Starting a business in India requires a formal Company Incorporation process. Whether you want to register a Private Limited Company, One Person Company (OPC), Section 8 Company, or Subsidiary Company, following the correct legal steps is crucial. Proper Company Registration ensures legal recognition, limited liability protection, tax benefits, and easier access to funding.
In this guide, we’ll cover the Company Registration Process, including Online Company Registration in India, Pvt Ltd Company Registration, OPC Registration, Section 8 Company Registration, GST Registration, GST Cancellation, AD Code Registration, and more.
What is Company Incorporation?
Company Incorporation is the legal process of registering a company with the Ministry of Corporate Affairs (MCA) under the Companies Act, 2013. Once incorporated, the company becomes a separate legal entity, distinct from its owners, with the ability to conduct business, own property, and enter into contracts.
•Legal Recognition – Your business gets a legal identity.
•Limited Liability Protection – Owners are not personally liable for company debts.
•Fundraising Benefits – Companies can attract investors easily.
•Business Credibility – A registered company gains trust from clients and stakeholders.
Types of Companies for Registration in India
When considering Company Incorporation in India, businesses can choose from different types of company structures based on their objectives.
1. Private Limited Company Registration
A Private Limited Company (Pvt Ltd) is the most popular business structure in India. It provides limited liability, separate legal status, and investor-friendly benefits.
•Minimum Requirement: 2 Directors, 2 Shareholders
•Ideal for: Startups, SMEs, and growing businesses
2. One Person Company (OPC) Registration
OPC Registration is for solo entrepreneurs who want the benefits of a company without partners.
•Minimum Requirement: 1 Director, 1 Shareholder
•Best for: Individuals looking for limited liability protection
3. Section 8 Company Registration
A Section 8 Company is a non-profit organization (NGO) formed for charitable purposes such as education, social welfare, and environmental protection.
•Minimum Requirement: 2 Directors
•Best for: NGOs, Trusts, and Charitable Foundations
4. Subsidiary Company Registration
A Subsidiary Company is a company owned or controlled by another company (Holding Company). A foreign company can register a subsidiary in India to expand its business.
•Minimum Requirement: At least 1 Indian Director
•Best for: Foreign businesses expanding into India
Step-by-Step Company Registration Process in India
Now, let’s dive into the Company Incorporation Process in India. The entire process is done online through the MCA portal.
Step 1: Obtain Digital Signature Certificate (DSC)
•A Digital Signature Certificate (DSC) is required to file company incorporation forms electronically.
•Directors and shareholders must obtain DSC from government-approved certifying agencies like eMudhra or Sify.
Step 2: Apply for Director Identification Number (DIN)
•DIN is mandatory for every company director.
•It can be applied through the SPICe+ Form on the MCA portal.
Step 3: Name Reservation using RUN (Reserve Unique Name) Service
•Choose a unique name and apply for approval using the RUN service on the MCA portal.
•Ensure the name follows the Companies Act naming guidelines.
Step 4: Drafting MOA and AOA
•MOA (Memorandum of Association) – Defines the company’s objectives.
•AOA (Articles of Association) – Defines company rules and governance.
Step 5: Filing the SPICe+ Form for Company Registration
•The SPICe+ Form is a single-window registration form that covers:
Company Incorporation
Director Identification Number (DIN) Allotment
PAN & TAN Registration
GST Registration (if applicable)
Step 6: Issuance of Certificate of Incorporation (COI)
•Once approved, the Registrar of Companies (ROC) issues the Certificate of Incorporation (COI).
•The company is now legally registered!
Post-Registration Requirements
1. GST Registration for Company
Companies engaged in selling goods/services must obtain GST Registration if:
•Annual turnover exceeds ₹20 lakh (₹40 lakh for some businesses).
•The company engages in interstate trade or e-commerce.
Steps for GST Registration:
•Apply on the GST portal (www.gst.gov.in).
•Submit PAN, business details, and address proof.
•Receive GSTIN (Goods and Services Tax Identification Number) after approval.
2. GST Cancellation
If a company stops its operations or falls below the GST turnover threshold, it can apply for GST Cancellation through the GST portal.
3. AD Code Registration for Import-Export
Companies involved in import-export must obtain AD Code Registration from an authorized dealer bank and register it on ICEGATE (Indian Customs Portal).
Steps for AD Code Registration on ICEGATE:
•Obtain a 14-digit AD Code from the bank.
•Register on the ICEGATE portal (www.icegate.gov.in).
•Submit documents for verification.
Conclusion
Company Incorporation in India is now a simplified process with online company registration options available through the MCA portal. Whether you want to start a Private Limited Company, OPC, Section 8 Company, or Subsidiary Company, following the right steps ensures a smooth registration process.
After registration, an OPC must comply with post-incorporation requirements like GST Registration, AD Code Registration, and compliance filings. If the OPC no longer needs GST Registration, it can apply for GST Cancellation.
FAQs
1. How long does it take to complete the Company Registration process?
Ans. The process typically takes 7-10 working days, depending on document verification.
2. Is GST Registration mandatory for all companies?
Ans. No, GST Registration is required only if the annual turnover exceeds ₹20 lakh.
3. What is the cost of Pvt Ltd Company Registration?
Ans. The cost varies but generally ranges between ₹8,000 - ₹15,000.
4. Can I do Online Company Registration without a consultant?
Ans. Yes, you can complete the process on the MCA portal without a consultant.
5. What is AD Code Registration, and why is it needed?
Ans. AD Code is necessary for import-export businesses to clear goods through customs.
