What is Company Registration?
In India, company registration refers to the process of legally incorporating a business entity under the regulations and laws of the Companies Act, 2013. It establishes a company as a distinct legal entity, separate from its owners or shareholders, and provides it with certain rights and obligations.
What is the need for Company Registration?
Company registration in India is essential for several reasons. Here are some key reasons why it is necessary to register a company:
Legal entity: Registration establishes the company as a separate legal entity, distinct from its owners or shareholders. This separation ensures that the company can enter into contracts, own assets, and incur liabilities in its own name. It provides limited liability protection to the shareholders, meaning their personal assets are generally not at risk in case of company debts or legal issues.
Business credibility: Registered companies enjoy greater credibility and trust among customers, suppliers, and business partners. It enhances the company’s reputation and portrays a professional image, which can lead to better business opportunities, partnerships, and access to funding.
Brand protection: Registering a company allows you to protect your brand name, logo, and other intellectual property by obtaining trademarks and copyrights. It provides legal rights and remedies against infringement and unauthorized use of your brand assets.
Access to funding: Registered companies have better access to funding options such as bank loans, venture capital, and angel investments. Investors and financial institutions prefer to invest in registered entities due to the legal recognition, transparency, and compliance associated with them.
Government contracts and tenders: Many government contracts and tenders require the bidding entity to be a registered company. Registration opens up opportunities to participate in government projects and tenders, which can be lucrative for business growth.
Tax obligations: Registering a company is necessary to fulfill tax obligations. It enables the company to obtain a unique Tax Identification Number (TIN), file tax returns, and comply with Goods and Services Tax (GST) regulations, income tax, and other applicable tax laws.
Limited liability partnership (LLP) benefits: For professionals and service-oriented businesses, registering as an LLP provides the advantages of limited liability while allowing partners to have flexibility in managing the business. It is a preferred choice for chartered accountants, lawyers, consultants, and similar professionals.
Employee benefits: Company registration allows you to hire employees legally and provide them with various benefits such as employee provident fund (EPF), employee state insurance (ESI), and other social security schemes. It ensures compliance with labor laws and provides a structured framework for employee management.
Exit and succession planning: Registering a company makes it easier to transfer ownership, sell shares, or attract investors for future growth or exit strategies. It provides a clear framework for ownership transition and succession planning.
Types of Company Registration
In India, there are different types of company registration options available, each with its own characteristics and requirements. The commonly chosen types of company registrations in India are:
Private Limited Company (PLC): A private limited company is the most popular form of business entity in India. It is governed by the Companies Act, 2013. The key features of a private limited company include limited liability protection, a minimum of 2 directors, a maximum of 200 shareholders, and restrictions on the transfer of shares. It is ideal for small to medium-sized businesses.
Public Limited Company (PLC): A public limited company is suitable for larger businesses looking to raise capital from the public. It has more stringent compliance requirements and is subject to regulations imposed by the Securities and Exchange Board of India (SEBI). A public limited company must have a minimum of 3 directors and at least 7 shareholders. It can offer its shares to the general public and is required to issue a prospectus.
One Person Company (OPC): Introduced under the Companies Act, 2013, an OPC allows a single individual to form a company. It provides limited liability protection and allows sole proprietors to enjoy the benefits of a company structure. An OPC can have only one director and one shareholder, who is the sole owner of the company. However, if the OPC’s paid-up capital exceeds a specified threshold or its annual turnover exceeds a certain limit, it must convert into a private limited company or public limited company.
Limited Liability Partnership (LLP): An LLP is a hybrid entity that combines the benefits of a company and a partnership. It provides limited liability protection to its partners while allowing them to have flexibility in managing the business. It is governed by the Limited Liability Partnership Act, 2008. An LLP requires a minimum of 2 partners, and there is no limit on the maximum number of partners. It is commonly preferred by professionals such as lawyers, accountants, and consultants.
