How to Incorporate a Company in India?

Incorporation as its name suggests, can be defined as a legal process in which a corporate entity is declared as a separate entity from its owners. Once a company has decided to incorporate its business, the most vital decision that is required to take is where to locate the business. Different states have different incorporation rules. Incorporation of companies in India is done basically under the Companies Act 1956 according to which the very first step is to register or form a company.

How to register a Company in India

If you incorporate your business, first thing that you may require doing is file company formation documents with the state government in which you are going to locate your company. Now, question arises what you need to form your company? Well, regardless of which location you choose, there are some common things that you may require to do as mentioned below:

Company Name: You need include a corporate identifier with the name of your company which may include “Corporation,” “Incorporated,” “Company,”, “Inc.”, etc. You should always conduct a preliminary search for the availability of a suitable company name before submitting the Articles of Incorporation.

Purpose of your Business:  This is to explain what your company is incorporated to do or offer.

Registered agent: Usually, every state requires corporations to have a registered agent in the state in which incorporation is done. The role of a registered agent is to receive essential legal and tax documents for the corporation. But it is to be confirmed that he or she must have a physical address (no P.O. Boxes) in the state of incorporation.

What benefits you can have after incorporating your company:

  • It helps to protect owners’ assets against the liabilities of the company.
  • One can easily transfer ownership to other party.
  • Helps to lower tax rate as compare to personal income.

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