Company Registration

What is the Registration Process of a Company?

Registration Process of a Company

If you want to the registration process of a company or startup in India, you must do it on the Ministry of Corporate Affairs’ official website (MCA). Registration can be completed from the comfort of one’s home, eliminating the need to travel to the company office. It is best for a firm to register after incorporation in the legal arena. In a sense, incorporation and registration go hand in hand because a firm that is not registered cannot make numerous claims, such as taxable ones, for benefits. The company cannot even file a suit against any third parties. 

Also, the procedure for registering a company is simpler than you might imagine. There are procedures to follow and documents to submit, of course, but once you understand how to do them, the entire business registration process will go relatively faster and easy.

Definition of a Company

Under section 2 (20) of the Company Act 2013, “Company means a company incorporated under this Act or any previous Company Law”.

Generally speaking, a company is an artificial person constituted by law with limited liability, perpetual succession, and a common seal, and it is a separate legal entity. It is a group of people coming together voluntarily to contribute to the capital needed for the firm to operate. Typically, a company’s capital is split up into small parts called shares, the ownership of which is transferable and subject to specific rules and regulations.

Choosing the legal status of the company entity and obtaining the necessary registration is one of the many crucial parts of establishing a business. According to the rules and regulations established by the Ministry of Corporate Affairs, a company must be registered with the Registrar of Companies in order to be incorporated under the Companies Act of 2013. Companies may qualify for a variety of government subsidies and exemptions, depending on their business style.

Types of Companies

Let us understand the types of companies available in India, and here is the list of them:

  • One Person Company
    The One Person Business concept was introduced by the Act (OPC) recently in the year 2013. It is the easiest approach to launch a business if there is only one promoter or owner. According to the Act, an OPC is a business with just one member. The company’s director may also be a member. Although there should only be one member of the OPC, there can be up to fifteen directors. 
  • Private Limited Company
    A private limited company is one that has a membership of not more than 200 people. A private limited corporation must have at least two members in order to be incorporated. It is appropriate for companies that choose to register as private corporations because the members cannot transfer their shares. A private limited company must have a minimum of two directors and a maximum of 15 directors.
  • Public Limited Company
    A company that allows the general public to own company shares is referred to as a public limited company. A public limited company may have as many shareholders as it chooses, but it must have a minimum of seven members to become incorporated. The number of directors for the corporation must be at least three and never exceed fifteen. They are also called a company limited by shares.
  • Section 8 Company (NGO)
    Section 8 of the Act permits a group of people or an individual to register a corporation for charitable purposes. These businesses were founded in order to promote business, social welfare, charitable giving, environmental preservation, science, art, education, sports, and other endeavours. The business should use its earnings for advertising its initiatives. These businesses seek to forbid their members from receiving any dividend payments.
READ  Threshold Limit Under the Companies Act 2013

Steps in registering a company

Step 1: Digital Signature Certificate (DSC)

Because the company’s registration is done entirely online, digital signatures are necessary when submitting forms to the MCA portal. All proposed directors and subscribers to the Memorandum of Agreement (MoA) and Articles of Association must complete DSC (AoA). DSC can be obtained from certifying organisations recognised by the government. 

Step 2: Director Identification Number (DIN)

Obtaining a unique Director Identification Number is the first stage in India’s registration process of a company (DIN). Anybody who wants to create a company or become a Director of an existing company in India must have a DIN following the Companies Amendment Act of 2006. The DIN-1 Form, the application form, is available online at the MCA website. The company registration form must include the DIN of each potential director as well as their name and address of them in the documentation. 

A maximum of three directors may receive DIN using SPICe+, a web-based company registration form. The company can be incorporated with three directors if there are additional directors, but they must be appointed after incorporation if they do not have a DIN. As only the proposed directors of an existing firm may apply for DIN via the SPICe+ form, the appointed directors may receive DIN by submitting the DIR-3 form.

Step 3: Approval of the company name

The MCA must first receive Part-A of the SPICe+ Form for company name clearance to reserve the company name. One or two names with business aims may be presented in the name approval application. One or two further names may be submitted if name permission is declined. The MCA typically approves all name approval requests in less than five business days.

