. Choice of vehicle will help you to achieve most of your entrepreneurial dreams.
Mostly, it depends on what is your expansion plans, future team size, funding requirements and business vision.
Folks, we are listing few of the most popular business vehicles, sitting on which you may ride or fly. All depends on your choice.
Before jumping on to choosing your option, we need to know two important words Legal Entity and Non Legal Entity. These two terms will help you to lay your hands on the right vehicle.
Entity means a body, a legal entity means legal body, as we humans are natural body created by nature, few company structures are created by law giving them a special status of legal entity. Structures like Pvt. Ltd., OPC, LLP, Section 8 NGO are corporate entities and enjoy a special treatment and protection in law.
With this, let's dive into different types of business vehicles to operate business in India.
You must choose corporate entities like Pvt. Ltd., OPC or LLP for your business, as in last few years Indian Government is implementing initiatives that prefer corporate entities over normal partnerships and proprietorship firms (these are also termed as Non-Company). Market experts also see introduction of LLP and OPC is to actually replace and slowly stop the registration of partnerships and proprietorship from India.
Let's see how does company formats like Private limited and LLP put you at an advantageous position.
Once you have these documents you are ready to roll your sleeves and get ready to be incorporated.
Wait,Next million dollar question is coming.
Here we go with the time,charges and lot of freebies, Enjoy.
Checking the Company name availability is a very important step in Incorporation of a Company.
What does this mean?
Company Name Search means before starting your business, you must know that the name of your company is not similar to any existing company or trademark. Also your business name must comply with MCA naming guidelines.
Detailed Online name search on MCA website will help you to apply for a legally proper name, so that there is no legal issues in going forward.
MYTH #1- For registering as Pvt. Ltd. firm, you need certain level of Turn over or Sales
TRUTH:
This is not true; a Private limited startup is one of the modes of doing business, which means it can be started from the scratch. For that matter even after incorporating a private limited there is no obligation that the venture must have sales or turnover.
MYTH # 2- Directors of the corporation must have shares
TRUTH:
This is not true. Shareholders are the owners of the Company, who invest money while Directors are managers of the enterprise for looking after the operations of the business. In startup companies mostly directors and shareholders are the same person. However it is not necessary that every director must hold shares.
MYTH # 3 Only human beings can be shareholders or owners of the Company.
TRUTH:
Again this is not the truth. As in the eyes of law a company is defined as an “artificial person” Once Incorporated Company can invest into the shares of another corporation. This means human beings as well as incorporated companies can invest into Private limited business.
MYTH # 4 Tax Rates for Private Limited Company is high
TRUTH:
This may be partially true. The tax rate for a organization is higher than that of Individual trader or Partnership firm. However, Private limited Firm allows lot of opportunities to reduce the tax amount. For a startup firm there is no relevance of Tax rates, several deductions under tax is allowed
MYTH # 5 – PF, Service Tax or VAT/ GST is automatically applicable to Private Limited
TRUTH:
This is not the reality. Provident Fund (PF), Service Tax or VAT /GST laws are similar for all types of businesses like sole proprietorship, partnership firms and companies. There are threshold limits for the applicability of these laws, like PF is applicable to all entities upon employing 20 or more employees; Service tax is applicable to entities, providing taxable services, only after crossing Rs. 10 Lac of sales, similarly VAT is applicable to trading business crossing Rs. 5 lakh or GST above 25 lakhof limit of turnover. This means registering a private limited Organization will not make any difference to the applicability of PF, Service Tax, VAT/GST or ESIC.
MYTH # 6- The Share Capital of the Company to be deposited in a Bank at the time of Incorporation
TRUTH:
Again this is not true. The minimum capital required is abolished since 2013 in India. Even if the private limited enterprise shows share capital of Rs. 1 Lakh at the time of formation. The capital amount is shown only in the Incorporation documents and need not be deposited in a bank or elsewhere at the time of incorporation. Once the bank account of the venture is opened, this money can be deposited into said bank account and can be used for business purpose.
MYTH # 7- After Incorporation, changes in Private Limited is tough or not possible
TRUTH:
Again this is not the reality. Private Limited venture is one of the most flexible business structures available for entrepreneurs. As soon as your business is incorporated, from the same day you can make all kinds of changes and modification in its capital, shareholding, directorship, business scope, office address and literally you can change everything of a enterprise.
MYTH # 8- Commercial Office Space is required for Incorporating a Company
TRUTH:
The Reality is that you can show your own residential or rented home address as the registered office address of the firm. This office address can be changed at any time after incorporation of the company.
MYTH # 9- Costly to maintain or need In-house legal team to comply with laws
TRUTH:
This is not the truth, private limited startup requires very minimal compliances of annual roc filings, accounting and tax filings. There are thousands of Company Secretaries and Chartered Accountants who can help you with these services at a nominal cost. You do not require a single person to manage this until you cross very high turnover.
