23 July, 2017

This guide is dedicated for those beginners who want to become entrepreneurs. Before you learn the steps for becoming an entrepreneur, you first need to understand who is an entrepreneur. The person who identifies a need, takes risks, is creative, innovative and ultimately produces solutions to address the chosen need is called an entrepreneur. All of us want to become entrepreneurs but few are able to achieve this feat. So what are the steps required to become an entrepreneur or how to start a startup? Everything is explained as follows:

Persons desirous of forming a company must adhere to the step by step procedure as discussed below:-

1. Selection of type of the company.
2. Selection of name for the proposed company.
3. Apply for Directors Identification Number and Digital Signatures.
4. Drafting of Memorandum and Articles of Association.
5. Stamping, digitally signing and e-filing of various documents with the Registrar.
6. Payment of Fees.
7. Obtaining Certificate of Incorporation.
8. Preparation and filing of Prospectus/Statement in lieu of Prospectus and e-Form 19/20 (in case of public companies) for obtaining the certificate of commencement of business.
9. Obtaining Certificate of Commencement of business (in case of public limited companies).

1. Obtain Digital Signatures

Nowadays various document prescribed under the Companies Act, 2013, are required to be filed with the digital signature of the Managing Director or Director or Manager or Secretary of the Company, therefore, it is compulsorily required to Obtain a Digital Signature Certificate from authorized DSC issuing authority for at least one director to sign the E-forms related to incorporate like form INC.1 and other documents in Company registration in India


2. Selection of the type of company

The Promoters of a company may be individual entrepreneurs or body corporate engaged in efforts to incorporate a company. They have the power of defining the object of the company and deciding various matters for the company proposed to be incorporated. It is depending upon, the purposes for which the company is to be incorporated, proposed scale of operations, capital involved, etc. The promoters can select type of the company as they wish to form themselves into viz. private company, public company, non-profit making company, etc. Steps to setup a pvt ltd company


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