Section 8 Company: A Section 8 company is a nonprofit organization formed for promoting charitable, scientific, or social causes. It is regulated by the Companies Act, 2013. The primary objective of a Section 8 company is to apply its profits, if any, towards promoting its objectives and not distributing them to its members. It requires a minimum of 2 directors and has no minimum capital requirement.
Producer Company: Producer companies are formed by farmers, artisans, or individuals involved in activities related to primary produce. These companies are focused on the interests of the producers and aim to improve their income and livelihood. Producer companies are registered under the Companies Act, 2013.
Each type of company registration has its own advantages, compliance requirements, and suitability based on the nature and scale of the business. It is advisable to consult with professionals, such as Company Registration Consultants, to determine the most appropriate type of company registration for your specific business needs and objectives.
Documents required for Company Registration
To register a company in India, the following documents and information are typically required:
Identity and Address Proof of Directors and Shareholders: PAN (Permanent Account Number) card or Aadhaar card of directors and shareholders.
Passport (in case of foreign nationals) or Voter ID/Driving License/Passport (in case of Indian nationals) as proof of address.
Passport-sized Photographs: Recent passport-sized photographs of directors and shareholders.
Proof of Registered Office Address: Rental agreement or sale deed of the premises where the registered office of the company is situated.
No-objection certificate (NOC) from the owner of the premises.
Memorandum of Association (MOA) and Articles of Association (AOA): MOA and AOA are the constitutional documents that define the objectives, rules, and regulations of the company. These documents need to be prepared and signed by the directors and shareholders.
Declaration and Consent: Directors and shareholders must sign declarations stating their consent to act as directors or shareholders of the company.
Digital Signature Certificates (DSC): DSCs are required for online filing of documents during the registration process. Each director must obtain a DSC from a government-approved Certifying Authority (CA).
Director Identification Number (DIN): Directors must obtain a unique DIN by filing an online application with the Ministry of Corporate Affairs (MCA).
Payment of Fees: The prescribed fees for company registration must be paid through online or offline modes.
Additional documents may be required in specific cases or depending on the type of company being registered. For example: For foreign nationals or NRIs: Passport, address proof, and other relevant documents pertaining to their country of residence.
For the incorporation of a Section 8 company: Additional documents related to the proposed charitable or social cause, such as a project report or a detailed statement of activities.
It’s important to note that the specific document requirements may vary based on the state of registration and the nature of the company.
Frequently Asked Questions related to Company Registration
Here are some frequently asked questions (FAQs) related to company registration in India along with their answers:
Q1: What is the minimum requirement for the number of directors and shareholders in a private limited company?
A1: A private limited company in India must have a minimum of 2 directors and a minimum of 2 shareholders. The directors and shareholders can be the same individuals.
Q2: What is the minimum capital requirement for registering a private limited company?
A2: As per the Companies Act, 2013, there is no specific minimum capital requirement for registering a private limited company in India. The company can be registered with any amount of authorized and subscribed capital as decided by the shareholders.
Q3: Can a foreign national or NRI (Non-Resident Indian) be a director or shareholder in an Indian company?
A3: Yes, a foreign national or NRI can be a director or shareholder in an Indian company. At least one director of a private limited company must be a resident of India, meaning they should have stayed in India for a total period of not less than 182 days in the previous calendar year.
Q4: Can I register a company without having a physical office space?
A4: Yes, it is possible to register a company in India without having a physical office space. You can provide a residential address or any other valid address as the registered office of the company during the registration process.
Q5: What is the process for obtaining a Digital Signature Certificate (DSC)?
A5: To obtain a Digital Signature Certificate (DSC), you need to submit an application to a government-approved Certifying Authority (CA). The application can be made online or through physical submission of the required documents. The DSC is usually issued within a few days after completing the application process.
Q6: How long does it take to register a company in India?
A6: The time taken to register a company in India can vary based on various factors, such as the type of company, completeness of documentation, and processing time at the Registrar of Companies (ROC). Generally, the registration process can take around 10 to 20 working days, provided all the required documents and information are submitted correctly.
