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Company Registration in Delhi

Company registration in Delhi is a streamlined process facilitated by the Ministry of Corporate Affairs (MCA) that allows businesses to legally establish their presence in the national capital. The process begins with obtaining Digital Signature Certificates (DSC) and Director Identification Numbers (DIN) for the company’s directors. Following this, a unique name for the company must be reserved by filing the RUN (Reserve Unique Name) form. Once the name is approved, the next step is to draft the Memorandum of Association (MOA) and Articles of Association (AOA), which define the company’s structure and operational guidelines. These documents, along with other required forms and declarations, are then submitted online through the MCA portal for incorporation.

 

Upon successful verification of the submitted documents, the MCA issues a Certificate of Incorporation, officially recognizing the company as a legal entity. This certificate includes a Corporate Identity Number (CIN), which serves as a unique identifier for the company. Post-registration, the company must comply with various statutory requirements, including obtaining a Permanent Account Number (PAN), Tax Deduction and Collection Account Number (TAN), and Goods and Services Tax (GST) registration if applicable. Also, the company must adhere to annual compliance obligations such as filing financial statements and annual returns with the Registrar of Companies (RoC). Company registration in Delhi not only provides legal status and credibility but also opens doors to various business opportunities and government schemes, fostering growth and expansion in a competitive market.

 

If you are looking for Company registration services in Delhi, Tax Guru Consultant offers comprehensive support to entrepreneurs and businesses looking to establish a legal entity efficiently and compliantly. These services include assistance with obtaining Digital Signature Certificates (DSC) and Director Identification Numbers (DIN), name reservation, and drafting essential documents like the Memorandum of Association (MOA) and Articles of Association (AOA). Our professional consultants guide clients through the entire process, ensuring all regulatory requirements are met and submissions are accurately filed with the Ministry of Corporate Affairs (MCA). By leveraging these services, businesses can streamline their registration process, ensuring a smooth and hassle-free incorporation, which provides a solid foundation for their operations and growth in the dynamic Delhi market.

Benefits of Company Registration

Here are the benefits of company registration:

  • Legal Recognition: Company registration grants a business legal status, allowing it to operate as a separate legal entity distinct from its owners.
  • Limited Liability Protection: Shareholders’ personal assets are protected as their liability is limited to the amount they have invested in the company.
  • Enhanced Credibility: Registered companies tend to gain more trust and credibility among customers, suppliers, and investors, enhancing business opportunities.
  • Access to Funding: Registered companies can raise capital through equity by issuing shares and have better access to loans and other financial assistance from banks and investors.
  • Perpetual Succession: A registered company continues to exist beyond the lifespan of its founders, ensuring continuity of operations even if ownership changes.
  • Brand Protection: Registering a company secures its name and brand, preventing others from using the same name in the market.
  • Tax Benefits: Companies can avail various tax deductions and incentives that are not available to unregistered entities.
  • Ability to Enter Contracts: Registered companies can enter into contracts, acquire assets, and incur liabilities in their own name, simplifying business operations and legal processes.
  • Global Expansion: A registered company has the legal standing and credibility needed to explore and establish operations in international markets.
  • Government Schemes and Subsidies: Registered companies are eligible to apply for various government schemes, subsidies, and incentives aimed at promoting business growth and development.

Types of Company Registration

Company registration in India can be categorized into several types based on the business structure and requirements. Here are the primary types:

Private Limited Company (Pvt. Ltd.):

A Private Limited Company is the most popular type of business entity in India. It offers limited liability protection to its shareholders and restricts the transferability of shares. It requires a minimum of two directors and two shareholders to register.

Public Limited Company (Ltd.):

A Public Limited Company can offer shares to the public and has more regulatory requirements than a Private Limited Company. It requires a minimum of three directors and seven shareholders. This type of company can raise capital from the public through shares.

One Person Company (OPC):

An OPC is designed for individual entrepreneurs who want to own a company without sharing ownership. It allows a single person to register a company, providing the benefits of limited liability while maintaining control over the business.

Limited Liability Partnership (LLP):

An LLP combines the benefits of a partnership and a company. It offers limited liability protection to its partners and allows them to manage the business. LLPs are preferred by professionals and small businesses due to their flexible structure.

Partnership Firm:

A Partnership Firm is a traditional form of business where two or more individuals manage and operate a business as per the terms and conditions set in a Partnership Deed. Unlike LLPs, partners in a Partnership Firm have unlimited liability.

