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How to incorporate a company in India
Are you ready to start your business? One of your first steps is registering your company. Luckily, the Ministry of Corporate Affairs (MCA) makes this easy through its online portal. You can also find the required documents there. Here’s a simple guide on how to incorporate your company in India.
Step 1: Verify Your Company Name
Make sure your company name follows these guidelines from the Companies Act 2013 and Companies (Incorporation) Rules, 2014:
- It shouldn’t resemble existing company names.
- Plural versions or minor changes to existing names are not allowed.
- Combining words or translating existing names is not accepted.
- Words like “Bank,” “Insurance,” and “Stock Exchange” need special approvals.
Check if your name is already taken and brainstorm alternatives if needed.
Step 2: Gather Pre-Registration Documents
Get these documents before starting your registration:
- DSC (Digital Signature Certificate): Authenticates electronic documents per the Information Technology Act, 2000.
- DIN (Director Identification Number): A unique number for those who will be company directors.
- MoA (Memorandum of Association): Lists the company’s objectives and shareholders.
- AoA (Articles of Association): Details company rules as per the Companies Act 2013.
- Personal Documents: PAN, Aadhaar, and address proof of directors/partners/shareholders.
- Company Address Proof: A document proving the location of the company’s office.
Minimum Requirements:
- At least 2 people are required for a Private Limited or LLP, with one being an Indian resident.
Step 3: Choose Your Business Type
Decide what type of business you want:
- Private Limited (PVT LTD): Private investors hold shares, and profits or losses belong to the company.
- Partnership Firm: Partners share profits and losses together.
- Limited Liability Partnership (LLP): Partners share limited liability, with no responsibility for each other’s actions.
- Sole Proprietorship: A single person owns the business.
- One Person Company (OPC): A company owned by a single person.
Step 4: Register Your Company Online
- Create an MCA Portal user ID.
- Fill out the SPICe+ form on the portal. Only directors with a DIN can apply.
- Use your user ID to access the MCA portal and submit the documents under the SPICe+ service.
Step 5: Receive Your Certificate of Incorporation
After verifying your documents, the Registrar of Companies (RoC) will issue your Certificate of Incorporation.
About Rohit Lohade
Rohit Lohade is a Chartered Accountant with 15+ years of experience. He has assisted more than 300 Gobal Companies with India Entry Strategy