Q7: What are the annual compliance requirements for a registered company?
A7: Registered companies in India have annual compliance requirements that include filing annual financial statements, annual returns, and holding annual general meetings. Companies also need to maintain proper books of accounts and comply with tax-related obligations.
Q8: Can the name of a registered company be changed later?
A8: Yes, the name of a registered company can be changed later by following the prescribed procedures. The name change requires approval from the Registrar of Companies (ROC), and the company needs to pass a special resolution in a general meeting to effect the name change.
Q9: Can a registered private limited company be converted into a public limited company?
A9: Yes, a private limited company can be converted into a public limited company by following the procedures and requirements specified under the Companies Act, 2013. It requires passing a special resolution and fulfilling the necessary compliance obligations.
Q10: Do I need a professional’s assistance to register a company in India?
A10: While it is not mandatory to have professional assistance, it is highly recommended to engage professionals such as Company Registration Consultants who have expertise in company registration procedures. They can guide you through the process, ensure compliance with the legal requirements, and assist with documentation and filings.
Please note that the answers provided are general in nature and may vary based on specific circumstances. It is advisable to consult with professionals or refer to the relevant laws and regulations for precise information and guidance related to company registration in India.
Looking for the Best Company Registration Consultants in India? Connect with India’s top Company Registration Consultants to get accurate and current information on Company Registration, including eligibility criteria, required documents, fees, and the registration process. These seasoned experts will guide you through the process and help you obtain Company Registration in any part of India, without any hassle. With their assistance, you can save time, effort, and money, and make informed decisions.
Here is the List of Top 5 Company Registration Consultants in India
Registrations India
RegistrationsIndia.com is a one-stop-shop that offers a wide range of registration services for businesses in India. From company registration, trademark, copyright, design, patents, GST tax registration, Import Export Code Registration to Udyam MSME registration, RegistrationsIndia.com provides comprehensive consultancy services for all of them. With a team of experts comprising of Chartered Accountants, Lawyers and Company Secretaries, they aim to help new and small businesses survive and grow through the difficult and vulnerable stages of development.
RegistrationsIndia.com simplifies the registration process for businesses, providing ease of incorporation and registration so that clients can concentrate on their core activities. They not only help save time and money but also introduce clients to Chartered Accountants, Company Secretaries, Cost & Management Accountants and Lawyers. The ultimate goal of RegistrationsIndia.com is to make startups self-sustaining and speed up their growth by helping them get registered, incubating them to form a revenue-generating model, and finding suitable investments for them.
Contact Registrations India
Office: 12, Pocket 2, Jasola, New Delhi 110025
Call: 9911599119
Email: info@registrationsindia.com
Website: https://registrationsindia.com
Meera Corp
Meeracorp is a service provider in India that offers various business-related services such as Company Registration, GST Registration, Trademark Registration, Import Export Code Registration, MSME Registration, and ISO Consultancy. The company was established in 2008 and is known for its highly reliable Business Services, Business Startup Services, and Individual Services.
The team at Meeracorp consists of highly capable and experienced professionals who provide these services with utmost dedication and efficiency. The company is widely recognized for its reliability and the quality of its services is highly acclaimed by its customers.
Contact Meera Corp
Office: 76A/18, East Of Kailash, Near ISKCON Temple, New Delhi – 110065, Delhi, India
Call: 8048714063
Website: https://www.meeracorp.in
Nurturelabz
Nurturelabz provides a range of services to assist businesses in India with Company Registration, GST Registration, Trademark Registration, Trade License, Shop and Establishment registration, Import Export Code Registration, MSME Registration, FSSAI Registration, and other Consultancy services.
The company was established in 2014 and has been at the forefront of innovation in corporate laws, accounting, taxation, labour, and legal services ever since. The team at Nurturelabz is led by experienced industry players with more than 20 years of expertise in corporate laws, finance, and taxation. The firm also has a dynamic group of young and enthusiastic professionals, which, in combination with their experience, is the driving force behind Nurturelabz’s success and its affiliates.
