How to Register a Company in Kerala?

Running a business in Kerala is fairly easy if you know how to get your business registration done quickly and efficiently. Read ahead to know more about it.
Editorial Team
Published On December 28, 2021 | Last Updated On September 2, 2022

Startups and small businesses are highly encouraged all across the country. Several enhanced government policies have also been developed for helping new businesses to flourish. Like all other states, Kerala is also helping create a favourable business environment.

According to experts, Kerala is one of India's most influential business hubs, where Kochi serves to be the best choice for both new and existing business owners. Most importantly, new companies are highly favoured in the state owing to the Chief Minister's financial policies empowered by central economic assistance.

Selecting the Suitable Business Structure

Choosing the proper business structure is a critical aspect of any business. The structure of the business effectively impacts the financial success of the company. This is because it influences the taxation process, asset security, and continuing the smooth functioning of the company even when there is a change of ownership.

For instance, when you are running low on investment in the initial days of the business, you may consider going for a partnership or proprietorship in place of a private limited company. However, setting up a business as a private limited company would require you to spend around 20,000 INR, including government revenue as well as charges levied by your accountant. On the flip side, if your new business is looking for some investment from other ventures, it's suggested to opt for LLP or a PVT Limited Company.

Fundamental Requirements for Registering a Business in Kerala

If you wish to register your private limited company in Kerala, you should fulfill some fundamental requirements as given below:

  • A minimum of two shareholders or directors for registering as a company
  • A valid DSC or a Digital Signature Certificate for completion of the online registration process
  • Opting for an apt name for the business. Though you may think it's an easy task, the availability of your chosen name is a matter of concern and needs to be considered before you register your company.
  • Having a Registered Office is also mandatory to operate a business in Kerala, which will be the official address for the communication for your company.
  • The business shareholders should raise the share capital within six months of the first day of operation. Once it falls into place, your business may start business operations after approval of the business commencement from the certified company registrar.

Requirements for Registering the Company

Six elementary steps have to be followed as per the Companies Act of 2013 for successfully registering as a business in Kerala.

  1. Obtaining a DSC or Digital Signature Certificate
  2. Obtaining a DIN or Director Identification Number
  3. Getting approval of Company Name from the Registration of Companies
  4. Drafting Memorandum of Association or MoA along with the Articles of Association
  5. Filing MoA as well as AoA with the Registrar of Companies
  6. Obtaining a Certificate of Incorporation from ROC

It's essential to have a chosen name that's unique and unused in the state. You can get the confirmation within a couple of days from the Registrar of Companies whether the name that you have applied for is available or not.

After the company's acceptance, you should prepare a draft for submission to the Articles of Association as well as the Memorandum of Association. When you submit the documents as mentioned earlier, the company will get registered, and a digital Certificate of Incorporation will then be issued by the ROC, which you can also verify on the MCA website.

With the pandemic hitting the nation, getting a business registered has become an easy online process. Moreover, the Ministry of Corporate Affairs has made it easier to register under the Companies Act of 2013. You may apply online with all the documents on the MCA website, whereby you can get the business registered online without having to wait in a long queue.

Conclusion

Even though the process has become online, you should be aware of the legal requirements and have some practical experience managing the entire process. If you are absolutely a novice, you should get a consultant to aid you through the process. When looking for a perfect business environment in Kerala, it's better to explore Kochi for the same. Owing to the start-up-friendly policies, Kochi has won the status of a smart city.