Company Registration in India

Starting a business in India would require you to register your business. Whether it’s a startup, LLP, Partnership firm, etc. you can register your business online with Goom Tax. Groom Tax provides you with cost-effective solutions for registering your company in India.

Book a free consultation

Overview

Registering a company in India is quite straightforward and simple. The company incorporation process is a completely online process. The portal of ministry of corporate affairs (MCA) is the main portal used for company registration. Company registration provides legal recognition and increases the status of your business. However, for registration of your company step-by-step procedure needs to be followed. Hence it is important to consider using Groomtax services for company registration.

Once you have decided to start business, the first and foremost requirement is to select a favourable type of business entity to register the business in India. The choice of the right business entity will affect many factors starting from your business name, your liability towards your business, compliance cost, startup benefits, eligibility for FDI or funding and how to file your taxes and statutory dues. In India, business can be registered under different types like private Limited Company, Limited Liability Partnership, One Person Company, partnership firm, and proprietorship firm. Setting up a private limited company is one of the extremely recommended way to start a business in India. Normally, Start-ups companies prefer to register company as a private Limited company because it allows funding to be raised easily. It limits the liabilities of the shareholders and enables them to offer Employee Stock Options (ESOP) to attract top talents. If you want to start a company in India, make sure you get Online Company Registration from our experts' team.

Benefits

Limited Liability:  The Liability of shareholders is limited to the unpaid subscribed share capital only. Shareholder not liable to pay losses and liability of company by personal assets.

Separate Legal Entity:  Company is a separate legal person in the eyes of law and different from its directors and shareholders. Company can operate, contract and own assets and liabilities by its own name like any individual person.

Easy Funding:  If you want to raise funds then company is the only options in which you can get funds against issue of equity shares.

Eligible for FDI:  You can get the investment from foreign countries also easily in the company under automatic approval route.

Eligible for startup India Recognition:  Company can be recognized as startup and get the benefit of income tax exemption u/s 80-IAC and angel tax exemption u/s 56(2)(viib) of the income tax act.

Tax Benefits:  There are different rates of taxes on companies ranging from 15% to 30% depends on nature of business and turnover of the company which are as follows:

Section Type of Company Tax Rates
115BAB* Manufacturing Company incorporated after 1st Oct, 2019 17.16% (Tax + SC + EC)
115BAA* Other Companies 25.17% (Tax + SC + EC)
If Turnover less than 400 crore 26% (Tax + EC)
If Turnover more than 400 crore 31.2% (Tax + EC)

* Note: Under section 115BAB and 115BAA, companies could not claim certain deduction, exemption and brought forward losses.

List of Documents Required

Company Details
  • Two Proposed Names
  • The objective of the proposed company
Proof of Registered Office
  • Latest Utility bill i.e., electricity bill, landline bill or water bill, etc.
  • For rented place, NOC required in the name of the proposed company
Subscribers & Director’s Documents
  • PAN Card of all the Subscribers/Directors
  • Photograph of all the Subscribers/Directors
  • Aadhar Card of the Subscribers/Directors
  • Mobile No. and Email Id. of all the Subscribers/Directors
  • DL/Voter ID/ passport, anyone documents of all the Subscribers/Directors
  • Bank statement/ Electricity Bill in the name of the Subscribers/Directors, anyone documents of all the subscribers/directors
Other Information
  • Share capital and voting share of directors
  • Whether director or partner in any existing Co/LLP
  • Place of birth, Occupation and Educational qualification of director
  • Present residential address and duration of stay
  • Specimen Signature of one signatory

Process

  • 1

    Apply for a name approval for your company using Spice+ Part-A.

  • 2

    Apply for DSC of subscribers and directors

  • 3

    Online preparation of Spice+ PartB, eMOA, eAOA & AGILEPRO.

  • 4

    Online filing of Spice+ Part B, eMOA, eAOA, AGILEPRO and INC-9

  • 5

    Get a certificate of incorporation, PAN & TAN of your company.

