Do you want to register a company in India? If yes, you are in the right place. Here in this article, we have covered all the steps to be followed to register a company or a startup in India. Regardless you are starting a business in manufacturing, retailing, or service providing, you must register your company.
However, there are different Govt authorities for specific types of licensing needs. Even dealing with the same product with a different business model may attract different licensing procedures. However, some basic requirements are common to everyone.
Table of Contents
Here are the 10 Steps to Register a Company in India
1. Determine the Company Structure
Firstly, you need to decide on the type of business structure you want to register. The four most popular business structures in India are listed below:
Based on the size and scale of your business activities, you need to choose the business structure that fits best.
Do remember, it is extremely important to select the right business structure for your company. Every business structure needs to maintain different types of compliance. Hence, a wrong business structure may cause huge financial losses for the individuals and the company.
2. Obtain Digital Signature Certificate (DSC)
Apply for a Digital Signature Certificate (DSC) for the proposed directors of the company. A DSC is required for the online filing of registration forms.
3. Obtain Director Identification Number (DIN)
Each director of the company needs to obtain a unique Director Identification Number (DIN) from the Ministry of Corporate Affairs (MCA). This is a simple one-day process and can apply for DIN online. A PAN number is mandatory for Indian citizens and a Passport is mandatory for foreign nationals. You can get a provisional DIN number immediately.
4. Name Reservation
The next step is to apply for a name reservation with the Registrar of Companies (ROC) using the RUN (Reserve Unique Name) service. You need to ensure that the proposed name complies with the naming guidelines and is available.
5. Prepare Incorporation Documents
After the company name is finalized, it is time to prepare the necessary documents, including a Memorandum of Association (MOA) and Articles of Association (AOA). These documents define the objectives, rules, and regulations of the company.
6. File Incorporation Application
The next in registering a company in India is to submit the incorporation application along with the required documents to the ROC. The application must include details of the directors, shareholders, registered office address, and other relevant information.
7. Obtain a Certificate of Incorporation
Once the ROC approves the application, you will receive the Certificate of Incorporation. It confirms the formation of the company.
8. Apply for PAN and TAN
After receiving the certificate of incorporation, you need to apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department. These are essential for tax-related transactions.
9. Register for Goods and Services Tax (GST)
If your company’s turnover exceeds the prescribed threshold, register for Goods and Services Tax (GST) with the respective state’s GST department.
10. Open Bank Account and Commence Operations
The final step of the company registration process is to open a bank account in the company’s name. You are now eligible for starting and running a legally-compliant business in India.
Frequently Asked Questions
What are the minimum requirements to register a company in India?
Minimum two directors for a private limited company, and three directors for a public limited company. The minimum capital requirement of INR 1 lakh for a private limited company. And INR 5 lakhs for a public limited company (abolished in certain cases). At least one director should be an Indian resident.
How long does it take to register a company in India?
The registration process usually takes 10-15 days, depending on the accuracy of the documents and the workload of the ROC.
Can foreign nationals start a company in India?
Yes, foreign nationals can start a company in India subject to certain conditions and regulations.
What are the advantages of registering a company in India?
The advantages of registering a company in India include:
- Separate Legal Entity
- Limited Liability
- Credibility and Trust
- Easy Access to Funding
- Avail Tax Benefits
- Perpetual Existence
- Brand Protection
- Legal Compliance ensures transparency, accountability, and adherence to business laws.
- Business Expansion
- Eligible for Government Tenders and Contracts
What are the Documents Required to Register a Company in India?
The documents required to register a company in India include:
- Identity proof (Aadhaar Card, Passport, or Voter ID) of directors and shareholders
- Address proof (Electricity bill, telephone bill, or bank statement) of directors and registered office
- Passport-size photographs of directors
- Memorandum of Association (MOA) and Articles of Association (AOA)
- Director Identification Number (DIN) of directors
- Digital Signature Certificate (DSC) of directors
- Consent letters from directors and shareholders
- Address proof of the registered office (rental agreement, sale deed, or property tax receipt)
- No Objection Certificate (NOC) from the property owner (if the registered office is rented)
- Board resolution for authorizing key actions related to company incorporation
- Declaration by professionals involved in the incorporation process (such as chartered accountants or company secretaries)
How to Register a Start-up Company in India
Below are the steps to be followed to register your start-up company in India.
- Obtain the Incorporation/Registration Certificate of your start-up
- Provide Details of the Directors
- Proof of Concept. It can be a pitch deck/website link/video (in case of a validation/ early traction/scaling stage start-up)
- Register Your Start-up with Start-up India
- Get DPIIT Recognition
- PAN Number
Can I register a company online in India?
Yes, the registration process can be done online through the MCA portal. You will need to follow four simple steps to register a company online in India. They are the following:
- Obtain Director Identification Number (DIN)
- Obtain Digital Signature Certificate (DSC)
- Registration on the Ministry of Corporate Affairs (MCA) Portal
- Certificate of Incorporation
It is advisable to seek professional guidance from company secretaries, chartered accountants, or legal advisors to ensure compliance with all the legal and regulatory requirements during the company registration process.