Taking The Leap Of Turning An Idea Into A Startup?
Every day people get new ideas, and every day most of them turn into ventures. Getting your idea registered as a venture is a big step in your entrepreneurial journey and we believe this article will make the process simple and easy. There are quite a few processes that an individual has to go through in order to get their company registered — name, capital, signature, to name a few.
For all aspiring entrepreneurs who have reached the stage of registering their companies, here are few tips which we believe will be of great help:
Get your Director Identification Number
The first step to register for a company is to primarily get a Director Identification Number (DIN) for yourself, and your partner in case you have one. A person needs to have a DIN that identifies him by a number. It is a unique number that will later be used to register the person as the owner of their company.
Name of the company
Before you can officially register your company, you have to actually check the availability of that particular name. The Ministry of Corporate Affairs approves of the company name before you can go ahead with any other formalities. This is done to avoid any approximationwith any other company name. You will also be asked to give four options of the name to the authorities along with the justification and relation between the name and your business.
What type of a company
It is important to know what type of a company you want to register as. Different types have slightly different processes, nothing that is too stressful. Apart from the process, it is significant you understand how your company will be working.
Different types of companies are:
One Person Company
Private Ltd. Company
Sole Proprietorship Company
Limited Liability Partnership
While these are the basic things that one needs to know when going to the Ministry of Corporate Affairs office, the new process of registration started by the government does not require a person to go from one counter to the other getting new forms each time and getting approval on the same respectively.
There is something called an Integrated Incorporation Form (Form INC 29) that is basically a collaboration of all these different processes. This reduces the process of registration by days! The Ministry of Corporate Affairs website has detailed information on company registration, which should help you sort out your queries.
Kirthi Jayakumar, Founder of The Red Elephant tells us, “I registered the Red Elephant Foundation as a Public Charitable Trust with myself and my brother as the trustees. The idea behind this was that I wanted to create something that would outlast me and would not addle people with the heavy rigours of paperwork in the process of taking the trust forward after me. To register as a public charitable trust, you need a trust deed that identifies your objectives, your operational areas, the information on the trustees, and the kind of work you are setting out to do. This is then registered with the Charity Commissioner of the area whose jurisdiction you come under. We had the help of a brilliant bunch of folks from Vakilsearch, who took care of getting our registration done once my brother and I drafted the Trust deed.”
Amit Goyal, a Chartered Accountant in Jaipur informs us, “Most of the times the clients are unsure of the process and what exactly they want. Internet today can be a boon and even a curse, because they have too many ideas which overlap. It is always advisable to listen to the options provided to you by your CA because we are aware of the nitty gritty of these procedures and we do our best to give you the right answers to your queries.”