Company Registration

Company Registration Process Explained
author01 9 Apr 3 min read

Requirements for Private Company

Company Registration Process Explained
author02 7 Apr 5 min read

Requirements for OPC Company

Company Registration Process Explained
author03 6 Apr 2 min read

Requirements Public Company

Company Registration Process Explained
author04 6 Apr 2 min read

Company Registration Process

Company Registration Process Explained
author05 6 Apr 2 min read

Company Name

Company Registration Process Explained
author06 6 Apr 2 min read
Company Registration Process Explained

Company Registration

author01 9 Apr 3 min read

The 'Company' form of organisation is the most common incorporated business structure in India. Introduced during the British rule, the 'company' structure was retained even after India gained independence, within a reworked legislative framework.

In India, a 'Limited Company' is a business organisation registered under the Companies Act, 2013 for doing business in a particular jurisdiction. It is an association of persons (individuals or body corporate like Companies and LLPs) registered under the Act. It is one of the most accepted business structure in India.

The company registration in India is regulated by the Companies Act, 2013 and Rules made there under and is administered by the Ministry of Corporate Affairs (www.mca.gov.in) through offices of the Registrar of Companies (ROC) in each state.

What are the Types of Limited Companies?

The following are the Types of Limited Companies that can be registered in India

  • Private Limited Company
  • One Person Company
  • Public Limited Company
  • Section 8 Companies - Non Profit Company
  • Guarantee Company

What is a Private Company?

A 'Private Company' is a limited company formed with minimum of 2 members and 2 Directors. The maximum number of members in a private company is restricted to 200. The name of the company should end with the words 'Private Limited'. A 'Private Limited' company is the most common incorporated business organisation in India. It is generally called as a 'Private Company'.

A 'Private Company' is a limited company formed with minimum of 2 members and 2 Directors. The maximum number of members in a private company is restricted to 200. The name of the company should end with the words 'Private Limited'. A 'Private Limited' company is the most common incorporated business organisation in India. It is generally called as a 'Private Company'.

What is a One Person Company?

One Person Company (OPC) means a company which has only one person as a member. Only an individual who is an Indian citizen and resident in India can incorporate a One Person Company.

One Person Company should have only one person as its member and have a minimum paid-up share capital of One Lakh Rupees and maximum Fifty Lakhs and restricts the right to transfer its shares by its articles. OPC is a private company under Companies Act.

What is a Public Company?

As the name reveals, a public limited company has a wider coverage than a private limited company. It is generally called a 'Public Company'. Minimum number of shareholders and directors are 7 and 3 respectively. There is no restriction on maximum number of shareholders.

Generally, companies requiring huge capital investment from a large base of shareholders are opting for registration as a Public Limited Company.

What is a Section 8 Companies - Non Profit Company?

A company can be registered with object to promote Commerce, Science, Art, Religion, Charity or other socially useful objects and not to make any profit. So, these companies generally called as Section 8 Company as the registration of such company is subject to the provisions of Section 8 of the Companies Act, 2013. A Section 8 Company shall not pay any dividend to its members but apply its surplus of receipts over payments for promotion of its objects. These companies need not use the words Limited or Private Limited after the name.

What is a Guarantee Company?

Guarantee Company is a sub classification of Private or Public Companies. Usually it does not have share capital but instead has members who act as guarantors. The guarantors give an undertaking to contribute a nominal amount (typically very small) in the event of the winding up of the company. This type of company may also have capital and in that case, members are liable to pay the capital amount taken as well as the guarantee amount.

Usually these companies are formed for Clubs and associations wherein members are not looking for profit.

Company Registration Process Explained

Requirements for Private Company

author02 7 Apr 5 min read

Company Registration start with indentifying the pre-requisites for incorporation and processing required documents for filing with concerned Registrar of Companies. Before starting the process, keep in mind the pre-requisites for company registration as given below:

a. Shareholders (Members)

Minimum Two Persons required. Only Natural or Artificial Persons such as registered Companies or LLPs can become members of Company. A Private Limited Company can have maximum of 200 Members.

b. Directors

Minimum Two Directors required. One of the directors must be Resident in India, ie, stayed in India not less than 182 in the previous calendar year. Proposed Directors must have a Director Identification Number (DIN) issued by the Ministry of Corporate Affairs.

