Company Formation in Kerala

Government of Kerala has decided to boost the MSME growth in state since the state has slipped to 28th position(out of 36) in the 2019-20 National MSME ease of doing business rankings. In a national scope, Business companies as MSMEs solely contributes 30% of the national GDP. As per the past, Kerala has invested considerably in connectivity, transmission networks, skill establishment and infrastructure areas, providing the state a well merit for evolving in this sector. Since 2016, a sum of 52,137 MSMEs have been formed. With financial invests of over INR 4,500 crore, the MSME sector of Kerala has produced employment for over 1.8 lakh population.
The three main factors needed for growth in the MSME area are :

● Credit resources
● Connectivity
● Power

The credit-deposit ratio is implied as one of the key functions used in grasping the financial stability of banks. As on 2018, the credit-deposit ratio in Kerala was about 64% concluding that they have reasonable amounts of credit which can be provided to the MSMEs to boost growth. It is worth remembering that the state is also doing well in the startup sector and IT industry. Kerala retained the first rank for Sustainable Development Goals index conducted by Niti Aayog along with United Nations. As per 2020, Kerala is one of the top performing states in providing needs for start-up ecosystems. Using this bold social and intellectual framework, Kerala has formed many tech entrepreneurs who have aided to build a strong startup environment. Kerala currently has about 2500 startups and 50 incubators. The large-scale migration of Keralites to the Gulf region in covid scenario and the remittances sent by them have played a significant role in the economic development of the state. The NRI deposit inflow increased 11.5% from ₹3,69,944 crore in 2018 to ₹42,54,356 crore in March 2018. On looking the flow of Kerala overlooks to invest within the state, the state government has made a PPP company – Overseas Keralites Investment and Holding Ltd to functions investments which will base infrastructure projects and NRI townships systems.

Successive governments have provide infinite efforts to boost Kerala as an investment destination. The Annual Global Investors Meet of Kerala – ASCEND 2020, held recently highlighted 100+ ready-to- invest projects, in-depth content sessions and panel meetups on focus sectors and made more details on initiatives such as K-SWIFT, Kerala’s single-window clearance system and the newly passed MSME Facilitation Act. MSMEs in Kerala got a high boost through the MSME Facilitation Act by which investments of up to 10 crore can initiate operations without achieving any licenses from the government. This is a much needed step taken towards building investor’s self confidence and boosting the ease of doing business mentality in Kerala.

In the dawn of this new legislation, the state focuses to take a more proactive role in boosting itself as awell emerging central connection for investments and MSME growth in national level. The bill along with the single window clearance mechanism will eventually results in revolutionary modifications in the industrial sector in Kerala and will make a large volume of job chances for the state’s manpower. Due to the good climated economic policies of the Chief Minister for budding new companies, new entrepreneurs popping up in the state rapidly. Kerala is speeding in terms of entrepreneurship. Every new business or venture, no matter what area it operates, must be incorporated or registered as a company under the Companies Act of India. As you have made a decision to start your new business in Kerala, the first main thing you would be thinking is what type of business you should form. There are different forms of business to be implemented in Kerala.

1. Private Limited Company
2. Limited Liability company
3. One person company
4. Partnership company
5. Proprietorship company

But Before we learn the ways to initiate a company let’s try and understand the minimum registration needs and different business types in Kerala. Minimum requirements for Company Registration in Kerala

1. Minimum 2 share holders
2. Minimum 2 Directors
3. The directors and shareholders can be the same person
4. Base Share Capital shall be Rs. 100,000 (One Lakh Indian Rupees Only)

Let’s try and look the different types of business structures in Kerala.

1. Private Limited Company

A private limited company is an independent legal business form which is different from the people who executes it. A private limited company has eternal sequence and its own assets and liabilities, surplus and losses. The liabilities are surrounded to the company only– in other words, the owners are well guarded and protected from financial liability. This is totally well different from that of a sole proprietorship or partnership firm, where the assets and liabilities of the business belong to the individuals.

