how to register a company in india

What is a Company?

A company is an entity that is formed by a person or group of persons to run an industrial or commercial business. The association may be directed towards profit making or simply to conduct some non-profit activities.

What are the characteristics of a Company?

A company is one that is capable of functioning as a separate legal entity and owns property in its own name with no possession right of the shareholders. The daily functions are governed by the Director of the company who is generally elected by the members. The capital is divided among the shareholders of the company, and the company is required to comply with the regulations specified under the company law.

What are the different types of Companies?

The types of companies that exist depend upon their grounds of classification. The primary classification of companies is as follows:

  • Private company - These are closely-held companies with less than 200 shareholders.
  • Public company - These are the companies that are listed on the stock exchange and have more than 200 shareholders.

Based on liability, companies are classified as follows-

  • Limited by shares - These are private or public companies that allow the members to have limited liabilities.
  • Limited by guarantee – These are companies in which the members agree to hold liability based on the amount they contribute towards the assets of the company.
  • Unlimited liability – These companies impose no limitation on the liabilities of the members.

Based on control, companies are classified as-

  • Holding company – Companies that play a functional role in the Board of Directors of another company or control more than 50 percent of the share capital of another company are called holding company.
  • Associate company – These are companies in which some other company acts as a shareholder of 20 percent of its capital or participates in the business decisions.

Based on the access to capital, companies can be of the following types-

  • Listed – These are companies whose securities are listed on stock exchanges.
  • Unlisted – These companies do not have their securities listed on the stock exchanges.

Depending upon who holds the shares of the company, the following classifications are made-

  • Foreign company – These are companies headquartered outside India and have some business activities in India.
  • Government company – These are government-subsidiary companies that are owned up to 51 percent by the Government, State and/or Central.

Based on what the objective of a company is, there are the following two types of companies-

  • Nidhi company – These companies are formed to promote the spending of money and other resources usefully.
  • Not for profit company – These companies work to promote a cause and use their profit in fulfilling the cause, with no share of members on the revenue.

In addition to these, the size of a company decides whether it can be called a small company or a large or mid-size company. A company that has a capital of less than 50 lakh rupees and a turnover of not more than 2 crore rupees is regarded as a small company.

Why Should I Register My Company in India?

1There are various reasons that urge people for company registration in India process, one of which is letting the company be recognised as a legal identity. And by doing so, you allow the company to function individually by bearing its liabilities, incurring its debts, and even owning its property. The land owned by the company remains under the control of the company itself, with no right of ownership of the shareholders.

2Company registration Bangalore assures the shareholders to have no more liability in the debts of the company than what their share demands. In other words, the members have a limited responsibility towards the debts of the company.

3Registration can protect the succession of your company from being affected by any changes in membership, ownership, or shareholders. This means that your company can continue to operate irrespective of who owns it or who partners with it.

4A company that is registered has the flexibility of transferring shares between shareholders. While the laws in India impose some restrictions on the transfer of shares in private limited companies, transferring is not prohibited.

5Another major advantage of private limited company registration is allowing financial institutions to offer assistance to your company. This means you can borrow funds for the growth of your company.

How to Register a Company in India?

1Setting up a company in India is possible with just a few steps and within 10 to 15 days. The time needed to complete the registration of a private limited company depends on how soon you submit all the required documents and the time taken by the government for processing.

2The process of registering your company begins with the selection of the name of your company. You need to apply to the Ministry of Corporate Affairs (MCA) with the RUN or Reserve Unique Name form to check the availability of the name you select. You can keep 3-4 alternatives to prevent a complete rejection in case most of the names are already registered. You will receive a letter from the Registrar of Companies or ROC when your company name gets approved. You should submit an original copy of this letter while doing the company registration in India online.

3The next step in the process is obtaining a Digital Signature Certificate or DSC. This ensures that the application you file electronically has digital signatures to maintain the authenticity and security of the documents.

4Private limited company registration also requires that you have a registered office where you would be operating from, and submit the address proof for registration. It can either be a commercial space or your residence. Keep the electric bill, water bill, or property tax receipt available for submission to the MCA. In case you take a space on rent, a Notarized rental agreement and a No-objection certificate will also be required.

5You need a minimum of two people to be appointed as directors and shareholders. Remember to acquire a Director Identification Number or DIN for the registration process. The director needs to submit a PAN card, bank statement, and address proof.

6Once you create an account on the portal of MCA and submit all the necessary documents, your application will be reviewed and you can soon start your own company. Bangalore company registration services are offered by various platforms to help you achieve your dream of owning a company without much hassles.


Apart from limited liability, what attracts investors is easy transferability of shares, and also being a regulated organization certainly lends quite some credibility to the Company.

Yes, broadly the process remains the same. However, since some of the documents (id proofs, the address proofs, etc) would be issued by a foreign government, to establish the authenticity, the same needs to be signed by consular or apostille as per the Hague Convention. However post-registration an additional approval/filing with Reserve Bank of India shall have to be done.

Yes, as per the Companies Act, 2013 it is mandatory to have at least 1 (One) resident director. A director is said to be a resident of India if he/she has spent more than 180 days in India.

Documents required from an individual for registering the Company :

  • Photo
  • PAN - mandatory for Indian
  • ID Proof, other than PAN
  • Address Proof - latest telephone bill, mobile bill, bank statement, electricity bill.

Documents required from a shareholder who is a Company?

  • Registration certificate of the Company.
  • A resolution passed by the Company authorizing the registration of a Company.
  • Address proof of the Company.
  • In the case of holding Company, the resolution must state the name of the shareholders, directors, shareholding pattern.
  • Address proof of the Company's registered office.

Contact the Professionals of SetMyCompany to Know more about the cost

You cannot run a company without government registration.

It takes 10 to 15 days to register a company.

You need to check the registration status on the MCA website.

The steps to be followed in order to get the company incorporation certificate

  1. Acquire Director Identification Number (DIN)
  2. Obtain Digital Signature Certificate (DSC)
  3. New user registration on the MCA website
  4. Application for a company incorporation certificate

The steps that you should follow to register your small business in India are:

  1. Obtain Digital Signature Certificate (DSC)
  2. Acquire Director Identification Number (DIN)
  3. New user registration on the MCA website
  4. Apply for the company to be registered

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