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Company Registration

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Setting up a business in India often involves choosing a private limited company as a preferred option. This structure offers shareholders limited liability protection while placing specific ownership constraints. In contrast, in the case of an LLP, partners oversee the management. Private limited company registration allows for a clear distinction between directors and shareholders.

At TrueandTrade, we offer a cost-effective service to register new company and facilitate seamless private limited company registration in India. We handle all legal formalities, ensuring strict compliance with the Ministry of Corporate Affairs (MCA) regulations.

What is a private limited company?

A private limited company (PLC) is a type of business structure privately owned by shareholders. Its shares are not traded publicly and are typically held by a small group of individuals. The liability of shareholders is limited to the amount invested in the company. It offers legal protection to its owners, separating personal assets from business liabilities. A PLC must follow specific regulations, including filing annual financial statements and maintaining a minimum number of directors.

Limited Liability

Shareholders' liability is limited to their investment, protecting personal assets from business debts.

Legal Recognitione

Registration provides legal identity, allowing the company to enter contracts, own property, and sue or be sued.

Fundraising Opportunities

Private limited companies can attract investors and secure funding through equity without giving up full control.

Perpetual Succession

The company’s existence is not affected by changes in ownership or the death of shareholders, ensuring continuity.

Types of Private Limited Companies:

Entrepreneurs or prospective businessmen must consider the following types of private limited companies, if they intend to start company,

  • Company Limited by Shares: This encompasses novel and inventive tangible items like machinery, gadgets, chemicals, drugs, and fabricated goods.
  • Company Limited by Guarantee: Member liability is limited to the amount of guarantee specified in the Memorandum of Association. This guarantee is invoked only during winding up.
  • Unlimited Companies: Members of unlimited companies have unlimited personal liability for the company's debts and liabilities. However, they are still considered a separate legal entity, and individual members cannot be sued.

Company Registration Process

To register a company in India involves a straightforward four-step company registration process:

Step 1: Acquire a Digital Signature Certificate (DSC)

Every director and shareholder must secure a Digital Signature Certificate (DSC) issued by the Controller of Certification Agencies (CCA). This involves providing essential details such as passport-sized photos, PAN, Aadhaar Card, phone number, and email address. Foreign nationals should also furnish notarized and apostilled documents if applicable.

Step 2: Director Identification Number (DIN)

Obtain a Director Identification Number (DIN) if you intend to be a director in the company. DIN is essential for directors and needs to be provided in the registration form.

Step 3: Name Reservation for the Company (SPICe+ Part A)

Begin by completing the SPICe+ Part A form to secure a unique company name. This entails selecting the company type, class, category, and sub-category, specifying the primary division of industrial activity and offering a comprehensive business description. You'll need to propose two names for approval.

Step 4: Submission of Company Details (SPICe+ Part B)

Provide comprehensive information concerning capital, registered office address, subscriber and directors' details, stamp duty, PAN and TAN application, and necessary attachments for company registration in india.

Step 5: Preparation and Submission of Incorporation Forms (SPICe+ MOA and AOA)

Draft the Memorandum of Association (MOA) and Articles of Association (AOA) containing crucial company details. Obtain digital signatures from subscribers and professionals before submitting these documents to the MCA for approval.

Additionally, file the AGILE-PRO-S form to register for GST, EPFO, ESIC, a bank account, and a shop and establishment license (which may be state-dependent).

Certificate of Incorporation

Upon successful document verification, the MCA will issue the Certificate of Incorporation (COI) with the Company Identification Number (CIN), PAN, and TAN.

These are the typical steps to be followed to register a company in India successfully.

Document Checklist:

Ensure you have the following documents to register new company,

  • For Indian Nationals: Self-attested PAN card copy, passport-sized photo, Aadhaar Card, proof of identity, and address proof.
  • For Foreign Nationals: Notarized documents, passport-sized photo, passport, and address proof.
  • Registered Office Documents: Proof of business address, copy of the rent agreement (if applicable), and owner's no objection certificate.
general questions

Frequently Asked Question.

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  • Q: Can NRIs or foreign national or foreign entities register a company in India?

    Yes, NRIs, foreign nationals, and foreign entities can register a company and invest in India, subject to the Foreign Direct Investment norms set by the RBI. However, company incorporation rules in India require for one Indian national to mandatorily be a part of the company on the Board of Directors.

  • Q: How to register a company in India?

    The process of how to register a company in India involves obtaining Digital signature certificate (DSC), applying for a DIN, reserving a company name, preparing the key document like MOA, and filing it through the SPICe+ form, along with the application for PAN and TAN. Once verified, the Registrar of Companies (RoC) will issue a Certificate of Incorporation, completing the process of company registration in India.

  • Q: How many members are required to start a Private Limited Company?

    Minimum 2 number of members are required to start a Private Limited Company which can be extended to 200 members.

  • Q: Which form is to be filed for filing the annual returns of a Company?

    The companies registered in India are required to file the MCA annual return each year informs AOC 4 and MGT 7.

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