How to Register a Startup Company in India: Check Procedure and How much it will Cost

                                   YOU ARE TO BE WILLING TO BE                                                          MISUNDERSTOOD IF YOU ARE GOING TO                                                                             INNOVATE

Finally after draining all your energy into

“That hectic job which buckled you down intensely”

You finally realize that you need a breath of fresh air. Your paycheque now seems to be a dime’s worth. Do you begin to interrogate yourself: Is that what I want to end up with? Is it legitimate to be bulldozed into this job? Of course not! I live in a democratic country after all! Now I will crack the whip! I will put my energy into something I wish to do. Cut that 9-5 job. I will no more be a puppet of someone’s hand. And then you begin to ponder upon the steps involved in setting up a start-up which can give you a new lease of life. Here’s what your mind is fiddling with:

  1. ACQUIRING DIGITAL SIGNATURE CERTIFICATE (DSC):

                         “They say you don’t have to see the whole staircase,

               just take the first step and your steps will run you to the top”

So take this very first step of acquiring the digital signature certificate which is mandatory for every director of a particular company. Well, this certificate may become a ball and chain for you if you don’t follow the steps correctly. To get the DIN, one needs to file an e-Form DIN-1. Worried about where could you find this form? Well, then be ready for a light-bulb moment as we are here to your rescue! This form is available on the Official site of the ministry of corporate affairs.

Just register yourself on the MCA Website first and have a login id. After filling the DIN-1 Form, upload the filled form by clicking on e-Form upload button on MCA website and then just pay the applicable fees! And your work is done! Seriously, the internet makes us do things at one fell swoop!

So what next after this? After getting the generated DIN, one should intimate their company about DIN. The director can intimate their company about DIN by using the DIN-2 Form. The company should then intimate the Registrar of Corporate (ROC) about all director’s DIN through DIN-3 Form. And your first step is done before the ink is dry!

  1. ACQUIRING DIRECTOR IDENTIFICATION NUMBER (DIN):

                              “Safety is as simple as ‘abc’

                                     Always Be Careful”

So, in order to ensure the security and authenticity of documents filed electronically, the information act of 2000 demands a valid digital signature on the documents submitted electronically.  I know each of us love to throw caution to the wind but we must understand that there are situations which are fraught with danger and so we need to take some cautionary steps! So, this basically acts as the safest way through which one can submit his/her documents. Well, there’s something which you need to put on your record system at the moment and that is that the digital signature certificate should be acquired by only those agencies which are appointed by the controller of certification agencies (CCA).

An icing on the cake: If you already have a digital signature then you can use the same, no need to apply for another. This dropped a bombshell altogether! Yes, but do check for your digital signature validity, agencies issue DSC’s with one or two-year validity after expiry you have to renew it.

3.FILLING AN E-FORM OR NEW USER REGISTRATION:

Too many forms I see! I’m accusing you of being asleep at the wheel. We are almost towards the end of this journey! So, this step is about having a registered user account on MCA Portal for filing an e-Form, for online fee payment, for different transactions as registered and business user. You have a whip hand here and that is creating an account is totally free of cost. So you can have deep pockets now.

  1. THE FINAL LEAGUE: INCORPORATE THE COMPANY

                           “Being someone’s first love may be great,

                               But to be their last is beyond perfect”

 So here comes the very last step which could fulfill your ardent desire of getting your startup registered. As they say,

           “Nothing makes a person more productive than the last minute”

This is the final and major step in this guide on a how to register a company in India, which includes incorporating company name, registering the office address or notice of situation of office and notice for appointment of company directors, manager, and secretary. Also, regarding the take and pay for their qualification shares.

           “Money is not the only answer, but it does make a difference”

For sure, not each of us lives our lives in clover, some of us do live on the breadline. Hence, there’s no denial about the fact that money, though not the only Achilles hill in our journey of startup, plays an important role. Alright so then let’s just have a quick back of the envelope calculation so as to get a ballpark figure about the money that we need to invest.

  1. To get the DSC of Minimum 2 Shareholder as well as directors you need to shed out around 2000Rs
  2. To apply for the DIN number, 1 DIN number will cost around INR 500
  3. Government fees according to the type of company (particularly private or public).
  4. Stamp Duty has to be paid for incorporating a company and Stamp duty depended upon state to state and authorized share capital of the company, on an average, it will cost around 1,500/- for 1 lakh authorized share capital. Moreover just look out for these 3 states that is, Kerala, Punjab & Madhya Pradesh which have a lot of difference in their stamp duty.
  5. Professional Fees, Notarization Cost & GST for doing the whole process may vary.

Before we finally part our ways, I just want to tell you that,

                       “Opportunities are like sunrise,

                   If you wait too long, you’ll miss them”

So what are you waiting for? Just jump on the bandwagon and grab hold this opportunity to start your own startup! Who knows you might end up on a gravy train of your dreams! Good luck!

Also Read :  Top 10 STARTUP NEWS WEBSITES IN INDIA

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