How to Register a Company in India: A Step-by-Step Guide

Table of Contents

Why Register a Company in India? Legal Recognition Limited Liability Protection Enhanced Credibility and Trust Access to Funding and Investment Opportunities Structured Business Growth and Compliance What You Need to Know Before Registering a Company Minimum Shareholders and Their Residential Status Directors (Executive & Non-Executive) and Their Residential Status Objective of the Company (Scope of Business Activities) Structuring the Name of the Company Capital of the Company (Authorized & Paid-up Capital) Registered Office Address Compliance, Reporting, and Filings Documentation Required for Registration How to Register a Company in India: Step-by-Step Process Step 1. Obtain a Digital Signature Certificate (DSC) Step 2. Reserve a Unique Company Name Step 3. File Company Incorporation Details (SPICe+ Part B) Step 4. Draft & Submit Incorporation Documents Step 5. Submit Forms & Get Certificate of Incorporation Step 6. Open a Business Bank Account Step 7. Register for GST & Other Licenses Essential Documents Checklist for Company Registration Documents for Indian Nationals (Directors & Shareholders) Documents for Foreign Nationals (Directors, Shareholders, NRIs & OCI Holders) Documents for the Registered Office Address) Post-Registration Compliances: Essential Legal Obligations Annual Compliance & MCA Filings Event-Based Filings Compliance Certificates & Regulatory Reporting Other Compliance Obligations Final Thoughts: Your Business, Your Dream—Made Simple

Every successful business begins with an idea—a solution to a pressing problem, a vision for innovation, or a passion that drives change. However, transforming that idea into a legally recognized business requires registering a company in India, a process that many find daunting.

Navigating legal formalities, documentation requirements, and compliance obligations can feel overwhelming, especially for first-time entrepreneurs. Questions like how to register a company in India, what is the cost of registering a company in India, and which business structure is best are common concerns that arise during the process.

This guide simplifies how to register a company and provides a structured approach to company registration in India, ensuring that you have all the necessary information in one place. Whether you are a solo entrepreneur, a startup founder, or a small business owner looking to expand, this step-by-step guide will help you register your company efficiently and confidently.

Why Register a Company in India?

Registering a company is more than just fulfilling a legal requirement—it provides a strong foundation for business growth and ensures long-term sustainability. Here are some of the key advantages:

1. Legal Recognition

A registered company becomes a separate legal entity, which means it can enter into contracts, own assets, and incur liabilities in its own name.

2. Limited Liability Protection

Incorporating a company protects the personal assets of the owners from business debts and financial risks.

3. Enhanced Credibility and Trust

Customers, investors, and financial institutions view registered businesses as more reliable, increasing opportunities for funding, partnerships, and growth.

4. Access to Funding and Investment Opportunities

Venture capitalists, angel investors, and banks prefer investing in registered businesses, making it easier to secure funding for expansion.

5. Structured Business Growth and Compliance

Registering a company ensures compliance with government regulations, making it easier to scale operations while staying legally protected.

What You Need to Know Before Registering a Company

Before registering a company in India, it is important to choose the right business structure. The most common types include Private Limited Companies (PLCs), One Person Companies (OPCs), and Public Limited Companies. While this guide primarily focuses on the registration process for a Private Limited Company, the key considerations discussed here apply to other company structures as well, with certain procedural variations.

1. Minimum Shareholders and Their Residential Status

Every company requires a minimum number of shareholders (also known as subscribers to the memorandum of association). The number varies based on the type of company:

• Private Limited Company – At least two shareholders
• One Person Company (OPC) – One shareholder
• Public Limited Company – At least seven shareholders

There are no specific nationality restrictions for shareholders. Since Indian resident shareholders are not mandatory, a Private Limited Company can be 100% owned by foreign nationals.

2. Directors (Executive & Non-Executive) and Their Residential Status

A company’s directors are responsible for decision-making and regulatory compliance. The requirements for directors are:

• Private Limited Company – At least two directors
• Public Limited Company – At least three directors
• One Person Company (OPC) – At least one director

At least one director must be a resident of India, meaning they must have stayed in India for at least 182 days in the previous financial year. Both executive (actively managing the company) and non-executive (advisory role) directors can be appointed.