c. Company Name

The name of a Private Limited Company shall end with words "Private Limited". Company Name has three parts, ie., 'The Name', 'Activity' and words 'Private Limited'. Proposed Company name is required to be approved by the Registrar of Companies

d. Registered Office Address

A temporary address is required at the time of registration of Company. It could be an address including address of any of the Directors. After registration, the company has to file the permanent business address with documentary proof of address, ownership etc.

e. Company Objects

Objects of the Company refer to proposed business activities. Company can have any legal business activities that are legal. It is advisable to identify the main objects of the company in a particular line of business. The name of the company must be in line with the main objects of the company. If the name of the company is not describing a particular object, then the company can have multifaceted objects. The objects are described under a Clause in Memorandum of Association of the Company.

f. Digital Signature Certificate (DSC)

All documents are filed online with Registrar of Companies. Online Filing of documents to be authenticated by using a Digital Signature Certificate of the Director obtained from the Certifying Authority in India.

g. Professional Certification

Services of a Company Secretary, Chartered Account, Cost Accountant is required to make necessary Certifications and declarations for incorporation of a Company.

Company Registration Process Explained

Requirements for OPC Company

author03 6 Apr 2 min read

Company Registration start with indentifying the pre-requisites for incorporation and processing required documents for filing with concerned Registrar of Companies. Before starting the process, keep in mind the pre-requisites for One Person Company Registration as given below:

a. Shareholder (Member)

One individual person who is a citizen of India and resident in India only can register One Person Company in India. Companies and LLPs cannot become member of One Person Company. At any time, a One Person Company can have only one Member.

b. Nominee Shareholder (Member)

Member of an OPC has to nominate another person to become the member of the company in the event of the Member's death or his incapacity to contract. Only an individual who is an Indian citizen and resident in India can become nominee for the sole member of a One Person Company.

c. Directors

Minimum One Director required. The Director must be a Resident in India, ie, stayed in India not less than 182 in the previous calendar year. OPC can have more than one director. Proposed Director(s) must have a Director Identification Number (DIN) issued by the Ministry of Corporate Affairs.

d. Company Name

The name of a One Person Company shall end with words "Private Limited (OPC)". Company Name has three parts, ie., 'The Name', 'Activity' and words 'Private Limited (OPC)'. Proposed Company name is required to be approved by the Registrar of Companies.

e. Registered Office Address

A temporary address is required at the time of registration of Company. It could be an address including address of any of the Directors. After registration, the company has to file the permanent business address with documentary proof of address, ownership etc.

f. Company Objects

Objects of the Company refer to proposed business activities. Company can have any legal business activities that are legal. It is advisable to identify the main objects of the company in a particular line of business. The name of the company must be in line with the main objects of the company. If the name of the company is not describing a particular object, then the company can have multifaceted objects. The objects are described under a Clause in Memorandum of Association of the Company.

g. Digital Signature Certificate (DSC)

All documents are filed online with Registrar of Companies. Online Filing of documents to be authenticated by using a Digital Signature Certificate of the Director obtained from the Certifying Authority in India.

h. Professional Certification

Services of a Company Secretary, Chartered Account, Cost Accountant is required to make necessary Certifications and declarations for incorporation of a Company.

Company Registration Process Explained

Requirements Public Company

author04 6 Apr 2 min read

Company Registration start with indentifying the pre-requisites for incorporation and processing required documents for filing with concerned Registrar of Companies. Before starting the process, keep in mind the pre-requisites for public company registration as given below:

a. Shareholders (Members)

Minimum Seven Persons required. Only Natural or Artificial Persons such as registered Companies or LLPs can become members of Company. In Public Limited Company, there is no restriction on maximum number of Members.

b. Directors

Minimum Three Directors required. One of the directors must be Resident in India, ie, stayed in India not less than 182 in the previous calendar year. Proposed Directors must have a Director Identification Number (DIN) issued by the Ministry of Corporate Affairs.

c. Company Name

The name of a Public Limited Company shall end with words "Limited". Company Name has three parts, ie., 'The Name', 'Activity' and words 'Limited'. Proposed Company name is required to be approved by the Registrar of Companies.

d. Registered Office Address

A temporary address is required at the time of registration of Company. It could be an address including address of any of the Directors. After registration, the company has to file the permanent business address with documentary proof of address, ownership etc.

e. Company Objects

Objects of the Company refer to proposed business activities. Company can have any legal business activities that are legal. It is advisable to identify the main objects of the company in a particular line of business. The name of the company must be in line with the main objects of the company. If the name of the company is not describing a particular object, then the company can have multifaceted objects. The objects are described under a Clause in Memorandum of Association of the Company.

f. Digital Signature Certificate (DSC)

All documents are filed online with Registrar of Companies. Online Filing of documents to be authenticated by using a Digital Signature Certificate of the Director obtained from the Certifying Authority in India.

g. Professional Certification

Services of a Company Secretary, Chartered Account, Cost Accountant is required to make necessary Certifications and declarations for incorporation of a Company.

