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How to Register a Limited Company in India?

March 12, 2024

Written by: iNFOTYKE

How to Register a Limited Company in India? Registering a limited company in India is a crucial step towards establishing a legal entity for your business. It not only provides a separate legal identity to your company but also offers various benefits such as limited liability, perpetual succession, and easy transferability of shares. In this article, we will guide you through the process of registering a limited company in India.

1. Choose a Unique Company Name

The first step in registering a limited company in India is to choose a unique name for your company. The name should not be identical or similar to any existing company names. You can check the availability of your desired company name on the Ministry of Corporate Affairs (MCA) website.

2. Obtain Digital Signature Certificate (DSC)

Next, you need to obtain a Digital Signature Certificate (DSC) for the proposed directors of the company. A DSC is a digital equivalent of a physical signature and is required for filing electronic documents with the MCA.

3. Obtain Director Identification Number (DIN)

Every director of the company needs to obtain a Director Identification Number (DIN) from the MCA. DIN is a unique identification number assigned to individuals who wish to be directors of a company. The application for DIN can be made online on the MCA website.

4. Prepare the Memorandum and Articles of Association

The Memorandum of Association (MOA) and Articles of Association (AOA) are the two important documents that define the scope of activities and internal regulations of the company. These documents need to be prepared in accordance with the Companies Act, 2013.

5. File the Incorporation Documents

Once you have obtained the DSC, DIN, and prepared the MOA and AOA, you need to file the incorporation documents with the Registrar of Companies (ROC) online. The documents include the application for incorporation, MOA, AOA, and other necessary forms.

6. Pay the Required Fees

Along with the incorporation documents, you need to pay the required fees based on the authorized capital of the company. The fee can be paid online through the MCA portal.

7. Obtain the Certificate of Incorporation

After the ROC verifies and approves the incorporation documents, you will receive the Certificate of Incorporation. This certificate serves as proof of the existence of your limited company.

8. Apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN)

Once you have obtained the Certificate of Incorporation, you need to apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for your company. PAN is required for various financial transactions, while TAN is required for deducting and collecting taxes.

9. Register for Goods and Services Tax (GST)

If your company engages in the supply of goods or services with an annual turnover exceeding the threshold limit, you need to register for Goods and Services Tax (GST). GST registration can be done online through the GST portal.

10. Open a Bank Account and Commence Business Operations

Finally, you need to open a bank account in the name of your company and start your business operations. The bank account will be required for various financial transactions and to receive payments from customers.

Registering a limited company in India may seem like a complex process, but with the right guidance and assistance, it can be done smoothly. It is advisable to consult with a professional company registration service provider or a chartered accountant to ensure compliance with all legal requirements and to navigate through the registration process efficiently.

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