Complete Guide to Company Registration in India

Planning to start your own company? Discover everything about Company Registration in India — types of companies, benefits, legal procedures, documents required, costs involved, and expert assistance from Manav Digital Services.

What is Company Registration?

Company registration is the legal process of incorporating your business as a recognized entity under the Companies Act, 2013. It grants your business a distinct legal identity separate from its owners, enabling you to conduct business in your company’s name, enter contracts, open bank accounts, and enjoy limited liability protection.

In India, company registration is done through the Ministry of Corporate Affairs (MCA) online portal, where your company name, objectives, directors, and shareholding structure are formally approved and incorporated. Once registered, your company must comply with statutory obligations such as filing annual returns, maintaining records, and auditing.

Why Should You Register a Company?

Registering a company offers multiple benefits that make it the preferred choice for entrepreneurs and businesses serious about growth, compliance, and credibility.

• Legal Entity: Your company becomes a separate legal entity capable of owning assets and liabilities.
• Limited Liability Protection: Shareholders are only liable up to the amount of shares they hold.
• Credibility: Registered companies enjoy higher trust from customers, banks, investors, and partners.
• Fundraising: Ability to raise funds through equity, debt, venture capital, and banks.
• Tax Benefits: Eligible for various government schemes, incentives, and tax deductions.
• Perpetual Succession: Company continues to exist irrespective of changes in ownership or management.
• Ease of Business Expansion: Facilitates partnerships, joint ventures, and opening branches.

Types of Companies You Can Register in India

India offers various company structures to suit different business needs. Choosing the right type depends on your business goals, number of owners, capital requirements, liability preferences, and compliance capacity.

Private Limited Company

The most popular choice among startups and SMEs, a Private Limited Company limits the number of shareholders to 200 and restricts share transfers. It provides limited liability protection and is governed by the Companies Act, 2013.

• Minimum 2 and maximum 200 members.
• Shares cannot be publicly traded.
• Suitable for small and medium-sized enterprises.
• More compliance than sole proprietorship or partnership but offers greater credibility.

Public Limited Company

Public Limited Companies can raise capital from the public through stock exchanges. They require a minimum of 7 members and are heavily regulated for transparency and accountability.

• Minimum 7 members, no upper limit.
• Shares are freely transferable and publicly traded.
• Suitable for large enterprises planning to raise public capital.
• Stringent regulatory and disclosure requirements.

One Person Company (OPC)

Introduced to encourage single entrepreneurs, OPCs allow a single person to own and operate a company with limited liability protection. It’s easier to manage than a Private Limited Company but cannot raise public funds.

• Only one shareholder and director.
• Limited liability protection.
• Suitable for individual entrepreneurs and small businesses.
• Cannot voluntarily convert into Public Limited Company.

Limited Liability Partnership (LLP)

LLP combines the benefits of a partnership firm and company, offering limited liability protection to partners and flexible management.

• At least two partners required.
• Partners are not liable for the acts of other partners.
• Less compliance than companies, more than partnership firms.
• Suitable for professional services firms and small businesses.

Step-by-Step Company Registration Process in India

Registering a company involves several steps to ensure legal compliance and successful incorporation. Here’s a detailed process you can follow or get expert assistance with:

1. Obtain Digital Signature Certificate (DSC): All proposed directors need a DSC to sign electronic documents securely. DSC can be obtained from authorized certifying agencies.
2. Apply for Director Identification Number (DIN): DIN is a unique ID given to individuals intending to become directors. It’s mandatory for all directors.
3. Name Approval: Propose 1-6 unique names for your company and submit an application (RUN Form) to MCA for approval. Ensure the names follow MCA guidelines and are not similar to existing companies.
4. Drafting MOA and AOA: The Memorandum of Association (MOA) defines your company’s objectives, while the Articles of Association (AOA) set internal rules and regulations.
5. Filing Incorporation Forms: Submit forms INC-7, INC-22, DIR-12, along with MOA, AOA, and other documents through MCA portal.
6. Certificate of Incorporation: Upon verification, MCA issues the Certificate of Incorporation, confirming the company’s legal existence.
7. Apply for PAN and TAN: After incorporation, apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department.
8. Open Bank Account: Open a current bank account in the company’s name for all financial transactions.
9. Other Licenses & Registrations: Depending on your business type, obtain GST registration, Shops & Establishment license, Import-Export Code, etc.

Documents Required for Company Registration

Ensure you have the following documents ready before initiating the registration process:

• Identity proof of all directors and shareholders (PAN card, Aadhaar card, passport, voter ID)
• Address proof of directors and shareholders (passport, electricity bill, bank statement)
• Passport size photographs of directors and shareholders
• Proof of registered office address (electricity bill, rent agreement, NOC from owner)
• Signed MOA and AOA documents
• Digital Signature Certificates (DSC) of proposed directors
• Director Identification Numbers (DIN) of proposed directors

How Much Does Company Registration Cost in India?

The cost of company registration varies depending on the company type, authorized capital, and professional fees. Here’s a typical breakdown:

• MCA Filing Fees: Rs. 1,000 to Rs. 7,000 depending on authorized capital
• Digital Signature Certificate: Rs. 1,000 to Rs. 2,000 per DSC
• Professional Fees: Rs. 5,000 to Rs. 15,000 depending on service provider
• Stamp Duty: Varies by state, usually between Rs. 500 to Rs. 5,000
• Other Registrations: GST, PAN, TAN, which may cost additional

Manav Digital Services offers affordable, transparent pricing with end-to-end support ensuring a hassle-free company registration experience.

Post-Registration Compliance Requirements

Once your company is registered, you must comply with ongoing legal requirements to maintain your company’s good standing:

• Conduct at least one Annual General Meeting (AGM) every year
• File Annual Returns (Form MGT-7) and Financial Statements (Form AOC-4) with MCA
• Maintain proper books of accounts and audit them annually
• Comply with Goods and Services Tax (GST) laws, if applicable
• Update MCA about any changes in directors, registered office, or shareholding
• Ensure timely payment of taxes and statutory dues

Frequently Asked Questions (FAQs)

1. How long does company registration take?

Typically, company registration takes between 7 to 15 working days, depending on document readiness and government processing times.

2. Can I register a company without a registered office?

No. You must have a physical registered office address in India to register a company. This address will be used for all official correspondence.

3. Can foreigners register a company in India?

Yes, foreigners and foreign nationals can register companies in India subject to compliance with Foreign Direct Investment (FDI) policies and RBI regulations.

4. What is the difference between Private Limited Company and LLP?

A Private Limited Company has shareholders and directors and is subject to stricter compliance, whereas an LLP combines partnership flexibility with limited liability and fewer compliances.

5. Can I convert my sole proprietorship into a company?

Yes. You can convert your sole proprietorship or partnership into a Private Limited Company or LLP by following prescribed procedures with the MCA.

Why Choose Manav Digital Services for Your Company Registration?

At Manav Digital Services, we provide expert guidance and end-to-end company registration services across India. Our experienced professionals assist you at every step, ensuring compliance and smooth processing.

• Personalized consultation to select the best company type for your needs
• Quick and hassle-free digital process with minimal paperwork
• Transparent pricing with no hidden costs
• Expert drafting of MOA, AOA, and all legal documents
• Assistance with DIN, DSC, and MCA filings
• Post-registration support including GST registration, bank account opening, and compliance
• Pan India presence with service in 100+ cities

Ready to Register Your Company? Contact Manav Digital Services Today!

Call us at +91 7566444402 or email [email protected] to schedule a free consultation.