1. Acquaint yourself with India and its culture.
SBefore you register your company in India, it’s a good idea to acquaint yourself with some basic facts about the country, its population and business practices if you aren’t familiar with the country or haven’t visited.
- If you’re not familiar with the general landscape in India, from information on its society and customs to business practices, getting to know the landscape will smooth the process of registering and conducting your business in the country.
- Companies in the United States, for example, often conduct business on the basis of transactions, while Indian business is still largely relationship based. Knowing the right network of people is likely to further your business more than focusing on specific transactions.
- Knowing cultural differences is important, too. For example, cows are considered holy animals in India. Thus, if you’re interested in selling beef in India, you would want to know if and where this type of business is possible.
2. Acquaint yourself with the Indian business authorities if you have little or no information about them. All companies in India fall under the Companies Act of 1956, which allows the government to regulate all aspects of a business from its establishment to liquidation.
- To register your company, you will file your completed application online with the Indian government’s Registrar of Companies, or RoC. The RoC, which is under the jurisdiction of the Ministry of Corporate Affairs, oversees the incorporation of new companies and the administration of businesses under the statutory regulations of the Companies Act.
3. Choose possible names for your company. To register a company in India, you must first have a unique company name approved by the RoC.
- It’s a good idea to have at least four potential names for your company in case some other entity registered under that name with the RoC.
- By performing due diligence on the language and culture if you’re not familiar with either, you can avoid choosing names that might offend possible Indian clients or be rejected by Indian authorities.
- For instance, you may not use a name that implies any connection to government or international organizations.
- Consider customizing the name to the Indian market to attract more clients.
4. Check online to see if your choice of company name is available. Before you file your application to register your company, it’s a good idea to have your company names firmly in place to ensure the registration process isn’t hindered.
- The Indian Ministry of Corporate Affairs maintains a website where you can check whether other companies registered under a certain name.
5. Apply online with the Ministry of Corporate Affairs for the DIN (Director Identification Number). Before you can register your company, you need to apply for a DIN. This unique number, assigned by the Ministry of Corporate Affairs, identifies the current or intended director of your company in India.
- The forms DIR-3 and DSC, which you can find online at the Ministry of Corporate Affairs’s website, will allow you to apply for the DIN online. For both documents, you’ll need information including your passport, proof of address, educational qualifications and current occupation. You also need a passportsized photograph.
6. Register online for a DSC (Digital Signature Certificate). DSCs are the digital equivalent of physical or paper certificates and can be presented to prove your identity, to access information or services on the Internet or to sign certain documents digitally.
- You can register for your DSC online at the Ministry of Corporate Affairs’s website.
- The Ministry of Corporate Affairs requires that all companies have a DSC because companies will file all applications online.
- You need the same identification documents to obtain a DSC that you do for the DIN, including passport and proof of address.