Company form of business is the most common corporate business structure in India. A company is a business entity having its won legal identity and registered either under the old companies act, 1956 or new companies act 2013.
After registration, it uses the word “private Limited” or (P) ltd. or “pvt ltd” or “ltd” at the end of its name to represent the type of company that is registered with ministry of corporate affairs.
If you are interested to know how to set up a company in India then this article is for you.
Registration procedure for a company in India has been simplified with the introduction of MCA21 i.e. online registration portal of Ministry of corporate affairs. The entire registration process can be finished within a period of 15 days.
Any one planning for company registration in India must follow the defined step by step procedure required by Ministry of corporate affairs. Before starting the step by step process of private limited company registration, let us first look into to types of company that can be formed in India.
Type of company in India
The most important part of company registration procedure is to select the type of company that you want to incorporate. As per the present companies act 2013, only four types of companies can be registered with Ministry of Corporate Affairs (MCA);
- Private Limited or Pvt Ltd or (P) Ltd
- Public Limited
- One Person Company or OPC in India
- Registration Under section 8 of the Companies Act, 2013 (Non-Profit Organization).
Company registration procedure in India is same for all type of companies with a little difference because of some of the special requirements of the Act.
In the initial step you need to choose the type of company that you want to register. Your decision for registration depends on your business requirements and the resources available to you.
In this article, we will be discussing steps that are required to create a private limited company and its registration procedure in India.
Applying For DIN or Director Identification Number
In company registration process getting Director Identification Number or DIN for each directors is the first step. Director identification number or DIN is a unique number issued by the ministry of corporate affairs to all new or existing directors.
Before company registration, you need to first apply for DIN (director identification number). With the introduction of new concept, all existing directors or intending directors are required to obtain director identification number or DIN.
DIN can be applied online through MCA portal by using e-form DIR-3. DIR-3 has to be signed by both applicant and professional like Chartered Accountant or CS or CMA in whole time practice. DIN applicant is also required to sing the form digitally. For this reason, applicant is also required to get digital signature certificate before applying DIN.
Applying For Digital Signature Certificate (DSC)
For online company registration, various application forms are required to be signed electronically by either of the directors. To sign the form, signing director needs to obtain a digital signature certificate (DSC) from any certified authority issuing digital signature.
If you have one or obtained at the time of applying DIN then that will serve the purpose but make sure that its valid and not expired.
For company registration requirements class 2 digital signature certificate (DSC) is required.
You can get a digital signature certificate from following organizations;
Application for name availability
The foremost thing in company registration process is to check for name availability. The company is named before its birth. Before it’s registration, the promoters have to provide at least one name up to a maximum of 6 alternative names in the order of priority.
The proposed name should be indicative of the main objects of the organization and should not resemble to any existing registered company.
Application for your company’s name approval can be processed within three working days. After such approval, name will be reserved for a period of 60 days. You have to avail the name within the allotted 60 days time or else it may be allotted to some one else on their request.
In case, names provided for approval is not approved then MCA will send back the form for re-submission. Again promoters will have the option of providing 6 names in the order of their priority.
Name approval in e-form INC-1 with 6 alternative names provided by the promoters should be applied online through MCA site.
Drafting of MOA and AOA
You can avail professional services of a chartered accountant or CS for drafting MOA and AOA. Shareholders need to specify their name, address and occupation in own handwriting and signature on the last page or subscription page of the Memorandum and article of association before applying for company registration.
Please remember photo of each subscriber is also required to be affixed in the MOA and AOA.
Apply for Company Registration
In the last step of company registration process, we need to upload following forms to MCA site one by one and these specific forms should be digitally signed by a director. Forms line DIR-12 and INC-22 are to be certified by a professional (either a chartered accountant or a CS).
- INC7 (For incorporation and filling of MOA, AOA and other documents)
- INC-22 (Notice of the situation of registered office)
- DIR-22 (Notice of the new company’s directors personal details)
At the time of uploading, you need to pay requisite fee that is applicable for your company registration based on authorized capital.
With these steps your private limited company registration will be over.
Company registration procedure for a private limited company gets over after getting the “certificate of incorporation”. From 5th June 2015, a private limited company is not required to file e-form INC-21 for commencement of business.
You can engage a chartered accountant or CS for this process who can help you in completing all proceedings and formalities up to obtaining certificate of incorporation. They can assist you with all these formalities step by step from obtaining DIN to getting the registration approved.
Before you start, we suggest you to visit a chartered accountant or company secretary or cost accountant to know the entire process on setting up a company in India.
- Integrated Company Incorporation Process to get registered soon
- How to get Director Identification Number (DIN)
- Minimum requirements for a Private Limited Company
- Job of a Chartered Accountant in company registration process
- How much i have to incur in my company registration
- Company Name Approval Process
- What is Memorandum Of Association
- What is Article Of Association
- How to open a current account for your company
- How to start one person company or OPC in india