The Central Registration Center (CRC) in India was established by the Ministry of Corporate Affairs as a tool which provides a more efficient registration procedure for legal entities. One of the main advantages of the CRC for company formation in India refers to the company’s trading name, which can now be registered from any Indian location, by completing the online form INC – 1. Our team of agents in company formation in India can provide assistance on the compulsory steps for choosing a trading name.
Reasons for the creation of the Indian CRC
The Ministry of Corporate Affairs established the Central Registration Center through the Notification of 22nd of January 2016, with the main purpose of easing the procedure on starting a company in India. One of the main benefits of the CRC refers to the fact that it has an administrative jurisdiction across all the Indian territory, although its has its headquarters at the Indian Institute of Corporate Affairs.
Since CRC is designed to deliver its services at a national level, the investors who want to open a company in India will be able to propose the company’s trading name on the online platform of the institution and to receive a prompt response on the matter in the following working day, thus drastically reducing the time frame related to the incorporation procedure. It is important to know that the company reservation form allows six entries for the proposed company trading name (by completing the form INC – 32). Our team of agents in company registration in India can offer further information on the CRC forms.
Legal framework on the Indian CRC
The Indian CRC is regulated under the Companies Act 2013, and the main institution that imposes the applicable legislation is the Registrar of Companies, situated in Delhi. The legislation on the procedure on how to form a company in India was amended in January 2016 and it became effective since the date of the amendment (22nd of January) on the regulations prescribed by the Companies (Incorporation) Rules. However, all companies generating an income in India are also legally required to register for taxes, including for VAT.
Amongst the main modifications, we mention the following:
• the company’s trading name is no longer required to express the company’s main objects of activity or the ones prescribed under the memorandum of association;
• abbreviated names will be accepted by the Registrar of Companies.
Other regulations have been established under the new incorporation rules, and investors are invited to contact our team of consultants in company formation in India for further details on the Indian CRC.