Sole Proprietorship:

A Sole Proprietorship is the simplest form of business entity, owned and operated by a single individual. It is not a separate legal entity, meaning the owner is personally liable for all business debts and obligations.

Section 8 Company:

A Section 8 Company is a non-profit organization established for promoting commerce, arts, science, sports, education, research, social welfare, religion, charity, or any other useful object. It requires a minimum of two directors and two shareholders and is subject to specific compliance requirements.

Producer Company:

A Producer Company is a specialized type of company registered under the Companies Act to facilitate farmers and agriculturists in production, procurement, harvesting, and marketing of their produce. It requires a minimum of ten or more producers (individuals or institutions) to register.

Eligibility for Company Registration

Eligibility for company registration in India depends on the type of company being registered. Here are the general eligibility criteria for various types of companies:

Private Limited Company

Directors and Shareholders:

Minimum of 2 directors and 2 shareholders.

Maximum of 15 directors and 200 shareholders.

At least one director must be a resident of India.

Age: Directors must be at least 18 years old.

Nationality: Foreign nationals can be directors and shareholders, subject to obtaining a Director Identification Number (DIN) and Digital Signature Certificate (DSC).

Public Limited Company

Directors and Shareholders:

Minimum of 3 directors and 7 shareholders.

No upper limit on the number of shareholders.

At least one director must be a resident of India.

Age: Directors must be at least 18 years old.

Nationality: Foreign nationals can be directors and shareholders, subject to obtaining a Director Identification Number (DIN) and Digital Signature Certificate (DSC).

One Person Company (OPC)

Directors and Shareholders:

One individual can be the sole director and shareholder.

The nominee for the sole shareholder must be an individual.

Age: The director and nominee must be at least 18 years old.

Nationality: Only Indian citizens and residents can incorporate an OPC.

Limited Liability Partnership (LLP)

Partners:

Minimum of 2 partners.

No upper limit on the number of partners.

At least one partner must be a resident of India.

Age: Partners must be at least 18 years old.

Nationality: Foreign nationals can be partners, subject to obtaining a Designated Partner Identification Number (DPIN) and Digital Signature Certificate (DSC).

Partnership Firm

Partners:

Minimum of 2 partners.

Maximum of 20 partners.

Age: Partners must be at least 18 years old.

Nationality: Foreign nationals can be partners, subject to compliance with the applicable laws.

Sole Proprietorship

Proprietor:

One individual owning and operating the business.

Age: The proprietor must be at least 18 years old.

Nationality: Both Indian citizens and foreign nationals can operate a sole proprietorship, subject to local laws and regulations.

Section 8 Company

Directors and Shareholders:

Minimum of 2 directors and 2 shareholders.

At least one director must be a resident of India.

Objective:

The company must be established for promoting commerce, arts, science, sports, education, research, social welfare, religion, charity, or any other useful object, with no intention to distribute profits.

Producer Company

Producers: Minimum of 10 or more producers (individuals or institutions) or 2 or more producer institutions.

Directors: Minimum of 5 directors and a maximum of 15 directors.

Age: Directors must be at least 18 years old.

Company Registration Process

The company registration process in India involves several steps, including obtaining necessary approvals and submitting various documents to the Ministry of Corporate Affairs (MCA). Here is a detailed overview of the process:

  1. Obtain Digital Signature Certificate (DSC)

Purpose: A DSC is required for digitally signing electronic documents.

Steps: Apply for a DSC from a Certifying Authority (CA) recognized by the government.

  1. Obtain Director Identification Number (DIN)

Purpose: A DIN is a unique identification number for a director.

Steps: Apply for a DIN by filing Form DIR-3 on the MCA portal, along with identity and address proof.

  1. Name Reservation

Purpose: Reserve a unique name for the company.

Steps:

Check name availability on the MCA portal.

File the RUN (Reserve Unique Name) form with the MCA, proposing up to two names in the order of preference.

  1. Preparation of Documents

Documents Required:

Memorandum of Association (MOA): Defines the company’s objectives and scope of activities.

Articles of Association (AOA): Outlines the rules and regulations governing the company’s internal management.

Other Documents:

Consent to act as a director in Form DIR-2.

Affidavit and declaration by the first subscribers and directors in Form INC-9.

Proof of office address.

Copies of utility bills not older than two months.