3. Objective of the Company (Scope of Business Activities)

Defining the main objective of your company is essential, as it will be mentioned in the Memorandum of Association (MOA). The business activities must align with the Companies Act, 2013, and should not be ultra vires (beyond the scope of legal authority).

Clearly outlining your business objectives ensures compliance and helps in obtaining relevant licenses and approvals in the future. If you plan to expand your business activities later, you may need to amend the MOA.

4. Structuring the Name of the Company

The company name must comply with the Companies (Incorporation) Rules, 2014, and should be unique, relevant to your business, and free from any restricted terms. The structure typically follows:

[Unique Name] + [Business Activity/Industry] + [Private Limited / Limited]
 For example, TechNova Solutions Private Limited or GreenHarvest Agro Private Limited.

Before applying for name approval, check for name availability on the MCA portal and ensure it does not infringe on any registered trademarks.

5. Capital of the Company (Authorized & Paid-up Capital)

Capital plays a crucial role in structuring your business. It is categorized as:

• Authorized Capital – The maximum amount of capital the company can raise. The minimum authorized capital for a Private Limited Company is ₹1 lakh (though no upper limit exists).
  
• Paid-up Capital – The actual amount invested by shareholders. There is no minimum paid-up capital requirement for Private Limited Companies.

While there are no strict rules on capital structuring, a well-planned capital structure can help in future fundraising and investor relations. Read the difference between Authorized Capital and Paid-up Capital here.

6. Registered Office Address

A company must have a registered office address in India, which will be used for official correspondence with regulatory authorities like the MCA (Ministry of Corporate Affairs) and the Income Tax Department. The address must be:

• A commercial or residential location (not an empty plot or virtual office).
  
• Supported by valid proof such as a utility bill (electricity, water, or gas bill), Rent Agreement (if applicable) and an NOC (No Objection Certificate) from the owner.

This address can be changed later by filing the appropriate forms with the MCA.

7. Compliance, Reporting, and Filings

Registering a company is just the first step; maintaining compliance with legal requirements is equally important. Some of the key post-incorporation compliances include:

• INC-20A Filing: Declaration of Business Commencement (mandatory for companies with share capital).
• Board Meetings & Resolutions: Companies must hold board meetings and general meetings as per the regulatory requirements.
• Director KYC (DIR-3 KYC): Required annually for directors.
• Annual MCA Filings: Filing of AOC-4 (Financial Statements) and MGT-7 (Annual Return) for Private Limited Companies.
• Shop & Establishment Registration: Mandatory for businesses operating from a physical location.
• Professional Tax (PT) & PTRC Registration: Required in states where applicable.
• Income Tax Filings: Regular tax filings, including TDS (Tax Deducted at Source) returns if applicable.
• GST Filings: If registered under GST, periodic returns must be filed to stay compliant.

8. Documentation Required for Registration

To register a company in India, you need to submit certain documents to the MCA. The key documents include:

• Identity Proof of Directors & Shareholders: Self-Attested PAN card (mandatory for Indian nationals), Self-Attested passport (for foreign nationals).
• Address Proof of Directors & Shareholders: Aadhaar card, voter ID, driving license, or passport (Self-Attested)
• Registered Office Address Proof: Utility bill (not older than two months), rent agreement (if rented), and NOC from the property owner. (Self-Attested)
• Digital Signature Certificate (DSC): Required for all directors and subscribers to sign documents digitally.
• Director Identification Number (DIN): Automatically allotted during company registration.

Ensuring all documentation is in place before initiating the registration process helps prevent delays.

How to Register a Company in India: Step-by-Step Process

Step 1: Obtain a Digital Signature Certificate (DSC)

The first step in registering a company in India is obtaining a Digital Signature Certificate (DSC) for directors and shareholders. Since all applications are submitted online, a DSC is required to sign digital documents securely.

• Issued by the Controller of Certification Agencies (CCA)
• Required for directors and shareholders
• Documents needed: Self-Attested PAN card, address proof, identity proof, passport-size photo
• A unique email ID and mobile number must be provided for verification. The verification process includes a video KYC and OTP authentication on the registered contact details.
• Minimum validity: 1 year (extendable to 3 years)

Step 2: Reserve a Unique Company Name

To ensure your company has a unique identity, you must reserve a name through the SPICe+ Part A form.

