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Company Registration Online – How to Register a Private Limited company in India

Company Registration Online : Registering your company online under the right business structure is an important decision. Find out the prose and cons of different structures.

Updated on :  

08 min read

Confused about which company structure to choose? Try out our tool to decide!

Picking the right company structure for your business is as important as any other business-related activity. The right business structure will allow your enterprise to operate efficiently and meet your required business targets. In India, every business must register themselves as part of the mandatory legal compliance. Before we learn how to register a company, let’s try and understand the types of business structures in India.

Comparative List of Different Types of Business Structures in India

Here is a comparative list of the popular business structures in India.

Company typeIdeal forTax advantagesLegal compliances
Limited Liability PartnershipService-oriented businesses or businesses that have low investment needsBenefit on depreciationBusiness tax returns to be filed ROC returns to be filed
One Person CompanySole owners looking to limit their liabilityTax holiday for first 3 years under Startup India Higher benefits on depreciation No tax on dividend distributionBusiness returns to be filed Limited ROC compliance
Private Limited CompanyBusinesses that have a high turnoverTax holiday for first 3 years under Startup India Higher benefits on depreciationBusiness tax returns to be filed ROC returns to be filed An audit is mandatory
Public Limited CompanyBusinesses with  a high turnoverTax exemptions under Business tax returns to be filed. Mandatory Audits

What are the types of business structures in India?

Let’s try and understand the types of business structures available in India. Here is a list of some of them:

One Person Company (OPC)

Recently introduced in the year 2013, an OPC is the best way to start a company if there exists only one promoter or owner. It enables a sole-proprietor to carry on his work and still be part of the corporate framework.

Limited Liability Partnership (LLP)

A separate legal entity, in an LLP the liabilities of partners are only limited only to their agreed contribution. An LLP is established under the Limited Liability Act, 2008 with the Registrar of Companies (ROC).

Private Limited Company (PLC)

A PLC in the eyes of the law is regarded as a separate legal entity from its founders  It has shareholders (stakeholders) and directors (company officers). Each individual is regarded as an employee of the company.

Public Limited Company

A Public Limited Company is a voluntary association of members which is incorporated under company law. It has a separate legal existence and the liability of its members are limited to shares they hold.

You can choose what business structure suits your business needs best and accordingly register your business.
Other forms of business structures include Sole proprietorship, Hindu Undivided Family,  and Partnership firms. Please bear in mind, these structures do not come under the ambit of company law.  

Why is it important to choose the right business structure?

It is important to choose your business structure carefully as your Income Tax Returns will depend on it. While registering your enterprise, remember that each business structure has different levels of compliances that need to be met with. For example, a sole proprietor has to file only an income tax return. However, a company has to file an income tax return as well as annual returns with the Registrar of Companies.

A company’s books of accounts are to be mandatorily audited every year. Abiding by these legal compliances requires spending money on auditors, accountants and tax filing experts. Therefore, it is important to select the right business structure when thinking of company registration. An entrepreneur must have a clear idea of the kind of legal compliances he/she is willing to deal with.

While some business structures are relatively investor-friendly than others, investors will always prefer a recognised and legal business structure. For example, an investor may hesitate to give money to a sole proprietor. On the other hand, if a good business idea is backed by a recognised legal structure (like LLP, Company, etc) the investors will be more comfortable making an investment.

How to choose a business structure while applying for company registration in India?

Let’s take a look at some important questions every entrepreneur must ask himself before he/she finally decide upon a business structure.

  • How many owners/partners will your business have?

If you are a single person who owns the entire initial investment required for the business, a One Person Company would be ideal for you. On the other hand, if your business has two or more owners and is actively seeking investment from other parties a Limited Liability Partnership (LLP) or Private Limited Company would suit you best.

  • Should your initial investment determine your choice of business structure?

If you want to spend less initially, it would be wise to go in for a Sole Proprietor, or HUF or Partnership firm. But, if you are sure that you will be able to recover the setup and compliance costs, you can opt for a One Person Company, LLP or a Private Limited Company

  • Willingness to bear the entire liability of the business

Business structures like sole proprietor, HUF, and partnership firm have unlimited liability. This means, in case of any default in loans, the entire money will be recovered from the members or partners in profit sharing ratio. The risk to personal assets is high in these cases.

Whereas, Companies and LLPs have a limited liability clause. This means that the liability of its members is restricted to the amount of contribution made by them or the value of shares each member holds.

  • Income Tax Rates Applicable to businesses

The income tax rates applicable to a sole proprietorship and a HUF are the normal slab rates. In the case of a sole proprietorship, the business income is clubbed with the individual’s other income. But in the case of other entities like partnership firm and company a tax rate of 30% is applicable.

