Incorporation isn’t merely a task—it’s a turning point for your business! Obtaining a Company Incorporation Certificate in 7-8 days in India is possible if all documents are prepared in advance and the process is efficiently managed.
What is an incorporation certificate?
An incorporation certificate is like the birth certificate of a company!
It is a legal document that shows a company has been officially registered by a government body, such as the Ministry of Corporate Affairs (MCA) in India, that legally establishes the formation of a company.
It confirms that the company exists and can legally do business. The certificate includes important details like the company’s name, the date it was created, and a unique identification number. This document is essential for a company to open a bank account, sign contracts, and operate legally.
Steps to Obtain Company Incorporation Certificate
Incorporating your business goes beyond paperwork—it’s a powerful shift! Here’s a step-by-step guide to help expedite the process:
1. Choose a Business Structure
- Private Limited Company is the most common for startups.
- Alternatives include LLPs (Limited Liability Partnership) or one-person Company.
2. Obtain a Digital Signature Certificate (DSC).
- All directors/designated partners need a DSC to sign electronic documents.
- You can apply for a DSC through various certifying Authorities like eMudhra or ePass. Processing takes 1-2 days.
3. Apply for Director Identification Number (DIN)
- Directors/partners must obtain a DIN.
- You can apply through the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form. DIN approval usually takes 1-2 days.
4. Check Name Availability and Reserve It
- Ensure the name is unique and not already registered. Use the MCA (Ministry of Corporate Affairs) portal to check the name
- Reserve the company name using the RUN (Reserve Unique Name) service or through the SPICe+ form. Name approval typically takes 3-4 days.
5. Prepare Required Documents
- For the Company:
- Draft Memorandum of Association (MoA)
- Draft Articles of Association (AoA)
- Proof of office address, like an electricity bill
- If the premises are on rent, then the rent agreement/NOC from the landlord of the property
- For Directors:
- PAN card (Indian Nationals)
- Passport (for foreign nationals)
- Aadhaar Card
- Address proof (utility bills, bank statements, etc.)
6. Filing SPICe+ Form
- SPICe+ form is the integrated web form for incorporation.
- Upload documents, fill in details, and pay the required fee. This includes PAN, TAN, and EPFO/ESIC registrations.
- The MCA typically processes this in 3-4 working days.
7. Stamp Duty Payment
- After submission of the SPICe+ form, pay the applicable stamp duty, which varies from state to state.
8. Certificate of Incorporation
Once all documents are verified and approved, the MCA issues the Certificate of Incorporation (COI) electronically.
Benefits of Obtaining a Company Incorporation Certificate
Here’s a simpler explanation of the benefits of getting a Company Incorporation Certificate:
1. Legal Recognition: Your business gains official recognition from the government, making it easier to work with others since registered companies are more trusted.
2. Personal risk is limited: As the owner, your personal money is protected. If the company owes money, your personal things won’t be taken to pay for it.
3. Easy to Get Funding: Investors like to invest in registered companies. This makes it easier to get money from banks, investors, or other sources.
4. Builds Trust: A registered company appears more professional and reliable to customers, suppliers, and other businesses. It shows you’re serious and follow the rules.
5. Perpetual Succession: Your company can continue running even if the owners or directors change. It doesn’t shut down when someone leaves or passes away.
6. Tax Benefits: A registered company can get special tax breaks and benefits, especially if it’s a startup. This helps you save on taxes.
7. Easy to Expand: If you want to grow your business, having a registered company makes it easier to enter new markets, partner with others, or go international.
8. Attracts Employees: Employees are more likely to join a registered company, especially if you offer perks like stock options as rewards.
9. Access to Government Support: The government offers many schemes, loans, and incentives to registered companies, especially startups in India, to help them grow and succeed.
Incorporating your business gives it a formal structure, makes it easier to grow, and offers protection and advantages that help your business thrive.
Closing Remarks
With JustStart!, businesses can follow a clear, step-by-step process to complete their incorporation in India seamlessly. This article provides a comprehensive guide, breaking down the key requirements and actions to secure the certificate.
Entrepreneurs and business owners will gain a clear understanding of how to register their businesses, ensuring compliance with regulatory standards while laying the foundation for future growth and success. By fulfilling these steps, companies can confidently formalize their operations and gain access to the legal benefits of incorporation.
