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How To Register A Company In India: A Step By Step Guide

register company in india

Every company in India must register itself under legal requirements. In this article, we will guide you on how to register company in India.

Continue reading to find out how to register company from anywhere in the world within a month.

In the past decade, India has transformed and developed, making it one of the preferred destinations for businesses and investors. According to the Ministry of Corporate Affairs (MCA), more than 1,50,000 businesses were incorporated in F.Y. 2020 – 2021 in India.

What Are The Advantages Of Registering Your Company In India?

The following are the advantages of registering your company in India:

1. Beneficial Business Laws:

  • The Indian government has introduced various bills to bring transparency to the Indian economy.
  • These include the Insolvency and Bankruptcy Code (IBC), The Goods & Services Tax bill (GST), and the Direct Taxes Code Bill.
  • It made registration in India for existing industries and new international enterprises easier.
  • The government’s “Make in India” initiative will also include investments from foreign countries and build manufacturing infrastructure.
Calculate your GST liability with our free GST Calculator


2. Diverse Startup Environment:

  • India is the leading IT hub worldwide.
  • In many sectors, such as e-commerce, banking & finance and agriculture, India has been successful.
  • India has an attractive ecosystem which gives a growing economy numerous opportunities.

3. Low-Cost Amenities:

  • Organizations will not have to worry about the costs of conducting business daily.
  • Manufacturing, food, transportation, and labour are all inexpensive in India.
  • Furthermore, India’s rapid development and expansion make it an ideal destination for many enterprises and investors.

4. Special Tax benefits:

  • India has built a tax framework that is favorable to investors by lowering corporation tax rates to:
  • 1. 22% (down from 30%) for existing businesses and
  • 2. 15% (down from 25%) for newly incorporated manufacturing businesses.
Determine how much taxes you can save by using our free


What Are The Different Types Of Business Structures That can be registered in India?

The correct business structure assists in the efficient operation of your company and the achievement of its objectives.

Here’s a quick rundown of the various types of business structures you can use to register your business in India:

Private Limited Company

  • The Private Limited Company is India’s most popular and well-known business entity.
  • A minimum of two shareholders and two directors are required for incorporation.
Related read: How To Choose Between A Private Ltd. Company And LLP?


Public Limited Company

  • Public Limited Company (PLC) can be listed on the Indian Stock Exchange.
  • Unlike Private Limited Companies, PLC enables you to sell shares to the general public.
  • Foreign Direct Investments (FDI) can also be accepted in a Public Limited Company.
  • A minimum of 7 shareholders required for Incorporation.
  • Furthermore, there is no restriction on the transfer of shares under the shareholders’ rights.

Partnership Firm

  • The maximum number of partners in a partnership firm is 100.
  • The partnership deed determines how their profits and losses are shared. During the formation of a Partnership firm, these deeds are created and registered.

Limited Liability Partnership (LLP)

  • A limited liability partnership (LLP) gives the benefit of limited liability.
  • It also permits the company’s internal management to be organised freely based on a mutually agreed-upon agreement.

One Person Company (OPC)

  • A one-person company (OPC) is a company with only one member.
  • The shareholder can choose only one nominee.
  • This nominee will become a shareholder if the original shareholder dies or is unable to do so.
  • Furthermore, because of the OPC structure, a sole proprietor can continue to work while remaining a part of the corporate structure.
Related read: What’s The Difference Between Sole Proprietorship And OPC?


Sole Proprietorship

  • In this business structure, the proprietor (1 person) owns all the assets.
  • Along with the personal income tax return, this person also declares the business’s revenues.
  • Aside from the essential licensing and business registration, no legal procedures are required to establish this business structure.

Hindu Undivided Family

  • The Hindu Law governs the term “Hindu Undivided Family” (HUF). An agreement between two parties cannot found a HUF, nor can it be formed by a group of people who are not related.
  • Even after the death of the common ancestor, the HUF continues to exist, and the next eldest male or female member becomes the family’s leader, known as “Karta.”

requirements for registering a company in India

What are the requirements for registering a company in India?

To register your company in India, you need to be aware of the following requirements:

1. Company Name

  • Your company name must be distinct and describe the nature of your firm. After you’ve decided on a name for your business, you’ll need to register it with the Ministry of Corporate Affairs (MCA).
Check the availability of your desirable company name


2. Local Registered Address

  • A local registered address is required for an Indian firm. You will be contacted by the Ministry of Corporate Affairs (MCA) via mail or other means.

3. Resident Director

  • In order to form a business in India, you’ll need at least one local director.
  • The criteria for a Resident Director:
  • A natural person (i.e.not a company, and not a business identity)
  • A resident of India.
  • Minimum 18 years of age.

4. Shareholders

  • A private limited company must have a minimum of 2 and a maximum of 200 shareholders.
  • A minimum of 7 shareholders is required in the event of a public limited company. The maximum number of shareholders is unlimited.

5. Paid-up Capital

  • In India, there is no minimum paid-up capital requirement for forming a business. However, it is suggested to form a business with enough capital to begin operations.

How To Register Your Company In India?

In India, you can register your business in four simple steps:

A Certificate of Commencement of Business is required for any business to begin operations.

Why Choose ICI?

We understand how difficult business and regulatory compliance can be. We are pleased to assist you in navigating these complicated rules.

ICI has a dedicated team of corporate legal specialists and company secretarial services. They have extensive experience and understanding, ranging from company registration through dissolution.

We also offer post-incorporation services such as:


Register your company in India today!
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