  • Plans of getting money from investors

As mentioned earlier, it is difficult to get investments when your business structure is unregistered. Entities like LLP and Private Limited Company are trusted when it comes to investment. Make sure you choose the right structure, seek the help of an expert so that you register under proper guidance.

How to Register a Company in India?

Registering a company in India is now a simple 4-step process-

Step 1: Digital Signature Certificate (DSC)

As the registration process of the company is completely online, Digital signatures are required to file the forms on the MCA portal. DSC is mandatory for all the proposed directors and the subscribers of the memorandum and articles of association.

Step 2: Director Identification Number (DIN)

The Director Identification Number (DIN) is an identification number for a director and it has to be obtained by anyone who wants to be a director in a company. The DIN of the proposed director along with the name and the address proof is to be provided in the company registration form.

Step 3: Registration on the MCA Portal 

To apply for company registration, the SPICe+ form is to be filled and submitted on the MCA portal. To fill the SPICe+ form and submit documents, the Director of the company has to register on the MCA portal. After registration, the director can log in and will obtain access to the MCA portal services which include filing e-forms and viewing public documents.

Step 4: Certificate of Incorporation

Once, the registration application is filled and submitted along with the required documents, the Registrar of Companies will examine the application. Upon verification of the application, he will issue the Certificate of Incorporation of the Company.

With this, we have covered the basics of how to register a company.

Documents required for Company Registration

The general documents that are to be submitted for registration of LLP, One Person Company, Private Limited and Public Limited Company are as follows:

  • Proof of identification (Pan Card/Aadhar card/Driving license/passport can be submitted as proof of identity) of all the company’s directors and shareholders
  • Proof of address (Latest Telephone Bill /Electricity Bill/ Bank Account Statement) of all the company’s directors and shareholders
  • Tenancy/rental agreement and letter or NOC from the landlord of his/her permission to use the office as the company’s registered office. 
  • Sale deed of the company premises.
  • DIN (DPIN in case of LLP) and DSC of all the directors (partners in case of LLP).

For more details about documents required for incorporating a private company, read our article on documents required for private limited company registration.

For more details about documents required for incorporating a Public company, read our article on documents required for public limited company registration.

For more details about documents required for incorporating an LLP, read our article on documents required for LLP registration.

What is the Cost for Company Registration?

Plan amount for OPC Registration – ₹7999*

Plan amount for LLP Registration – ₹9999*

Plan amount for PLC Registration – ₹9999*

* Prices shown above may vary. Please click here to contact our experts for complete pricing details.

Benefits of Company Registration in India

A company registration provides many advantages. A licensed company makes it genuine and enhances the business’ credibility.

  • Protects against personal obligation, and defends against other threats and losses.
  • Builds goodwill and also supports more customer attraction
  • Gives reliable investors bank credits and good investment with ease.
  • Provides cover of the responsibility to protect the company’s assets
  • Bigger commitment to wealth and greater stability
  • Increases the ability to develop and grow large

For a detailed understanding about the advantages of obtaining a company registration, read our article on the Advantages of Company Incorporation.

Name and Capital of the Company

  • Selection of Company Name

The name of the company should be proposed in the Form SPICe+ 32 application. Only one preferred name along with the significance of keeping that name can be given in the Form SPICe+ 32 application.

The type of entity and one proposed name for the company is to be entered for reserving the name of the company. The proposed name should not be similar to the existing name of any company or LLP or Trademark. If the name gets rejected, another name can be submitted by applying another Form SPICe+ 32 application and paying the prescribed fees. 

An OPC should have the name in the form of “XYC (OPC) Private Limited”. Similarly, a private company should have the name in the form of “XYZ Pvt. Ltd.” and a public company name in the form of “XYZ Limited”.

  • Capital of the company

There is no requirement of minimum paid-up capital to start a private limited company or a one-person company. However, the public limited company must have a minimum paid-up capital of Rs.5 lakh.

The paid-up capital means the amount of money a company has received from shareholders in exchange for shares of the company. It is created when a company sells its shares in the market directly to investors, usually through an Initial Public Offering (IPO).

The authorised capital of any company must be Rs.1 lakh. The authorised capital means the maximum amount of share capital that the company is authorised by its Memorandum of Association to issue to its shareholders. The authorised capital must be mentioned in the MoA.

Compliances to be followed by the Company

Once, the company is registered there are certain compliances to be followed by the company annually. The company needs to follow compliances such as the Company is required to appoint its first auditor within 30 days of incorporation In the first board meeting. Every company must conduct minimum of 4 board meetings during the calendar year at stipulated intervals.

