Company Registration

Company incorporation or Company registration means forming a new company by following the rules, regulations & guidelines specified under Companies act 1956, 2013 & other allied acts, bills and rules.

The incorporated corporation may be a business startup, micro, small or medium scale business or a not for profit organization. All the corporate affairs are governed by MCA under the Companies act, 1956, Companies act 2013& other allied acts, bills & rules.

MCA protects the interest of investors & offer many important services to the stakeholders as well. Ministry of corporate affairs prepare, govern and control all the rules, regulations and policies of the companies under Companies act 1956, Companies act 2013, LLP act, 2008 and other allied act, bills & rules.

Company Name Availability

Choosing a name for the company is one of the most important steps when registering a company in India. While choosing a unique name, you need to consider various factors in mind and follow the company naming guidelines mentioned under the Companies Act, 2013 in order to arrive at a good decision. Important things which we have to take care of while choosing a name for the company are –

  • A company name should be unique.
  • It should be easy to remember
  • It should not be similar or identical to any existing company or LLP or trademark
  • It should follow the naming guidelines specified under the Companies Act, 2013.
  • It should be attractive
  • It should not be blacklisted
  • No common trademark

However, MCA is responsible for accepting or rejecting the company name application.

Select Your Company Type

There are different types of companies in India. All the companies are listed in the tabular format below so that you can easily choose the company type which best suits your business requirements –

Points of Distinction Private limited company Partnership Firm Sole proprietorship firm LLP One person company Section 8 company
Suitable for Start-up & growing companies Home businesses Small traders & manufacturers/ Businesses opened for a limited period Professional services or firms/Existing partnership businesses wants to reduce their personal liability Sole promoters/businesses want to limit their liabilities to an extent Charitable or non-profit organizations
Limited liability Yes No No Yes Yes Yes
Tax advantage Few benefits Minimal tax advantage Minimal tax advantage Maximum advantages Few benefits Maximum advantages
Perpetual succession Yes No No Yes Yes Yes
Statutory Compliances High Minimal Minimal Low High High
Profit & losses Owner of the company Distributed among partners in an agreed ratio Sole-proprietor is responsible for the profits & losses of the firm Distributed among partners Sole owner of the company is responsible Non-profit organization

Requirements to Start a New Company in India

Minimum Two Person

Register your companies with at least two persons to act as the initial director & shareholders. The company can have up to 200 shareholders & 15 directors.

Resident Director

One director of the company should be resident in India. A Person is considered a resident when he/sh stays in India for over 182 days during the previous financial year.

Registered Address

The company must be registered at a physical address, known as Registered Address. You need to submit Registered Office Proof & NOC from the owner.

Capital Requirement

Invest as per the business’s requirement, & there is no prescribed minimum or maximum capital. However, the ROC Fee is calculated on the capital.

Documents Required For Company Registration in India

For Private Limited Company Registration

Identity proof of Directors and Shareholder

Proof of Registered Office in India

Address Proof of Directors and Shareholders

Signed Incorporation Documents

MOA & AOA

For LLP Registration

Identity proof

Address proof

DIN & DSC

PAN Card Copies of the partners

For Partnership Registration

Identity proof of the partners

Address proof of the partners

DIN of the partners

DSC of the partners

For Proprietorship Firm Registration

Identity proof of the proposed owner

Address proof of the proposed owner

Registered Office proof

Bank account

For One Person Company Registration

Identity proof of Directors and Shareholder

Proof of Registered Office in India

Address Proof of Directors and Shareholders

Signed Incorporation Documents

MOA & AOA

For Section 8 Company Registration

Identity proof of Directors and Shareholder

Proof of Registered Office in India

Address Proof of Directors and Shareholders

Signed Incorporation Documents

MOA & AOA

Benefits of Company Registration

The benefits of company registration are as follows –

  1. It offers limited liability as an individual
  2. It provides numerous tax benefits
  3. It helps improving test factor and enhancing your brand image
  4. It gives legal identity or recognition to your business.
  5. It makes you eligible for investment/funding.

