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Company Registration

Most of the founders are coders, designers, marketers, and folks from different professions. One critical thing that most founders aren’t the best at are the basic legalities when it comes to starting and registering a business.

Let me tell you how important it is to be on the right side of the law. The last thing that you want is getting penalised over a legal mistake that you were not even aware of! I know that your initial focus is to give shape to your business idea and build a team that believes in your vision. Pitching to prospects, closing deals, and meeting with investors along with developing the product takes up all your time.

However, when you embark on your journey as an entrepreneur, the first thing you should do is register your company. As a rule of thumb, you should never use your private bank account to make a business transaction. You never know when this could bite you in the future. Additionally, if you’re looking to raise funding, investors would never invest in a startup that is not registered. Or in case of the incorrect company structure, they would ask you to first get this sorted.

 

Different business structures

As a founder, you should be clear about the name and type of your startup. To register to incorporate your entity under a specific business type, you should be aware of the technicalities of each type. You will have to choose from – sole proprietorship, private limited, public limited, partnership and limited liability partnership. Before deciding the business type, have a clarity on the kind of business you are into, your goals and objectives since each of these types come with their own legal implications. According to Section 3 of companies, a company is a legal entity registered and formed under the 1956 Companies Act

How to register a company

Here are some of the procedures for registration of the company under companies’ act 2013. There are four critical steps to be followed on how to register a company in India. Obtaining DSC (Digital Signature Certificate) Obtaining DIN (Director Identification Number) Filling a New User Registration or eForm Incorporating the company.

 

Types of companies you can register in India

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