Company IncorporationPrivate Limited

How to Register a Company in Delhi

The registration of a company in Delhi involves choosing the right type of business entity and presenting the documents pertaining to it to the Registrar. The Registrar on Verifying the documents and the application filed by the applicant issues the certificate of incorporation.

What else could be more accomplishing than running a business successfully in the Capital city of India? Having a full-fledged business in Delhi which is the portal for international trade and commerce, a hub for many industries such as IT, banking, media etc could be more than rewarding to any entrepreneur. Delhi, although is the epicentre of big business ventures, it does not fail to beckon start-ups. When start-ups commence their businesses in a city like Delhi, there comes the scope to expand the business further and beyond. Also, more are chances to get in touch with potential clients.

After having decided the business to work with and the place to launch it, the next big question is what type of corporate entity should the business choose. In Delhi, there are a number of possible business entities which can be chosen as that of the Private limited company, Partnership company, LLP (Limited Liability Partnership), One Person Company, and Sole Proprietorship. The business venture has to consider various factors such as the number of shareholders in the company, tax goals, number of directors, etc to decide which will be the suitable corporate entity for the respective business.

The method of incorporation is fairly similar across the various entity types. Basically, the registration of all the entities would mandate the submission of a few mandatory documents. And thereafter the application of registration.

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Registration of Various Business Structures in India:

Entity Type Authority for Registration
Private Limited Company Registers with MCA (Ministry of Corporate Affairs) through the Registrar of Delhi
LLP Registers with Registrar of Delhi
One Person Company (OPC) Registers with MCA (Ministry of Corporate Affairs) through the Registrar of Delhi
Partnership Firm Registers with Registrar of Firms, Delhi
Sole Proprietorship Registered as SME (Small and Medium Enterprises), or under the Shop and Establishment Act, or under the GST Registration. Registration is however not mandatory.

Prerequisites for Registering a Company in Delhi:

  • There should be a minimum of 2 members or shareholders or partners (except in the case of OPC and sole proprietorship) and 2 directors
  • At least one of the directors of the company must be a resident of India
  • A valid address should be given as the registered office’s address
  • The Directors must obtain a Digital Signature Certificate (DSC) and a Director Identification Number (DIN). The DSC is used to sign the forms and applications digitally
  • MoA (Memorandum of Association) and AoA (articles of association) must be drafted

Documents Required to Incorporate a Company in Delhi:

  • Proof of identity of the directors, partners, or members of the company such as PAN card, Aadhar card, etc.
  • Proof of address of the members and of the registered office such as telephone bills, electricity bills, etc that are not older than two months from the date of submission
  • If the registered office is a rented property, a NOC from the owner and the rental agreement are to be submitted
  • If the registered office is on its own property, the property deed is to be presented
  • Latest passport-size photographs of the directors.

Registration Procedure of a Company in Delhi:

Step 1:

As pointed out earlier, the first step a business should opt for, before the registration is to select the type of the business entity such as a private limited company or LLP etc.

Step 2:

The next step is to procure the DIN for the director using the MCA website.

Step 3:

A name for the company is to be finalized. The name should not bear any resemblance to the names of the existing companies or trademarks. Moreover, an application has to be made to the MCA for the same. Moreover, the form allows up to 6 names wherein the names have to be listed in the order of preference and depending on the availability the name will be allotted.

Step 4:

The MoA (Memorandum of Association) and the AoA (Articles of Association) have to be drafted and submitted to the MCA along with the forms INC -7, INC -22 and DIR -12.

Step 5:

Once the above-stated steps are performed precisely the appropriate stamp duty is to be paid by the applicant to RoC (Registrar of Companies), Delhi. Likewise, after having verified the forms and documents and if there are no contradictions, the Certificate of Incorporation is issued along with the PAN (Permanent Account Number) and TAN (Tax Deduction Number).

Once the certificate of incorporation is received, the same can be presented before an authorized bank along with MoA and AoA. Moreover, to open an account in the name of the company to facilitate the financial transactions of the business.

Thus, it is evident that the registration of a company in Delhi can be a very time-consuming and tiresome process. Further, procuring the necessary documents depends upon the type of business entity selected. Therefore, the best way to execute the registration of a company in Delhi would be to source it to our experts here at VakilSearch. Here, we have an eye for detail and hence would complete the task impeccably at the earliest possible. Further, we would be more than delighted to help you kick start that dream business of yours in the most happening city of Delhi.

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