How to Register a Company? | The Startup ProcessRate This Post:
Now that you have got a thorough understanding of various business ownerships, it’s time to give a legal structure and identity to your business model. In this section, we’ll be focusing on how to register a company in various countries.
Registering a company might seem a tricky affair but we are here to address all your concerns and answer all the frequently asked questions you might have about registering a company in this comprehensive guide.
Registering a company in various countries
How to Register a Company in India?
Steps of Setting Up a Business in India
- Get Director Identification Number (DIN) for proposed Directors of the company [It is also advisable for all the directors to have an aadhar card]
- Get the Digital Signature Certificate (DSC) for proposed Directors of the company
- File the desired name of the company to the Registrar of Companies (ROC) for approval
- Get the Memorandum of Association and Articles of Association printed
- Fill all incorporation forms/documents and make payment of stamp duties online
- Get the certificate of incorporation and also the certificate of commencement, if needed
- Acquire a company seal, Permanent Account Number (PAN) and Tax Account Number (TAN)
- Register under Shops and Establishment Act
- Register for GST and also with EPFO and ESIC
Documents Required for Registration of a Company
For registering a company in India, an application for registration should be submitted to the Registrar of Companies (ROC) with the following documents:
- Memorandum of Association
- Articles of Association
- A declaration signed by a person named in the articles of the proposed company as a director, manager, or secretary of the company, or by an advocate of the Supreme Court or High Court, or by an attorney entitled to appear before the High Court, or by a chartered accountant practicing in India stating that all the requirements of the Companies Act 1956 and the applicable rules with respect to the registration and other matters have been complied with
- A list of persons who have consented to act as Directors of the company.
- A prescribed form with information about directors, managing directors and managers and secretary
- A prescribed form with registered office information
- Power of attorney in favour of one of the promoters or any other person, authorizing him/her to make corrections in the documents submitted to the ROC, if it becomes necessary
- Applicable registration fee payable to the ROC
How to Register a Company in the United States (USA)?
You do not have to be a US citizen or a green-card holder to start a business in the US. We shall be listing the steps for registering a Limited Liability Company (LLC) in the USA.
- Select a location according to your business requirements. For non-US citizens looking to do business from their home country, Delaware, Wyoming and Nevada are good locations. Your legal company address shall act as your registered agent address if it is in the same state that the company was started and you are present during normal business hours (9 am – 5pm), else there are registered agent services to help you take care of this.
- Decide on a name for the company
- File the Articles of Organization with the state in which intend to set up your company
- Draft an Operating Agreement
- Obtain an EIN (Employee Identification Number) so that you can open a bank account, accept payments and pay taxes. You do not need to have a physical address in the US to open a bank account. A non-US resident is taxed on US source income only while a US resident is taxed on income from all over the world.
- Obtain the business licenses and permits
- Hire employees for the company as per your requirements
- Get necessary insurance cover for the company
How to Register a Company in the United Kingdom (UK)?
- Choose a company name that is unique so that it can be registered.
- You would need a physical address in the UK for your office. This address hall appear on the company records.
- Choose a Standard Industrial Classification of Economic Activities (SIC) code that will state what your business does
- Decide on the details of the share capital to be created and also on the details of the company director and secretary
- Prepare Memorandum and Articles of Association
- File the incorporation of the company with the Companies House and wait for it to be approved. This can be done online. The Companies House charges 12 pounds to register a company online.
- Hold the company’s first board meeting, set up and maintain company registers and produce share certificates for the first shareholders
- Set up a bank account, register for VAT with HMRC and also register and set up PAYE for employees
How to Register a Company in China?
- China has more rules and regulations than most countries. So the first step should be to research as much as possible on the government policies, the industry you are looking to enter and the companies already operating in that space.
- Select a major business or industrial centre, like Shanghai or Beijing as your company location and set up an office there. You need proof of a lease to register your business. Location also depends on your budget, transportation and logistics needs and the applicable government rules.
- Decide on the name of the company and what type of business entity you would want to register as. There are joint ventures, representative offices, wholly foreign owned enterprises (WFOE) etc. for foreign companies. WFOE is the most popular option and in most cases is an LLC, though it requires investment in a Chinese bank and also is subject to more government regulations.
- Ground reality in China is different from what is written in the law book. The application process and documents vary from city to city and depends on who you are dealing with. You can find the exhaustive list of documents needed to register a company in China here.
- You would need an approval certificate and business license. Approvals are needed from the Ministry of Commerce (MOFCOM) and State Administration of Industry and Commerce (SAIC) and sometimes from the National Development and Reform Commission (NDRC) too. It takes around 90 days to get these approvals.
- Once you get the approval certificate, you need to apply for the business license with the AIC within 30 days.
- IP violations are a big issue in China. Getting your trademarks in China are equally important as getting them in your home country.
- Open an account in a bank in China like HSBC or Bank of China, especially if your company is a WFOE and deposit the registered capital.
- Get approval from the Public Security Bureau (PSB)
- Register with the Tax Bureau, Customs Office and State Administration of Foreign Exchange (SAFE)
- Hire an accountant, as maintaining the account books is mandatory in China
As you can see the registration procedure remains more or less similar in all the countries. These steps vary with the country and whether you are a citizen or a foreigner. Once you have registered, you are ready to do business and execute everything you had in your mind or on paper. Recruiting the right people is the biggest and most important while setting up a company. Now that you have registered your company name, it is time to manage expectations and build relationships.
The Startup Process
We know how important your dream business is to you. Therefore, we’ve come up with an all in one guide: The Startup Process to help you turn your vision into reality.