Company Registration in Delhi

Company Registration is an essential step before commencing a business in India. Online company registration is done as per the Companies Act 2013 and Companies Incorporation Rules. A company can enjoy various advantages through company registration. One can incorporate their company as per their place of busines..

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Company Registration in Delhi

Are you planning to start a business in the capital of India? Well, it may not be a bad idea considering the fact that Delhi ranks right at the top among the cities in terms of ease of doing business or starting a business. Delhi being one of the wealthiest economies in the country, investing here can help you reap great rewards.

Types of Business Structures

The major types of business structures available for entrepreneurs are as follows:

  • Private Limited Company;
  • Limited Liability Partnership;
  • One Person Company;
  • Partnership Firm;
  • Sole Proprietorship.

Company Registration in Delhi: Eligibility criteria

The following eligibility criteria should be met:

  • Requirement of minimum 2 shareholders and 2 directors;
  • One of the directors should be an Indian resident, meaning such person should have stayed in India for minimum182 days in the previous year;
  • The business proposed to be set up in Delhi should have a registered office address from where they carry out their operations;
  • The company directors’ would require a DSC or Digital Signature Certificate for authorization of filings done online. Further DIN or Director Identification Number is also required;
  • The business owners must draft legal necessary papers such as the shareholders’ agreement, MOA and AOA.

What are the benefits of Registering a Company in Delhi?

The benefits are as follows:

Benefits of Registering a Company in Delhi
  • Legal protection for your business

    Online company registration is done as per the Companies Act 2013 and Companies Incorporation Rules. So as per the company structure, you choose the equivalent benefits you would enjoy. Company registration will protect your business from personal liability and other risks and losses.

  • Less paperwork

    Registering your company involves less paper works as the process is online. However, basic Paper works should be provided.

  • Creation of goodwill

    It can also help you enjoy tremendous goodwill among customers in the market. It will also help customers to differentiate your service from others. Your business will also attract loans and investments from credible entities. Having a company in the national capital is a matter of prestige.

  • Exponential growth and expansion opportunities

    Having your business registered in the capital city will open more scope for growth and create more opportunities for your business. The city is large consumer market, and availability of skilled labour draws massive foreign investment also.

necessary papers required to register your company in Delhi

Keep the following necessary papers ready for registering your company in Delhi. Please note that the type of necessary papers may vary as per the Company structure:

For Private Limited Company

  • Memorandum of Association;
  • Articles of Association;
  • Proof of the registered office address;
  • Copy of the utility bills;
  • Identity proof and residential proof of directors.

For LLP

  • Identity proof of partners;
  • Address proof;
  • Copy of the LLP agreement;
  • PAN card copy of partners.

For OPC

  • MOA;
  • AOA;
  • A nominee must be appointed;
  • ID proof & the address proof of Director and Nominee;
  • Proof of the registered office in Delhi;
  • Digital Signature Certificate;
  • Professional declaration.

What is the Process to Register a Company in Delhi?

Let’s quickly run through the registration process.

  • Firstly ensure you fulfill all the eligibility requirements to incorporate a particular business entity;
  • The founding members and directors need to apply for the Digital Signature Certificate and Directors Identification Number through the online portal of MCA;
  • Additionally, an application should be filed to reserve the name of the company. The company can send up to 6 preferences through an application form. The MCA would perform online search and allot a name;
  • The legal necessary papers of the company like the Memorandum of Association and Articles of Association should be drafted. One can contact a lawyer for this purpose;
  • The entrepreneurs would be required to pay the fees (stamp duty and processing fee) to the RoC ;
  • Finally, the regional RoC office in Delhi will review and verify the details and, if satisfied, will issue the incorporation certificate to the business.
  • The RoC would take few days to verify necessary papers and then issue the appropriate certificate. When the company obtain the certificate of incorporation, they can then apply for Company PAN and TAN for tax purposes. Other registrations depend upon the nature of the business proposed.

Registered Company vs. Unregistered Company

Registering your company will ensure that you get proper business funding. In case of an unregistered company, to get a bank account itself is a task as there are limited necessary papers to show as evidence for the existence of the company. On the contrast, if the company is registered, it will have problems in proving its existence, and the company can easily create a bank account for its usage.

When it comes to transferring or sharing ownership of a business, it becomes increasingly challenging for an unregistered company as such a company doesn't have any defined assets and liabilities. Therefore transferring or sharing ownership of the business for an unregistered company becomes an obstacle.

However, if your company is registered as Private Limited Company in Delhi/India, it becomes easier to transfer or share ownership of business as the companies' assets and liabilities are defined, and the company becomes a legal entity in itself.

Further, the entrepreneurs will be looking for a boost for their business which involves taking risky calls and decisions. However, if a company is not registered, then the person can also become personally liable, thereby leading to his loss in case of any unfortunate incident. There may be a risk of losing everything therefore the company should be registered as personal liability won't arise.

The process of registering a company in Delhi can be complex for some therefore, you should never shy from taking professional assistance. It will help in completing the process without any hassle. We at Enterslice can assist you with the complete process of the Company Registration in Delhi.

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