How to Register a New Company in Delhi

Delhi, the lively capital of India, is becoming a prominent centre for new businesses. Growth in start-up activities is driven by a robust economy, diverse industries and enabling infrastructure. According to the Economic Survey 2021-22, more than 5000 recognized startups were established in Delhi between April 2019 and December 2021. For an aspiring entrepreneur with a business idea in Delhi, navigating through Company Registration might sound like a tall order. This guide highlights the steps you need to take to successfully register your company in Delhi.

Understanding Your Business Structure

The first step for Company Registration in Delhi is to understand what type of business structure works best for your venture. Below are some popular types of company structures that can be registered in Delhi:

• One-Person Company (OPC) – It is ideal for an individual entrepreneur who wants limited liability protection. This requires only one director member and is preferable to sole proprietors.

• Limited Liability Partnership (LLP) – LLPs are suitable for partners’ of at least two members who share profits flexibly.

• Private Limited Company (PLC) – The most common option among startups is traditional LLC demand. It requires a minimum membership (of shareholders) and two directors. This structure lets you raise funds conveniently and provides more convenient ownership patterns.

• Public Limited Company (PLC) – PLC is aimed at bigger firms who wish to get finances from the public. You need at least seven stockholders and three directors to register as a Pvt Ltd company.

Choosing the right business structure will depend on certain factors including:

• Number of founders/owners

• Funding requirements

• Management structure

• Future growth plans

Requirements for Company Registration

Before starting the Company Registration process ensure that you satisfy the following basic requirements:

• Unique Company Name – Don’t choose a company name that is identical or deceptively similar to an existing one. Verify the availability of the name.

• Directors – For OPC, at least 1 director for PLD minimum of two directors and 3 for PLC are required. At least one director must be an Indian citizen while foreign nationals can also hold director positions.

• Members/Shareholders – OPC requires only 1 member, PLD must have at least two members, and in the case of PLC, this number cannot be less than seven.

• Registered Office Address – Your Company should have a valid registered office address within Delhi. It could either be commercial or residential with proof of ownership or a rental agreement along with NOC from the landlord.

• Memorandum of Association (MOA) - This document sets out the company's goals, powers, and liability extent of members.

• Articles of Association (AOA) - These regulations govern how the business is run internally including meeting procedures, voting rights, and capital maintenance.

Company Registration Process in Delhi

The process of Company Registration in Delhi has been digitized and made faster. The following procedure explains in detail how to go through the entire process:

• DSC (Digital Signature Certificate) and DIN (Director Identification Number) Obtainment: Each proposed director should possess DSCs from an approved certifying authority by the government. Additionally, each director is required to apply for DIN through the MCA portal online.

• Part-A of SPICe+ form — Reservation of Company Name: Step 1 on the MCA website involves filing Part-A of SPICe+ form (INC-32). This starts off the name reservation process.

• Part-B of SPICe+ form — Fill Company Details: After approval of the name, proceed to fill Part-B of SPICe+ form with your company structure, directors, shareholders, registered office address and proposed MOA and AOA.

• File eMOA and eAOA: Provide eMOA and eAOA stating about your company.

• AGILE-PRO Form Filling: For simultaneous registration with other post-incorporation compliances such as opening a bank account, registration under EPFO or ESIC or GSTN etc., AGILE-PRO may be filed online along with SPICe+.

• Upload Required Documents: All relevant documents such as identity proof(s), address proof(s), PAN card(s) of director(s)/ subscriber(s) and registered office address proof must be scanned and uploaded.

• Submit Form & Pay Fees: Submit duly completed SPICe plus form on the MCA site. All the Directors shall have signed it using their Digital Signature Certificates. Further, you will need a professional like a Chartered Accountant, Company Secretary or Advocate etc. to certify this form digitally.

• Pay Company Registration Fees & ROC Stamp Duty: Online payment options are available on the MCA website for payment of RC fees & ROC stamp duty. After making the payment, challans (payment receipts) are generated.

• Application Processing & Approval: The Central Registration Centre (CRC) will process your application post and forward it to the concerned Registrar of Companies (ROC) for verification. If everything is in order, the ROC will approve the company registration.

• Receive Company Incorporation Documents: Once your company has been successfully registered with the government, you’ll receive these documents:

o Company Incorporation Certificate: It’s a certificate that shows that your business is legally existent.

o Company Permanent Account Number (PAN): It’s required for filing income tax returns.

o Company Tax Collection and Deduction Account Number (TAN): It is mandatory for TDS deduction on certain payments made by the company.

Post-Registration Compliances

After registering your company, you need to ensure that all legal requirements are met continuously. Below is a summary of some key post-registration compliances:

• Open Bank Account: Open a bank account in favour of a current account of a business firm.

• Tax Registrations: Register for GST and Professional Tax based on your business activity and turnover.

• Maintain Company Records: Keep accurate financial records, meeting minutes and statutory filings in place.

• File Annual Returns: Submit annual returns within prescribed time limits to the MCA office.

• Labour Laws Compliance: As an employer follows labour laws related to minimum wage payment, provident fund contributions, employee insurance etc., if applicable.

These actions after registering can save from legal implications against his/her entity as well as avoid fines or penalties.

Conclusion

Company Registration in Delhi can be a rewarding step towards realising your entrepreneurial dream. This guide will make your registration process easier. Always remember that with professional assistance, this process will be simpler. PSR Compliance can help you register your company in no time. Get in touch with us today for expert help.

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