Company Registration Process Explained

Company Registration Process

author05 6 Apr 2 min read

Company Registration Process can be divided in to 3 stages and the processes involved are as follows:

Stage-I: Pre-Requisites

  • Identify Shareholder(s)
  • Identify Director(s)
  • Determine Authorised Capital of the company
  • Decide Objects of the Company
  • Decide proposed Names of the Company
  • Decide the State in which the company is to be registered.

Stage-II: Documentation and Registration

  • Obtain Digital Signature Certificate (DSC) for Directors.
  • Obtain Director Identification Number (DIN) for Directors.
  • Apply for Company Name.
  • Execute Company Registration Documents (after name approval)
  • Submission of Company Registration Documents to the Registrar of Companies (ROC)
  • Registration and Certificate of Incorporation from ROC.

Stage-III: Post Registration

  • Verification of Registered Office Address
  • Declaration for Commencement of Business
Company Registration Process Explained

Company Name

author06 6 Apr 2 min read

As a first step towards registering a Company, the promoter should get the proposed Company Name approved by the respective Registrar of Companies (ROC). Company name approval and allotment process in India is administered by the Ministry of Corporate Affairs (MCA) as per the Company Name Availability Guidelines issued under Companies Act 2013.

The basic concept of name availability is that name proposed for registration shall no identical or resemble to an existing company name. Also the proposed name shall be within the rules framed by government of India from time to time.

Once name is allocated, it is available for registration for a period of 60 days from the date of filing of application of name.

Point to be noted before selecting the name.

  • Check MCA website www.mca.gov.in* for name availability to see that any company is registered with similar name.
  • Also see any trademark registered or applicable filed for trademark with proposed name. Use Trademark Public Search link to check whether any trademark registered for the proposed name.
  • Ensure that Company Name and activity has a relation such as for software development for company name XYZ Software Private Limited.

FAQ on Name Availability Guidelines What is a Company Name or a Corporate Name?

'Company Name' is the name by which a registered Company is being identified. Generally, name of the Company depicts its Trade Name or Brand Name along with its main activities.

How the Company Name should be?

In the case of a private limited company, the name shall end with words "Private Limited" or with word "Limited" in case of a public limited company. Company Name has three parts. 'The Name', 'Activity' and words 'Private Limited' or 'Limited' as the case may be.

For Example 'CompaniesInn.com India Private Limited'. Here, 'CompaniesInn' stands as unique name, '.com' refers to online services, 'India' stands as a 'noun' and 'Private Limited' refers to the mandatory requirement of last words for a Private Limited Company. We have registered the name 'CompaniesInn' as a Trademark. Thereafter when converted to a Limited Liability Partnership, we have changed the name as 'CompaniesInn.com LLP'.

How to choose the Company Name?

The Company Name SHOULD

  • Be unique
  • Contain a noun and an activity word that reflects its objectives
  • Be in line with Company Name Guidelines issued by Ministry of Corporate Affairs.
  • The Company Name SHOULD NOT

  • Be same, similar, identical or resembling to the name of an existing Company or LLP registered. Phonetically similar names also to be avoided.
  • Be similar of a registered trade mark or a trade mark for which an application has already been filed
  • Be Offensive
  • Be Undesirable in the opinion of the Central Government (Undesirability of names explained separately)

How to check Company Name Availability?

ossibility of getting a Company Name can be verified by a search at 'Check Company or LLP Name' at MCA website. You can check the name by providing proposed 'Company or LLP Name" and activities.

MCA search Result shows 'No Results Found'. Shall I get the searched Name?

The MCA Name Search result will only provide the probability of getting the proposed name. The search result does not guarantee the availability of Company or LLP name as the name approval is finally granted by office of Registrar of Companies (ROC). The ROC office will do more refined search of proposed name and will also check with Trademark Registry as well before grant of a Company or LLP Name.

How to make a Company Name Application?

Application for availability of Company Name has to be filed with the Registrar of Companies in Form INC-1. It is preferable to submit the application with multiple names in the order of preference. Company name application must be in line with the Company Name Guidelines.

How many Names can be applied with one application?

