Starting a business requires certain steps to be followed to have a structure to the business. Some of the important steps are:

• Choose a business structure such as Sole proprietorship, limited partnership (LP), Limited liability partnerships (LLP), Limited liability corporation (LLC).
• Select a location for the business.
• Choose a name for the business.
• Get registered with the IRS.
• Apply for the necessary permits.
• Get registered with the concerned local and national agencies.

One Person Company is a category of company where the shareholder is a single person. These companies are created when the founder or owner is a single individual. The owner is not liable to the losses incurred by the company.

The registration of a company is a scrutinizing process and thus there are few companies that get rejected under certain rules. Some of the rules are:

• The name does not align with the principles or objectives of the company.
• A translated name of a reputed brand name.
• Phonetic resemblance to an existing company
• Includes words that are offensive to any community.

These are some of the major points out of many other points of rejection.

Digital Signature is a digital code that is attached to the documents to signify equal authority as of the handwritten signature on the document. It is the proof for the authenticity of the document by the owner of the company.

Director Identification Number is an 8-digit identification number that is unique. It is allotted to every individual wanting to become a director or is already a director by the central government. The DIN Once allotted has a lifetime validity. The DIN helps the government keep track of all the directors. It is used on all official documents that requires the signature of the Director.

There are various types of company registrations that are available in India that one can register for: They are:

• One Person Company (OPC)
• Private Limited Company
• Public Limited Company
• Limited Liability Partnership (LLP)
• Non-Profit Organizations

Under the Companies Act, 2013, A non-profit organization can register itself as a Trust or as a Society. This provision is provided to them under the Registrar of Societies as a private limited non-profit company under Section 8 of the Companies Act, 2013.

According to Section 8 (1a, 1b, 1c) of the new Companies Act, 2013, a Section 8 Company can be used to incorporate to help promote various sectors. Some of the sectors promoted under Section 8 are commerce, art, science, research, sports, social welfare, education, charity, etc among many others. The only condition is that such a Company should use the profits earner for promotion of its objectives and not personal gains.

Authorized Capital and Paid-up Capital? Answer: The Capita of a company is the money given by the shareholders to conduct the business activities. It is mandatory under the Capital clause of the Memorandum of Association (MOA). The main differences between the authorized capital and the paid-up capital of a company are described below.

Authorized Capital

• The Authorized Capital is the maximum amount that a company can legally authorize for the issue to the shareholders.
• The amount should be more than that of the paid-up share.
• Authorized capital can be augmented anytime with the prior permission of the shareholders.

Paid-up Capital

• The Paid-up Capital is the amount of money actually amount paid by the shareholders.
• Under the Companies Amendment Act of 2015, the requirement of having a minimum prescribed paid-up share capital has been removed.

For the registration of a company various documents are required to be submitted. The required documents are:

• Directors & Shareholders Documents
• Passport size photograph
• PAN Card Copy (mandatory)
• Address Proof (Any one of the below)
Passport
Aadhar Card
Driving License
Voter ID
• Residential Proof (Any one of the below)
Bank Statement
Electricity Bill
Telephone Bill
Mobile Bill
• Registered Office Address Proof Documents
• Office Property Ownership/Rental documents
• Address Proof of Registered Office Premises

Providing these documents will enable a smoother registration process.

Digital Signature Certificates (DSCs)in the age of technology has become an integral part. A DSC is required for signing a document or application digitally. There are various reasons why a DSC is required and thus based on their requirements, one can obtain any one of the following three classes of digital signature certificate in India:

Class-1 DSC: This class of DSCs is issued to private subscribers and individuals to help them in securing their email communications, and authentication of their individual identity.

Class-2 DSC: These DSCs are issued to company directors and other signatory authorities of a company/firm/organization.

Class-3 DSC: This class of DSC is useful for participation in e-Tenders and e-Auctions, conducted anywhere in entire India.

MOA stands for Memorandum of Association whereas AOA stands for Articles of Association. Both the documents are important sources of information for shareholders and other stakeholders of a Company.

MOA is used in providing information regarding:

• Name
• Aims
• Objectives
• registered office address
• the clause regarding limited liability
• minimum paid-up capital
• Share capital of the Company.

It helps understand the relationship of a Company with the others.

AOAs on the other hand helps provide the necessary documents when the company is incorporated with the Registrar of Companies (ROC). AOA and MOA in conjunction are called the COnstitution of the COmpany.