Private Limited Company Registration in Mumbai

Setting up a business is a smart idea, especially if you have contacts in Mumbai, and in this article you will understand the documentation and procedures involved.

Company Registration in Mumbai: Overview

The company incorporation procedure is the most integral part of running any business in India. It is this process that helps legitimize the business. Choosing what business structure to incorporate is, therefore, a key business decision. The Government of India has now made company incorporation an online process to improve ‘Ease of Doing Business. However, there are still various factors that entrepreneurs need to consider and know about before they start the process of registration. In this article, we will take a look at the process to company registration in Mumbai, and why businesses should opt for it.

Mumbai is India’s second-highest populated city, following closely behind Delhi, and is home to thousands of businesses of various kinds. Additionally, it also serves as India’s financial, entertainment, and commercial capital and is one of the world’s most important financial hubs. Everything from the headquarters of the RBI to the SEBI is located in Mumbai.

The company incorporation procedure occurs as per the guidelines of the Companies Act of 2013 and offers entrepreneurs limited liability. The Registrar of Companies in Maharashtra has offices in both Mumbai and Pune. Here’s a quick look at the areas under their jurisdiction. RoC Pune is responsible for the company incorporation procedure in the following districts. 

• Ahmednagar
• Kolhapur
• Pune
• Ratnagiri
• Sangli
• Satara
• Sindhudurg
• Sholapur

The RoC at Mumbai meanwhile regulates and monitors the incorporation of companies in all other districts. The process is regulated and processed by the RoC, the Ministry of Corporate Affairs, and the Central Registration Centre.

Eligibility Criteria for Company Registration in Mumbai

Here’s a quick look at the prerequisites businesses have to meet for company registration in Mumbai. 

1. All private limited companies must have at least two shareholders, and the first one must execute the Articles and Memorandum of Association to register the company. Additionally, a private limited company must have at least two directors. Also, only individuals are allowed to become designated directors in a company, and at least one director must be an Indian resident
2. All filings made online via the MCA’s portal must be authorised and appended using a Digital Signature Certificate
3. Before registering the company, the directors must come up with a valid company name. The name chosen must abide by the company naming guidelines as per the Companies Act, 2013
4. There is no minimum paid-up share capital requirement for starting a private limited company in Mumbai. The minimum authorised capital required is INR 1 lakh. However, your processing or registering fee will depend on the amount of capital you raise
5. You will need to establish a registered office address for your company if you wish to complete the company incorporation procedure in India. Entrepreneurs must use this address for all their official communications.

How to Choose a Name for a Company in Mumbai

Naming your company according to the guidelines specified by the Companies Act is crucial when establishing a business. Here’s a quick overview of the naming conventions that businesses must adhere to when selecting a name for their private limited company.

1. Choose a name that is memorable, easy to pronounce, and related to your business
2. Ensure that the name reflects your overall mission and objective and does not resemble the name of any other famous brand
3. Try to see if a domain name is available as this makes it easier for you to set up an online website in the company’s name
4. If you wish to use words like National, Federal, Scheme, Prime Minister, and Small-scale, you will need to get prior approval from the government
5. Similarly, including financial terms such as Venture Capital, Bank, and Mutual Fund requires approval from the RBI, SEBI, and IRDA.

What Is the Process to Company Registration in Mumbai?

1. First and foremost, entrepreneurs should meet with a legal expert and decide what business structure to incorporate as
2. Moreover, depending on the business structure chosen, the business owners should choose an appropriate company name, and check for its availability
3. Once the company name is approved, the team should start gathering all the required documentation
4. Next, the entrepreneurs should take the help of a lawyer and file for incorporation with the RoC through the SPICe incorporation process
5. Companies whose authorized share capital is less than INR 15 lakhs do not have to pay any registration fees. However, they will have to pay the required stamp duty for their filings and also the processing fee for the same.

Documents Required Company Registration in Mumbai

Businesses will have to gather the following documents to complete the incorporation process.

• Form INC-32 – Simplified Proforma for Incorporating Company Electronically Application Form
• Further, Form INC-33 and INC-34: e-Memorandum of Association and e-Articles of Association
• Form INC-9: declaration by directors
• Form DIR-2: consent of all directors
• Digital Signature Certificate and DIN of directors 
• Passport-size photographs of the directors
• Address proof of the place of business
• NOC from the owner of the premises, if rented
• Identity and address proof of all directors, which include any of the following: 

1. PAN card
2. Aadhaar card 
3. Driving license
4. Voter identity card 
5. Passport 
6. Utility bill not older than three months
7. Bank account statement or passbook 

Advantages of Company Registration in Mumbai

1. Better credibility, trustworthiness, and acceptance
2. Access to better funding and the potential to reach more customers
3. Increased ease of attracting better employees
4. Better protection thanks to limited liability
5. Protection of the personal assets of owners

How Vakilsearch Can Help Company Registration in Mumbai

1. Expert guidance on what business structure to incorporate as.
2. Help with all the legal documentation required to complete the company incorporation procedure
3. Moreover, our legal experts at Vakilsearch will file the incorporation application on your behalf, and help you start operations as quickly as possible.

Conclusion

In conclusion, the registration of a company in India, particularly in Mumbai, is a critical step towards establishing a legitimate business presence. It not only ensures compliance with the Companies Act of 2013 but also grants entrepreneurs the benefits of limited liability and enhanced credibility in the market. Mumbai, as India’s financial hub, offers strategic advantages for businesses looking to access funding, attract top talent, and expand their market reach. With streamlined online processes and expert legal support, navigating the complexities of company registration becomes more accessible, paving the way for entrepreneurs to focus on growing their ventures with confidence.