Company Registration in India
Everyone in India has a dream to start a business. To move forward with this dream, and turn it into a reality, everyone wants to start a company. Therefore, there exists company registration in India. Through the incorporation of a company, you can start your business in a legal way where you are not only provided an infrastructure of growth, but also assistance from the government.
What is a Company Registration?
Before we dive into the company registration, let us understand the concept of a company. What is a company? A company refers to a business entity comprised of at least two directors, and members/shareholders. It is a legal business unit incorporated under the companies registration online rules established under the Company’s 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 you can do business.
So, how to register a company in India? The process, even though simple, requires the assistance of company registration service providers. Thankfully, you are with Registrationwala. We can provide you end-to-end assistance- guiding you with every step one needs to take for registering a company in India.
However, there are many factors that you have to take into account before the name of your company lands inside the company register.
Types of Companies in India
There are six types of companies, each of them taking a different approach towards the company 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 share 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
- Minimum two directors required
- Minimum 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 15,00,000 paid-up capital
- Inclusion of the term “LTD” at the end of the company name
- Minimum three directors required
- Minimum 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 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
- Provide 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's 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 Company 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
Documents required for Incorporation of a Company
Following is the list of documents required for registering a company in India:
- PAN card of the directors of the Company
- Address proof of the directors of the Company
- Passport of the foreign nationals
- Proof of the Registered Office
- Digital Signature Certificate
- 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
Online Company Registration process in India
For registration and incorporation of a company, execute the following steps:
Following is the process for registration of a company
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.
Gathering the documents: Furnish all the documents and get them certified by a Chartered Accountant or a Company Secretary
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.
Applying for and obtaining the Director Identification Number: Acquire the director identification number (DIN) to access the company registration application form.
Drafting the MOA and the AOA: Draft the Memorandum of Association to highlight your Company's object. To state the rules and regulations that your company adheres to.
Apply for company 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.
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 in India
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