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Basics on Company Incorporation in India

Basics about Company Incorporation in India

Company is the undoubtedly the best form of entity for business. In India, a company is incorporated as per provisions of Companies Act, 2013 and Companies (Incorporation) Rules, 2014

New company registration in India

To form a company you will need:

  • Minimum 2 directors and shareholders for a private limited company incorporation in India. The director and shareholders can be the same person. For public limited company you'll need minimum 7 shareholders.
  • Minimum paid-up capital of ₹1 lac in case of private limited company and ₹5 lacs for a public limited company.

Company incorporation process

Company incorporation in Delhi is a straightforward process. You can get Certificate of Incorporation (COI) within 15-20 days, subject to time taken by Government for processing, if all the steps mentioned in the Act and Rules are followed properly. You can hire an expert company registration consultant in Delhi to take care of your needs. Nowadays MCA has changed the process of registration by incorporating a Central Registration Centre (CRC). Not only has it made the process convenient but it has also reduced registration downtime. 

  • Obtain DIN and DSC of all directors: The first step of the registration process is to obtain digital signature (DSC) for proposed directors. Once you have received DSC for all the directors file for DIN in form DIR-3.
  • Check Name availability: The second and the most important step of new company registration in Delhi is checking availability of name. For this promoter is required to submit 6 names in the order of preference in e-Form INC-1 with ROC. Upon approval, ROC will issue a letter thereby reserving the name.
  • Draft MOA and AOA: The next step is to draft Memorandum of Association (MOA) and Articles of Association (AOA). Nowadays electronic copies are MOA and AOA are to be filed with the ROC in SPICe Forms 33 and 34 respectively.
  • Company registration: In this step SPiCe Form INC-32 is to be filled and submitted along with DIN of directors, MOA, AOA, affidavit from all the subscribers to MOA, address proof, ID proof and PAN card of all directors and subscribers, copy of name approval letter and address proof of registered office of the company.

Upon submission of all the documents with prescribed fees, CRC will deliberate, post which the MCA will allot fresh COI containing the CIN (Company Identification Number) to the company in e-Form 11.

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