It has to maintain and file of profit and loss account, annual return and balance sheet every financial year together with an auditor’s report before the due date with the Registrar of Companies. Every company is required to maintain certain Statutory Registers.

For more details about compliances to be followed by the company, read our article on Compliances under the Companies Act 2013.

The company needs to file certain annual forms with the Registrar of Companies. Details of all forms along with the due date of filing these forms are given in our article ROC Compliance Calendar.

Frequently Asked Questions on Company Registration

Where can I register my company?

If you intend to register a new company in India, you must submit an application to the Ministry of Corporate Affairs (MCA). You make the application online at the MCA portal remotely too. For registration, you’ll need a Digital Signature Certificate(DSC), and Director Identity Number(DIN), among other things.

What happens if my company name is already taken?

The Ministry of Corporate Affairs (MCA) that maintains a record of registered company names, you’ll have to access that directory and check if your company name is already registered. If the company name appears in the company registration directory, you’ll have to choose another name. If you have already made an application, you’ll have to make another application for a different name that is previously not registered.

Can a foreign national be a director of a company?

Yes, as per the Indian company law, a foreign national can be a director of a company registered in India. However, he must fulfil all the criteria laid down in the Act. The most important being allotment of a Director Identification Number (DIN).

Any person, including a foreign national, appointed as a Director cannot act in the capacity of a Director unless he/she gives it formally in writing. This can be done by filing Form DIR-2 within 30 days of being appointed as the director.

How many days does it take to register a company?

The new changes brought about by the MCA have made it easy to register companies of any nature with the government. Provided that you have all your documents in place, it can take anywhere between 10 – 15 days to register your company formally.

Is a physical presence of a person needed for company registration?

The entire process is completed online, so you don’t have to be present at any particular place for registration. A scanned copy of the documents must be submitted via mail. At the business address, they receive the company incorporation certificate from the MCA.

How do I check if my company is registered or not?

You can check the status of the company registration on the MCA website. To check the status of your company, you need to go to the ‘MCA Services’ tab and select the ‘View Company/LLP Master Data’ from the drop-down list. Then enter the company’s CIN and click ‘Submit’. The exact status of your company will be displayed.

Is the company registration process completely online in India?

Yes, the company registration is completely online. A company or an LLP can be registered only through the MCA portal. The scanned documents of the company/LLP are sent by mail to the MCA and they are processed at the Central Registration Centre (CRC) which acts as a dedicated back office for Company and LLP Registration process. Upon completion of registration, the company/LLP receives a digitally signed Certificate of Incorporation which can be verified by all the stakeholders on the MCA website.