Deliverable

  • Certificate of incorporation
  • Company name approval
  • Director identification numbers (DIN)
  • Digital signature token for directors
  • Memorandum of association
  • Articles of association
  • Company PAN card
  • Company TAN number
  • ESI/PF registration

Compare-Table

Particulars Private Ltd Company Limited Liability Partnership One Person Company Partnership Proprietorship
Separate Legal Entity Yes Yes Yes Yes No
Limited Liability Yes Yes Yes No No
Registration Mandatory Mandatory Mandatory Optional No
Statutory Audit Mandatory Dependent Mandatory No No
Owners/Partners 2 - 200 2 - Unlimited 1 Person 2 - 50 1 Person
Tax Rate 25% 30% 25% 30% Slab Rate
Legal Compliance High Moderate Moderate Least Least
Eligible for Start-up India Benefits Yes Yes Yes Limited No
Eligible for FDI Yes Yes No No No
Funding from Investor Yes No No No No
Click Here Click Here Click Here Click Here Click Here

FAQs

What does company registration mean?
To operate a business legally and ethically, the company is required to register itself with the Government of India. After registration of the company, the company can operate business legally and smoothly operates the business.
Does Groom Tax offer company registration online?
Yes, Groomtax Services offers an online company registration service, you do not need to visit our office or any government office for registration, we do all of this for you. You just have to share the documents and we’ll register your business for you.
What is COI certification?
COI stands for Certificate of Incorporation, which is a certificate that you’ll receive after registering your business.
What type of company registration should I do?
There are different types of companies that you can register. If you are confused with what to register, then you can simply contact us using various means like phone - 9958872535, Email-info@groomtax.com. You can also Whatsapp us “Hi” to start your query.
I am setting up a start-up business? What kind of documents do I need?
For starting a start-up, the following are the documents required-
  • Shareholder agreement
  • Founders agreement
  • Certificate of incorporation
  • No objection certificate (NOC)
  • Company PAN card.TIN ID
  • Non-disclosure agreement
  • GST Number
  • Startup India Registration
  • Department for Promotion of Industry and Internal Trade or DPIIT Recognition Registration
What are the words or expression which can be used only after obtaining previous approval of Central Government?
In terms clause {b) of sub-section (3) of Section 4, the following words and combinations thereof shall not be used in the name of a company in English or any of the languages depicting the same meaning unless the previous approval of the Central Government has been obtained for the use of any such word or expression:-
  • Board;
  • Commission;
  • Authority;
  • Undertaking;
  • National;
  • Union;
  • Central;
  • Federal;
  • Republic;
  • President;
  • Rashtrapati;
  • Small Scale Industries;
  • Khadi and Village Industries Corporation;
  • Financial Corporation and the like;
  • Municipal;
  • Panchayat;
  • Development Authority;
  • Prime Minister or Chief Minister;
  • Minister;
  • Nation;
  • Forest corporation;
  • Development Scheme;
  • Statute or Statutory;
  • Court or Judiciary;
  • Governor;
  • The use of word Scheme with the name of Government (s), State, India, Bharat or any Government authority or in any manner resembling with the schemes launched by Central, State or local Governments and authorities; and
  • Bureau.
Is it mandatory for every company to follow the SPICe+ process for incorporation of a company?
Every company incorporated with effect from 23rd February, 2020 is required to make an application for reservation of name and incorporation through the web service SPICe+. Name(s) of a company can be reserved in Part A of SPICe+. In case the applicant wants to apply for name, incorporation and other integrated services together, he can do so together by filling necessary information in Part A and Part B. For change of name, web service RUN (Reserve Unique Name) is required to be submitted.
What is RUN?
RUN service is a simple and easy to use web service for reserving a name for change of name for any existing company. The said service has removed the requirement to use a Digital Signature Certificate (DSC) during name reservation. It was another value addition to Ease of Doing Business in India.
What are the services offered in Part B of SPICe+?
Part B of SPICe+ offers following services viz. a) Incorporation; b) DIN allotment; c) Mandatory issue of PAN; d) Mandatory issue of TAN; e) Mandatory issue of EPFO registration; f) Mandatory issue of ESIC registration; g) Mandatory issue of Profession Tax registration, only for companies to be registered in Maharashtra, Karnataka and West Bengal; h) Mandatory Opening of Bank Account for the Company; i) Allotment of GSTIN (optional, if applied for)and j) Allotment of Shops and Establishment Registration Number (Only for Delhi Location).
“Zero Filing Fee” is applicable on which Companies for getting incorporated through SPICe+?
Companies getting incorporated through SPICe+ with an Authorized Capital up to INR 15,00,000 would continue to enjoy ‘Zero Filing Fee’ concession. Such companies will be levied with only stamp duty fees as may be applicable on state-to-state basis.
Whether it is mandatory for every subscriber and/or director to obtain DSC at the time of incorporation?
Yes, in case number of subscribers and/or directors to eMoA and eAoA is up to twenty and all such subscribers and/or directors have DIN/PAN, it shall be mandatory for each one of them to obtain a DSC.
Which Banks are integrated through SPICe+?
At present, Punjab National Bank, ICICI Bank, SBI, Kotak Mahindra Bank, Bank of Baroda, HDFC Bank, INDUS IND Bank, UBI bank and Axis Bank have been integrated with SPICe+ for opening a Bank account.
What is AGILE-PRO?
AGILE-PRO is an Application for registration of Goods and Service Tax Identification Number (GSTIN), Employee State Insurance Corporation (ESIC), Employees' Provident Fund Organisation (EPFO) Registration and Professional Tax Registration (in Maharashtra and Karnataka) and Opening of Bank Account. The said form shall be accompanied with application of Incorporation.
What are the documents which are required while converting the LLP into Company?
Documents which are required are as follows:
  • List showing the names, address and occupation of the persons named as members with details of shares held by them, if any
  • List showing the first directors of Company along with their particulars.
  • Copy of LLP agreement and Incorporation Certificate
  • Statement of assets and liabilities of LLP supplemented by a certification of chartered accountant in practice, dated not earlier than 15 days of filing form no. URC-1 along with the financials of previous year.
  • Copy of latest income tax return of LLP
  • Undertaking of proposed directors signifying the oath of compilation with requirements of Indian stamp Act, 1899
  • Certificate from a CA/CS/CWA certifying the compliance with all the provisions of Stamp Act, to the extent applicable
  • Written consent/ no objection certificate from all secured creditors.
  • Written consent of majority of partners.
  • Publication of advertisement seeking public objections at least 21 days before filing form.
    • Date of Advertisement should not be older than 30 days.
    • In URC-2, it is to be specifically mentioned that objection in writing should be communicated to the Registrar at Central Registration Centre (CRC), Indian Institute of Corporate Affairs (IICA), Plot No. 6, 7, 8, Sector 5, IMT Manesar, District Gurugram (Haryana)-122050.
    • Financial Statements should not be older than 15 days from the date of filing the form or the notes to financial statements are not attached.
    • All the partnership deeds should be attached in the Form.
    • Amount of Fixed Assets/Secured Debts/Number of shares or price per share should be correct.
    • NOC from the Secured Creditors should be attached.
The other points to be taken care for applications in case of PART 1 companies:
Do I have to apply for all these documents separately?
No, with Groom Tax, you can simply tell us what your business is and we will help you acquire all the documents that are required to meet the government compliances.
What are the words on which approval of regulatory authority would be required?
A name shall generally be reserved if it includes the words like ‘Bank’, ‘Insurance’, and ‘Banking’, ‘Venture Capital’ or ‘mutual fund’ or business activity includes the words like ‘Bank’, ‘Insurance’, and ‘Banking’, ‘Venture Capital’ or ‘mutual funds’ or such similar words with the approval of regulatory authority.

