Company Registration

Register a Company by Using INC-29

calendar20 Feb, 2023
timeReading Time: 5 Minutes
Register a Company by Using INC-29

In India, the process of registering a company can be complex and time-consuming. However, the government has introduced a simplified procedure for registering a company using the INC-29 form. The INC-29 is a single form that combines the application for the Director Identification Number (DIN), name reservation, and incorporation of a company. In this blog post, we will discuss the INC-29 company registration process in India.

Advantages of Using Inc-29 for Company Registration

  1. Simplified Process: The INC-29 form combines the application for DIN, name reservation, and incorporation of the company into a single form, making the registration process more straightforward and less time-consuming.
  2. Faster Processing: The government has made significant efforts to digitize the registration process, and the INC 29 form is processed more quickly than traditional registration methods.
  3. Cost-Effective: The INC 29 form is cost-effective as it combines the application for various registrations into a single form, reducing the fees charged for each registration.
  4. Ease of Compliance: Once a company is registered using the INC 29 form, it is easier to comply with various legal and regulatory requirements as the company has already completed the necessary registrations in a single step.
  5. Online Application: The entire process of registering a company using the INC 29 form can be done online through the MCA portal[1], saving time and effort.

Documents Required For INC-29 Registration

The following documents are required for registering a company using the INC 29 form:

  1. Proof of registered office address
  2. Identity proof of proposed Directors (PAN card or passport)
  3. Address proof of proposed Directors (Aadhaar card, driving license, or passport)
  4. Memorandum of Association (MOA)
  5. Articles of Association (AOA)

The MOA and AOA are the company’s constitution documents that outline the company’s objectives and regulations.

Limitations of Using Inc-29 for Company Registration

  1. Limited Flexibility: The INC-29 form offers limited flexibility in terms of the company’s objects, share capital, and other provisions. If the company’s requirements are not covered under the INC 29 form, it may not be suitable for incorporation.
  2. No Customization: The INC 29 form cannot be customized to suit the specific requirements of the company. If a company has unique requirements, it may need to opt for traditional registration methods.
  3. Expertise Required: Although the process of registering a company using the INC 29 form is simplified, it still requires a certain level of expertise and knowledge of legal and regulatory requirements.

Common Mistakes to Avoid While Registering a Company Using Inc-29

The process of registering a company using the INC-29 form can be complicated, and there are several common mistakes that applicants may make. Some of these mistakes include:

  1. Providing incorrect or incomplete information on the form.
  2. Not following the guidelines for name reservation, such as using prohibited or misleading words.
  3. Failing to provide the necessary documents or providing incorrect documents.
  4. Not checking the availability of the proposed company name before reserving it.
  5. Failing to comply with legal and regulatory requirements after the company is registered.

Step-By-Step Guide to Register a Company Using Inc-29

Step 1: Obtain Digital Signature Certificates (DSC)

The first step in the registration process is to obtain Digital Signature Certificates (DSC) for all the proposed Directors of the company. DSC is a secure electronic key that is used to sign documents digitally. It is necessary for filing online documents with the Ministry of Corporate Affairs (MCA). DSC can be obtained from government-approved certifying authorities.

Step 2: Apply for Director Identification Number (DIN)

The next step is to apply for the Director Identification Number (DIN) for all the proposed Directors of the company. DIN is a unique identification number assigned by the government to individuals who wish to become Directors of a company. The application for DIN can be made through the MCA portal using the SPICe+ form.

Step 3: Name Reservation

Once the DIN is obtained, the next step is to reserve a name for the company. The name reservation can be done through the MCA portal using the SPICe+ form. The applicant can provide up to two names for the company, and the MCA will check the availability of the names. Once the name is approved, it is valid for 20 days.

Step 4: Filing the INC-29 form.

After the name is reserved, the next step is to file the INC 29 form. This form is used to incorporate a company and combines the application for DIN, name reservation, and incorporation of the company. The form requires various details such as the proposed Directors, registered office address, share capital, and the objects of the company.

Step 5: Certificate of Incorporation

Once the INC 29 form is filed, and the government approves it, a Certificate of Incorporation (COI) is issued. The COI is a legal document that signifies the creation of the company. The COI includes the company’s name, registration number, and date of incorporation.

Post-Registration Compliance for Companies Registered Using Inc-29

Once a company is registered using the INC 29 form, it is essential to comply with legal and regulatory requirements to avoid penalties and fines. Some of the post-registration compliance requirements include:

  1. Obtaining a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the company.
  2. Registering for Goods and Services Tax (GST) if applicable.
  3. Maintaining accurate and up-to-date records and books of accounts.
  4. Filing annual returns and financial statements with the Registrar of Companies (ROC).
  5. Conducting board meetings and shareholder meetings as per legal requirements.

Comparison Of INC-29 Registration With Traditional Registration Methods

While the INC-29 form offers several advantages, it is also essential to compare it with traditional registration methods to understand the differences. Some of the differences include:

  1. The traditional registration method involves separate applications for DIN, name reservation, and incorporation, whereas the INC 29 form combines all these applications into a single form.
  2. The traditional registration method can be more time-consuming, while the INC-29 form is processed more quickly.
  3. The traditional registration method can be more expensive, as separate fees are charged for each registration, while the INC-29 form is more cost-effective.
  4. The traditional registration method offers more flexibility and customization options, while the INC-29 form is more standardized.

Conclusion

The INC 29 form has streamlined the process of registering a company in India by combining the application for DIN, name reservation, and incorporation of the company. In this blog post, we provided a step-by-step guide to register a company using the INC-29 form, the documents required for registration, the advantages and limitations of using the INC 29 form, and common mistakes to avoid during the registration process. We also highlighted the post-registration compliance requirements for companies registered using the INC 29 form.

The INC 29 form has several advantages, such as being a simplified, faster, cost-effective, and more compliant way of registering a company. However, it also has limitations, including limited flexibility, no customization, and the requirement of a certain level of expertise. Thus, before opting for the INC 29 form for company registration, it is essential to consider the company’s specific requirements and make an informed decision.

Post-registration compliance is crucial for companies registered using the INC 29 form, and failure to comply with legal and regulatory requirements may result in penalties and fines. Hence, companies must ensure they comply with post-registration compliance requirements, such as obtaining a Permanent Account Number (PAN), registering for Goods and Services Tax (GST) if applicable, and fulfilling other legal and regulatory requirements.

Overall, the INC 29 form has simplified the process of registering a company in India and reduced the time and effort required to complete the necessary registrations. However, companies must be aware of the advantages and limitations of the INC-29 form and the post-registration compliance requirements to ensure a smooth and hassle-free registration process.

Read Our Article: Form INC-29 Fast Track Company Registration

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