Entity Comparison Guide

Private limited company Partnership Sole proprietorship LLP One person Company Section 8 company
Members 2 Minimum 200 Maximum 2 Minimum 20 Maximum 1 Maximum 2 Minimum Maximum no limit 1 2 Minimum 200 Maximum
Separate legal entity Yes No No Yes Yes Yes
Liability of members Limited liability Unlimited liability Unlimited liability Limited liability Limited liability Limited liability
Registration – Optional or Mandatory Registration under MCA is mandatory Optional/Can be registered under partnership act 1932 Not mandatory Registration under MCA is mandatory Registration under MCA & Companies act 2013 is mandatory Registration under section 8 of MCA
Taxation 30% of profit + education cess + surcharge 30% of company Profit Taxed as an individual 30% of profit + education cess + surcharge 30% of profit + education cess + surcharge 30% of profit orTax exempt (If registered under 12AA of the income tax act)
Transferability of shares Can be transferred Not allowed Not allowed Can be transferred Allowed to only one person Can be transferred
Annual filings Filed with ROC Income tax return with ROC Income tax return with ROC Filed with ROC Filed with ROC MCA annual return and income tax return each year

Company Registration Process

Name approval

The first step of incorporating the company is to decide about the name of your company which will be applied to MCA for approval. Names given for approval should ideally be unique and related to business activities of the company. MCA

Application of DSC & DPIN

The next step for company registration is to apply for a digital signature and DPIN. A digital signature is an online signature used for signing the e-forms and DPIN refer to director's identification number issued by Registrar.

MOA & AOA submission

Once the name is approved, a Memorandum of association and Articles of Association needs to be prepared, which includes the rules & by-laws of the company that regulates the operation of the business. Both MOA and AOA are filed with the MCA with the subscription statement for authentication & approval.

Prepare form & documents

Fill the application forms duly, attach the documents, get the same verified by a professional, then file the form to ROC and make the payment.

Get incorporation certificate

Once all the documentation is done & the form is filed with the department, registrar issues the incorporation certificate. The certificate of incorporation mentions significant information about the company, such as CIN number, the name of the company, date of incorporation, etc.

Apply for a Bank account

After the receipt of the incorporation certificate, you can submit the copy of the Incorporation certificate, MOA, AOA and PAN along with the account opening form of the bank to open your bank account.

Compliances to be followed by the Company

Once a business is registered, it must adhere to certain regulations on an annual basis. The company must adhere to certain regulations, such as appointing its first auditor within 30 days of incorporation in the first-ever board meeting. Each company must hold a minimum of four board meetings per calendar year at specified intervals. It is required to maintain and file profit and loss accounts, annual returns, balance sheets and audit reports to the Registrar of Companies on or before the due date for each fiscal year. Each business is required to keep certain Statutory Registers.

What Is Included In Our Package?

Eligibility Consultation

Document Preparation

Application Drafting

Government Fees

Company Registration FAQ's

According to the Companies act, 1956, “A company is a group of people formed & registered in order to achieve specific Objectives”. It is a separate legal entity different from its shareholders.
The various types of companies that you can register in India are as follows -
  1. Public Limited Company
  2. Private Limited Company
  3. Limited Liability Partnership
  4. Sole Proprietorship
  5. One Person Company
  6. Partnership Firm
  7. Section 8 Company

MOA stands for Memorandum of Association and it includes company name, registered office address, aims, objectives, limited liability clause, minimum paid-up capital clause and share capital clause of the company. This document is prepared during the company incorporation and company registration to specify the objectives as well as to define the relationship with shareholders.

AOA stands for Articles of Association. This document is prepared to specify the rules & regulations for company operations and defines the purpose of the company. In addition, it defines the process of appointing directors, accomplishing tasks and handling of financial records.

