Companies Must Register Under MCA/ROC to Do Business in India
Registering the company or business with the local or state government is a crucial part in operating the business. Unless and until a business is registered with the government, they cannot create a business bank account for their business which is necessary for any business because it differentiates the personal and business assets.
While applying a loan, the investors or the lenders want a proof that the business owner is operating a legal business, so showing the business registration certificate will help in acquiring the loan without any haste. Even while applying for the business credit card, producing the registration certificate will complete the process in no time.
New clients and customers who plan to do business with a particular company require an assurance that the company that they are dealing with is a legitimate one. If the name of the business or company is on the government records, it gives an impression that the business is a legal one and that they can invest or spend money on the business. The suppliers offer discounts for the business that has a proper registration. In general, the suppliers fix a wholesale rate for the company owners who produce proper documentation and registration papers.
The basic criteria or requirement for a business to obtain a government contract is to have a proper registration. And hiring the employees on a full time basis and giving them a salary according to the government law is possible only with a help of legal registration. When a company is registered, they receive an identification number from the state that enables the employer to route the taxes on behalf of their employees.
Since the amount of unemployment rate is higher in the country, many consultancies and companies are trying to utilize this fact and are faking the young job seekers and are earning more money. These companies send emails to all the candidates by collecting the details from the job portals and are earning money in the name of the registration process.
So, all the candidates who are planning to attend an interview or the investors or customers who are planning to do business with a particular company must first identify whether it is a legitimate company or not.
Legitimate Corporate Body
All the companies like the One Person Company, Limited Liability Partnership and the Private Limited Company in India are registered under the Ministry of Corporate Affairs (MCA). Any information regarding these firms is available on the official website of the MCA, which helps the public to check the company details and make sure that they run a legal business.
The details are available on the Ministry of Corporate Affairs database called the MCA Master Data and the search can be initiated by typing either partial or full name of the company on the search tab. A list of all the entities that match the search are displayed on the screen from which the user can select the correct match and check out the information about that particular entity.
Users accessing the MCA Master Data can find the following details, like
- Name of the Company
- Corporate Identification Number (CIN)
- Registrar of Companies (ROC) Information
- The Registration Number of ROC
- Class of the Company (Public sector or Private Sector Company)
- Category of the Company (Company limited by guarantee/ Unlimited Company/ Company limited by shares)
- Company Sub-Category (Indian Government Company or Non-Indian Government Company)
- Authorized Capital
- Paid up Capital
- Date of Incorporation
- Date of the last Annual General meeting
- Date of the Balance Sheet
- Company Status
- Listing Status
- Email Address
Registration charges on the corporate body are the interest which is obtained by the creditor or lender on the property of the company by a way of securing that the entities will pay back as debt. The rate of the charges increases when the Limited Liability Partnership or the company raises financial assistance or loan from any financial institution.
Therefore the user can even check whether the company has raised any loans from the financial institutions or banks. Some of the charges that the users can verify are the charge amount, the charge holder, the address of the charge holder and the date of charge creation or modification.
A list of partners of the Limited Liability Partnership or the Directors of the Company can be found on the online portal of the MCA under the Signatory Details search functionality. Some of the details that are found on the portal are, the Director Identification details, Status of the Digital Signature, Name and address of the Directors and partners designation and date of appointment.
Check The Registration
Any registered entity or company will have the Inc or Pvt Ltd at the end of the company name, but it is necessary to identify whether the company is legal or not by visiting the official website of the MCA www.mca.gov.in . A company that claims to be registered with the Government of India is available on the official website of MCA, so the user can ask the company for the Company Incorporation Number (CIN) which is allotted by the RoC. The CIN is a unique number provided for all the companies that are registered under the RoC. When a company is incorporated, they have the right to do business in all the states of the country. If the user is unable to identify the company by its name or CIN in the portal, then they can be sure that the company is not registered with the RoC or the Indian government.
Under the official website, the registration details of only the Public Limited Company, Limited Liability Company and Private Limited Company are available. The details of the entities that are registered as Partnership firms or Sole Proprietorship are not available in the MCA portal.
Steps to Check Company Registration
- Once when the user visits the official MCA portal, they must select the MCA Services tab that is available at the top of the page.
- On the left side of the page there are several options available like the DSC services, DIN services, Master Data, LLP Services, LLP services for business user, e-Filing, Company Services, Complaints, Document related Services, Fee and Payment Services, Investor Services, Track SRN/Transaction Status, Address for sending a physical copy of G.A.R. 33 and Public Search for Trademark.
- From the given options, the user must select the ‘Company Services’ option.
- By clicking on this option gives a sub-list options like ‘Check company name’ and ‘Find CIN’.
- The user can click on the ‘Click Company name’ option and enter the name of the company and the activity type in the given text box and click on the Search button.
- List of all the companies available under the given company name appears on the screen. The user can select the right company and view its details.
- User can also find the CIN of the company by selecting the ‘Find CIN’ option.
- To know the master details of the company, the user can choose the ‘Master Data’ option and enter the name of the Company and its CIN on the given text box. Once when the details are submitted, the master details of the respective company appear on the screen.
- Signatory details and the Index charges of the company can also be viewed on this portal.
Reason why the Government of India has made all this information public is because they do not want any of the citizens in the country to become a prey by working or doing business with illegitimate entities or companies.
Author Bio: Anand Rajendran is a freelance writer living in Chennai, India. His interest in personal finance and budgeting began when he was earning an MFA in theater, living in one of the most expensive cities in the country (Chennai, TN) on a student’s budget. Today, he writes for a number of websites and keeps up his own Tax Consultancy Services named Uptra Consultancy Services.