If you’re planning to start a business in India, Nurturelabz is your go-to option. Their reliable services and expert guidance will assist you in navigating the complex procedures involved in starting and running a successful business in India.
Contact Nurturelabz
Office: Nurture Labz, #179/2, GVR Ikon, 10th A Main Road, Double Road, Indiranagar 2nd Stage, Bengaluru-560038
Call: 9742307722
Website: https://www.nurturelabz.com
Registration Consultants
Registration Consultants is a consultancy firm that offers a wide range of services including Company Registration, Accounting, Taxation, Investments, Financial Management, Consultancy, and advisory services to both corporate and non-corporate clients in Delhi, U.K., UP, and Haryana. Established in 2002 as a proprietorship firm and later incorporated as Delhi Registration Consultant Services Pvt. Ltd. in 2016, the company specializes in providing consultation services in all sectors of incorporation and legal compliance for business entities and NGOs. With a vast experience in the registration field, the company has gained a reputation in India and abroad and has served thousands of clients with perfection and punctuality.
Registration Consultants has a policy of providing quality services to clients irrespective of their location and size. The company offers a range of services including Society, Trust, NGO Projects, 80G, 12A, 10A, 35AC, FCRA Registration, RWA, Firm- Partnership, Proprietorship, Company, Import-Export License, Trade Mark, Copyright, Patent, ISO, and TAX Consultancy. The company has a unique niche as a prominent legal and consultancy service provider and has the ability to meet the demands of clients in various sectors.
In addition to these services, Registration Consultants also provides Legal Consultancy, Property Registration such as G.P.A, Will, Gift Deed, and Consultancy Services.
Contact Registration Consultants
Head Office- G-24, 3rd Floor, Vijay Nagar, Near GTB Metro Station Gate No.4, Delhi-9
Mob: +91-9350822123
Phone: 011-45518599
Email:info.registra@gmail.com
Website: http://www.registrationconsultant.in
Raag Consultants
RAAG Consultants is a leading financial consultancy firm in India providing a wide range of services such as GST Registration, Company Registration, ISO Certification, Accounting, Audit, ROC Compliance, Ayush License, Copyright Registration, Trademark Registration, Trade License, Shop and Establishment Registration, Import Export Code Registration, MSME Registration, FSSAI Registration and Consultancy Services. With a team of experienced Chartered Accountants, Company Secretaries and Advocates, RAAG Consultants is committed to providing effective financial solutions and advice to clients across India. The partners of the firm have over seven years of experience working as Statutory Auditors and Internal Auditors for top companies like Deloitte, Earnest & Young, NEC India Private Limited, SLV Securities Services Private Limited, and Dezan Shira & Associates. With a presence in major cities in India, RAAG Consultants offers a range of services, including accounts outsourcing, auditing, company formation, business taxation, corporate compliance, registration of foreign companies, and taxation of expatriates.
Contact Raag Consultants
Office: D-11/104, First Floor, Nanda Devi Tower,Central Market, Prashant Vihar,Near PVR Prashant Vihar, Rohini, Delhi-110085, India
Call: 8800463370
Email: info@raagconsultants.co.in
Website: https://www.raagconsultants.co.in/
How to Find the Right Company Registration Consultant?
- Don’t fall into Free Consultation Trap. They might ask you to add your 5 star review to their fake business listing. Refuse. It will harm others.
- Find out if they have an office. Visit their office, meet in person, check credentials before making a decision. Make sure, their business is legitimate!
- Find out if the consultancy business is registered company. If not registered, walk away, period.
- Don’t trust blindly. Read Business Reviews. Seek References – Real people with real numbers. Call and check credibility.
- Avoid, random, work from home, smooth talking, self proclaimed honest story weaver consultants selling licenses for lowest prices!
- Take your time. Don’t rush. Consult with a number of consultants before you choose the best.
- Don’t pay advance. Be firm on this.
- Check and verify the validity of your company registration directly with the authority before making the payment.
