To know, how long it takes to register a private limited company, we need to first look into the actual business days required in each step of company incorporation process and practical difficulties faced during the process.
Private limited company registration starts with getting director identification number and ends with obtaining certificate of incorporation.
Before starting the process of company registration, each and every proposed director is required to have a digital signature certificate or DSC. DSC is required to apply for DIN and to file other required documents with the state ROC.
|Steps in Company Registration||Business days required for company registration (Approx)|
|Getting Digital Signature Certificate||2 days|
|Getting Director Identification Number or DIN||1 day|
|Name Approval||3 days|
|Company registration||5 days|
Getting DIN will not take much time as it’s done online with the approval of a chartered accountant or cost accountant or company secretary. After submitting photo in .jpeg format and documents towards address proof, identity proof and affidavit, DIN can be approved immediately by these professionals.
Actual delay in company registration happens in name approval and getting certificate of incorporation.
In the name approval step promoters are required to give 6 alternative names in the order of their preference for approval. Based on this approval the next step i.e. company registration process will start.
There are different criteria that promoters are required to follow while applying for company name. We suggest you to consult with a Chartered Accountant or CS to help you on this and to have more clarity before selecting names for your company.
If you have followed rules and provisions of Companies act 2013 correctly then company name will be approved within 3-4 business days or else it will be sent back for resubmission and the process will get delayed.
For instance, if your proposed name resemble with the name of any existing company like Infosys or Wipro or reliance or any other registered company then it can not be approved unless and until you get a no objection certificate from the company with whom it resemble.
After getting your desired name approved, its time to apply for final registration. Final registration process will not take more than 3-5 business days to get certificate of incorporation.
If everything found to be OK then certificate of incorporation can be approved within 3-5 business working days or else it will get delayed.
After considering certain unavoidable circumstance and based on practical difficulties one can assume that company registration process in India will not take more than 15-16 business days in India.
Recently World Bank has issued its report on ease of doing business in different countries. India has been placed at 142 among 189 countries on ease of doing business. On time required to start a business, World Bank says, it required 28 number of calendar days to complete the procedures to legally operate a business in India.
We have covered time required to register a private limited company in India. Process discussed above will be same for public limited companies registration. Very recently government of India has introduced e-form INC29 in which all the five forms are integrated to reduce the gap of processing time limit. Even PAN card can be applied at the time of incorporation. For more details please read New Integrated Company incorporation process to get registered soon.