According to Companies act, 1956 “A company is a group of people formed & registered in order to achieve specific Objectives”. It is a separate legal entity different from its shareholders.

DSC stands for Digital Signature Certificate . It is the digital form of signature which is equivalent to a normal hand signature. It is used while e-mailing or filing documents online. DSC is one of the most important requirements for the director while doing registration for a private limited company.

What are the different classes of Digital Signature Certificate?

DSC is very essential and beneficial for the electronic filing of documents. It is used for sending documents or applications digitally to another person or authority electronically. There are three classes of DSC in India – 1. Class 1 DSC 2. Class 2 DSC 3. Class 3 DSC

DIN stands for Director Identification Number. It is a unique number allotted to a proposed director or existing director by the ministry of corporate affairs.

DPIN stands for Designated Partner Identification Number. It is a unique number allotted to a designated partner of a limited liability partnership firm by the ministry of corporate affairs.

What is One Person Company?

According to Companies act 2013, it is a single person activity and only one person is authorized to open it. It is easy to incorporate a one person company and it offers limited liability to shareholders.

What is Private Limited Company?

A private limited company should have at least 2 directors and 2 shareholders. Maximum number of members in a private limited company should not be more than 200. The liability of the members in a private limited company is limited.

What is a Public Limited Company?

Public limited company is a company having minimum of 3 directors and 7 members and it should be registered with the ROC of the particular state. There is no restriction on the maximum number of shareholders in case of public limited company . It can offer shares to the public and accept deposits too.

What is a Limited Liability Partnership?

Minimum 2 Persons are needed to incorporate a limited liability partnership company. It is easy to form Limited Liability Partnership Company and has minimal compliance requirements. The liability of the members in LLP is limited.

What is Section 8 Company?

Section 8 Company is incorporated to promote commerce, science, art, education, sports, research, religion, social welfare, protection of environment or charity. It is a non-profit organization whose main aim is to do charity rather than earning profits. Minimum 2 members are needed to incorporate a Section 8 Company .

What is Micro Finance Company and how to register it in India?

Micro finance company is a financial institution which does not take deposits as well as not involved in any banking transactions. It main objective is to give loans up to Rs.50000 to lower income peoples residing in rural-semi urban areas. It offers loan to farmers, horticulturists, agriculturists and small business owners in the areas where banking facilities are not easily available. They are offered less interest and easy repayment facilities.

What is Company Law Act 2013?

The Companies act 2013 has been passed by the Indian parliament to make certain amendments in the laws related to the companies. It introduced several new concepts in relation to formation of the company.

What do you mean by Authorized Capital & what should be the minimum Authorized Capital?

Authorized capital is the maximum capital limit up to which a company can issue shares & collect money from their shareholders. Limit of authorized capital can be raised after passing the resolution in the shareholder’s meeting. The minimum authorized capital for registering a company is Rs.1 Lakh. Read more: Increase Authorized Capital .

What is a Nidhi Company?

A Nidhi Company is a company which deals only with its members or shareholders for the purpose of providing mutual benefits to all its members.

Company Registration in India

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Home / Company Registration in India

Updated on : 05-May-2023 IST | 4 min read

Company Registration

Company incorporation or Company registration means forming a new company by following the rules, regulations & guidelines specified under Companies act 1956, 2013 & other allied acts, bills and rules.

The incorporated corporation may be a business startup, micro, small or medium scale business or a not for profit organization. All the corporate affairs are governed by MCA under the Companies act, 1956, Companies act 2013& other allied acts, bills & rules.

MCA protects the interest of investors & offer many important services to the stakeholders as well. Ministry of corporate affairs prepare, govern and control all the rules, regulations and policies of the companies under Companies act 1956, Companies act 2013, LLP act, 2008 and other allied act, bills & rules.

Company Name Availability

Choosing a name for the company is one of the most important steps when registering a company in India. While choosing a unique name, you need to consider various factors in mind and follow the company naming guidelines mentioned under the Companies Act, 2013 in order to arrive at a good decision. Important things which we have to take care of while choosing a name for the company are –

A company name should be unique.
It should be easy to remember
It should not be similar or identical to any existing company or LLP or trademark
It should follow the naming guidelines specified under the Companies Act, 2013.
It should be attractive
It should not be blacklisted
No common trademark

However, MCA is responsible for accepting or rejecting the company name application.

