How to Register A Company in India | Company Registration Guide in 2024

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“How to Register A Company” Now since you are reading this article, we presume that you have a plan to register your company in India. Now having your own company comes with a lot of responsibilities. But the first and foremost is registration without which your business would not be legal.

Registering your company makes your business a distinguished entity and gives it a legal existence. The company registration process in India is done by the Ministry of Corporate Affairs.

Here we have tried to help you and ease your tension by giving you the process of How to Register A Company in India.

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1. Director Identification Number (DIN)

The very first step for registering a company in India is by obtaining the Unique Identification Number. According to the Companies Amendment Act 2006, all directors in the company (existing as well as intending directors) need to acquire their Director Identification Number (DIN).

The application form is DIN – 1 available online on the official website of the Ministry of Corporate Affairs. All business owners need to register themselves at the MCA Website and acquire a login ID.

The DIN-1 Form is to be duly filled and uploaded after paying the fees. It takes about one day for execution with a nominal fee of INR 100.

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2. Digital Signature Certificate (DSC)

The authenticity of the documents and information provided in the DIN-1 Form can only be ensured with a valid digital signature on all the documents submitted in the e-filing process. A DSC is distinguished for every business entity and should not be shared by businesses.

The company registration process in India requires every business to acquire a Digital Signature Certificate (DSC) to ensure a secure way to get the documents submitted electronically.

Digital certification is valid for a period of one or two years, and after expiry, it should be renewed by the CCA again.

Application fees are INR 800 – 5999 depending on the organization structure and validity period and take 2-3 business days to process.

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3. New User Registration

It is important to get registered on the portal of the Ministry of Corporate Affairs. You need to create a user account for filing an e-Form after carrying out different transactions and paying the prescribed fees. The Ministry of Corporate Affairs does not charge any fee for creating an account.

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4. Filing Charter Documents

In a company registration process, the applicants are required to create charter documents like Memorandum of Association (MOA) and Articles of Association (AOA).

A Memorandum of Association (MOA) contains all the details about the registering company which are required during the incorporation process. It also provides details regarding the objectives and powers of the company.  

It also provides details about the relationship between the outsider and the company. The MOA once created cannot be amended.

Articles of Association (AOA) specify the rules and regulations laid by the company. It provides details about the management, conduct and by-laws governing the internal affairs of the company. The AOA acts as an auxiliary to the MOA, yet it can, however, be amended, if required.

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5. Company Name

The proposed company name should be unique and descriptive of the products and services offered. The Ministry of Corporate Affairs (MCA) has recently initiated a RUN (Reserve Unique Name) web service for incorporating a company.

This service can be used only once. Due to a similarity in names or failure to abide by the Companies Incorporation Rules, once rejected, RUN cannot be re-used.

Hence, you must make sure that the proposed name is unique and fulfils all the guidelines prescribed. In case of rejection, the applicant must re-file another RUN form after paying the prescribed fees.

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6. Register Other Details

The next step in the company registration process in India includes registering the company name & address and notice for the appointment of directors, secretary and manager.

Form-1 must be carefully filled out and submitted to incorporate the company name on the MCA website. As a mandate, at least 4 alternative names for your company are to be provided.

The proposed company name should abide by the provisions listed under the Companies Act, of 1950. After this, you can choose one of the names and process by filing Form-18 and Form-32 for the company’s address and appointment of directors, secretary and manager. Once the forms are submitted, they are scrutinized by the concerned agencies.

The whole process is completed in about 8-10 days. Once it is approved by the MCA, the status of your company registration form changes to Approved.

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7. PAN and TAN

The last step in the company registration process in India is acquiring a PAN (Permanent Account Number) for your company. PAN should only be obtained from authorized agents who are appointed by the Union Trust of India (UTI) Investors Services Ltd or the National Securities Depository Ltd. (NSDL). PAN takes about seven days and costs up to INR 70.

Once you get your PAN number, you also need to get a TAN (Tax Account Number) for your company. It can be obtained from any Assessing Officer present at the Income Tax Department of your state. TAN number takes a week and costs around INR 60.

Following this, you are required to register the company with the Office of Inspector, Shops and Establishment Act (State/Municipal). The given form needs to be filled with details about the manager’s and employer’s name, the establishment’s name, postal address, and the legitimate category.

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It should be sent to the office of the local shop inspector along with the applicable fees. It is obligatory to register the Establishment Act within a month of the opening of your business.

The company registration process in India is a legal procedure that all business owners need to abide by. The stipulated time for the company registration process, including the approval of the name, DIN and other requisites, takes about 7 working days.

All the documentations are combined in an individual application form to simplify the process and make it easy. We hope with this you have a smooth company registration process. 

8. Cost to register a company in India

The cost of registering a company in India can vary depending on several factors, but here’s a general breakdown:

Government Fees to register a company in India:

• Director Identification Number (DIN): Around ₹500 per director.
• Digital Signature Certificate (DSC): ₹1,500 – ₹2,000 per DSC.
• Company Name Approval: Around ₹1,000 (fixed fee).
• Stamp duty on MoA, AoA, and Spice Form: State-specific rates (average around ₹700).
• Registrar of Companies (ROC) Fee:
  • Up to ₹500 for companies with authorized capital up to ₹15 lakhs.
  • ₹500 remains the fee for companies with higher authorized capital.

Additional Costs to register a company in India:

• Professional fees: Anywhere from ₹6,000 to ₹20,000 or more depending on the complexity of the process and chosen service provider.

Total Estimated Cost to register a company in India:

Considering all the factors, the total cost of registering a company in India typically ranges from ₹6,000 to ₹30,000.

Here are some pointers to remember:

• The cost can be higher if your authorized share capital is significant.
• Professional fees can vary depending on the experience and services offered by the consultant/company secretary you choose.
• It’s advisable to consult with a professional for an accurate estimate based on your specific circumstances.

9. What if a company is already registered in India

You can easily check if a company is registered in India by using the Ministry of Corporate Affairs (MCA) website. Here’s how:

• Visit the MCA website: Go to https://www.mca.gov.in/content/mca/global/en/home.html.
• Navigate to MCA Services: Click on the “MCA Services” tab.
• Search for Company Data: Under “MCA Services,” you’ll find an option for “View Company/LLP Master Data.” This is where you can search for the company’s information.
• Enter Company Details: There are two ways to find the company:
  • Search by CIN (Company Identification Number): If you have the company’s CIN, enter it in the designated field. CIN is a unique identification number assigned to every registered company in India.
  • Search by Company Name: You can also search by the company’s name. However, this method might yield multiple results if there are companies with similar names.
• Submit and View Results: Once you’ve entered the details, click “Submit.” If the company is registered, you’ll be able to view its master data, which includes information like:
  • Company name
  • CIN
  • Registration date
  • Registered office address
  • Directors’ details
  • Compliance status (active/inactive)

We wish you luck for your new project.

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Company Registration Guide: FAQ

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