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.
The company incorporation procedure is the most integral part of running any business in India. It is this process that helps legitimise 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 register a company in Mumbai, and why businesses should opt for it.
Overview of Company Registration in Mumbai
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.
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 Incorporation in Mumbai
Here’s a quick look at the prerequisites businesses have to meet to register as a company in Mumbai.
- 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
- All filings made online via the MCA’s portal must be authorised and appended using a Digital Signature Certificate
- 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
- 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
- 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 as per the guidelines specified by the Companies Act is an essential part of establishing a business. Here’s a quick look at the naming conventions that businesses have to follow when choosing a name for their business.
- Choose a name that is memorable, easy to pronounce, and related to your business
- Ensure that the name reflects your overall mission and objective and does not resemble the name of any other famous brand
- 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
- 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
- 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 Register a Company in Mumbai?
- First and foremost, entrepreneurs should meet with a legal expert and decide what business structure to incorporate as
- Moreover, depending on the business structure chosen, the business owners should choose an appropriate company name, and check for its availability
- Once the company name is approved, the team should start gathering all the required documentation
- Next, the entrepreneurs should take the help of a lawyer and file for incorporation with the RoC through the SPICe incorporation process
- Companies whose authorised 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.
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:
- PAN card
- Aadhaar card
- Driving license
- Voter identity card
- Utility bill not older than three months
- Bank account statement or passbook
Advantages of Company Registration Mumbai
- Better credibility, trustworthiness, and acceptance
- Access to better funding and the potential to reach more customers
- Increased ease of attracting better employees
- Better protection thanks to limited liability
- Protection of the personal assets of owners
How Vakilsearch Can Help
- Expert guidance on what business structure to incorporate as.
- Help with all the legal documentation required to complete the company incorporation procedure
- Moreover, our legal experts will file the incorporation application on your behalf, and help you start operations as quickly as possible.