Updated : August 12, 2024Company Registration in India: Understanding the Timeline
Overview : In this article, we explain the time required for company registration in India with a process-specific timeline. These timelines are based on our experience of helping thousands of startups get registered as Pvt Ltd Company in India with the ROC. The majority of time gets consumed in arranging the documents in the finalisation of the name of the new company as the same needs to be vetted against all registered companies, LLPs and Trademarks. The key understanding of the timeline is essential for any startup registering a company in India.
The process of incorporation of a company results in the creation of a legal entity in India, which is independent of its promoters. The company’s form of business has several benefits, such as Limited Liability to its shareholders, perpetual succession and separation of ownership and management and the scope of expansion. The companies are considered over any other form of business for the purpose of funding or investment by angel investors. The process of incorporating a company is now entirely online.
Documentation & Digital Signature (1-2 Days)
On the first day, the promoters gather essential documentation required from the proposed directors and shareholders. This includes PAN Card, Aadhar, Identity Proof & Address Proof. For the registered office address the utility bill of the premises where the company shall have its registered office along with No Objection Certificate (NOC) from the owner is required.
After the documentation is complete, the next step is to obtain a digital signature certificate (DSC) for each of the proposed directors or shareholders. Setindiabiz is the RA of the Certifying Authority, which includes Emudhra, SignX, etc., and helps you obtain the DSC. As the issuance of the DSC involves verifying the applicant’s email, mobile, and video recording, it would depend on the promoters’ availability.
Name Search & Filing of RUN for its Approval (Day - 1-4)
The process of name availability search can begin simultaneously with the documentation and digital signature of promoters. We help our customers evaluate the proposed name from the perspective of the provisions of the Companies Act, wherein we conduct a detailed search of the MCA Master data, which is a public database of all registered companies and LLPs. We also extend our search to the trademark database of the Indian IP Office. Once the promoters reach to a conclusion with respect to a particular name, there are two options.
Scenario-1: Filing of Spice Plus without RUN Filing
The application for the incorporation of a company can be filed in Spice Plus form without obtaining prior confirmation from the ROC about the availability of the proposed name. In other words, it is a scenario where incorporation is filed without prior filing of any name approval application in RUN. In this method, you may save INR 1000 by not filing the RUN Application for name reservation; however, if the proposed name is not approved, then the entire Incorporation Filing Process has to be done once again with another round of documentation and fresh deposit of the incorporation fee, which could be more than ₹10,000 in case of states like Karnataka, even if the proposed capital is Just rupees one lakh.
Scenario-2: Filing of Spice Plus After Prior Name Approval (With RUN)
Another method is to first obtain approval of the proposed name from the ROC by filing an application in RUN form and thereafter file the application for incorporation. The second method is recommended as it brings an element of certainty with respect to the name of the proposed company. For the purpose of prior name approval, an application is filed using the prescribed RUN form with the ROC. It is an online application wherein two names can be proposed in order of preference; the government fee for filing the RUN application is INR 1000/-.
Filing of Spice Plus Form for Company Registration (Days 4-7):
After completing the necessary paperwork, the application for the incorporation of the company is filed online at mca.gov.in in the prescribed Spice Plus Form, which is made up of several connected forms, including Agile Pro, e-MOA, e-AOA, and INC-9. The ROC usually takes around 2-3 days to process the application, allowing for the entire incorporation process to be completed within seven days. The approval of the Spice Plus form results in the issue of the Certificate of Incorporation, which contains Company CIN, PAN and TAN Number.
Conclusion
The company registration process in India is an online process and generally takes about 7 days. The process involves stages such as document collection, obtaining the digital signatures of the promoters, and finalising a company name. A clear understanding of these steps helps startups to plan their activities effectively without any hurdles and delays. Post name approval, filing the incorporation application via the Spice Plus form leads to the grant of a Certificate of Incorporation to the business.
