The very first step to starting a business, legally, is to get it registered. Thanks to technology and the changes the government has put into place, an entrepreneur can complete the registrations process online. The need of visiting a physical location with a brick and mortar building is long gone. The online process has not only made it easier for businesspersons to start their companies but also offered the government a unique way to regulate every phase of a business ranging from a corporation to liquidation. While the method of starting a company under the 1956 Act has definitely become more straightforward, it is still not easy.
To register a firm, one has to follow a number of rules and regulations set by the law. Mr. Joseph from Vakilsearch, an expert in the registration process, says the best course of action for any entrepreneur is to find a company that can help them with the process. It ensures that no mistakes like unavailability of a name are made. He further gives us few points that every business person should be aware of about the registration process.
1. Even before an organisation can be incorporated, it is imperative to get a DIN. This is a unique number which is allotted to every director of the firm, be it private or public. The ministry of corporate affairs gives the identification number. After the DIN 1 form has been duly filled.
2. Getting the DIN was the first step; the second is the digital signature. Any document that the business submits electronically to authority requires a digital signature. The sign is also crucial for making all online transactions. To obtain the signature, a government approved agency like MCA or NIC is needed.
3. The third step, after the DIN and DSC certificate has been obtained is to decide a unique and befitting name of the firm. Now the business is ready to be incorporated at the ministry. At this stage, besides the name, some other information is also required such as
• Address of the office
• Appointment of every director
• Share allotment
• profit sharing ratios
4. The final phase of the registration is the filling of the Form 1-A with the registrar in your area using precise and accurate details. The information has to be absolutely right to avoid rejection. Generally, you can fill In a few names so that, in case, your first choice of a company name is not available the next can be utilised. The registrar of company intimates the owner that the firm has been incorporated, once all terms and conditions are met.
The company is considered registered, and the entrepreneur can legally start their business. Though the procedure sounds straightforward, there is no scope for mistakes. One has to be very careful at every stage. Every data filled in has to be correct, and each phase has to be fulfilled. Without both these conditions, a company will not be successfully registered. It is an arduous process that necessities minute attention to details. Hence, the advice to every businessperson is to choose a good organization that can assist in the registration.