What documents are required to start a startup or business in India?
One of my friend has two years experience in project management and MySQL and now he wants to begin his own start up company with the idea of Tender management. While I wanted to help him I was searching for what are all the formalities that needs to be completed before we start up a business or a start up. We started looking for government permissions and all but unfortunately lacking something. Can someone help us with list of documents that has to be made prior to start of business or a start up?
Or is there nothing we need just money to invest and idea to implement? Is this the case?
Kindly provide your valuable responses that will help us.
ThanksPosted in: #Startups & Business
If you want to start a company, there are different types of companies that you can register with the government, like Proprietor ship , LLP ( Limited liability partnership) and Inc (incorporated).
These days, setting this one can be done online. Once you register you get your ID for any official purposes.
Ideally, people ask for 2 or more directors for the company with the necessary share information of the individuals.
Following is the list of basic documents required to register a company in India (as a startup or an SME) -
- Digital Signature Certificate (DSC): This is required to sign all the legal documents during registration of startup or company in with Registrar of Companies (RoC) in India
- Director Identification Number (DIN): The DIN identifies you as the director of a company or several companies that you own and have registered. You will have to apply and get the DIN before you can incorporate a startup company.
- PAN Card of all the directors
- Passport size photographs
- Identity proof: Aadhar Card, Passport, Driving License or Voter ID etc.
- Address Proof: Bank Statement, Electricity, Telephone or Mobile Bill.
- Office ownership or rental agreement
These are easy to acquire and most of the Indian residents will have these documents with them. Once this is done, the directors must decide on the kind of company they wish to register -
- Private Limited Company (Ideal for startups with multiple founders)
- Limited Liability Company (LLP): Generally used by consultants and professional firms
- One Person Company (OPC): Sole owners may make use of this.
- Partnership: If the business is meant to be run for limited time, then partnership firm can be established
- Sole Proprietorship: Generally recommended for shop owners
While this might look like 'too much' of work - it is not. Anyone can register a company on their own and it's a completely online process. You'll have to visit RoC website or MCA portal of Government of India for the details.
The most common way to register a company is to approach a CA and have them do it all for you. They'll charge fees to do that; so its up to you to decide.
The most important factor in incorporating business is figuring out which kind of entity is being set up. For startup companies, registration as a private limited company is highly recommended.
The only downside of a private limited company is that you've to comply with the board meeting formats and taxation. However, this is easy - and most CAs will offer this service for a small yearly fees.
A big thanks for valuable information. Can you also help me out in figuring out what does MSME registration mean. We have approached one of our manager regarding this subject and he suggested us to have a MSME certificate once we set up something new so that we can get some funds from government as well. When I tried exploring it more I found it something like a portal where most of the sartups register to get government benefits. Is that the same?
Obtain Director Identification Number (DIN). Obtain Digital Signature Certificate. One duplicate of the MAA, Articles of Association, Form 1, Form 32, Form 18 and the first name endorsement letter, assent of chiefs and stamped power of lawyer/ attorney must be submitted to the Registrar of Companies