The juncture of World Labor Day 2015 saw the introduction of a significant reform by the Ministry of Corporate Affairs (MCA) for budding entrepreneurs in India.
India ranks 158th in the List of Ease to Start a Business. Indian entrepreneurs understand the pain and frustration better than anyone else.
India’s entrepreneurs have always struggled to form a new company.
It will be five times easier to incorporate a new company, as one form is required instead of five. India’s ranking has been significantly improved by the introduction of this form.
INC-29, the new five-in-1 form, replaces the monotony of incorporating a new business. This is especially popular with the younger generation.
INC-29 combines the applications for Director’s ID Number (DIN), Name registration, Permanent Account Numbers (PAN), Tax Deduction Numbers (TAN), and Incorporation.
This not only makes it easy but also saves you money.
In layman’s terms, incorporation of a business can be done now without having to go through the lengthy process of acceptance by the Registrar of Companies to authenticate the name.
This article will help entrepreneurs register their startups.
STEPS INVOLVED
Get the Digital Signature Certificate
The Digital Signature Certificate serves to verify the authenticity of documents filed online as per the Information Technology Act 2000.
Only agencies that have been authorized and specified by the Controller of Certification Agency can provide DSCs. An entrepreneur should be aware that the DSC is only valid for one to two years. Therefore, it is essential to regularly check it and renew it as needed.
Complete the INC-29 form
Prior to INC-29’s introduction, an entrepreneur had to complete a DIN form to get the Director Identification Number.
The INC-29 form includes DIN. An entrepreneur who has a DIN number is able to fill out the form by simply entering the number in the box.
To obtain DIN, entrepreneurs who are starting their business for the first time should link the following documents to their INC-29 form:
Personal and occupational details with educational qualifications
A permanent Account Number (for Indian residents) is required.
Passport numbers are required for foreign nationals.
Direct email Address
The Director’s Mail Address
One of the following is required to prove identity: Voters Identity Card/ Driver’s License/ Passport/ Aadhar Card.
One of the following is acceptable as proof: Bank Statement, Electricity Bill, Telephone Bill, or Mobile Bill.
Filling the Name of the company
It is crucial to adhere to the listed Guidelines to Naming a company, as per the Companies Act of 2013. The INC-29 form allows only one name against the previous norm of six.
The entire application could be rejected if the name you propose for your company is not received positively.
Before naming the company, it is essential to remember these points:
If you have a Proprietorship, Partnership, or other business under the same name.
If the name conforms to the Companies Act of 2013.
If the proposed name is related or next-of-kin.
If the company’s name and trademark are identical or similar.
If the company’s names are similar to any foreign limited liability partnership or company.
Incorporation documents
Finally, attach the following documents along with the INC-29 filled inaccurately:
Documents for incorporation
Articles of Association (AOA).
Memorandum of Association
Declaration and Affidavit of the first Subscribers or Directors
The proof of the Registered Office Address. – Rental Agreement or Sale deed.
Copies of the utility bills for the registered office address, which are not older than two months.
A No-Objection Certificate must be attached to the form if the name of the proposed company is filed with the trademark department.