Company formation in Kerala is controlled and regulated by the Companies Act, 2013, and lawfully administered by the Ministry of Corporate Affairs (MCA), Registrar of Companies, Kerala and the processing takes place at the Central Registration Centre (CRC).

Central Registration Centre (CRC) Today, company registration process in kerala and other regulatory filings are totally digital; documents are filed online through the MCA website and is processed at the CRC.

Company Registration process in Kerala is fully online. Upon finishing all registration formalities, the Registrar of Companies’ certifies a digitally signed Certificate of Incorporation (COI). Electronic certificates authorised by the ministry can be self verified by every stakeholders on the website itself.

Forming a company in Kerala is a systematic procedure of data collection and submission required as per the specifications of Companies Act 2013 and as per the procedure prescribed by the Ministry of Corporate Affairs from uptodate. Management of the process needs good knowledge of legal needs and not to mention, practical expertise of the same.

General Requirements for Company Registration in Kerala .There are certain needs to registering a company in kerala. Requirements and procedure of formation of company in kerala relies on the type of company, minimum shareholders and directors for different types of Companies. Basic needs for company formation in Kerala are :

1. Shareholders

To form a Private Company in kerala, there should be a minimum of two shareholders. The first shareholder(s) must perform the execution of the Memorandum and Articles of Association for forming the Company.

2. Directors

A Private Company must have a minimum of two directors Only individuals can be positioned as directors of a company. Where a new company is incorporated by multiple existing companies or LLPs, the promoter company or LLP can elect individuals as directors of the newly company. An individual must hold a well valid DIN to become a company director.

3. Digital Signature Certificate

Every filings including are formed through the MCA online application system, linked with a valid Digital Signature Certificate (DSC).

4. Company Name

The default name structure of a private company is Name (Noun/Coined Word) + Activity Word + Private Limited. For ex. getmycompany Private Limited. Proposed Company Name shall rely with the Company Name availability Guidelines under Companies Act 2013.

You can inspect the name availability in Kerala and ensure that there is no other Company or LLP name already incorporated the similar name that you mentioned.

How to choose a Company Name in Kerala .Opting a company name is the most unpredictable stage in the procedure of starting a company. Naming
of a Business is merely a logical decision and name approval is done by the office of the Registrar of Companies.

Selecting a Company name in Kerala is clearly a logical procedure an entrepreneur has to carry out before initiating the process of Company Formation in Kerala.

5. Share Capital

The Share Capital in a Company refers to the amount invested by the company owners for operating the business.

There is no minimum limit of capital (Authorised or Paid up Capital) requirement for registering a company. However, the registration fee to the Registrar of companies are based on the different slabs of the company capital.

6. Registered Office Address of Company

Registered Office of Company is simply the official correspondence address of a company or its primary place of business. The address of the Registered Office will be made use for all official company communications.

7. Commencement of Business in Kerala

The First Shareholders must provide the subscribed capital to the Company within six months of Company Incorporation. The Company can initiate the business activities only after filing a declaration to the Registrar that every memorandum subscriber has submitted the value of the shares.

Phases involved in Private Limited Company Formation in Kerala

Phase 1: Company Name Reservation Application
Phase 2: DSC (Digital Signature) of two directors
Phase 3: Application for Certificate of Incorporation by granting the Final Documentation (like MOA,
AOA, Business Address Proof, and Consent Letters etc.) including application for DIN, PAN & TAN.

Timeline

It requires 15 to 20 working days (approx.) to finish Private Limited Company formation process.What we provide you for Private Limited Company Registration

 DSC (Digital Signature) of two Directors
 DIN (Directors Identification Number)
 Declaration of AOA (Articles of Association) & MOA (Memorandum of Association)
 Feedback to queries raised by ROC department
 Government Fees
 Payment of Stamp Duty and Registration Fees
 Our Professional Fees
 Certificate of Incorporation
 PAN Application of Company
 TAN (TAN – Tax Deduction Account Number)
 Support to open a Bank Account
 ISO certified Team of Corp Roots Pvt Ltd
 Tax Consultation for Free

Corproots Consultants will help your private company registration by providing expert assistance and ideas and expertise.

