Register Company in India

Common Challenges While Registering a Company in India

1. Choosing the Right Company Name:

   Selecting a company name that is unique and compliant with regulatory standards can be tricky. The name must not be identical or similar to existing company names and should also align with branding goals. Names that violate the Names and Emblems Act and those that imply official sponsorship are not permitted to register a company in India. Check that it is not the same, similar, or deceptively identical to the names of existing businesses, LLPs, or trademarks (national or international).

2. Rejection of main objects of the company:

   The main object of the company reflects the main business activities of the company. While investing in India, many sectors are FDI-prohibited, such as gambling and betting, chit funds, real estate business, manufacturing of tobacco products, and lottery businesses.

3. Meeting capital requirements:

   Some jurisdictions require a minimum amount of capital to be deposited before you try to register a company in India. Meeting these financial requirements can be a hurdle for new businesses with limited funds.

4. Proof of Registered office address:

   While registering a company in India, the company needs a fixed place of business. A utility bill is also one of the main critical documents to choose. A recent utility bill (2 months or older), a lease agreement, and an NOC from the property owner are mandatory documents for company registration. Sometimes a registered owner refuses to provide an NOC of the premises, which is also one of the issues in the company registration process. A premises situated in a mall or sub-letting property is also one of the issues.

5. Choosing Directors and Shareholders:

   Private limited companies must have a minimum number of directors and shareholders. Ensuring that these roles are filled correctly and legally can be challenging, especially if you’re not familiar with the requirements.

6. Director Identification Number (DIN):

   Each director must acquire a DIN, a unique identifier obtained through an online application with the Ministry of Corporate Affairs (MCA), which is required for director identification in official documents. For a director who holds a DIN, it is mandatory to file a DIR-3 KYC every year for activation of his/her DIN.

7. Registration of the company with foreign nationals:

   While registering a company in India, the company needs a fixed place of business. A utility bill is also one of the main critical documents to choose. A recent utility bill (2 months or older), a lease agreement, and an NOC from the property owner are mandatory documents for company registration. Sometimes a registered owner refuses to provide an NOC of the premises, which is also one of the issues in the company registration process. A premises situated in a mall or sub-letting property is also one of the issues.
   
   For identity proof: In the case of foreign nationals, a passport is mandatorily required as proof of identity. The passport needs to be notarized or apostilled in the nation where it was issued.
   
   Address proof: In addition to the notarized or apostilled passport copy, the proposed director must submit an address proof that is also notarized or apostilled. The address proof must show the director’s name as in the passport and their current address. Further, the document must also not be older than 1 year for foreign nationals. The following papers are acceptable address proof for foreign nationals. Driving License, Residence Card, Bank Statement, A government-issued form of identity containing the address.
   
   In case the document is in a foreign language, then it must be translated by an official translator to English and notarized or apostilled. Further, if the passport does not contain the date of birth of the holder, then an additional document indicating the date of birth of the director must be provided, duly certified, attested, notarized, or apostilled.

8. Selection of Jurisdictional Code:

   The Assessing Office (AO) code is assigned by the income tax department and designates the jurisdiction of the Assessing officer who will handle the company's tax matters. The challenge lies in correctly identifying and selecting the appropriate Assessing office code, as it is based on the company’s registered office address and jurisdiction.

Registering a company in India involves several challenges such as choosing the right company name, obtaining the necessary funds, and ensuring compliance with legal requirements for directors and shareholders. Dealing with foreign investors may make the procedure especially complicated because there are extra paperwork requirements and jurisdictional issues to take into account.

Why register company in India through KDP Accountants?

At KDP Accountants, we guide you through the process of Company registration in India, including company setup in India, with our qualified professional foreign company advisors. Our clear price structure, preparation of required documents, and timely updates on the registration process are all benefits to businesses. While focusing on accessibility and technology, we enable businesses to complete the company registration process and allow them to focus on their core operations with assured legal compliance.