• Check name availability on the MCA portal before submission.
• Provide company details such as company type, business activity, and name options.
• Name approval timeline: Generally, takes 2-3 business days. However, MCA approval times vary, and in some cases, it may take 10-13 days or more.
• If the name is rejected, you are allowed one chance for resubmission. However, if MCA rejects it again, a fresh application must be filed with a new fee..
• Once approved, proceed to SPICe+ Part B for incorporation.

Step 3: File Company Incorporation Details (SPICe+ Part B)

After name approval, complete SPICe+ Part B, which includes:

• Capital Details—Shareholding Structure & Capital Investment Breakdown with Face value of shares
• Registered Office Address – Proof of location (rental agreement, utility bill, NOC).
• Director & Shareholder Details – Names, DINs (auto-generated for new directors), and personal identification.
• Stamp Duty Calculation – Based on the state of registration.
• Apply for PAN & TAN – Tax registration numbers for the company.
• Professional Declaration – Certification by a CA, CS, or CMA.

Step 4: Draft & Submit Incorporation Documents

The incorporation process requires submitting key documents:

• SPICe+ MoA (Memorandum of Association)
  • Defines company objectives, registered office, liability structure, and share capital.
  • Requires DSC verification before submission.
• SPICe+ AoA (Articles of Association)
  • Specifies company rules, shareholder rights, and management roles.
  • Affixed with DSC of directors & professionals.
• AGILE PRO Form
  • Register for GST, EPFO, and ESIC.
  • Select a bank for a business current account.
  • Apply for Shop & Establishment Registration (if applicable).
• INC-9 Declaration Form
  • A digitally signed declaration from company directors & subscribers.

Step 5: Submit Forms & Get Certificate of Incorporation

Once all forms are submitted, the Registrar of Companies (RoC) verifies the application.Upon approval, the company receives a Certificate of Incorporation (COI) with:

• Company Identification Number (CIN)
• PAN & TAN issued automatically

Step 6: Open a Business Bank Account

With the Certificate of Incorporation, you can open a business current account by submitting:

•  COI, PAN, AoA, MoA, & Board Resolution
• Authorized Signatories’ KYC Documents
• Other documents required by the bank

Step 7: Register for GST & Other Licenses

Depending on business activities, additional registrations may be needed:

•  GST Registration – Mandatory if turnover exceeds ₹40 lakhs (₹20 lakhs for services).
• MSME Registration – Benefits under government schemes.
• Shops & Establishments Act License—Required for establishments.
• Industry-Specific Licenses – FSSAI (food businesses), IEC (exporters), etc.

Essential Documents Checklist for Company Registration

Having the right documents is essential for a smooth company registration process. Below is a comprehensive checklist covering the requirements for Indian and foreign directors/shareholders, as well as the registered office.

1. Documents for Indian Nationals (Directors & Shareholders)

• Self-attested PAN card copy of all directors and members (mandatory).
• Recent passport-size photograph.
• Copy of Aadhaar card for identity verification.
• Self-attested proof of identity (any one of the following):
  • Voter ID
  • Passport
  • Driving License
• Self-attested address proof (should be in the name of the director or shareholder). Acceptable documents include:
  • Mobile bill
  • Telephone bill
  • Electricity bill
  • Latest bank account statement (showing name, address, and recent transactions).
  • Latest bank account statement (showing name, address, and recent transactions).

2. Documents for Foreign Nationals (Directors, Shareholders, NRIs & OCI Holders)

• Recent passport-size photograph.
• Nationality proof (passport is mandatory for foreign subscribers).
• Address proof (not older than two months). Acceptable documents include:
  • Driving license
  • Bank statement
  • Utility bill (electricity, water, gas, or telephone)
  • Utility bill (electricity, water, gas, or telephone)
• All documents must be notarized and apostilled in the home country.

3. Documents for the Registered Office Address

• Business address proof – Utility bill (electricity, telephone, water, or gas) not older than two months.
• Copy of the rent agreement (if the office space is rented).
• No Objection Certificate (NOC) from the property owner, authorizing the use of the premises for business purposes.

This checklist ensures you have all necessary documents in place before starting the company registration process.