READ  Company Registration in USA: Step by Step Procedure

Step 4: Registration on the MCA Portal 

The SPICe+ form must be filled out and submitted on the MCA portal in order to apply for the registration process of a company. The director of the company must register on the MCA portal in order to complete the SPICe+ form and submit supporting documentation. After registering, the director can log in and utilise the MCA portal services, including submitting electronic forms and accessing public documents.

Also, the business must reserve its name by including two alternate names in Part-A of the SPICe+ form. The name must be reserved since the SPICe+ form will be refused if the company name is the same as the name of an existing/registered company, LLP, or trademark or if it contains words that are forbidden by the Companies (Incorporation Rules) 2014[1].

The applicant must submit a new SPICe+ form for the reservation of a new name and pay the applicable charge if the SPICe+ form is refused because the company name was not approved. The name submitted in Part-A of the SPICe+ form will be approved, but it will be reserved for 20 days, during which the company must complete Part B and submit the form online. The applicant must fill out Part B of the SPICe+ form with the firm and directors’ information, attach any necessary documents and DSC, check the form, and submit it.

Step 5: Certificate of Incorporation

The Registrar of Companies will review the registration application once it has been completed and submitted with the necessary paperwork. He will issue the Company’s Certificate of Incorporation after verifying the application.

The PAN and TAN assigned by the Income Tax Department are included on the Certificate of Incorporation. The applicant will also receive an email with a Certificate of Incorporation attached, along with PAN and TAN.

Eligibility Criteria for the Registration Process of a Company in India

These conditions must be met for company registration in India since they provide the regulatory framework required to obtain the MCA’s approval.

  • The Company should have a minimum of two directors. Having two directors in your organisation is necessary if the business registration process in India you want to go through is for a Private Limited Company.
  • The same person may serve as both the directors and the shareholders. While submitting an online application for a new company’s incorporation, the directors and shareholders might be treated equally.
  • There are two different kinds of a company’s “Limited” characteristics. They are limited by guarantee or by shares: You must choose in advance whether your business will be limited by shares or limited by a guarantee when you register for online company registration. You will have shareholders if the Firm is limited by shares. Members will exist for a company limited by guarantee.
  • There should be at least one Indian resident as a director on the board. The incorporation of a company must have at least one Indian director, which is one of the main prerequisites for the online registration process of a company in India.
  • The company’s name ought to be unique. For the company to be registered in India, the name of the company should be unique. You won’t be allowed to register your company online in India if the name of your business in any way violates the requirements of the Companies Act of 2013.
READ  How to Register a Company in India from USA

Documents required for Company Registration

The following general documents must be submitted in order to register the company:

Documents from the company’s directors and shareholders

  1. Identification documentation for each director and shareholder of the company. You may provide any of the following documents as identification proof:
    • Aadhar card
    • Pan card
    • Driving License
    • Passport
  2. Proof of each director and shareholder’s address. Any of the following papers may be used as address proof:
    • Most recent telephone bill (not older than two months)
    • Most recent electricity bill (not older than two months)
    • Bank account statement with the director’s address
    • DIN (Director Identification Number) and DSC (Digital Signature Certificate) for each director.

Company’s documents

Proof of the company’s registered office. The following documents must be provided as proof of the company’s address:

  • Agreement for a lease or rent between a company and the landlord
  • A letter or NOC from the landlord granting authorisation to use the space as the company’s registered office.
  • Selling agreement for the company’s office space in their names
  • The Memorandum of Association (MoA) outlines the purposes for which the business will be incorporated, as well as the members’ legal obligations.
  • The company’s operating rules are set down in the articles of association (AoA).


Before registering a company, one should understand the process of registering a company and decide on the company’s structure. The Companies Act of 2013 is essential since it establishes limitations for corporations to protect their legal purview. Its limited scope eventually benefits the end users because the enterprises must operate inside a legal framework. The incorporation certificate is evidence of the company’s registration, and the firm will become a separate legal entity.

Also Read:
Nidhi Company Registration: A Complete Guide
How to validate the Company Registration Number?
Everything about a Company Registration Certificate

Trending Posted