DSC stands for Digital Signature Certificate. It is the digital form of signature, which is equivalent to a normal hand signature. It is used while e-mailing or filing documents online. DSC is one of the most important requirements for the director while doing registration for a private limited company.
DSC is very essential and beneficial for the electronic filing of documents. It is used for sending documents or applications digitally to another person or authority electronically. There are three classes of DSC in India –
  • Class 1 DSC – This class of DSC’s is issued to individuals and private subscribers to help them authenticate their identity as well as secure their e-mail communication.
  • Class 2 DSC - This class of DSC’s are issued to company directors and other authorized signatories of a firm/company/organization for the purpose of e-filing with MCA, ROC, IT department and other regulatory bodies.
  • Class 3 DSC – This class of DSC’s are issued to those individuals who are interested in participation in e-auction and e-tenders anywhere in India.
DIN stands for Director Identification Number. It is a unique number allotted to a proposed director or existing director by the ministry of corporate affairs.
DPIN stands for Designated Partner Identification Number. It is a unique number allotted to a designated partner of a limited liability partnership firm by the ministry of corporate affairs.
To register your Company, simply follow these simple steps:
  • Step 1: Obtain your DSC (Digital Signature Certificate)
  • Step 2: Submit an application for a DIN (Director Identification Number)
  • Step 3: Reserve your unique name
  • Step 4: Create SPICe (INC-32)
  • Step 5: e-MoA (INC-33) and e-AoA (INC-34)
  • Step 6: Apply for a PAN and TAN
  • Step 1: Obtain your DSC (Digital signature certificate)
  • Step 2: Submit an application for DIN (Director identification number)
  • Step 3: Submit an application for name approval
  • Step 4: Submit the required documents
  • Step 5: Filing of forms with MCA
  • Step 6: Issuance of certificate of incorporation

It is critical to choose your business structure carefully, as it will affect your income tax returns. While registering your business, keep in mind that each business structure has unique compliance requirements. For example, a sole proprietor is only required to file an income tax return. However, a company is required to file an income tax return as well as annual returns with the company's registrar.

A company's books of accounts must be audited every year. Adhering to these legal requirements necessitates you to spend money on auditors, accountants, and tax filing specialists. As a result, it is critical to choose the appropriate business structure when considering company registration. An entrepreneur must be clear about the type of legal compliance with which he or she is willing to deal.

While certain business structures are more favourable to investors than others, investors will always prefer a recognised and legal business structure. For instance, an investor may be hesitant to invest in a sole proprietor. On the other hand, if a sound business idea is backed by a recognised legal structure (such as a limited liability partnership, company, or similar entity), investors will feel more secure making an investment.

It is clear to see that the company registration procedures for both Private Limited Companies and Limited Liability Partnerships are quite straightforward. Thus, it is not a matter of ease of incorporation; rather, it is a matter of determining the company's direction and future. Additionally, we have seen that incorporating a private limited company might be advantageous at times. However, we present a complete explanation for why Limited Liability Partnerships should be preferred over Private Limited Companies.

  1. Limited Liability Partnership (LLP) combine the operational benefits of a company with the flexibility of partnership firms.
  2. The Fee for forming an LLP is quite low in comparison to the charge for forming a Private Limited Company.
  3. An LLP's compliance obligations are much less stringent than those of a private limited company. Mandatory audits are not required for LLP's that have not exceeded the 40 lakh turnover or 25 lakh revenue contribution thresholds.
  4. A private limited company has restricted ownership and can have a maximum of 200 shareholders. However, there is no such restriction on LLP's.
  5. Meeting requirements are somewhat higher for Private limited companies, which are required to hold four board meetings and one annual general meeting. Meetings are not a compulsory requirement in an LLP.
  6. The cost of incorporating and maintaining a PLC is three times that of an LLP. As a result, LLP is a cost-effective option.
  7. Adopting the PLC model may be financially detrimental to startup owners. Often, Private limited companies are either unable to pay or fail to pay their compliance obligations on time, resulting in fines of up to Rs.1 lakh. However, with LLPs, you can avoid the hassle of fines entirely. LLP's compliance fees are extremely low and rarely result in a fine.

Thus, there are numerous advantages to LLPs over PLCs. With all of these advantages, LLP registration is a prudent choice for early-stage start-ups. While PLCs have their advantages, LLPs have been woefully underrated in terms of their ability to help shape a company's foundation.

