Facts About Setting up a Business in India

Although it has become easier to set-up a business in India, there are certain things that need to be kept in mind. The following article details a brief on the setting-up of a business in India. The first thing required for setting-up shop is obtaining a digital signature certificate (DSC). The DSC has to be in the name of any of the proposed directors and should be Class II (which can be obtained from any MCA-recognized agencies). Thereafter, the INC-29 form needs to be filled. The newly formulated INC-29 is a five-in-one form introduced by the Ministry of Corporate Affairs (MCA) in May 2015. This form can be downloaded from the MCA Web site. Before May 2015, for setting-up a company, eight forms were needed to be submitted. Now, there is need to fill only one. Then, up to three directors can apply for the Director Information Number (DIN) through INC-29. The DIN is the number through which the MCA identifies the directors of the registered companies. The name of the company will have to be, then, finalized. Care needs to be taken regarding the uniqueness of the name being chosen for your company, as it should not have been already taken by someone or should not be infringing on any copyrights. The Memorandum of Association and Articles of Association need to be attached to the INC-29; the Memorandum of Association and Articles of Association should have the signature of a Company Secretary. The form also needs the details of the registered office address, which is required for every company (the office address can be the home of any of the directors, too). Then, the fees need to be paid (the fees are more expensive in Punjab and Kerala, but the remaining states have almost the same fees). The general fee for Memorandum of Association is Rs. 2000; for Articles of Association, Rs. 300; stamp duty, Rs. 1300; authorized capital fee: Rs. 13,000; filing the INC-29, Rs. 2000. After the above steps are completed, the government issues a Certificate of Incorporation, following which the company is set and can start carrying on their business in India.