Do you want to start a business in New Delhi or the NCR region? Deciding upon what sort of business entity to register as is one of the most crucial business decisions you can make.
To make such decisions, you need to be aware of the various options available, and the benefits they provide. However, what is the procedure to register a company in Delhi? In this article, we will take a look at everything you need to know about registering a company in Delhi, and why entrepreneurs should opt for it.
Types of Business Structures
The following are the major types of business structures available to entrepreneurs for incorporation:
- Private limited company – requires registration with the MCA and the Registrar of Companies, Delhi
- Limited liability partnership – an updated form of a partnership firm that requires registration with the Registrar of LLPs
- One person company – similar to a private limited company but requires only one person or shareholder to begin
- Partnership firm – requires a basic firm registered with the Registrar of Firms, Delhi
- Sole proprietorship – the simplest business structure that does not have any concrete registration process, and requires only one person to start.
Eligibility Criteria to Register a Company in Delhi
- Minimum of two shareholders and directors. However, both the shareholders and directors can be the same people
- At least one of the directors must be an Indian resident, that is, he or she must have stayed in India for at least 182 days in the last year
- All businesses must have a registered office address from where they will conduct their business
- The directors of the company will need a digital signature certificate for authorising filings online, and a director identification number to file applications
- The business owners will have to draft the required legal documents, including a shareholder’s agreement, MoA, and AoA.
Documents Required to Register a Company in Delhi
- ID and address proof of all directors and shareholders – PAN card, Aadhaar card, voter ID, passport, driving license
- Director identification number of all directors
- Digital signature certificate of all directors
- Bank account statement
- Proof of address of the place of the business – rental agreement, property registration certificate
- NOC from the owner for rented places
- Passport size photograph of directors.
Procedure to Register a Company in Delhi
Let us now take a quick look at the process to register a company in Delhi.
First and foremost, entrepreneurs must ensure they meet the required eligibility criteria to incorporate as a particular business entity. The best option would be to contact an expert in company incorporation such as Vakilsearch to receive guidance regarding what business structure to incorporate as
Once they are certain they meet the required criteria, the entrepreneurs can start to obtain the needed legal documentation
Next, the founding members and directors will have to apply for a digital signature certificate and a director identification number through the MCA’s online portal
Additionally, the entrepreneurs must now file an application to reserve a name for their company. They can send up to six preferences through an application form. The MCA will perform an online name search and then allot a suitable name as per its availability
Afterwards, the business owners will have to contact a lawyer and draft the company’s legal documents, including a memorandum of association and the articles of association
Now, the entrepreneurs are ready to file for incorporation with the RoC by submitting the following forms: Form INC-7, INC-22, and DIR-12.
After filing an application, the entrepreneurs will have to pay the RoC the required stamp duty and processing fee. The regional RoC office in Delhi will then review and verify all the details and, if satisfied, will issue a certificate of incorporation to the business.
The Registrar of Companies will take around 5 to 6 days to verify all the documents and issue the required certificate. Once companies receive the incorporation certificate, they can go ahead and apply for a company PAN card and TAN for tax purposes. Moreover, other registrations required will depend on the nature of the proposed business, but most businesses will need to register for the GST.
Why Opt for Company Registration in New Delhi?
- Enjoy a separate legal existence and identity
- Avail perpetual succession which ensures that external events will not hinder the operations of the company
- Moreover, enjoy the benefits of limited liability helping the shareholders and directors protect their assets
- Provides businesses with an opportunity to buy or lease their property
- Allows businesses to transfer ownership from one person to another freely.
How VakilSearch Can Help?
As you can see, the process of registering a company in Delhi can be long and complicated. That is why seeking assistance and guidance is so critical in completing the process as quickly as possible. Further, our team of experts will be able to help you every step of the way and can ensure that you receive your certificate of incorporation at the earliest.
We also provide services that will allow you to stay compliant at all times and help you file your taxes on time. So, what are you waiting for? Therefore, partner with us, at VakilSearch and start the company of your dreams in Delhi smoothly and efficiently.