For Private Company registration in India, following things are mandatory:

1. Minimum 2 directors shall be appointed, out of which one must be a resident of India.
2. Minimum 2 shareholders are required for this registration. Here, an individual may become shareholder and director at the same time.
3. A place of business in India must be provided as a registered office address.

During the registration, a minimum of INR 1 Lakh should be provided as an authorized capital. A minimum paid-up capital condition is removed as a part of Government’s initiative to simplify the business registration in India. However, each shareholder must subscribe at least 1 share for the registration to introduce the sufficient amount to setup and running the business.

The name of a company should contain unique name and object of the company. The applicants can provide the maximum of 2 names in their preference order. The registrar may ask to re-submit the application with a different name if names do not fall under the criteria of uniqueness, relevancy or do not fulfill other requirements.

Any natural person above the age of 18 years can become the director in the company after procuring Director Identification Number (DIN). And since there are no specific criteria provided in terms of citizenship or residency, a foreign national can also become a director. The application of DIN Allotment can be done at the time of formation of a company subject to a limit of maximum 3 DINs.

Director Identification Number is a number assigned by the Ministry of Corporate Affairs to Individuals in whose name the application is made, allowing an individual to become a Director in any Company or Designated Partner in an LLP.

Digital Signature Certificate is provided in the form of a token issued by Certified Authorities. Any form filed online shall be submitted after affixing the DSC of an Applicant. Also, the directors will require DSC for DIN application and the subscribers to MOA shall possess DSC for submitting e-forms for incorporation.

Authorised capital shows the maximum amount of capital that a company can raise by way of issue of shares at present or in the future. Whereas, the Paid-up Capital refers to the actual amount raised by a company i.e.; amount paid by the shareholders on the issuance of shares. One can register a company in India by any amount of paid-up capital which can be less or equal to the authorized capital but not exceeding the authorized capital.

Yes, a Private Company can carry multiple businesses if it is mentioned in the company’s MoA and approved by a registrar. The company can mention more than one business operating within the same field or of the same nature. Activities which are unrelated, such as fashion designing and event management or construction, those cannot be registered under the same company.

Yes, it is possible to register a Private Company at a commercial or residential place by providing the sufficient & appropriate proof. A registered office is a place where the business receives communication, if any, from the MCA or any concerned authorities. This address is displayed at the portal of Ministry as well.

Yes, NRIs or foreigners can hold shares subject to FDI guidelines. However, a foreign participation above 50% will place the company under the category of Foreign Company."

No, none of the promoters are required to be present when opted to register a company online. All the forms are filed on the web portal and are digitally signed. Also, the required documents can be sent through e-mail or uploaded on our portal for filing.

Once, the company is registered, it should follow below-mentioned requirements on priority:

1. The opening of the company’s current account within 30 days after receiving the PAN card.
2. Appointment of a Statutory Auditor
3. Depositing paid-up capital as mentioned while registration
4. Issue and allotment of shares

During every financial year, the company must hold one Annual General Meeting (AGM) and at least 4 board meetings (one in each quarter). Further, the accounts and financial statements must be audited by an independent auditor. Subsequently, it shall file form AOC – 4 and MGT – 7 as part of Annual Compliance within given time.

1. Business Structure Tax Rate Effective Tax rate
2. Domestic Company: (Base Rate) (Base rate + surcharge + CESS)
3. Not availing any exemptions or incentives 22% 25.17%
4. Manufacturing companies incorporated after 01st October,2019 and not availing any incentives or exemptions 15% 17.16%
5. Availing any exemptions or incentives- turnover up to 400/- crore during FY 2017-18 25% 25%+ surcharge +4% CESS (*Surcharge varies as per the income tax slab)
6. In any other case 30% 30%+ surcharge +4% CESS (*Surcharge varies as per the income tax slab)