Business is done best when working with others and with the support of others and what if the support comes from not a person or individual but in the form of a region, namely, the State of Maharashtra.
Maharashtra, often termed as the State that houses the financial capital of the country and the State where people from all over the country wish to reside in, is a business friendly State too. Maharashtra has already been credited with the title of the “manufacturing hub” of the country owing to its significant pool of talent and also policies that are business friendly, along with a well developed infrastructural facilities.
Apart from being a State of choice for industries and large organisations, Maharashtra is also a favorable place for small businesses and start-ups. Let us explore why Maharashtra is an ideal place to do business.
Advantages Of Doing Business In Maharashtra
In order to do business within a particular State, an entrepreneur looks for favourable factors that encourage setting up a business, such as government permissions and ease of obtaining the necessary permits, quick solutions to problems faced combined with the adoption of digital infrastructure at an administrative level, all of which are offered by Maharashtra, thus making it a suitable place to start a company. Along with these factors the other features that need to be considered while starting a business and which Maharashtra provides, include-
The State is the second largest in terms of area as well as population, in the country, thus providing several opportunities for business ventures.
The population of the State is diverse, thus bringing together a number of cultures and traditions as well as several business opportunities specific to the population of certain regions or ethnicities. Additionally, large population also means that labour, especially skilled labour,is easily accessible in the State.
Maharashtra is blessed with ample natural resources which are needed for almost all kinds of businesses.
The State is one of the most advanced in terms of technology and it’s usage in industrial and administrative areas, thus being in sync with the needs of the market.
Maharashtra boasts of roads and railways that make it well connected with places within the state and outside too. Additionally, having an international airport at Mumbai and having a coast too makes the State well connected via airway and waterway for export import or related transportation activities.
Maharashtra provides a number of options in terms of investors or those looking for supporting a venture thus making it an attractive option for businesses to consider operating out of the State.
SEZ Zones For Manufacturers And Other Benefits and Schemes
The State has always been keen to attract and retain manufacturing units and businesses and thus has designated special economic zones (SEZs) where businesses can set up their units while benefiting from benefits and resources at concessional rates.
Setting A Company In Maharashtra
Now that it is clear that Maharashtra is ideal for setting up a business, the next step is to understand the process involved in setting up and company registration in Maharashtra.
A company is a type of business entity that provides a legal structure to the business such that the business has its own individual legal identity, separate from that of the business owners (or shareholders, in the case of a Company). A Company is defined as a legal entity that is composed of a team of people, known as members, wherein the liability of the members or shareholders is limited to their shareholding in the Company.
The types of Company that a business can register as include-
- One Person Company or OPC
- Private Limited Company
- Public Limited Company
The features of a Company include-
- It is a separate legal entity
- It is governed by the Companies Act, 2013
- The minimum number of members required is one member and one nominee
- The Company has perpetual succession
- A legal procedure needs to be followed to dissolve the Company
How To Register A Company In Maharashtra?
In order to register a company, it is important to be familiar with the checklist for the incorporation of company along with adhering to certain compliances.
Compliances For Registering A Company
For a business to register itself as a company it needs to follow certain compliances such as-
- Obtaining approval from the Registrar of Companies (ROC) for the name of the company
- Submitting the Articles of Association and Memorandum of Association to ROC, which will contain objectives and scope of the company and rules and regulations.
- Preparing additional documents such as compliance declaration, registered office proof, details of manager/director, ROC’s letter confirming name availability, ID proofs of the members, etc.
Procedure for Incorporation Of A Company
The procedure for incorporation of a company involves filling out e-forms that are to be filed post logging on to the website of the Ministry of Corporate Affairs (MCA). A brief summary of the forms that need to be submitted for incorporation of a Company include-
- Reserve and approve the proposed name of the Company, a form needs to be filed through the RUN (Reserve Unique Name) service available on the MCA website.
- Filling out the SPICE form (Simplified Proforma for Incorporating Company Electronically)
- Submitting and filing additional form for the incorporation of an OPC or type of company such as INC 3 form for the consent of Nominee
A detailed procedure for registering a company name and its incorporation includes-
- Filling out an application for the approval of name which is to be filed with the Registrar of Companies in Form No. 1A.
- Post the application submission, in the next 7 to 10 days, the Registrar of Companies sends an intimation to the applicant about the availability of the proposed name of the Company. Once, the name is approved, it is valid for a period of six months.
- After knowing that the name is available, the applicant has to then prepare an application for Registration along with the required documents.
- On submission of the said documents, a receipt is issued by the Registrar of Companies, Maharashtra on which a particular date is specified.
- On the appointed date, the prospective director of the company or his authorised representative has to visit the office of the Registrar of Companies, Maharashtra and make the necessary changes in the various documents as suggested by the Registrar of Companies. After the changes have been implemented, the documents need to be submitted once again to the Registrar of Companies.
- The Registrar verifies the changes made and checks whether all the formalities have been completed.
- Finally, the Registrar of Companies issues a Certificate of Incorporation in the name of the Company.
Documents Required For Incorporation
The list of documents required and need to be submitted during registration for the incorporation of a Company include-
- Three copies of draft Memorandum & Articles of Association out of which one copy should be duly stamped with the necessary stamp duty.
- The requisite Filing Fees, which may be paid by a Demand Draft in the name of Registrar of Companies, Maharashtra.
- The original copy of the name approval letter.
- Proof of Address of Directors
- Photographs of All Directors
- Copy of the Aadhaar Card
Eligibility To Form A Company
The eligibility for a business to register as a Company include that one of the members must be a resident of India or a Non-Resident Indian or a Person of Indian Origin or have an Overseas Citizenship of India
Validity Of Company Name
The validity for the approved name of the company is 6 months, which means that the approved company name should be submitted before incorporation or within 6 months of the name being made available.
Processing Time For Incorporation Of A Company
It takes approximately 2 to 3 weeks for a company to be incorporated after the name of the company has been approved.
Advantages Of A Company
The benefits of registering and incorporating a business as a Company, in a State like Maharashtra, include-
- In comparison to other types of business entities, a Company is a well-structured organization.
- The liabilities of the members in a Company are limited to their shareholding.
- A Company can raise capital by issuing shares to its members, thereby helping to raise funds quickly.
- A Company has perpetual existence, which means that even if its members or directors change or leave the Company’s existence is not affected.
- A Company form of entity is the preferred choice over other types of organisational structures for large and complex projects.
deAsra can further throw light on the various advantages of forming a Company and assist with a comparative study between business entities as well.