Overview
When you want to start a business in India, it is an exciting endeavour. However, it comes with many crucial steps and legal requirements that you need to follow. One of the most fundamental aspects of the process is choosing the right company name and ensuring that it is available for registration.
In this blog, we’ll walk you through the process of conducting a company name check and how to register a Pvt Ltd company in India, providing valuable insights and essential steps to help you navigate the complexities of starting a business in the country.
Company Name Check
Choosing the right name for your company is a critical step in establishing your business identity. Here’s how to perform a thorough company name check in India:
Unique and Descriptive Name
The name you choose needs to be unique and not resemble any of the existing company names in India. Besides, it should also be relevant to your business activities, making it easier for customers and stakeholders to understand your services.
Name Availability Search
After you can select a unique and distinctive name, you need to check its availability. So, visit the Ministry of Corporate Affairs (MCA) website or the MCA21 portal and perform a name availability search. This will help you determine if your desired company name is already registered or if it resembles any existing trademarks.
MCA Guidelines
Moreover, it is important to note the MCA guidelines. These are specific guidelines of the Ministry of Corporate Affairs to govern the naming restrictions. For example, words that include terms like “crown, “emperor”, “empire”, and “India”, etc may require additional approval to be used as a company name.
Trademark Check
Additionally, apart from the trademark, you also need to check the trademark database on the IP India Portal online. This will help in knowing if your chosen trademark is available for registration or not.
Domain Name Availability
Apart from the trademark and company name check, you can check domain names also. It’s a good practice to check if the corresponding domain name for your business website is available. Besides, having a matching domain name can make it easier for customers to find you online.
Reserve the Name
If the name you want is available, you can reserve it for 20 days. All you need to do is file the Form INC-1 with the MCA.
If your desired name is available, you can reserve it for 20 days by filing Form INC-1 with the MCA. This gives you time to complete the registration process without losing the name to another entity.
Registering a Pvt Ltd Company in India
After the completion of the company name check and name reservation, you need to proceed with the registration. Do remember that you need to do this eagerly as the name reservation has a limitation of time to it. Here’s a step-by-step guide to registering a private limited company in India:
Obtain Digital Signatures (DSC)
The first thing you need in the registration process is the DSC of shareholders and promoters. This DSC is mandatory to file the documents with MCA in electronic format. Moreover, you can obtain the DSC of directors and subscribers through the certifying authorities online.
Director Identification Number (DIN)
Apart from DSC, DIN is a mandatory component for all proposed directors. Hence, you need to obtain a DIN to be a Director. You can obtain your DIN by filing Form DIR 3 online, in addition to the necessary documents.
Memorandum of Association (MOA) and Articles of Association (AOA):
You also need to draft the MOA and AOA of the company with utmost careful consideration. These documents outline the company’s objectives and its internal regulations. Hence, you need to file these documents through the MCA portal.
Incorporation Application
Prepare and file the form SPICe (Simplified Proforma for Incorporating Company Electronically) with the MCA. This form includes basic information such as the details of the company, its name, subscribers, and the registered office address.
Payment of Fees
You also need to pay the fees for company registration and stamp duty. This fee depends on the authorised capital of the company.
Approval and Certificate of Incorporation
After the MCA reviews your application, they might approve it at their discretion. However, you will also receive a COI. This certificate of incorporation is the official license of your company’s commencement. It allows you to prove that you have a legal private limited company.
PAN and TAN Registration
After obtaining the Certificate of Incorporation, apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for your company.
Bank Account and Commencement of Business
Open a bank account in the company’s name, and you can commence business operations.
Conclusion
Conducting a company name check and registering a private limited company in India is a multi-step process that requires careful consideration and adherence to legal requirements. Choosing a unique and descriptive name is the first step, followed by the registration process, which includes obtaining digital signatures, and DINs, preparing MOA and AOA, filing incorporation applications, and obtaining the Certificate of Incorporation. With these essential steps, you can establish your business in India, ensuring a strong legal foundation for your entrepreneurial journey. It’s advisable to seek legal counsel or the services of a professional consultant to ensure a smooth and compliant registration process.