MYTH # 10- Private Limited Registration to be renewed every year
TRUTH:
This is a crazy thing, there is no such renewal required. Once the Company is incorporated it will remain for eternity until company is legally closed by the owners. There is no renewal, or registration or any fees to be paid to any government or private agency. The only requirement is that Company has to file yearly returns with the Income Tax department and ROC (Registrar of Companies).
MYTH # 11- Single person cannot hold 100% shares in a Pvt Ltd company.
TRUTH:
This is not true. After April 2014, a single person can register a one-person company (OPC) which is a private limited business and can Own 100% shares of the company. OPC can also appoint many directors without issuing any shares to them.
The Registrar of Companies also known as ROC in India are responsible for registering companies like private limited, one person companies, limited liability partnerships (LLP), public limited and Section 8 Companies in India.ROC offices issue Incorporation certificates, maintain register of companies and LLPs, provide list of companies, list of directors and Company data search facilities on payment of prescribed fee.
DELHI & HARYANA
A) Delhi
4th Floor, IFCI Tower,
61, Nehru Place, New Delhi – 110019
Phone: 011-26235707, 26235708, 26235709
roc.delhi@mca.gov.in
B) Haryana
Plot No. 6,7 & 8, Basement,
IICA Campus, Sector – 5, IMT – Manesar,
Gurgaon, Haryana
Phone : 124-2291520
MAHARASHTRA
A) Mumbai
100, Everest, Marine Drive
Mumbai – 400002.
Phone: 022-22812627/22020295/22846954
roc.mumbai@mca.gov.in
B) Pune
PMT Building, 3rd Floor, Deccan Gymkhana,
Pune – 411004
Phone: 020-25521376
roc.pune@mca.gov.in
ASSAM , MEGHALAYA, MANIPURA, TRIPURA, MIZORAM, NAGALAND & ARUNACHAL PRADESH
Morello Building, Ground Floor, Shillong – 793001
Phone: 0364-2504093
roc.shillong@mca.gov.in
BIHAR & JHARKHAND
A) Patna
MauryaLok Complex, Block A
Western Wing, 4th Floor,
DakBanglow Road
Patna - 800001, Bihar
Phone: 0612-222172
roc.patna@mca.gov.in
B) Ranchi
House No-239 , Road No-4
Magistrate Colony, Doranda
Ranchi: 834002, Jharkhand
Phone: 0651-2482811/2480801
TAMIL NADU
A) Chennai
Block No.6, B Wing 2nd Floor,
ShastriBhawan26, Haddows Road,
Chennai – 600034
Phone: 044-28270071
roc.chennai@mca.gov.in
B) Coimbatore
Registrar Of Companies
Stock Exchange Building, II-Floor,
683, Trichy Road, Singanallur,
Coimbatore – 641 005, Tamilnadu
Phone: (0422) – 2318170 (D), 2318089, 2319640
roc.coimbatore@mca.gov.in
GUJARAT
ROC Bhavan, OppRupal Park Society,
Behind Ankur Bus Stop,
Naranpura, Ahmedabad – 380013
Phone: 079-27437597,
roc.ahmedabad@mca.gov.in
ANDHRA PRADESH & TELANGANA
2ND Floor, Corporate Bhawan,
GSI Post, TattiannaramNagole, Bandlaguda
Hyderabad – 500 068
Phone: 040-29805427/29803827/29801927
roc.hyderabad@mca.gov.in
CHATTISGARH
1st Floor, Ashok PingleyBhawan,
Municipal Corporation, Nehru Chowk, Bilaspur- 495001
Chattisgarh
Phone: (07752)-250092(D), 250094
roc.bilaspur@mca.gov.in
GOA , DAMAN & DIU
Company Law Bhawan
EDC Comlex, Plot No. 21
Patto, Panaji, Goa – 403 001
Phone/Fax(Off) 0832-2438617 / 2438618
roc.goa@mca.gov.in
JAMMU AND KASHMIR
Hall No.405-408,South Block, Bahu Plaza,
Rail Head Complex, Jammu – 180012
Phone: 0191-2470306
roc.jammu@mca.gov.in
KARNATAKA
‘E’ Wing, 2nd Floor
KendriyaSadana
Kormangala, Banglore – 560034
Phone: 080-25633105 (Direct),
080-25537449/25633104
roc.bangalore@mca.gov.in
KERALA
Company Law Bhawan, BMC Road
Thrikkakara, Kochi – 682021
Phone: 0484-2423749/2421489
roc.ernakulam@mca.gov.in
MADHYA PRADESH
3rd Floor, ‘A’ Block, Sanjay Complex
JayendraGanj, Gwalior
Phone: 0751-2321907, Fax: 0751-2331853
roc.gwalior@mca.gov.in
WEST BENGAL
Nizam Palace, 2nd MSO Building
2nd Floor, 234/4, A.J.C.B. Road
Kolkata - 700020,
Phone: 033-2287 7390
roc.kolkata@mca.gov.in
ORISSA
Corporate Bhawan, 3rd Floor,
Plot No. 9 (P),
Sector : 1, CDA, Cuttack : 753014
Phone: 0671-2365361, 2366958, 2366952,
roc.cuttack@mca.gov.in
