At the juncture of World Labor Day 2015, the Ministry of Business Affairs (MCA) introduced a major reform for budding entrepreneurs in India.
India is ranked 158th on the Ease of Starting a Business list, and no other person can understand agony and grief better than Indian entrepreneurs.
Forming a new company has always been a neglected pain for entrepreneurs in India.
Incorporating a new company will now be 5 times easier as only one form needs to be completed compared to the previous 5. The introduction of this new form significantly improved the ranking of India.
The new five-in-one form known as INC-29 replaces the tedium of entering a new business with enthusiasm, especially among the younger generation.
The INC-29 merges the application for Director Identification Number (DIN), Name Registration, Permanent Account Number (PAN), Tax Deduction Account Number (TAN) and of course Incorporation.
This step not only makes the procedure undemanding, but also relatively cheaper in monetary terms.
In plain English, company incorporation can now be done without succumbing to the lengthy Registrar of Companies (ROC) acceptance process to authenticate the name request.
The article aims to show a way for an entrepreneur to register his startup.
STEPS INVOLVED:
Obtain the digital signature certificate
The Digital Signature Certificate is used to guarantee the certainty and authenticity of the document filed on the online portal according to the Information Technology Act 2000.
The DSC can only be provided by those agencies that are specified and authorized by the Comptroller of the Certification Agency (CCA). It is important for an entrepreneur to note that DSC has a validity period of only one or two years, so it is necessary to check it regularly to renew it when necessary.
Complete form INC-29
Before the introduction of INC-29, it was essential for an entrepreneur to fill out a unique DIN form to obtain the Director Identification Number of the organization.
Now, Form INC-29 includes DIN. If an entrepreneur has already received a DIN number, all they need to do is fill in the number in the assigned box on the form.
For entrepreneurs who are achieving it for the first time, they can link the following documents with their INC-29 form to obtain DIN:
Personal and occupational details with educational qualifications.
If you are an Indian resident, a permanent account number is required.
If you are a foreign citizen, your passport number is required.
Director’s email address.
Director’s email address.
Proof of identity by one of these: – Voter Identity Card / Driver’s License / Passport / Aadhar Card.
Proof of address for one of these: – Bank statement / Electricity bill / Telephone bill / Mobile bill.
Company name presentation
It is of utmost importance to adhere to the Guidelines for Naming a Listed Company, as per the Companies Act 2013, as Form INC-29 allows only one name to be entered contrary to the previous rule of providing six names.
If the proposed name of your company is not well received, then the entire application may be on the verge of being rejected.
The following points should be considered before proposing the company name:
If there is any other company registered under the same name with a property or partnership.
If the name adheres to the format established in the 2013 Companies Law.
If the proposed name is related to a close relative.
If the name of the company is identical or similar to the trademark of any company.
If the name of the company is similar to any foreign company or Limited Liability Company.
Incorporation documents
Finally, together with the duly completed INC-29, it is necessary to attach the following documents with the initials of all directors:
Incorporation documents:
Articles of Association (AOA)
Memorandum of Association (MOA)
Declaration and Affidavit of the first Subscribers and Directors.
Proof of registered office address. – Rental Contract or Deed of Sale.
Copies of the utility bill from the registered office address that is no more than 2 months old.
If the name of the proposed business is on file or registered with the trademark department, then a Certificate of No Objection from the applicant or trademark owner must be linked with the form.
Above are the steps to follow when completing Form INC-29 to register your business in the easiest way possible.
