The Start-Up India initiative, well-trusted by the Indian government, has been turning the entrepreneurial tides in the economy’s favor. The start-up ecosystem in our nation seems to be at the start of a highly lucrative boom cycle. With such good tidings in sight, there is a noticeable increase in the number of new companies getting registered across the nation. As important as the decision for people to start a new venture is another equally important factor for them to consider: choosing the right company structure for their business.
Registering a company in India is an important step that establishes a formal business structure, gains legal recognition, and unlocks numerous benefits like credibility, funding access, and limited liability. The process is governed by the Companies Act, 2013, and administered by the Ministry of Corporate Affairs (MCA) through its online portal at mca.gov.in/mcafoportal/
What is Company Registration?
Company registration is the legal process of incorporating a business that has a distinct entity in the eyes of the law. It grants the business a separate identity, allowing it to own property, sue or be sued, and operate independently of its owners.
In India, you can register several types of companies depending on the size, scale, and objectives of the business. The most common types include:
- Private Limited Company
- Public Limited Company
- One Person Company (OPC)
- Limited Liability Partnership (LLP)
- Section 8 Company (Non-Profit)
1. Private Limited Company
- A private limited company is a separate legal entity with limited liability, ideal for startups and growing businesses.
- It requires a minimum of two directors and two shareholders.
- Shares are privately held and cannot be publicly traded.
2. Public Limited Company
- A public limited company can offer shares to the public and raise capital through the stock exchange.
- It needs at least three directors and seven shareholders.
- Suitable for large-scale businesses planning IPOs or large investments.
3. One Person Company (OPC)
- An OPC is designed for solo entrepreneurs who want to enjoy limited liability and complete control.
- It requires only one director and one shareholder.
- At least one nominee is appointed
4. Limited Liability Partnership (LLP)
- An LLP combines the flexibility of a partnership with limited liability protection.
- It must have at least two designated partners.
- Ideal for professionals and service-oriented firms.
5. Section 8 Company
- A Section 8 company is a company incorporated under Section 8 of the Companies Act, 2018. It is formed for charitable or non-profit purposes such as education, relief, or social welfare.
- It enjoys tax exemptions and cannot distribute profits to its members.
- A minimum of two directors is required, and no minimum capital is prescribed.
- Prior approval from the central government is obtained to incorporate a company.
Benefits of Registering a Company in India
Registering a company in India has several benefits, such as:
- Legal Recognition: A registered company is a legal entity separate from its owners, enjoying all rights a person does in the eyes of the law.
- Limited Liability: Company registration ensures that shareholders are only liable for the amount they invest in the company. Personal assets are protected from the liabilities of others.
- Access to Funding: Only registered companies can raise funds through venture capital, private equity, or bank loans. It also helps build investor trust.
- Perpetual Succession: The company continues to exist even if directors or shareholders change or pass away.
- Business Credibility: A registered company enjoys higher credibility in the eyes of customers, vendors, and government authorities.
- Brand Protection: Registering a company allows you to secure your business name and protect it legally from being used by others.
Types of Companies You Can Register in India
Minimum Requirements for the Companies You Can Register in India
| Type of Company | Minimum Requirements | Ideal For |
| Private Limited Company | 2 Directors, 2 Shareholders, ₹1 lakh Authorized Capital | Startups, SMEs |
| Public Limited Company | 3 Directors, 7 Shareholders, ₹5 lakh Capital | Large-scale businesses, IPOs |
| One Person Company | 1 Director, 1 Shareholder | Solo entrepreneurs |
| Limited Liability Partnership (LLP) | 2 Partners | Professional services, small firms |
| Section 8 Company | 2 Directors, NGO Objectives | Charitable and non-profit purposes |
Documents Needed for Company Registration
You need to submit the following documents during the registration process:
For Directors/Shareholders:
- PAN Card (mandatory for Indian nationals)
- Passport (in case of foreign nationals)
- Aadhar Card or Voter ID
- Address proof: Utility bill or bank statement (not older than 2 months)
- Passport-sized photograph
For Registered Office:
- Rent agreement or sale deed
- NOC from the property owner
- Utility bill of office premises (not older than 2 months)
Step-by-Step Process for Company Registration in India
Follow the step-by-step procedure for the company registration in India:
Step 1: Get Digital Signature Certificate (DSC)
All proposed directors/shareholders must obtain a DSC to sign documents for digital online filing.
Step 2: Apply for Director Identification Number (DIN)
DIN is required for all directors and can be applied for along with the SPICe+ company registration form.
Step 3: Reserve Company Name
File the form (SPICe+ Part A) through the MCA portal to propose a unique company name for your business and get it approved.
Step 4: Draft MOA and AOA
MOA defines your company’s objectives, and AOA outlines internal rules and management structure.
Step 5: Fill SPICe+ Part B Form
Complete this integrated form to apply for incorporation, DIN, PAN, TAN, EPFO, and ESIC in one go.
Step 6: Submit Required Documents
Upload identity/address proofs, office address documents, and declarations digitally on the MCA portal.
Step 7: Pay MCA Fees and Stamp Duty
Pay government fees and applicable stamp duty online based on the company’s authorised capital and state.
Step 8: Verification and Approval by ROC
The Registrar of Companies verifies documents and issues the Certificate of Incorporation (COI).
Step 9: Receive Incorporation Certificate
Once approved, you’ll get the COI, PAN, and TAN, and your company officially becomes a legal entity.
Step 10: Open a Bank Account
Obtain a PAN and open a separate Bank Account for your company and start operating!
Checklist for Successful Company Registration in India
- Minimum number of directors/shareholders as per company type
- DSC and DIN for all directors
- Unique company name (check availability on the MCA portal)
- Valid registered office proof with NOC
- Drafted MOA & AOA
- Completed SPICe+ Form with accurate information
- Signed declaration and affidavits (if applicable)