  1. Filing of Incorporation Forms

Forms to be Filed:

SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus): This form integrates multiple processes, including name reservation, incorporation, DIN allotment, PAN, TAN, EPFO, ESIC, and GSTIN.

AGILE-PRO-S: For obtaining GSTIN, ESIC, EPFO, Professional Tax registration (only for Maharashtra), and opening a bank account.

INC-22: For furnishing registered office details.

DIR-12: For furnishing details of directors.

  1. Payment of Fees

Steps: Pay the required fees for the application and stamp duty based on the authorized capital and the state in which the registered office is located.

  1. Verification and Approval by MCA

Steps: The MCA reviews the submitted documents. If everything is in order, the Registrar of Companies (RoC) approves the incorporation application.

  1. Issuance of Certificate of Incorporation

Result: Once approved, the MCA issues a Certificate of Incorporation (COI) that includes the Corporate Identity Number (CIN). This certificate is proof that the company is legally registered.

  1. Post-Incorporation Compliances

Steps:

Apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).

Open a bank account in the name of the company.

Register for Goods and Services Tax (GST), if applicable.

Comply with statutory requirements such as conducting the first board meeting within 30 days, appointing an auditor, and maintaining statutory registers and records.

Documents Required for Company Registration

The documents required for company registration in India vary slightly depending on the type of company being registered. Below is a comprehensive list of documents typically required for registering a Private Limited Company, which is the most common type of business entity.

For Directors and Shareholders

Identity Proof:

PAN Card (mandatory for Indian nationals).

Passport (mandatory for foreign nationals).

Address Proof:

Passport.

Voter ID card.

Driving license.

Aadhar card.

Recent utility bill (electricity, water, gas).

Bank statement (not older than 2 months).

Photographs:

Passport-sized photographs of all directors and shareholders.

For Registered Office

Proof of Address:

Rent agreement or lease deed (if the premises are rented).

Sale deed or property deed (if the premises are owned).

No Objection Certificate (NOC):

NOC from the owner of the premises, if the premises are rented or leased.

Utility Bill:

Latest utility bill (electricity, water, gas) for the registered office address (not older than 2 months).

Company-Specific Documents

Memorandum of Association (MOA):

Defines the company’s objectives and scope of activities.

Articles of Association (AOA):

Outlines the rules and regulations governing the company’s internal management.

Director Identification Number (DIN):

Required for all directors. Obtained by filing Form DIR-3 on the MCA portal.

Digital Signature Certificate (DSC):

Required for digitally signing documents. Obtained from a Certifying Authority (CA).

Declaration and Affidavit:

Form INC-9: Declaration by subscribers and directors.

Form DIR-2: Consent to act as a director.

Additional Documents (if applicable)

Proof of Nationality:

Passport copy for foreign nationals.

Business Visa:

For foreign nationals proposing to become directors.

Forms Required for Filing

SPICe+ Form (Simplified Proforma for Incorporating Company Electronically Plus):

Integrated form for name reservation, incorporation, DIN allotment, PAN, TAN, EPFO, ESIC, and GSTIN.

AGILE-PRO-S:

For obtaining GSTIN, EPFO, ESIC, Professional Tax registration (only for Maharashtra), and opening a bank account.

INC-22:

For furnishing registered office details.

DIR-12:

For furnishing details of directors.

Time Required for Company Registration

In Delhi, the process of registering a company online can take around 7–10 working days, depending on the approval of the Ministry of Corporate Affairs (MCA).

Company Registration Fees

The fees for company registration in Delhi can vary based on the authorized capital of the company. Here’s a general outline of the fees involved:

Stamp Duty: Stamp duty is payable on the authorized capital of the company. The rates vary from state to state. In Delhi, the stamp duty is typically charged at a flat rate of 0.15% of the authorized capital or a maximum of ₹2,50,000, whichever is lower.

Registrar of Companies (RoC) Fees: The RoC fees depend on the authorized capital of the company and are prescribed under the Companies (Registration Offices and Fees) Rules, 2014. Here’s an approximate fee structure:

Up to ₹1,00,000 authorized capital: ₹4,000

₹1,00,001 to ₹5,00,000 authorized capital: ₹8,000

₹5,00,001 to ₹25,00,000 authorized capital: ₹12,000

₹25,00,001 to ₹1 crore authorized capital: ₹15,000

Over ₹1 crore authorized capital: ₹20,000