Why you need a company.
As an wannapreneur, you must know the need to form a company. There are two points one needs to have a clear understanding. First and the most crucial part is to understand your business, what will be the model of the business,like is it an online model of business or it is an offline mode of business or it will be a hybrid mode. What kind of product or services are going to be provided by the company. Second part is legal part. Legal part can not be completed until one have not the clarity for First Part. One need to have all the facts and figures of First Part in written/documented form. All the business plans company is a separate legal entity. Therefore there are some duties and responsibilities for a company. While creating the company you have clearly defined the objective for creating the company under object clause. Once you started company you and the clock starts ticking.
What type of company is suitable for you.
Now you have a lot of brainstorming and had multiple rounds of initial discussion among the founders and with the “The Right Authority”. This will make the job easy for selecting suitable company for you. Whether you want to go alone with Individual Proprietorship, or you want to create Partnership Firm or LLP Company or Private Limited Company. Each and every kind of company has its own merits and demerits. One must have a long term vision of his/their business and must put all the information on the table while having discussion with “The Right Authority”. This will make easy for them to understand your business and they can advise the best suitable company for you.
Meeting with the right authority is the key. Therefore we suggest to choose the right person/consultant who are already in the profession and are presently providing services and have expertise in the area. As a start-up people do mistakes and take advice from their friends and families who are in that pursuing in this area or have some past experiences. It might be cost saving or trust issue for some people. But remember these days legislation is changing very fast. Almost every day new rules and regulations are being introduced and some old rules are replaced with new procedure. Starting a company is like making a structure. You need to plan a solid foundation for your company. One needs to have clarity about their product/services which they are going to provide through their company. Here comes the role of the right authority who can understand your future plan and provide the best solution what type of company formation will be best suitable for you. It may cost you some money and multiple rounds of initial discussions.
Checklist for Incorporation process.
Checklist will help you to summarize all the activities one page. This will help you to know the process and requirements. Different kind of company has different kinds of requirements. Following is the sample checklist which will help you to understand the requirements.
|Sl No.||Proprietorship Firm||Partnership Firm||Limited Liability Partnership||Private Limited Company|
|1||Choosing a unique and distinctive name of the company.||Choosing a unique and distinctive name of the company.||Choosing a unique and distinctive name of the company.||(Name of Company) Choosing a unique and distinctive name of the company.|
|2||Copy of Rent Agreement/Leased Deed or Utility bill (water, electricity, leased line telephone bill, along with NOC) as an address proof||Copy of Rent Agreement/Leased Deed or Utility bill (water, electricity, leased line telephone bill, along with NOC) as an address proof||Copy of Rent Agreement/Leased Deed or Utility bill (water, electricity, leased line telephone bill, along with NOC) as an address proof||(Registered Office along with proof:-)Copy of Rent Agreement/Leased Deed or Utility bill (water, electricity, leased line telephone bill, along with NOC) as an address proof|
|3||Apply online or take the help of “The Right Authority”.||Partnership Deed clearly mentioning the role, responsibilities and share of partners||Application for DIN or DPIN (DIR-3 needs to file online to obtain DIN) for all the Partners||Application for DIN (DIR-3 needs to file online to obtain DIN) for all the Directors|
|4||Fee would be maximum 5000 or depending the fee of the professionals||KYC Documents of Partners(PAN Card, Aadhar Card, Driving License, etc)||Obtain DSC (Digital Signature Certificate) for all the partners||Obtain DSC (Digital Signature Certificate) for all the Directors|
|5||Register as New User Registration on the LLP portal||Paid up Capital:|
|6||Incorporate LLP||Main Objects:|
|7||File LLP Agreement||Education/Qualification of all the Directors|
|8||Personal Mobile no of all the Directors|
|10||Place of Birth|
|11||Pan Card Copy,Address Proof and Bank Statement(Address of Address proof match with Bank Statement.) and photograph of all the Directors|
Arrangements of documents as per checklist.
From the above exhaustive checklist one needs to arrange all the documents to start the process of registration.
A definite timeline is essential. It looks very simple form the above checklist to form a company and most of the sites claim to form a company in one to two weeks. But the challenges started when you initiate the process. Since two or more stakeholders involved in the process therefore sharing a timeline will help to make the arrangements in time as one process is dependent on the previous process.
Starting the process.
Once the arrangements of all the documents is made, the process of registration can be started. Process will be started step by step. All the process cannot started simultaneously.
The moment you start the process, queries started to come from the consultant and from the concerned authority and this is normal while incorporating a company. You need to be ready and flexible for all the queries because it is your company and your 100% involvement is required for each and every action.
Registration will be completed depending upon the arrangements of documents and readiness and availability of stakeholders. The faster one process get completed you can move to the next process.
Deliverable after the whole process.
Key deliverables after the whole process gets completed are as follows:
(i) DSC of all the Directors (Digital Signature Certificate)
(ii) DIN of all the Directors (Directors Identification Number)
(iii) Company’s PAN No.
(iv) Company’s TAN No.
(v) Company Incorporation Certificate.