Provided that the approval of regulatory authority may be obtained at the time of application for incorporation or change of name, as the case may be.

Is it mandatory for all new companies incorporated all over India to get Registration for EPFO and ESIC through SPICe+?
Yes. Registration for EPFO and ESIC shall be mandatory for all new companies incorporated w.e.f 23rd February 2020 through SPICe+ webform and EPFO &ESIC registration numbers shall not be separately issued by the respective agencies. However, in case company is being incorporated in an area which falls under ‘non-implemented area’ for ESIC, ESIC registration shall not be applicable.

However, compliances are not required to be carried out in respect of EPFO and ESIC provisions until the company surpasses the threshold limit provided in EPFO and ESIC provisions.

What is the sequence of uploading linked forms to SPICe+?
Following is the sequence of uploading linked forms to SPICE +: a) eMOA[if applicable] b) eAOA [if applicable] c) URC-1[if applicable] d) AGILE-PRO-S[mandatory in all the cases] e) INC-9[if applicable].
What will happen in case the proposed name is identical or too nearly resembles with the name of an existing Limited Liability Partnership or an existing Company?
The name shall be treated as an undesirable name and sent for resubmission or rejected, as the case maybe.
How do I apply for a name if the proposed name includes the name of a TradeMark?
In case the proposed name includes a reference of a registered Trade mark name, the user must ensure that he has attached the consent of the owner or applicant for registration of the trade mark along with KYC details (bearing signatures) of Trademark owner. In case the TM owner is a body corporate, the NOC should be provided in the form of a Board Resolution along with KYC documents.
What needs to be done when there are more than seven subscribers to MoA and AoA?
SPICe+ form shall be filed along with physically signed MoA and AOA as attachments in case of more than seven subscribers.
What is the word/character limit for writing objects in eMoA?
For main Objects (Field 3(a)), character limit is 20,000 and for furtherance of objects (Field 3(b)), it is 1,00,000 characters.

Have Any Questions?

Call or Whatsapp us at 9958872535. You can email your query at info@groomtax.com.

Whatsapp