Multiple names can be submitted for approval in one application in the order of preference. If the first applied name is not available, ROC will approve the next name. If you are particular about one name, it is preferable to apply with one name only and in case that name is not available apply the next name at the time of resubmission of application. Name application can be resubmitted only once.

How long Company Name is valid for Registration?

Once approved, the name will be reserved for 60 days. Company registration documents have to be executed and filed within this time line.

What all facts will be disregarded for determination of Company Names?

While determining whether a proposed name is identical with another, the differences on account of the following shall be disregarded -

  • The words like Private, Pvt, Pvt., (P), Limited, Ltd, Ltd., LLP, Limited Liability Partnership.
  • Words appearing at the end of the names – company, and company, co., co, corporation, corp, corpn, corp.
  • Plural version of any of the words appearing in the name.
  • Type and case of letters, spacing between letters and punctuation marks
  • Joining words together or separating the words does not make a name distinguishable from a name that uses the similar, separated or joined words
  • Use of a different tense or number of the same word does not distinguish one name from another.
  • Using different phonetic spellings or spelling variations shall not be considered as distinguishing one name from another. Illustration (For example, P.Q. Industries limited is existing then P and Q Industries or Pee Que Industries or P n Q Industries or P & Q Industries shall not be allowed and similarly if a name contains numeric character like 3, resemblance shall be checked with 'Three' also;)
  • Misspelled words, whether intentionally misspelled or not, do not conflict with the similar, properly spelled words.
  • The addition of an internet related designation, such as .com, .net, .edu, .gov, .org, .in does not make a name distinguishable from another, even where (.) is written as 'dot'.
  • The addition of words like New, Modern, Nav, Shri, Sri, Shree, Sree, Om, Jai, Sai, The, etc. Does not make a name distinguishable from an existing name and similarly, if it is different from the name of the existing company only to the extent of adding the name of the place, the same shall not be allowed; such names may be allowed only if no objection from the existing company by way of Board resolution is submitted.
  • Different combination of the same words does not make a name distinguishable from an existing name, e.g., if there is a company in existence by the name of "Builders and Contractors Limited", the name "Contractors and Builders Limited" shall not be allowed unless it is change of name of existing company.
  • If the proposed name is the Hindi or English translation or transliteration of the name of an existing company or limited liability partnership in English or Hindi, as the case may be.

What is meant by an Undesirable Name?

