Company Registration in India

In India, starting a business is a dream shared by many. Almost everyone wants to launch a company in order to pursue this dream and make it come true. Hence, there exists company registration in India. By incorporating a company, you can start your business legally and receive support from the government.

What is a Company Registration?

Before we dive into company registration, let us understand the concept of a company. What is a company? A company refers to a business entity which comprises members/shareholders and directors. It is a legal business unit incorporated under the company registration online rules established under the Companies Act, 2013.

Simply put, company registration is a process to acquire a company registration number in India through which the business gets a legal infrastructure through which the owners can do business.

So, how to register a company in India? In the company registration process, first, you have to apply online on the MCA website and collect all documents such as DSC and DIN number. Fill out the SPICe+ form with complete details of the company, director, and shareholder. Lastly, submit the details to the Registrar of Companies.

However, there are many factors that you have to take into account before the name of your company makes it to the Registrar of Companies’ company register.

Types of Companies in India

There are six types of companies, each of them taking a different approach to the business registration process in India.

• Private Limited Company
• Public Limited Company
• One Person Company
• Producer Company
• Nidhi Company
• Section 8 Company

Features common to every type of company

• Separate Legal Entity:  A company is a separate legal entity from that of its directors. the company registration number that a company gets after the completion of a new company registration process, acts as a metaphorical birth certificate of the company – making a company an individual as far as the rules are concerned.
• Limited Liability: The members/shareholders and directors of a company are only liable to its losses to the extent of their shared subscriptions.
• Incorporated business entity: A company is an incorporated business entity – governed under the Companies Act, 2013 by the Ministry of Corporate Affairs.
• Transferable Shares: The shares of a registered company are transferable among the members of that company.
• Perpetual existence: Since the existence of the company isn’t bound with the existence of the directors, a company continues to exist even after the death of the director.
• Common Seal: After registration of a company online (or offline), the directors of the company must put a common seal on every document related to company transactions.

Features of a Private Limited Company:

• Limited Liability
• A minimum of two directors required
• Minimum of two members/shareholders required
• Maximum 200 members/shareholders
• No minimum capital requirement
• Perpetual Existence

Features of a Public Limited Company

• Separate legal entity
• Transferability of shares among public
• Perpetual Succession
• At least 5,00,000 paid-up capital
• Inclusion of the term “LTD” at the end of the company name
• Minimum of three directors required
• Minimum of seven members required
• Annual prospectus required

Features of a One-Person Company

• Separate legal entity
• A nominee required
• No Perpetual Existence
• No minimum capital requirement
• Only one director required

Features of a Producer Company

• The business objective focuses on agricultural produce
• Must include the words producer company
• Only equity shares issued
• Minimum of five directors required
• Must maintain a general reserve each year

Features of a Section 8 Company

• Non-Profit Organization
• Dividend isn’t distributed among members
• Profits generated to promote social welfare work

Features of a Nidhi Company

• Promotes savings and thrift
• Provides short-term deposits
• Can only engage in business among members
• Provides short/long term loans with minimum documentation

 

Benefits of Registering a Company in India

• A Company is an entity with a real existence: After you register a new company in India, you gain access to a business entity whose existence is recognized by the government bodies. It means that unlike non-separate business entities in India, your Company will exist as per the regulations of the Companies Act, 2013.
• A Company can exist perpetually: Any limited business entity can exist perpetually. A one-person company, even though it doesn't have a direct perpetual succession benefit, can continue to exist by transferring the shares to the nominee.
• Limited Liability to the directors: The debts of the directors or members of the Company are limited by the face value of shares they have purchased.
• Transferring the shares is easy: All it takes is one board resolution to authorize the transfer of shares among the members of the Company. And, when it comes to a public limited company, the transferability of the shares is easy even when the public is involved.
• Owning Property becomes a possibility: After completing the company registration procedure in India, it becomes easy for a company to own a property.
• Power to file cases or get sued: Because a company is a legal entity that has been conferred the status of an "individual" by the government of India, it now has the potential to file court cases against others or get sued all the same.
• Increase in borrowing capacity: Company online registration leads to an increase in borrowing capacity. Because you will have a legal business entity, the banks and other institutions will now be more than willing to lend you money.
• Raising equity becomes a possibility: Company name registration in India leads to forming a business entity that is more trusted in the market and, thus, has the investors' faith. Therefore, it becomes less laborious for you to raise equity for your enterprise.

Due to these benefits, it is optimal for any starting entrepreneur to go through the registration process of a Company in India.

Eligibility Criteria for Business Registration in India Online

Keep the following points in mind before you apply to register your Company online in India. These are the critical requirements for registering a company in India because they give it the regulatory infrastructure necessary to receive the MCA's approval.

• There should be at least 2 directors of the Company: If the company registration procedure in India you want to go through is not a One Person company but a Private Limited Company, then there should be at least two directors within your institution.
• The directors and shareholders can be the same individual: The directors and shareholders/members can be considered the same when applying for new company incorporation online.
• There are two types of "Limited" attributes of a company: Limited by shares or limited by guarantee: When you apply for online company registration, you must decide beforehand whether your Company will be limited by shares or limited by guarantee. If shares limit the Company, you will have shareholders. For a company limited by guarantee, there will be members.
• There should be at least one director who is a resident of India: One of the biggest requirements of company registration online in India is having at least an Indian director in the incorporated Company.
• The name of the Company should be unique: Any new company registration in India can only happen online if the name of the Company is unique. If your firm's name contravenes the rules and regulations of the Companies Act of 2013 in any way, you won't be able to obtain online company registration in India. 

