Startup India : Formal Procedure For How To Register A Company In India

Many of us have a desire to leave our boring 9-5 job & start something our own, to do what we enjoy. Though, it is not as easy as quitting the job & just start your own business the next day. Startup India is a complicated process. And the type of company you want to start also set its difficulty standards. A lot of people ask questions about Startup India campaign by the government of India. In this article, I will attempt to sum up legal procedure for registering a company in India.

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There are five kinds of businesses you can register in India India:

1. Restricted Obligation Business Partnership:

It is also known as LLP (limited liability partnership). It is a significant advancement on Partnership businesses, which present Short Liability to the Associates in the firm. Also, it has minor compliances as compared to a Pvt. Ltd. company. It’s working is entirely subject to Partnership instrument that is outlined between the partners &  is registered with RoC.

2. Individual Proprietorship Firm:

This is the straightforward way to Startup India campaign. When a one person controls the business, it can be up and be running in this form within 20 days.

3. Partnership Firm:

A partnership is a corporate arrangement in which two or more people run a business by the terms and purposes set out in the Partnership Agreement. It may or may not be registered under Indian Partnership company Act, 2003.

The Partnership agreement has to be on Stamp Paper duly signed by a notary. A formal application is made to ROC, and then it provides the registration number.

This registration can be done either at the beginning or during the follow-up of the operation.

4. Individual Person firm:

One Person business is the advancement over  Individual Proprietorship Firm which gives total control to one person & presents an advantage of Limited Liability to the owner.

One need to register it with RoC under MCA (Ministry of Corporate Affairs).

5. Pvt. Ltd. firm:

Private Limited companies are the first choice for any startup India seeker, that is looking at ascending up by outside funding as it is candid in Pvt. Ltd .Company to originate fresh equity shares rather than funding obtained.


When you are going to register a business, you will get two options:

  • Private Company
  • Public Company.

The difference between private and public company is:

  • A minimum number of Board members: 2 for Private and 7 for the Public company.
  • Number of Directors: A Private firm can have two directors, but the public company must have at-least three.
  • The total number of members: a Private company can have maximum 50 whereas a Public company can have as many as they want.
  • Shares selling: A Pvt. company can not sell its share to anyone or ask people to invest in its shares, but the public firm is free to do so by issuing a prospectus.
  • Business Initiation certificate: A Pvt. company can begin its operations a soon as possible, but a Public company needs to wait for Business Initiation certificate.

Registration Process:


1. Director Identification Number (DIN):

Applying for DIN is the first step for starting a business. Without Director Identification Number, you will not be allowed to run a firm. And also every director of the company needs to obtain DIN.

The DIN-1 form is the e-form one need to fill to get DIN. It is available on the website of MCA (Ministry of corporate affairs).

  1. You need to register on a site and get a login id.
  2. Just fill the form online and submit it online with fees.
  3. After DIN generation, now director should inform its firm about DIN by using DIN-2 Form available on the website.
  4. Now the firm will further inform ROC (Registrar of corporates) using Form DIN-3.
  5. Any change in the personal details filled by director can be updated by using Form DIN-4,

2. Digital Signature Certificate (DSC):

These are the digital form of signatures to secure or authenticate the documents filed online. These signatures are available on government agencies like TCS, NIC, MTNL, IDBRT, etc. You might have a digital signature already. Use it only after verifying if it is still valid. Do not use digital signature issued by any other agency which is not listed by CCA (Controller of certification bodies).

3. New User Enrollment and Memorandum and Article of Association:

Now the new company needs register on MCA website. It is necessary for different fee payments, transactions, and register you as a business entity. Creating this account is free.

There are two other formalities which are MOA (Memorandum of association) and AOA (Article of Association). MOA contains data regarding incorporation of the company such as its powers, scope, and limitations. MOA comprises the rules, regulations of the enterprise. These documents also required to fill at the time of registration.

4. Application of Registration:

This is the final step which includes submission of all documents and applies for company establishment. It includes filling company name, address, office address, Notice regarding the appointment of company directors, manager and staff. It also contains info about shares.

Following documents are mandatory to enroll a company:

  1. Form 1A: It includes the name of the business you want to register. Then the MCA suggest similar or four different names from which you must choose one.
  2. Form-1: It is the declaration form of the name of the company.
  3. Form 32: It includes notices regarding appointments of directors, managers, business head and other staff. Or change the member’s names (if any).
  4. Form 18: It contains the notice about the location of the new office or change in the location (if any).

Once filling all these documents, you will receive an email regarding approval by MCA. Final approval is easy to get unless you made some errors in filling information.


Other Formalities for Incorporation of a Firm:

Although above are the necessary steps for registering a company in India, But there are other formalities too. Which includes:

  1. Application for PAN (Permanent Account Number) and TAN (Tax Deduction & Collection Account Number).
  2. Documents regarding shops & establishment act (if applicable).
  3. For international sales, Registration documents of import/export code from DGFT Director General of foreign trade (If applicable).
  4. STPI registration documents (If applicable).
  5. The approval of RBI and FIPB for foreign trades.
  6. A digital signature is a must.

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