Post-Registration Compliances: Essential Legal Obligations

Once your company is incorporated, maintaining compliance with legal and regulatory requirements is essential. These obligations help establish a strong foundation for business operations, prevent penalties, and ensure transparency. Below is a detailed guide to key post-registration compliances for companies in India.

1. Annual Compliance & MCA Filings

Companies registered under the Companies Act, 2013 must file annual returns and financial statements with the Ministry of Corporate Affairs (MCA) within the prescribed timelines.

Annual Return (Form MGT-7):

• Must be filed within 60 days of the Annual General Meeting (AGM).
• Includes details about shareholding, directorship, and company operations.

Financial Statements (Form AOC-4):

• Must be filed within 30 days of the AGM.
• Includes Audited balance sheet, profit and loss statements, and other financial disclosures.

2. Event-Based Filings

Certain business changes must be reported to the MCA within specified timelines:

Appointment/Reappointment of Auditor (Form ADT-1):

• Must be filed within 15 days of the AGM for reappointment.
• For newly incorporated companies, Form ADT-1 shall be filed within 30 days of receipt of the Certificate of Incorporation (COI) in the first Board meeting conducted by the company.
• Required for appointing or reappointing a statutory auditor.

Change in Board of Directors (Form DIR-12):

• Must be filed within 30 days of any director’s appointment, resignation, or removal.

Change in Registered Office Address (Form INC-22):

• Must be submitted within 15 days of a company’s registered office relocation.

Allotment of New Shares (Form PAS-3):

• Must be filed within 30 days of issuing new shares.

3. Compliance Certificates & Regulatory Reporting

Certain companies are required to submit additional compliance reports:

Deposits Reporting (Form DPT-3):

• Mandatory for private limited companies accepting deposits.
• Must be filed within 90 days after the financial year ends.

Micro & Small Enterprises Payments (Form MSME-1):

• Companies with outstanding payments to Micro or Small Enterprises suppliers must file this report.
• Filed semi-annually by October 31 and April 30 to report delayed payments.

4. Other Compliance Obligations

Creation/Modification of Charges (Form CHG-1):

• Must be filed within 30 days of securing a loan or modifying charges on company assets.

Auditor Resignation/Non-Ratification (Form ADT-3):

• Filed within 90 days if an auditor resigns or is not ratified.

Approval of Board and Shareholders’ Resolutions (Form MGT-14):

• Must be filed within 30 days for board resolutions and specific agreements.

Why Staying Compliant is Crucial

Failure to meet post-registration obligations can lead to penalties, late fees, and legal complications. Ensuring compliance helps businesses:

• Maintain legal status and avoid regulatory issues.
• Enhance credibility with investors, financial institutions, and stakeholders.
• Focus on business growth without unnecessary legal hurdles.

Final Thoughts: Your Business, Your Dream—Made Simple

Starting a business is more than just paperwork—it’s the beginning of something extraordinary. We admit it; it’s a big step, and after going through the entire process, it’s natural to feel overwhelmed. But here’s the good news—you don’t have to do it alone.

We can be your trusted guide. We understand that the journey from an idea to a legally registered company can feel exhausting. The complexities of documentation, compliance, and legal procedures shouldn’t hold you back from chasing your dreams.

At LegalWiz.in, we believe that registering a company in India should be as exciting as starting one. That’s why we take care of everything—from name approval and Digital Signature Certificate (DSC) application to PAN, TAN, and GST registration—so you can focus on what really matters: growing your business.

We stand by you at every step, ensuring a smooth, hassle-free registration process. Our experts guide you through:

• Company Name Search & Reservation – Helping you secure a unique and compliant business name.
• Company Incorporation with MCA – Filing and processing all required documents with the Ministry of Corporate Affairs.
• PAN & TAN Application – Getting your company tax-ready from day one.
• GST Registration & Compliance – Ensuring your business is legally prepared to operate.
• Post-Incorporation Compliance – Managing essential filings like INC-20A (Declaration of Business Commencement), appointing an auditor, and fulfilling annual MCA requirements.

Starting your company should be an exciting milestone, not a legal struggle. With LegalWiz.in, you don’t just register a company—you set the foundation for long-term success. Let’s simplify the process, eliminate stress, and bring your dream business to life together.

Your vision is powerful. Let us help you make it official. Get started with LegalWiz.in today!