Capital Needed to Launch a Business and the Registration Process

In India, a business can be founded with incredibly little funding. There is no set sum, and the shareholders of the newly formed firm can choose how much capital to put in. The following are some ideas to keep in mind when establishing the capital structure of the business:

Share Face Value: The price per share at which the firm is incorporated is known as the share face value. The face value of a share is often 1 or 10 or 100 or 1000 or 10,000 rupees.

Authorized Capital: The total amount of shares a corporation is permitted to issue to shareholders is known as authorized capital. Normally, all businesses are incorporated with either a Rs. 1 lakh or Rs. 10 lakh authorized capital. The corporation would be forced to pay more fees to the Ministry of Corporate Affairs if a greater authorized capital was necessary. After incorporation, a company’s authorized capital may be increased at any moment.

Paid-up Capital: A company’s paid-up capital is the total number of shares issued to shareholders for which they have made a payment to the business or deposited funds. A company’s paid-up capital cannot be greater than its authorized share capital.

Process of Registering a Company
The stages for registering a company in India are as follows:

Step 1: RUN Name Approval 
To reserve the company name, a request for approval of the company name must first be made to the Ministry of Corporate Affairs. One or two names with business aims may be presented in the name approval application. One or two further names may be submitted if a name permission is declined. All name approval requests are typically approved by the MCA in less than 5 business days.

Step 2: Directors’ digital signature
Wet signatures are prohibited by the Ministry of Corporate Affairs in India. A digital signature certified by an Indian Certification Authority must be used on all signatures for filings with the MCA.

Therefore, before incorporation, digital signatures from the Directors are mandatory.

Indi Filings will secure a digital signature for the Directors from a recognized certifying body. The Directors must submit a copy of their identity documentation and successfully complete a video KYC process in order to receive a digital signature. The provided passport and other documents must be apostilled by a nearby embassy if the Director is a foreign national.

Step 3: Submitting the Incorporation Application
Once the digital signatures have been gathered, the incorporation application in SPICe Form and all pertinent attachments may be submitted to the MCA. The company’s Memorandum of Association (MOA) and Articles of Association (AOA) are filed with the application for incorporation. The Incorporation Certificate and PAN of the company are issued if the MCA deems the incorporation application to be complete and acceptable. In less than five working days, the MCA typically accepts all incorporation petitions.

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