Why Set Up a Business in India?
- India’s young population base and growing economic power promises to be a magnet for foreign investment for years to come. You can readily find people who speak English, with all business communication in the country happening in English itself.
- India has a strategic position on the world map, and is supplemented by many ports and harbours. The country is peaceful, and very simple to access.
- India invites diversity with open arms. India encompasses many religions, skin colours and languages, and one would not feel alienated on entering the country.
- As an emerging economy, India is progressive and pro-development. It’s ease of doing business rank has improved tremendously recently, thanks to governmental measures to simplify procedures and boost digitization.
Process of Setting Up a Business in India
Here are the steps explaining how to register a company in India.
- Application for Digital Signature Certificate (DSC) and Designated Partner Identification Number (DPIN): DSC is an online signature used for filing and DPIN refers to Directors PIN number issued by the Ministry of Corporate Affairs (MCA). At the outset, the partners must apply for these.
- Approval of Company Name: 3 different options for your company name are required to be provided to MCA, of which one would be selected. The names suggested should ideally be unique and suggestive of the company business.
- Submission of Memorandum of Association (MoA) and Articles of Association (AoA): After the approval of the name, the MoA and AoA need to be filed with the MCA.
- Obtaining Incorporation Certificate: Incorporation certificate is proof that the company has been created, and includes the Corporate Identity Number (CIN). It may take one 2 to 4 weeks to get the incorporation certificate.
- Application for Permanent Account Number (PAN), Tax Deduction and Collection Account Number (TAN) and Bank Account: PAN and TAN have to be applied for, and usually take a week to be received. Subsequently. Post this, one can submit the incorporation certificate, MoA, AoA and PAN with a bank to open a bank account.
Documents Required for Company Registration in India
The following documents are required of all the directors and shareholders:
- Identity and address proof
- Scanned copy of PAN Card or Passport
- Passport size photograph
- Specimen signature (blank document with signature) [for directors only]
The following documents are required for the registered office:
- Scanned copy of the latest bank statement
- Scanned copy of the telephone, mobile, electricity or gas bill
- Scanned copy of the notarized rental agreement in English
- Scanned copy of the No Objection certificate from the property owner
- Scanned copy of sale deed/property deed in English (in case of owned property)