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How to get company registration certificate in India?

Author: Vicky Kumar
by Vicky Kumar
Posted: Aug 31, 2020
private limited

If you choose the right business entity of your business, you mitigate many risks associated with it. By registering a Private Limited Company, the most popular business entity in India, you have a way to ensure growth and manage your organization while also enjoying certain government benefits.

In this article, we will dive deeply into the question how to get company registration certificate in India. While we are answering that, you'll also know the answers to the following:

  1. What is a Private Limited Company?
  2. What are the benefits of a company?
  3. What is the process of company registration?

So, let's dive in.

What is a Private Limited Company?

A company is a legal business entity formed by the companionship of at least two directors and two shareholders (The director and the shareholder can be same person). The Ministry of Incorporation watches over the company registration process. Briefly speaking, the features of a company are as follows:

  1. At least two directors are required: As we have already told you, a company is formed from the companionship of two directors. Thus, you need at least two individuals of sound mind to act as the directors of the company.
  2. At least two members are required: Other than directors, a private limited company requires at least two members for incorporation. A director and the member can be same person.
  3. It's a separate legal entity: Once a company it incorporated, it becomes a separate legal entity from its directors and members. Thus, it holds its unique legal identity in the business world.
  4. Limited Liability: Directors and member of a company aren't entirely held liable for the losses of the company. They are only responsible to the extent of their subscribed shares put into the business entity.
  5. Perpetual Succession: The death or incapacitation of a director doesn't have any effect on the company.

What are the benefits of a private limited company?

A private limited company is a light that most entrepreneurs moths are attracted to, but why is that? What makes a private limited company so special among other business entities?

  1. The company has its own unique identity: Because the company has its own unique identity, you can buy property, file taxes, and generate revenue in the name of that company.
  2. A company is more trust worthy: By the virtue of being a legal business entity, acts as a trust magnet. People see that you've registered a company and they feel comfortable conducting business with you.
  3. It's easy for a company to get funding: Venture capitalists are more inclined towards putting their money in business entities with a good infrastructure; a private limited company possesses that. Furthermore, banks are less choosey when they have a chance to provide loans to a private limited company.
  4. Better organization: A private limited company provides an organizational infrastructure in which every element has its own unique role. It helps with the management of business in the long run – giving your enterprise stability.
  5. Perpetual succession helps with survival: When a director of a company dies, his/her shares are transferred to another. That way, the survival of a private limited company is ensured.
  6. Directors don't lose personal assets: A company's limited liability factor provides the directors protection from losing their personal assets in the event that the company loses money.
  7. A constant recipient of government schemes: Due to the mantra of self-reliance that our country has been chanting since the start-up India initiative, government brings several schemes specifically to aid start-up companies of India.

What is the process of private limited company registration?

To register a company online, you have to get a new registration. The steps for the same are as follows:

1. Decide a good name of your company: A name is what the entire reputation of your business hinges on (at least partially). Thus, take extra care when you are choosing a name for your company. Make sure that the name of the company:

a. Is unique: Without uniqueness of your company's name, registration of the company is nigh impossible.

b. Is non-offensive to certain communities: There can only be one All India Bhakchod (AIB) and even that was offensive. Thus, unless you're planning to start a company that makes satire its business, choose a name that doesn't hurt the feelings of any community.

c. Isn't deceptively similar to the existing company names: I know the allure of using a name that people are already familiar with. It's a trap. If you choose such a name, then be prepared to hear the lawyers knocking at your door, ready to destroy your business even before it has a chance to begin.

2. Furnish the required documents required to register a company: The documents related to the company registration in India are varied and therefore, you are required to certify them by the authorized experts. The documents are as follows:

a. Copy of the ID proofs of the directors and the shareholders of the company

b. Copy of the Address proofs of the directors and the shareholders of the company

c. In case any of the directors or shareholders is a foreign national, attach the copy of their passport.

d. A power of attorney authorizing the experts to file the application of company registration on your behalf, because you would need their help.

e. PAN card of all the directors and shareholders.

  1. Get the DSC and DIN of the directors of the proposed company: The DSC or the Digital Signature Certificate is the signing instrument that verifies the documents you submit online. The DIN or the Director Identification Number is issued by the Ministry of Corporation to the directors of the proposed company.
  2. Reserve the name of your company: Remember that the name you've chosen can be taken by anyone else if you don't take proactive steps to reserve it. Thus, file the RUN application. It will reserve the name you've chosen for your company.
  3. Draft the MOA and AOA of the proposed company: The MOA or Memorandum of Association is the document that details the:

a. Objective of the company.

b. Information about the directors

c. Address of the company's office.

d. The authorized capital of the company

e. Share subscribers of the company.

The AOA or Articles of Authorization specifies the rules and regulations that a company has to follow through the course of its operative life cycle.

6. Fill the online application of company registration: The online company registration is an easy process:

a. Just login on the MCA website.

b. Fill the application of private limited company registration,.

c. Upload the required documents.

d. Submit the application.

7. Wait till the Registrar of Company processes your application: The Registrar of Company receives your application via the company registration portal. It then proceeds to scrutinize the application and the attached documents. If the ROC accepts your application, your company will be registered.

Note: While the ROC scrutinizes your application, you should check company registration status from time to time. It will help you in case your application face any objection from the ROC's end.


Now you know the definition of the company, the benefits of registering a company and the process that you have to go through to do that. If you are still confused – which I highly doubt – you can consult with our experts. At best, we could guide you in the process of registration, and at worst, we could take the task from your hands – registering your company on your behalf.

About the Author

Vicky kumar is a company analyst in IP1 License.

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Author: Vicky Kumar

Vicky Kumar

Member since: Aug 19, 2020
Published articles: 33

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