All Articles

  1. In this article, we enlist all the important documents required for Sole Proprietorship Registration in India. Also, proprietor can use their PAN for opening bank accounts as also Income Tax filing, and for obtaining license/registrations in the name of the firm.
  2. MSME Registration - MSME stands for Micro, Small and Medium Enterprises. The MSMEs enjoy benefits in terms of taxation, compliance requirements, credit terms etc.
  3. OPC - One Person Company is a private company incorporated by one person. Learn about the steps & FAQs for OPC Registration in India.
  4. MSME Registration - MSME stands for Micro, Small and Medium Enterprises. The MSMEs enjoy benefits in terms of taxation, compliance requirements, credit terms etc.
  5. CAR 2020 is a declaration form for Company Affirmation of Readiness towards COVID-19. It is available for compliance starting from 23 March 2020 on the MCA website.
  6. A structured registration methodology guide for Trademark Registration in India. File & register your trademark to protect your business or product name.
  7. Have you incorporated a new company? Learn about the essential steps you need to take after company incorporation.
  8. ROC Forms - After company incorporation, a registered company has to file various ROC forms. Here are guidelines to prepare companies for ROC filing.
  9. Trademark is a unique label/numeral/logo you may use for your products. Trademark registration has several advantages for individuals and businesses.
  10. According to the Trademarks Act, a trademark can be limited to a particular colour or a combination of colours. Nevertheless, it has to be noted that the colour, or the combination thereof, must be capable of distinguishing the products of the entity of that from the others in the market.
  11. Form TM-A is the form prescribed in order to apply for trademark registration. Read through to know what fields are to be addressed in the form.
  12. Once the application is filed, the status of the trademark can be checked. Here is the process to check the status.
  13. Form 20A is a declaration that needs to be filed by the directors of the company at the time of the commencement of the business. It should be verified by a Chartered Accountant (CA) or Company Secretary (CS) or a Cost Accountant in practice.
  14. The MCA (Ministry of Corporate Affairs) has launched a new E-form AGILE (Application for Registration of the Goods and Services Tax Identification Number (GSTIN), Employees’ State Insurance Corporation (ESIC) registration plus Employees Provident Fund Organization (EPFO) registration).
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  16. E-form INC 22A is a form for validating the addresses of all registered companies under the Companies Act, 2013. The form goes by the name tag ACTIVE ( Active Company Tagging Identities and Verification ).
  17. E-Form INC-22 is a form filed by the companies when there is a change in the address of the registered office. The company must inform the Registrar within 15 days of such a change. Read the article to know all about E-Form INC - 22
  18. A Public Limited Company under Company Act 2013 is a company that has limited liability and offers shares to the general public. This company is strictly regulated and is required to publish its true financial health to its shareholders from time to time. Read here to know more.
  19. Companies started for future projects or to hold assets/intellectual properties without having significant accounting transactions and companies that have not filed their annual returns for two consecutive years are called dormant companies. Know more about these here.
  20. Intellectual property is broadly classified under- patents, copyright, trademarks. These have become an important part in today’s ever-changing environment. Know the differences between these here!
  21. A share Certificate is issued by a company evidencing that a person named in such certificate is the owner of the shares of Company
  22. Gumasta License is a mandatory registration required for doing any kind of business in the state of Maharashtra. This is a certificate which provides you authority to do your business at a particular place and to be recognized by Government or Bank. Read more about Gumasta License here.
  23. Difference between authorised and paid up share capital is mentioned in detail with an example to understand. Now there is no minimum paid up capital requirement for the Companies.
  24. The Udyog Aadhar Registration is a great boost for SMEs in the country. This article explains Udyog Aadhar registration process, UAM and latest updates.
  25. PAN Card for Companies can be applied by either by the online mode or the offline mode. Get your own business or company PAN Card in India.
  26. For promoting entrepreneurship, the government provides special benefits to small businesses. Read this article to know about documents required for MSME registration in India
  27. In this article, you will learn about all the documents required for registering a society.
  28. In this article, we will talk about all the documents required for registering a partnership firm in India.
  29. In this article, we will talk about the documents required for LLP registration in India.
  30. Let us see the essentials required to start and manage a business.
  31. In this article, we will talk all about the Director Identification Number or DIN, , Forms available for DIN, Form DIR-3 is to be filled only for Directors appointing in existing companies.
  32. In this article, we discuss the need for the online sellers to do a company registration.
  33. In this article, we discuss the process of registering a software company in India.
  34. The article gives you the list of Class Codes of all Trademark goods and services.
  35. In this article, we discuss the producer company in India under Companies Act, 2013 and all about its procedure & documentation for incorporation.
  36. In this article, you will learn how to register online as Non Government Organisation / NGO in the form of Section 8 Company, under Companies Act, 2013.
  37. Partnership Firm Registration in India - A partnership firm is where two or more persons who can come together and share the profits in agreed ratio, Steps to register in India, documents required for registration, why it is important to register
  38. This article talks about the importance of the ROC / Registrar of Companies in India. It's under MCA which deals with the administration of companies & LLPs
  39. The MCA is a government portal containing details of all the companies and LLP incorporated in India. Here is how you can check company registration status.
  40. Nidhi Company is a type of Non-Banking Financial Company (NBFC). It is formed to borrow and lend money among its members.
  41. A Society Registration is an association of several individuals combined using a mutual accord to deliberate, govern & act cooperatively for some communal purpose.
  42. Sole Proprietorship is a business managed by a single person and has less compliance requirement. Learn about Sole Proprietorship procedure & documents required.
  43. File your trademark registration online with Cleartax India. Learn how to register a trademark, application status, benefits, symbols and types of TM.
  44. Limited Liability Partnership / LLP incorporates the benefits of both a partnership firm and a company into a single form of organization., Documents required for incorporation, steps for incorporation of LLP in India
  45. Guide for private limited company registration online in India. Get to know the pvt ltd company registration cost, process, advantages and documents.
  46. Choose the right business structure for registering your company. Compare between Private Limited Company, Limited Liability Partnership & One Person Company.
  47. 7 easy steps to register your startup in Startup India initiative. Simple, time-saving!
  48. If you are planning to start a business read more to find out
  49. Entrepreneurs need to be very careful throughout their entire Startup journey right from its inception. Know the top 3 registrations mistakes that Startups should avoid.
  50. In India a business can be registered primarily under 5 structures. You can start as a private limited company, one person company, limited liability company, general partnership or proprietorship firm.