Introduction

Starting a business in India involves navigating legal procedures and fulfilling certain compliance requirements. Whether you are an entrepreneur, a startup, or looking to expand your business, understanding the company formation process is essential. As a trusted Chartered Accountant, we guide you through the necessary steps to form a company in India.

Types of Companies in India

India offers several types of business structures based on your goals and requirements. The most common types include:

Private Limited Company

• Most popular for small and medium-sized businesses.
• Minimum 2 shareholders and 2 directors.
• Limited liability protection for owners.

Public Limited Company

• Suitable for large businesses and those looking to raise funds via the public.
• Minimum 7 shareholders and 3 directors.

One Person Company (OPC)

• A single-member company, ideal for individual entrepreneurs.
• Limited liability.

Limited Liability Partnership (LLP)

• A hybrid structure offering benefits of both a company and a partnership.
• Minimum 2 partners.

Step-by-Step Process for Company Formation in India

Obtain Director Identification Number (DIN)

• All directors of the company must obtain a DIN from the Ministry of Corporate Affairs (MCA).
• Requires identity and address proof.

Obtain Digital Signature Certificate (DSC)

• Essential for filing electronic documents with the MCA.
• Directors need to have DSC for digital signing of documents.

Choose a Company Name

• The name must be unique, not infringe on trademarks, and should align with the objectives of the company.
• Reserve the name with the MCA using the RUN (Reserve Unique Name) service.

Draft the Memorandum of Association (MOA) and Articles of Association (AOA)

• The MOA defines the company's scope of business.
• The AOA outlines the rules for the company's internal management.

Register the Company with MCA

• Submit the incorporation documents along with the application for registration.
• After scrutiny, the Registrar of Companies (ROC) issues a Certificate of Incorporation.

Obtain PAN and TAN

• Every company must apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).

Open a Bank Account

• A business bank account is mandatory to carry out financial transactions.

Documents Required for Company Formation

For Directors

• Proof of Identity: Aadhar card, Passport, Voter ID, etc.
• Proof of Address: Utility bills, bank statements, etc.

For the Company

• Proof of Registered Office Address: Rent agreement or sale deed.
• Passport-sized photographs of directors.

Company Compliance and Post-Formation Requirements

Once the company is incorporated, it must comply with ongoing regulatory requirements, including:

Annual Filing with MCA

• Filing of annual return and financial statements with the ROC.

Tax Compliance

• Register for GST (if applicable).
• File Income Tax returns regularly.

Auditing

• Annual audits of financial statements are mandatory.

Why Choose Us for Your Company Formation in India?

• Expert Guidance: Our team of experienced Chartered Accountants offers end-to-end assistance.
• Fast and Efficient Process: We help ensure that your company is formed with minimal hassle.
• Affordable Services: Tailored packages to suit your business needs.
• Post-Incorporation Support: Ongoing compliance services and tax advisory.

FAQs on Company Formation

What is the minimum capital requirement for company formation in India?

• There is no minimum capital requirement for Private Limited Companies as per the Companies Act, 2013.

Can foreign nationals form a company in India?

• Yes, foreign nationals can form a company in India, provided they comply with the Foreign Direct Investment (FDI) regulations.

How long does it take to form a company in India?

• The entire process of company formation generally takes 7-10 days, depending on document submission and approval time.

What is the cost of company formation in India?

• The cost depends on the type of company, services required, and government fees. We offer competitive pricing.

Contact Us

Start your business journey today! Get in touch with us for expert assistance in company formation and compliance services.