Due to the low compliance requirements, many entrepreneurs establish their businesses as sole proprietorships. However, as a business grows, it requires change and the owner may require enhanced protection for his personal assets against business obligations and liabilities, as well as a more attractive vehicle for investor attraction. As a result, you may wish to pursue a more formal business structure.

While the sole proprietorship has certain advantages in terms of decision-making and control, it also has certain limitations that could hinder your growth. You can only obtain these benefits by converting your sole proprietorship into a limited liability partnership.

From the above-mentioned differences, it is concluded that small and petty entrepreneurs who wish to operate their businesses independently and have a small amount of capital to invest in the business should register as a sole proprietorship because this allows them to freely combine their business and personal assets without paying corporate tax. However, if they wish to add new partners, they must register as an LLP to protect your liability and there will be no harm to the director's/partner's personal assets. In India, LLP's are favoured by Advocates, CAs, CPAs, and micro and medium-sized entrepreneurs, while sole proprietorships are favoured by small-scale entrepreneurs due to their simplicity. Please contact A.K. & Associats for LLP and Sole Proprietorship registration.

It is a business entity formed in a single person's name. In this business entity, only one individual owns, manages, and controls the business operations. It can be formed by anyone interested in starting a business without having to go through numerous legal formalities. In order to get eligible, the individual applying for sole proprietorship must be an Indian citizen. It can be started with a very small initial investment. As a result, it is an excellent opportunity for those looking to start a business on a limited budget, as there is no minimum capital requirement for setting up a proprietorship. As there is only one person who operates and manages the entire business, 100% of the profits belong to that individual. Nobody is entitled to a share of the profits earned. A Sole proprietor has unlimited liability.

Private limited company registration enables the private ownership of a business entity. It protects the members' shareholders by limiting their liability to the number of shares they own. It is formed in accordance with the Companies Act, 2013, following a few legal formalities. No minimum paid-up capital is required to register a Private Limited Company. Additionally, Pvt. Ltd must be included at the end of the name. Shareholders of private limited companies receive a share of profits in the form of dividends. Additionally, shareholders are only liable for the number of shares they own and has limited liability.

Both business entities have a number of advantages and disadvantages. The final decision on the structure depends upon the following factors -

  1. Business size
  2. The nature of the business
  3. Availability of funds
  4. Complexity in business operations
  5. Both short and long term objectives

Small businesses usually prefer proprietorship over private limited company.

  1. Execute Your Organization's documents, Policies and Procedures.
  2. Open a current account with a bank
  3. Registration of office and Corporate identity number (CIN)
  4. Appointment of Accountant and Auditors
  5. Website creation and marketing strategy
  6. Start-up recognition by the government
  7. Trademark registration and a New GST Registration
  8. Disclosure of Director Conflicts of Interest and Declaration regarding disqualification
  9. Issuing Share Certificates to Subscribers
  10. Obtaining other industrial licences
The Ministry of Corporate Affairs (MCA) maintains a database of registered business names; you'll need to access that database and determine whether your business name is already registered. If the company name is already listed in the company Registration directory, you must choose a different name. If you have already submitted an application, you must submit another for a different name that is not yet registered.
Certainly not. The process of incorporating a company is conducted online. Documentation and filing with the ROC can be completed online. As a result, no physical visit to our offices i- required.
Hiring a dedicated CA or CS may be more expensive for a startup. In light of this difficulty, we offer you the option of registering your company with us via A.K. & Associats (an online professional service platform).

A company's authorized capital is the maximum amount of share capital for which it may issue shares. The Company's initial authorized capital is specified in its Memorandum of Association and is usually Rs. 1 Lakh. The company's capital can be increased at any time with the approval of shareholders and payment of an additional fee to the Registrar of Companies.

A company's paid-up share capital is the amount of money for which shares were issued to shareholders in exchange for payment. Paid-up capital will always be less than authorised capital, as a company is not permitted to issue shares in excess of its authorised capital.