Starting a business is an exciting and very fruitful venture to grow, but one of the most crucial early steps is registering your company. In India, company registration is governed by the Ministry of Corporate Affairs (MCA) and is primarily regulated under the Companies Act, 2013. Registering a company legally establishes your business, gives it a distinct identity, and brings benefits such as limited liability, brand recognition, and easier access to funding.
Here is a detailed guide on how to register a company in India, including the types of companies, required documents, and step-by-step procedures.
Types of Companies You Can Register in India
Before going into the process of company registration, it’s important to get a proper understanding of the various types of companies you can register in India.
1. Private Limited Company (Pvt Ltd)
- The most popular form of business in India.
- Requires a minimum of two and a maximum of 200 members.
- Limited liability and easy to raise funding.
2. Public Limited Company
- It requires a minimum of seven members and three directors in the company.
- It can help to raise high capital from the public by issuing shares…!
3. One Person Company (OPC)
- Ideal for solo entrepreneurs.
- Only one shareholder and one director are required.
4. Limited Liability Partnership (LLP)
- It combines the benefits of a partnership and a company.
- It is suitable for professional services and small businesses of a relevant nature.
5. Sole Proprietorship & Partnership Firms
- It is very much easier to set up but lacks many important benefits of incorporated entities like limited liability and ease of investment process for the operation of a company…!
Step-by-Step Process to Register a Company in India
Step 1: To Obtain a Digital Signature Certificate (DSC)
The very first step is to obtain a Digital Signature Certificate for all proposed directors of the company.
- Which should be issued by certifying authorities like e-Mudhra, Sify, or NSDL and other appropriate authorities.
- Required documents: Passport-size photo, PAN card, and address proof.
Time required: 1–2 days
Cost: ₹800–₹2,000 depending on the provider
Step 2: Apply for Director Identification Number (DIN)
DIN is a type of unique identification number for directors, required under the Companies Act.
- DIN can be obtained by filing the SPICe+ form during incorporation.
- You need identity and address proof to apply.
Note: As of now, DIN is automatically allotted through the SPICe+ form (discussed below).
Step 3: Choose a Name and Reserve It (RUN Service)
- It is mandatory to use the RUN (Reserve Unique Name) service on the MCA portal to reserve your company name.
- You can propose two names, and one resubmission is allowed as per the procedure.
Step 4: File the SPICe+ Form for Incorporation of the company
It includes:
- Name reservation.
- Company incorporation.
- DIN allotment.
- PAN & TAN allotment.
- EPFO & ESIC registration.
- GST registration is optional for it.
Steps:
- Log in to the MCA portal with your details.
- Fill out Part A of SPICe+ for name reservation (if not done via RUN).
- Fill out Part B for company incorporation.
- Attach the required documents (listed below).
- Submit and pay the applicable fees.
Step 5: Drafting MOA and AOA
The Memorandum of Association (MOA) and the Articles of Association (AOA) define the company’s scope and internal rules, and various other important rules and guidelines regarding the operation of the company.
- These are e-forms: e-MOA (INC-33) and e-AOA (INC-34).
- Must be signed digitally by all subscribers.
Step 6: Obtain Certificate of Incorporation (COI)
Once the final submission of the SPICe+ form and documents is submitted and approved, the Registrar of Companies issues the Certificate of Incorporation.
This certificate includes the Company Identification Number (CIN) and officially marks the birth of your company.
Time required: 3–7 working days after application submission
Step 7: Open a Company Bank Account
After receiving the Certificate of Incorporation, PAN, TAN, and other required essential documents, you can open a current account in the company’s name.
- Submit the incorporation documents, board resolution, and KYC documents of directors to your chosen bank.
Conclusion
Registering a company in India has become more streamlined with the introduction of digital processes like the SPICe+ form. However, the attention to detail is very important. While it’s possible to register your company yourself, many entrepreneurs opt to use legal service providers or professionals (CA/CS) to avoid errors, ensure smooth compliance, and avoid unnecessary legal complications.
Whether you’re a budding entrepreneur or a seasoned businessperson, having your company registered properly sets a strong foundation for your business journey in India. So, it is always advisable to consult with the expert to get the proper understanding of the procedure and regulation to complete the process in a hassle-free manner, which helps you to take the wise decision for getting registered your company in a legal compliance manner, so that you can avoid the error which may hamper your business operations.