About Company registration in India

India is at number 63 amongst 190 countries as per “Doing Business Report (DBR) 2020” by World Bank released on 24th October 2019

Reference: Doing business report 2020 by World Bank released on 24th October 2019

Why starting business in India?

Simple steps to register company in India

Step 1: Obtain Digital Signatures for the proposed Directors of the company. Digital Signatures can be obtained from licensed Certifying Authority like eMudhra, sify.

Step 2: Select the business name. Selection of company name is utmost important. Use your creative mind while deciding the name. Make sure that the name should not be in existing records of MCA (Ministry of Corporate Affairs). Also check the trademark registry for the proposed name availability. Once you are through with the selection, maximum two company names can be proposed and filed at CRC by logging in at MCA at Spice+ by paying prescribed govt fees. In case the name gets approved, congratulations you can move ahead with incorporation. In case of rejection, repeat the search and selection of apt name. Do look into name guidelines before you jump to the names.

Step 3: After name approval, file final set of documents and web based form at MCA within 20 days of approval of name otherwise name may lapse.

Step 4: Obtain Certificate of registration and other necessary numbers like PAN, TAN, GST, Bank account number, PF number etc

Step 5: Make capital investment in the bank account so opened while registering the company. Please note that the company can start its business activities only after subscription of share capital is done and requisite form is filed in this respect at MCA.

Step 6: Start your business in India

In India, once you get the Certificate of registration, it is valid for lifetime. However, it is important to comply with the Corporate laws after the company gets registered. Keep complying keep doing business in India.

Latest Reforms by India on “ease of doing business”

S.No. Reform/ Amendment Date of its introduction
1) Spice+ (Simplified Performa for incorporating Company Electronically plus)

Introduction of new web based incorporation form namely Spice+. Spice+ came out to be single window system to jet start the business in India

(Reference: mca.gov.in)

MCA notification dated 18th February 2020

Effective from 23rd February 2020

2) Easy opening of Bank account

This web based Spice+ also facilitate easy opening of Bank account. This is good news for foreign investors who fail to open their bank account of their Indian company even within 180 days of registration of the company.

(Reference: mca.gov.in)

MCA notification dated 18th February 2020

Effective from 23rd February 2020

3) Ease in filing timely RBI compliances

Most of the companies shut down their businesses before they even start it because they could not meet the timelines. Now, post fast opening of Bank account, the foreign investors can now easily induce in the foreign investment without delay and also file the mandatory FC GPR timely

(Reference: rbi.org.in)

4) Ease in getting Labour licenses

So now after the advent of Spice+, the company can also apply for ESIC and EPFO i.e. Labour licenses while filing the company for registration

(Reference: mca.gov.in)

MCA notification dated 18th February 2020

Effective from 23rd February 2020

5) Ease in fetching mandatory Direct and Indirect Tax Numbers

PAN, TAN and GST numbers can be easily allotted in Spice+ i.e. while registering the company

(Reference: mca.gov.in)

MCA notification dated 18th February 2020

Effective from 23rd February 2020

6) State Reform Action Plan (GRAP)

The Department for Promotion of Industry and Internal Trade (DPIIT) has developed Action Plan for State Reforms since 2015 and circulated it with States/UTs for implementation and bringing ease to regulatory compliance for businesses. It has started an ambitious program for reforms in partnership with State Governments to make it easier, simpler and quicker for businesses to operate.

Reforms covers;

–          Enablers for Labour regulations

–          Registration and grant and renewal of license under The Factories Act, 1948

–          Approval of plan and permission to construct/extend/or take into use any building as a factory under the Factories Act, 1948

–          Registration and Renewal of Boilers under The Boilers Act, 1923

–          Approval for Boiler manufacturer and renewal thereof

–          Approval for Boiler erector and renewal thereof

–          License and renewal of license for contractors under provision of The Contracts Labour (Regulation and Abolition) Act, 1970

–          Paper-less Courts

–          Property Registration – Enablers

–          Property Registration-Online systems

(Reference: https://eodb.dipp.gov.in/)

Launched in April 2016
7) Introduction of web based RBI reporting

The apex bank integrated all their existing reporting structures of various foreign investments in India to single master form

(Reference: https://firms.rbi.org.in/firms/)

Effective from 1st September 2018