 

Documents Required for Incorporation of Company in India

Following is the list of documents required for registering a company in India:

1. PAN card of the directors of the Company
2. Address proof of the directors of the Company
3. Passport of the foreign nationals
4. Proof of the Registered Office
5. Digital Signature Certificate
6. Director Identification Number

Here is the explanation of all the documents required to register your own Company in India Online:

• PAN Card of the Company: The PAN card is a critical document the directors must provide for company incorporation. Known as the Permanent Account Number, it is the unique identification issued by the Income Tax Department of India. This document is necessary for all matters related to the finances of the Company.
• Address proof of the directors of the Company: All the directors of the Company must provide an address proof in the form of an Aadhar Card, Ration Card, Driving License, Telephone bill, Bank statements, or other utility bills.
• Passport of the foreign nationals: If any director is a foreign national, he or she must provide a copy of the passport.
• Proof of the registered office: For registering a company online in India, the applicants must have a registered office within the country. Two types of documents are acceptable as proof of registered office: Sales agreement or Rent agreement.
• Digital Signature Certificate: For facilitating the process of registration of the Company online, DSC is required.
• Director Identification Number: All aspiring directors of a company are issued the director identification number before application filing.

Process for Company Registration in India

For registration and incorporation of a company, execute the following steps:

Following is the process for registration of a company

1. Check Company name availability: The first step is to check company name availability in India. To do this, you must refer to either the official MCA portal or our platform.
2. Gathering the documents: Furnish all the documents and get them certified by a Chartered Accountant or a Company Secretary
3. Applying for and obtaining the Digital Signature Certificate:  You must file the application for company registration online. Thus, you need the DSC to authenticate the documents you upload on the MCA portal.
4. Applying for and obtaining the Director Identification Number: Acquire the director identification number (DIN) to access the company registration application form.
5. Drafting the MOA and the AOA: Draft the Memorandum of Association to highlight your company objectives. To state the rules and regulations that your company adheres to.
6. Apply for business registration via the Spice form: The Spice form is the application for registration of companies in India. It is detailed, intuitive, and provides enough info for a commoner to fill out the application form.
7. Processing of the application form: The Registrar of Companies will assess your application form. If you have made no mistake, you will get the company registration number via the certificate of incorporation.

Our Reliable Company Registration Services

Our experts provide you end to end company registration services in India by assisting you in the following manner:

• Collecting and organizing the documents.
• Applying for the Digital Signature Certificate.
• Digitally certifying the documents.
• Precisely drafting the Memorandum and Articles of Association.
• Filing the application for business registration online.
• Obtaining and forwarding the Certificate of Incorporation.

We ensure that your online company incorporation services requirements are always on time. Our professionals understand the intricacies of the online company incorporation procedure. Thus, we have expedited the process – helping you incorporate your Company at an affordable rate and a low price.

Registrationwala is an all-legal service provider for start-ups. They provide complete company incorporation services in India. Each service is optimized for good results, and all are provided at the most affordable company incorporation fees you can hope for.

So, reach out to our experts and start realizing your dream of being your boss by starting your own Company.

Frequently Asked Questions

Q. What is company registration number in India?

A. Company registration number or Company Incorporation Number (CIN) it is the unique identification number of the company.

Q. How to check company registration number?

A. To check company registration, you can enter the name of the company in the incorporation portal in India.

Q. In which company registration of article of association is optional?

A. Article of Association is a critical component of company registration in India. Therefore, there is no instance where this document is optional. You must provide the Registrar of Companies with this document in order to incorporate your company.

Q. How to check company name availability in India?

A. For company registration check in India, you must write down the name of the company on MCA company search portal or Registrationwala’s official company search platform.

Q. How to check company registration in India?

A. To check company registration, online methodology can be implemented. You can either use our company registration agency or the official MCA portal.

Q. Who provides registration certificate to the company?

A. The registration certificate to the company is provided by the Ministry of Corporate Affairs via the online mode.

Q. What is DSC in company registration?

A. DSC is the Digital Signature certificate; a document critical to the company incorporation process when it is conducted online.

Q. How many minimum members required for registration of public company?

A. To register a public company, a minimum of seven members are required.

Q. How to check company registration status?

A. Just enter the name of the company in our company search portal and you will get the information about whether a company is registered or not.

Q. How to cancel company registration?

A. To cancel company registration, you must apply for company strike-off. The process is as follows:

• Get the approval of the board and the creditors to strike off the company
• Fill out the application for company strike off
• The ROC will issue a notice of the same
• Publication of company dissolution
• Passing the order of company dissolution
• Cancellation of company registration

Q. What is OPC company registration?

A. OPC company registration is the incorporation of a One Person Company; a business entity that only entails one director.

Q. How to register a company name in India?

A. The online company formation applicant must choose a name and run it on the MCA RUN application to check whether the chosen name is unprecedented or not.