How to Get a Company Incorporation Certificate in India – Complete Guide

Incorporation refers to the legal process of forming a company or a business. The advantages of incorporation mainly include the feature of limited liability provided to the owners. This simply means that in case of legal action or financial losses, the personal assets of the owners are safe and secure. Read through the Article to know How to get Incorporation Certificate for your business.

Other advantages of incorporation include tax benefits and giving more credibility to a business. A business will have to obtain an incorporation certificate to achieve all this. In this blog, we will be discussing how to obtain an incorporation certificate.

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What is an Incorporation Certificate?

In India, the incorporation certificate of a company is basically proof of business registration. After the successful registration of a business, the Company Incorporation Certificate is obtained from the Ministry of Corporate Affairs.

Steps to Obtain Company Incorporation Certificate

Step 1: Choose a Business Structure

The first step toward getting an incorporation certificate is choosing a business structure. There are various business structures from which a person can choose: a sole proprietorship, partnership, LLC, or even a corporation. All of these have their various pros and cons; hence, a person needs to carefully select the type that meets his or her expectations for the business. It is always advisable to consult a business lawyer or a qualified accountant who will help in making such a decision.

Step 2: Select a Business Name

After selecting a business structure, the entrepreneur moves on to the next step, which is naming the business. It is essential that it be a unique name and not already registered as operating a business. The desired business name you wish to use can be checked by looking at the state's or country's business name database where you will be registering the business. You will want to make sure it does not trademark or infringe on anyone else's copyright. Business name approval normally takes 14 days to get approved.

Use Our Name Search Tool to find a Business Name.

Step 3: Creation of DSC(Digital Signature Certificate)

DSC stands for Digital Signature Certificate . It is a certificate in electronic format acting as a digital substitute for physical signature. A DSC is issued by a Certifying Authority (CA) after verifying the identity of the person or organization that has applied for it. It includes the name of the applicant, public key, and other relevant information and is thus used to authenticate and sign electronic documents and transactions. While an incorporation certificate is to be obtained, a DSC is needed to sign and file different forms and documents with the RoC.

Step 4: Apply for DIN

DIN stands for Director Identification Number. It is a unique identification number assigned to an individual who intends to become a director or an existing director of a company in India. The DIN is issued by the Ministry of Corporate Affairs when the identity and other details presented by the applicant have been verified.

Every director of a company in India is required to obtain a DIN. This unique identifier ensures the record of all the directors of companies in India. The DIN would be obtained by every person who intends to be a director or by an already existing director of a company.

Step 5: Draft the Application Form

With the registrar of companies, an application form INC-32 needs to be submitted which is detailed in nature. In this form, all the personal details of the members and shareholders need to be drafted. The details mentioned in the form are:

• Details of Company
• Details of members and shareholders
• Apply for DIN
• Apply for PAN & TAN
• Declaration by directors and shareholders
• Declaration by a Professional Business lawyer

Step 6: Filing of e-MoA and e-AoA

MoA is an abbreviation of Memorandum of Association, and AoA stands for Articles of Association; both are legal documents that are required to be filed with the RoC at the time of incorporation of a company.

MoA is a document that delineates the company's objects, powers, and ambit of activities. It defines the company's relationship with the outside world and helps in determining the company's legal capacity to act.

AoA is a document that sets out the rules and regulations governing the company's internal affairs. It defines the relationship between the company and its members and between the members themselves.

Step 7: Payment of Fees

After going through the whole application process and filing of necessary forms, the next step is paying the necessary fees to the Registrar of Companies.

Step 8: Obtain the Incorporation Certificate

Once the Articles of Incorporation have been filed and approved, the state or country agency will grant an Incorporation Certificate, indicating your business is officially and legally incorporated. The certificate will contain the business name, date of incorporation, and the state or country of incorporation. Keep the certificate safe since it is a legal document that might be needed in the future for different purposes, such as opening a bank account or applying for a business loan.

Conclusion

The company incorporation certificate, however, is an important part of the legal process in setting up business. The stages involve choosing a structure, naming the business, drafting the Articles of Incorporation, filing the Articles of Incorporation, and then getting the Incorporation Certificate. It is best to consult with a lawyer or a qualified accountant to make sure all legal requirements are met and that your business is well-set for success. These steps, together with staying compliant with the ongoing legal requirements, will protect your personal assets and give you tax benefits, adding to the credibility of your business.