2. Limited Liability Company (LLP)

LLP is a newest corporate form that combines the flexibility of a partnership firm and the benefits of limited liability of a company with lesser complexity. The minimum limit of partners needed to form an LLP is 2. There is no upper limit on the number of partners of LLP. Among the partners, there must be at least two elected partners who shall be individuals, and at least one of them should be resident in India. The rights and responsibilities of proposed partners are administered by the LLP agreement. They are directly responsible for the agreements of all the provisions of LLP Act 2008 and provisions prescribed in LLP agreement.

Documents Needed

 PAN Card/ ID Proof of the Partners

 Address Proof of the partners
 Residence Proof of Partners
 Photograph
 Passport (in case of Foreign Nationals/ NRIs)
 Proof of Registered Office Address
 Digital Signature Certificate

Steps for Process of Registration as LLP in Kerala
1. Obtain DSC
2. DIN Application
3. Name Approval
4. Incorporation of LLP
5. File LLP Agreement

Timeline
It needs 15 to 20 working days (approx.) to finalize LLP Company Registration process.

Corproots Consultants will help your LLP company registration by providing expert assistance and ideas and expertise.

3. One Person Company

The One Person Company (popularly known as OPC) is the firm that is owned by a single person. It allows one person to possess and also manage the full business procedures. The OPC as a business form is proposed to manage the proprietorship businesses and assist in an organized way. This is the form which provides the benefits of corporate structure to those who want no partition to business ownership can move forward with OPC company registration.
 Registration cost
The cost for forming One Person Company is much lower than the cost of formation of a Private Limited Company.

 Number of person needed to incorporate
To form a One Person Company, two-person are needed:
 The Director and Nominee Director.

 Board of Directors
There is no concept of the Board of Directors in a One Person Company as the entity can be controlled by
a single person. The idea of Annual General Meeting and Board Meetings is also not needed for a One
Person Company. The complete percent shares of a One Person Company can be hold by a sole person.
 NRI or foreign nationals
Only Indian Citizens and Indian Nationals are permitted to form a One Person Company.
 Compliance specifications
One Person Company is needed to file their annual returns with the Ministry of Corporate Affairs and
their Income Tax Returns with the Income Tax Department. One Person is also needed to occupy their
account audited each year.
 Restrictions
A OPC must be transformed mandatory into a Private Limited Company if the annual
sales turnover exceeds Two crores or the paid up capital of the OPC exceeds Rs.50
lakhs.

Corproots Consultants will help your one person company registration by providing expert assistance
and ideas and expertise.

4. Partnership Company

A partnership company is really not a different entity distinct from its members. It is simply a collective name given to the individuals forming it. Hence, unlike a company which has a distinct legal entity separating from its members, a company cannot own property or employ employees, neither it can be a borrower or a lender. It cannot appeal or be appealed by others. Corproots Consultants will help your partnership company registration by providing expert assistance and ideas and expertise.

5. Proprietorship company

A sole proprietorship is a type of unregistered business entity that is controlled, managed and regulated by one person. Sole proprietorship is the most familiar type of business in Kerala and it is used by most micro and small businesses functioning in the unorganized sectors. Proprietorship are simple to initiate and have minimal regulatory compliance obligations for functioning. This form is perfect for entrepreneurs who are involving into business for the debut time and for small business with few clients.

CORPROOTS CONSULTANTS will aid with any form of your company registration in Kerala by
giving expert opinions and ideas and expertise.

About Us

Hope you loved reading this article. At getmycompany, we continuously strive to strengthen Indian businesses.
With us you can register any form of MSME company you like, make GST bills, track
inventory, manage expenditures, and even file GST returns. CORPROOTS will assist with any form of
your company formation by providing expert suggestions, concepts and expertise.

Finally why are you waiting to root your dream venture in Kerala?

COMPANY FORMATION IN KERALA