On the joke of World Labor Day, 2015, The Ministry of corporate Affairs (MCA) introduced a major reform for the budding entrepreneurs in India.
India has the ranking of 158th on the list of Ease of Starting a Business, and no other person can understand the agony and vexation better than Indian entrepreneurs.
Forming a new company has always been an unattended pain for entrepreneurs in India.
Incorporation of a new business will now be 5 times easier as only one form must get filled as against 5 earlier. The introduction of this new form significantly improved India's ranking.
The new five-in-one form known as INC-29 replaces the tediousness of incorporating a new business with enthusiasm especially among the younger generation.
The INC-29 merges the application for Director's 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 reliably cheaper in monetary terms.
In layman language, incorporation of a company can now be done without succumbing to the length process acceptance of Registrar of Companies (ROC) to authenticate the name application.
The article is intended to show a way for an entrepreneur in registering his startup.
Obtain the Digital Signature Certificate
The Digital Signature Certificate is used to ensure the certificate and the document authenticity filed on the online portal as per the Information Technology Act, 2000.
The DSC can only be furnished by those agencies which are specified and authorized by the Controller of Certification Agency (CCA). It is important for an entrepreneur to note that DSC has the validity period of only one or two years, so one needs to keep a regular check on it to get it renewed when required.
Fill in the INC-29 Form
Before the introduction of INC-29, it was indicative for an entrepreneur to fill in an exclusive DIN form in order to obtain the Director Identification Number for the organization.
Now, the INC-29 form is inclusive of DIN. If an entrepreneur has already received a DIN number, then all he needs to do is fill in the number in the assigned box in the form.
For the entrepreneurs who are getting it done for the first time can link the following documents with their INC-29 form to attain DIN:
Personal and Occupational Details with Educational Qualifications.
If an Indian resident, Permanent Account Number is required.
If a Foreign National, Passport number is needed.
Electronic mail Address of the Director.
Mail Address of the Director.
Identity Proof by one of these: – Voters Identity Card / Driver's License / Passport / Aadhar Card.
Address Proof by one of these: – Bank Statement / Electricity Bill / Telephone Bill / Mobile Bill.
Filing the Name of the Company
It is of paramount importance to cohere to the listed Guidelines for Naming a Company, as per the Companies Act of 2013 as INC-29 form only allows one name to be written against the earlier norm of providing six names.
If the proposed name of your company is not welcomed positively then the entire application can be on the verge of getting returned.
The following points should be kept in mind prior to the company's name proposal:
If there is any other business registered under the same name with a Proprietorship or Partnership.
If the name adheres to the format stated in the Companies Act of 2013.
If the proposed name is related to any next of kin.
If the company's name is identical or similar to the trademark of any company.
If the company's name is similar to any foreign company or Limited Liability Partnership.
Lastly, along with accurately filled INC-29, one needs to attach the following documents with initials of all the directors:
Articles of Association (AOA)
Memorandum of Association (MOA)
Declaration and Affidavit by the first Subscribers and Directors.
Proof of the Registered Office Address. – Rental Agreement or Sale deed.
Copies of the utility bill of the registered office address that is not more than 2 months old.
If the proposed company's name is filed or is registered with trademark department, then a No-Objection Certificate from the trademark applicant or owner must be linked with the form.
Above are the steps that must be attended to while filling the INC-29 Form for getting your company registered in the easiest way possible.