Overview: What is Company Registration Certificate in India?
Every entity that desires to operate within the legal framework must first get a company certificate registration. To obtain the registration certificate on the first try, the documentation must be exact.
To have a Company registration certificate a needs to fulfill the criteria of the Ministry of Corporate affairs, I.e. MCA.
If you are a new in the business sector and wish to understand the aspect of registration certificates in India, then this article is for you.
This post will help you in knowing everything about business registration certificates from the bottom to up.
Significance of Company Registration Certificate in India
Unlike in the past, you no longer need to visit authorities’ offices to receive a certification of incorporation; instead, you may go online (through the authority’s webpage) and simply follow the process for obtaining a company registration certificate.
Before we dive into the entire matter, let’s look at some fundamentals. According to MCA (Ministry of Corporate Affairs) laws, India has made it incredibly straightforward and uncomplicated to establish a new business in India within a short amount of time.
Furthermore, as previously said, you do not need to visit government offices to register the firm. Instead, you must go to the internet site & fill up the essential forms and documentation.
Importance of Company Registration Certificate in India
The following are some of the reasons why a Company Registration Certificate is necessary for India:
- A legal document proving the company’s identity and existence.
- A corporation is a separate legal entity. As a consequence, the MCA issues a certificate of incorporation that contains a unique Corporate Identification Number (CIN), which serves as the entity’s unique identifier.
- This certificate proves that the company has registered with the RoC. As a consequence, it may begin activities in line with the conditions of the MOA.
It is critical to understand that, according to Section 7(7) of the Companies Act of 2013, if a corporate body submits misleading or erroneous information during registration, the Tribunal may:
- Make an order that it deems acceptable for regulating the company’s management. Modifications to the MOA might be needed.
- Direct the business to release all members’ responsibilities.
- Withdraw the company’s name from the RoC, thereby canceling the registration certificate.
- Make an order for the company’s dissolution.
You are entitled to all of the rights afforded by your company’s legal structure since a certificate of registration acts as legal proof of your company’s identity. These include tax breaks, eternal life, and other benefits.
The Company Registration Certificate is also necessary for the following reasons:
- Create a business bank account.
- To distribute shares to investors
- Obtaining a loan for the business
- To sell the firm to a third party
Procedure To Get A Company Registration Certificate (CRC) in India
The step for registering a CRC is divided into four important stages, which are as follows:
To commence commercial activities and function lawfully, new start-ups or corporations must get a company registration certificate.
Numerous business opportunities may suit you, they are within your budget, and you may be on the road to success soon; however, it is always critical to proceed following the country’s correct laws and regulations.
Step 1:- Acquire DIN (Director Identification Number).
It’s an initial step in the process of forming a corporation in India. According to the Companies Act of 2006, every firm owner or director is required to get a DIN (Director Identification Number).
- Visit the MCA’s official website and create an account for the registration process.
- Download the suitable application form, complete it with the necessary data, and register it. Following that, you must pay the fees associated with this process.
- Once the DIN is obtained, notify the company.
- Following that, the corporation must notify the ROC (Registrar of Companies) of the DIN information.
If the DIN information needs to be modified or changed, the company’s director should notify and submit a separate form to make the changes.
Step 2:- Getting a DSC (Digital Signature Certificate)
Obtaining a valid DSC or Digital Signature Certificate is needed under the Information Act of 2000 to guarantee that the given documents are legitimate and dependable.
All paperwork must have a genuine, attested digital signature. When submitting papers digitally, this is the only option.
If the person forming the firm already has a digital signature, you may simply verify the DSC’s validity period, which is either one or two years.
Step 3:- Company’s Registration on the MCA Official Website
Make a new account on the MCA’s official website. After the opening of the new account, you will be able to utilize it for future payments, E.g. online payments, & you become a registered business user. The step of forming a fresh account is easy and free of cost.
However, it’s a last & very essential part of a registration method, & it involves supplying the business name, address, and data about the company’s administrators, executive, and secretary.
Furthermore, extra information for the distribution of business shares may be requested if necessary.
Form 1 – Form 1 is available in two varieties:
Form -1 – This form is used to declare the establishment of a corporation; the information provided in the form must match the information provided in the Form -1A application.
Form -1A — Such type of form is utilized to specify the availability of a corporation or to change its name.
FORM 18 – Form 18 is being highly utilized to change the place of your firm’s prior registered office. Along with that, this form requires the submission of all useful information.
FORM 32 – This form is being highly used to designate all of the new company directors, managers, as well as secretaries.
As we’ll know When all of the above-mentioned forms are being submitted, the MCA will surely examine, review, as well as approve the application, along with that the further substantiation email about the confirmation will going to be issued.
Upon concluding the procedure, the MCA will be officially issuing the complete Company registration certification, indicating that your organization has been earlier registered and you can easily proceed with your commercial activities without any difficulties that you’ve.
Conclusion
As previously said, the significance of a Company Registration Certificate is the same as the significance of your birth certificate.
Eventually, it is utilized as legal evidence of its person. Investigate our company formation choices and let our experts assist you in getting started on the right foot.
I’m sure you have got to know everything from this article, still, if you have any queries you can consult our OnDemand International, where we will help you out in each & every step of yours.
Read More: Stages Of Formation Of Company In India
FAQ’s
It takes around 10 days to get the approval of the DIN, Name, and company registration certificate.
Normally a Firm with the least capital can be enrolled in India with statutory fees of Rs. 8,000–10,000.
To get your registration certificates you need to Log in to the Ministry of Corporate Affairs portal via your User ID and a Password.