Select Your Company Type

There are different types of companies in India. All the companies are listed in the tabular format below so that you can easily choose the company type which best suits your business requirements –

Points of Distinction	Private limited company	Partnership Firm	Sole proprietorship firm	LLP	One person company	Section 8 company
Suitable for	Start-up & growing companies	Home businesses	Small traders & manufacturers/ Businesses opened for a limited period	Professional services or firms/Existing partnership businesses wants to reduce their personal liability	Sole promoters/businesses want to limit their liabilities to an extent	Charitable or non-profit organizations
Limited liability	Yes	No	No	Yes	Yes	Yes
Tax advantage	Few benefits	Minimal tax advantage	Minimal tax advantage	Maximum advantages	Few benefits	Maximum advantages
Perpetual succession	Yes	No	No	Yes	Yes	Yes
Statutory Compliances	High	Minimal	Minimal	Low	High	High
Profit & losses	Owner of the company	Distributed among partners in an agreed ratio	Sole-proprietor is responsible for the profits & losses of the firm	Distributed among partners	Sole owner of the company is responsible	Non-profit organization

Requirements to Start a New Company in India

Minimum Two Person

Register your companies with at least two persons to act as the initial director & shareholders. The company can have up to 200 shareholders & 15 directors.

Resident Director

One director of the company should be resident in India. A Person is considered a resident when he/sh stays in India for over 182 days during the previous financial year.

Registered Address

The company must be registered at a physical address, known as Registered Address. You need to submit Registered Office Proof & NOC from the owner.

Capital Requirement

Invest as per the business’s requirement, & there is no prescribed minimum or maximum capital. However, the ROC Fee is calculated on the capital.

Documents Required For Company Registration in India

For Private Limited Company Registration

Identity proof of Directors and Shareholder

Proof of Registered Office in India

Address Proof of Directors and Shareholders

Signed Incorporation Documents

MOA & AOA

For LLP Registration

Identity proof

Address proof

DIN & DSC

PAN Card Copies of the partners

For Partnership Registration

Identity proof of the partners

Address proof of the partners

DIN of the partners

DSC of the partners

For Proprietorship Firm Registration

Identity proof of the proposed owner

Address proof of the proposed owner

Registered Office proof

Bank account

For One Person Company Registration

Identity proof of Directors and Shareholder

Proof of Registered Office in India

Address Proof of Directors and Shareholders

Signed Incorporation Documents

MOA & AOA

For Section 8 Company Registration

Identity proof of Directors and Shareholder

Proof of Registered Office in India

Address Proof of Directors and Shareholders

Signed Incorporation Documents

MOA & AOA

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Benefits of Company Registration

The benefits of company registration are as follows –

It offers limited liability as an individual
It provides numerous tax benefits
It helps improving test factor and enhancing your brand image
It gives legal identity or recognition to your business.
It makes you eligible for investment/funding.

Entity Comparison Guide

	Private limited company	Partnership	Sole proprietorship	LLP	One person Company	Section 8 company
Members	2 Minimum 200 Maximum	2 Minimum 20 Maximum	1 Maximum	2 Minimum Maximum no limit	1	2 Minimum 200 Maximum
Separate legal entity	Yes	No	No	Yes	Yes	Yes
Liability of members	Limited liability	Unlimited liability	Unlimited liability	Limited liability	Limited liability	Limited liability
Registration – Optional or Mandatory	Registration under MCA is mandatory	Optional/Can be registered under partnership act 1932	Not mandatory	Registration under MCA is mandatory	Registration under MCA & Companies act 2013 is mandatory	Registration under section 8 of MCA
Taxation	30% of profit + education cess + surcharge	30% of company Profit	Taxed as an individual	30% of profit + education cess + surcharge	30% of profit + education cess + surcharge	30% of profit orTax exempt (If registered under 12AA of the income tax act)
Transferability of shares	Can be transferred	Not allowed	Not allowed	Can be transferred	Allowed to only one person	Can be transferred
Annual filings	Filed with ROC	Income tax return with ROC	Income tax return with ROC	Filed with ROC	Filed with ROC	MCA annual return and income tax return each year