  • A Company name shall be considered undesirable, if -
    • It attracts the provisions of section 3 of the Emblems and Names (Prevention and Improper Use) Act, 1950 (12 of 1950)
    • It includes the name of a registered trade mark or a trade mark which is subject of an application for registration, unless the consent of the owner or applicant for registration, of the trade mark, as the case may be, has been obtained and produced by the promoters.
    • It includes any word or words which are offensive to any section of the people.
  • The name shall also be considered undesirable, if-
    • The proposed name is identical with or too nearly resembles the name of a limited liability partnership
    • It is not in consonance with the principal objects of the company as set out in the memorandum of association. Provided that every name need not be necessarily indicative of the objects of the company, but when there is some indication of objects in the name, then it shall be in conformity with the objects mentioned in the memorandum
    • The company's main business is financing, leasing, chit fund, investments, securities or combination thereof, such name shall not be allowed unless the name is indicative of such related financial activities, viz., Chit Fund or Investment or Loan, etc.
    • It resembles closely the popular or abbreviated description of an existing company or limited liability partnership.
    • The proposed name is identical with or too nearly resembles the name of a company or limited liability partnership incorporated outside India and reserved by such company or limited liability partnership with the Registrar
    • Provided that if a foreign company is incorporating its subsidiary company in India, then the original name of the holding company as it is may be allowed with the addition of word India or name of any Indian state or city, if otherwise available.
    • Any part of the proposed name includes the words indicative of a separate type of business constitution or legal person or any connotation thereof e.g. co-operative, sehkari, trust, LLP, partnership, society, proprietor, HUF, firm, Inc., PLC, GmbH, SA, PTE, Sdn, AG etc.
    • Explanation.- For the purposes of this sub-clause, it is hereby clarified that the name including phrase 'Electoral Trust' may be allowed for Registration of companies to
    • Be formed under section 8 of the Act, in accordance with the Electoral Trusts Scheme, 2013 notified by the Central Board of Direct Taxes (CBDT):
    • Provided that name application is accompanied with an affidavit to the effect that the name to be obtained shall be only for the purpose of registration of companies under Electoral Trust Scheme as notified by the Central Board of Direct Taxes.
    • The proposed name contains the words 'British India.
    • The proposed name implies association or connection with embassy or consulate or a foreign government.
    • The proposed name includes or implies association or connection with or patronage of a national hero or any person held in high esteem or important personages who occupied or are occupying important positions in Government
    • The proposed name is vague or an abbreviated name such as 'ABC limited' or '23K limited' or 'DJMO' Ltd: abbreviated name based on the name of the promoters will not be allowed. For example:- BMCD Limited representing first alphabet of the name of the promoter like Bharat, Mahesh, Chandan and David:
    • Provided that existing company may use its abbreviated name as part of the name for formation of a new company as subsidiary or joint venture or associate company but such joint venture or associated company shall not have an abbreviated name only e.g. Delhi Paper Mills Limited can get a joint venture or associated company as DPM Papers Limited and not as DPM Limited:
    • Provided further that the companies well known in their respective field by abbreviated names are allowed to change their names to abbreviation of their existing name after following the requirements of the Act.
    • The proposed name is identical to the name of a company dissolved as a result of liquidation proceeding and a period of two years have not elapsed from the date of such dissolution
    • Provided that if the proposed name is identical with the name of a company which is struck off in pursuance of action under section 248 of the Act, then the same shall not be allowed before the expiry of twenty years from the publication in the Official Gazette being so struck off.
    • It is identical with or too nearly resembles the name of a limited liability partnership in liquidation or the name of a limited liability partnership which is struck off up to a period of five years.
    • The proposed name include words such as 'Insurance', 'Bank', 'Stock Exchange', 'Venture Capital', 'Asset Management', 'Nidhi', 'Mutual fund' etc., unless a declaration is submitted by the applicant that the requirements mandated by the respective regulator, such as IRDA, RBI, SEBI, MCA etc. have been complied with by the applicant.
    • The proposed name includes the word "State", the same shall be allowed only in case the company is a government company.
    • The proposed name is containing only the name of a continent, country, state, city such as Asia limited, Germany Limited, Haryana Limited, Mysore Limited.
    • The name is only a general one, like Cotton Textile Mills Ltd. or Silk Manufacturing Ltd., and not Lakshmi Silk Manufacturing Co. Ltd.
    • It is intended or likely to produce a misleading impression regarding the scope or scale of its activities which would be beyond the resources at its disposal
    • the proposed name includes name of any foreign country or any city in a foreign country, the same shall be allowed if the applicant produces any proof of significance of business relations with such foreign country like Memorandum of Understanding with a company of such country: Provided that the name combining the name of a foreign country with the use of India like India Japan or Japan India shall be allowed if, there is a government to government participation or patronage and no company shall be incorporated using the name of an enemy country. Explanation.- For the purposes of this clause, enemy country means so declared by the Central Government from time to time.

What are the conditions for the use name of relatives for a Company Name?

In case the key word used in the name proposed is the name of a person other than the name(s) of the promoters or their close blood relatives, No objection from such other person(s) shall be attached with the application for name. In case the name includes the name of relatives, the proof of relation shall be attached and it shall be mandatory to furnish the significance and proof thereof for use of coined words made out of the name of the promoters or their relatives.

What are the conditions for use existing Sole proprietor or Partnership name as Company Name?

The applicant shall provide a declaration to state whether they are using or have been using in the last five years , the name applied for incorporation of company or LLP in any other business constitution like Sole proprietor or Partnership or any other incorporated or unincorporated entity and if, yes details thereof and No Objection Certificate from other partners and associates for use of such name by the proposed Company or LLP, as the case may be, and also a declaration as to whether such other business shall be taken over by the proposed company or LLP or not .

What are words that cannot be used Company Name?

The following words and combinations thereof shall not be used in the name of a company in English or any of the languages without previous approval of the Central Government -

  • Board
  • Commission
  • Authority
  • Undertaking
  • National
  • Union
  • Central
  • Federal
  • Republic
  • President
  • Rashtrapati
  • Small Scale Industries
  • Khadi and Village Industries Corporation
  • Financial, Corporation and the like
  • Municipal
  • Panchayat
  • Development Authority
  • Prime Minister or Chief Minister
  • Minister
  • Nation
  • Forest corporation
  • Development Scheme
  • Statute or Statutory
  • Court or Judiciary
  • Governor
  • he use of word Scheme with the name of Government (s) , State , India, Bharat or any government authority or in any manner resembling with the schemes launched by Central, state or local Governments and authorities; and
  • Bureau