Mumbai, being the industrial capital of India, is a welcoming land for startups and new ventures. Here, most entrepreneurs prefer a private limited company to start and evolve their business. The registration of the company, therefore, becomes mandatory. By having a few documents handy and by following the procedure to a T, the same can be accomplished.
Mumbai, the capital city of the state of Maharashtra, is undoubtedly one of the most happening cities in India. Next to Delhi, it is the highest populated city in India. It’s geographically situated in the western peninsular region of India by the bank of the Arabian Sea. That apart, it also happens to be India’s most important city as it is the commercial and financial capital of India. Both maritime trade and industrial operations flourish in Mumbai. That is exactly why Mumbai is in the top 10 cities in the world, with respect to global financial flow.
Mumbai houses several top establishments and multinational corporations in the industrial sector. On the other hand, it also nourishes several new startups thus making them grow into huge enterprises within months. Being the trade capital of the country, it is only natural for the newbies to want to start their companies in Mumbai. Doing so would elevate the business by expanding the market rapidly not only within the country but also to other nations, as Mumbai is the portal for international trade relations in India.
Once the type of business and the place of business is decided, the next course of action is to select the right type of corporate entity for the business. In a city like Mumbai, most often a private limited company is preferred by the business owners as it is the most prominent corporate structure among the startups and other small and medium scale businesses in India. A private limited company is governed by the Companies Act, 2013, and is regulated by the Ministry of Corporate Affairs (MCA).
Essential Conditions for Registration of a Company in Mumbai:
Directors and Shareholders
A private limited company should have a minimum of 2 directors and can have up to 15 directors. The post of a director can be held only by individual persons and not by companies. Also, there can be a minimum of 2 and a maximum of 200 shareholders in a company
Digital Signature Certificate (DSC)
It is mandatory that the filings done through the MCA should be accompanied by the DSC
Name of the Company
The name of the company is one of the most important aspects of the company. It has to be unique and should not bear any similarity with the names of the existing companies or trademarks. The name of the company should have the words “private limited” appended at the end. For instance, XYZ Solutions Private Limited. The name has to be submitted to the RoC (Registrar of Companies) for approval
Share Capital of the Company
The amount of money collectively invested by the members of the company is called the share capital of the company. In the case of a private limited company, there is no minimum shared capital required for the registration of the company. However, the slabs of the share capital play a role in deciding the registration fee of the company
Address of the Company
The official place where the dealings of the business take place will be registered as the office address. The respective address will be used for all official communications
Commencement of Business
The stipulated share capital must be brought by the shareholders within 180 days of incorporating the company. The business activities can be commenced only after duly filing a declaration to the registrar stating the share capital has been paid by the subscribers.
Documents Required for Registering the Company in Mumbai
Just like any other official work that would mandate the submission of certain documents, the registration of a private limited company would also require certain identity proofs of the shareholders and the directors to be presented.
- Identity proofs such as copy of PAN (Permanent Account Number) Card, Aadhar Card, driving license, voter ID, a valid passport copy etc
- Valid proof of address of the directors like that of the copy of the most recent telephone or electricity bills, post-paid mobile bills etc. It is pertinent to note that the proofs thus submitted shall not be older than 2 months
- Passport size photographs
- Proof of address of the registered office, which includes the rental agreement and a NOC (No Objection Certificate) from the owner in case the office is on rented premises and the sale deed if the property is owned by the company
- Copies of electricity bills and telephone bills of the office
- Digital Signature Certificate (DSC) and DIN (Director Identification Number) of the Directors.
Registrar of Companies (RoC) in Maharashtra
There are two offices of RoCs in Maharashtra, One in Mumbai and the other at Pune.
The office at Mumbai extends its jurisdiction over Mumbai City, Nagpur, Mumbai Suburban, Nanded, Nashik, Nandurbar, Palghar, Osmanabad, Raigad, Parbhani, Wardha, Thane, Washim, Yavatmal, Amravati, Akola, Beed, Aurangabad, Latur, Jalna, Jalgaon, Hingoli, Gondia, Gadchiroli, Dhule, Chandrapur, Buldhana and Bhandara.
The RoC at Pune covers the districts Sholapur, Satara, Sindhudurg, Ratnagiri, Sangli, Ahmednagar, Kolhapur and Pune.
Company Registration Procedure in Maharashtra
All the required documents mentioned above are to be presented before the RoC.
The name of the company should be submitted to the RoC for approval. Usually, more than 2 names are submitted, and the unique one out of those would be chosen as the name of the company.
All the proposed directors are supposed to obtain the DSC. All the forms in the MCA and the signatures for incorporation of the company are to be signed using a DSC.
The application for incorporation is to be submitted using the SPICe+ form on the MCA website. The forms INC 32 (Memorandum of Association) and INC 33 (Memorandum of Articles) have to be attached alongside the SPICe+ form.
After verifying all the documents, the RoC grants the certificate of incorporation along with the PAN (Permanent Account Number) and TAN (Tax Deduction Account Number).
Once the Certificate of Incorporation is obtained, a current account has to be initiated in an authorised bank in the name of the company, to carry out the financial transactions of the private limited company.
Though the process of incorporation of a private limited company involves lots of complex tasks, it is inevitable for a business to go ahead with it. Once it is done impeccably, the business attracts a number of benefits merely for the fact that it is a private limited company. For instance, a private limited company is able to attract a larger clientele and also has the ability to raise funds easily. Furthermore, it offers limited liability to the shareholders. Therefore, registering the company is the first step in running a successful business.