A great place to start your entrepreneurial journey is New Delhi, the capital of India. Delhi offers a perfect blend of modernization and cultural heritage. You are already on the way to making Delhi the base for your new business venture or even the city where you start out on your entrepreneurial journey because you are reading this blog.
Our goal here is to answer all your questions about how to start a company in Delhi. Besides explaining the process in the simplest way possible, it will assist you in getting started as quickly as possible.
To begin with, you will need to decide what type of company structure you wish to incorporate. A legal contract determines the laws you must follow, the business policies you can set up, the way you conduct business, and the compliances to be followed. Find out which options you have!
- One Person Company – In one-person companies (OPCs), only one director is responsible to carry out and manage the business activities. These companies are similar to Private Limited companies.
- Private Limited Company (PLC) – A PLC can be started by two or more individuals, one of whom should be the director and at least one shareholder. Alternatively, directors can be shareholders. A director is typically responsible for run-of-the-mill managerial activities while the shareholders make the key business decisions.
- Partnership Registration – Partnerships with limited liability (LLPs) merge the strengths of PLCs and Partnerships. There must be at least two designated partners in order to incorporate. Partners in an LLP are separate legal entities.
- Sole Proprietorship – Those that wish to work on their business solely without interference from other entities and people should consider a sole proprietorship.
- Partnerships – A partnership is a form of business where two or more partners come together to make key business decisions without the need for a separate legal entity.
To register your company in Delhi, you will need the assistance of a practicing professional. When you are familiar with the process, the whole process will run smoothly for you.
Criteria for eligibility
- 1 Criteria for eligibility
- 2 Documents Required
- 3 Registration Process
- 4 Certificate of Incorporation (COI)
- It must have a minimum of two directors, including at least one who is an Indian citizen and who has continuously resided in India for at least 12 months
- 2 Shareholders. A shareholder can either be an individual or a corporation. A director can also be a shareholder
- The company’s registered office must be in India
- Documentation of Aadhaar and PAN (Permanent Account Number) for each director and shareholder
- Passport size photograph
- As identification documents, voter identification cards, passports, driving licenses should be self-attested
- A copy of a mobile bill/ telephone bill/ electric bill/iBank passbook with recent transactions showing name and address as proof of address
Apostilles and notarization are mandatory for foreign nationals looking for these documents (with the exception of the Indian government’s documents).
For Registered Office
- For proof of business address, an electricity bill, a telephone bill, a water bill, or a gas bill should not be older than two months
- If the property is rented, a copy of the lease should be submitted
- The owner of the property needs to provide a No Objection Certificate (NOC) (whether the property is rented or owned).
Registrars of Companies (ROCs) of Delhi and Haryana are responsible for registering companies. In order to complete the registration process, you will need the assistance of a practicing professional. It is your responsibility to provide them with accurate information and the required documents in a timely manner so that the process runs smoothly.
There are four steps to the process, and it takes about 10-12 working days. Here are the steps:
DSC (Digital Signature Certificate)
During the registration process, DSC is used to securely submit electronic documents. It is therefore imperative to acquire DSCs for all directors and shareholders. CCAs are able to provide such certificates.
Name Reservation (SPICe+ Part A)
In order to register your choice of company name, we need to complete SPICe+ Part A. You can begin by proposing two unique names. The MCA generally takes 2-3 business days to approve. Should your first two name choices be rejected, you have a second chance to submit two more names. Make sure the company names you choose reflect your company’s philosophy and function.
Proposed Company Details (SPICe+ Part B)
To complete the SPICe+ form, fill out Part B with the following information about the company.
- Capital Details
- Registered Office Address
- Details of Shareholders and Directors
- Stamp Duty
- PAN and TAN
- With Attachment of Necessary Documents
- Practicing Professionals and Director’s Declarations
In each state, the stamp duty is calculated based on the authorized capital. For authorized capital of *1 lakh in Delhi, stamp duty begins at *360.
Drafting of (SPICe+ MOA and SPICe+ AOA)
These are known as the charter documents for a company
- SPCIe+ MOA:(Memorandum of Association) consists of five clauses, including the company’s name, its address, its main purpose, liability, share capital, and subscribers declarations.
- SPICe+ AOA: In (Articles of Association), a company’s name, address, equity capital, financial, and managerial activities are outlined. Practicing professionals must attach the DSCs of both the Directors and themselves in order to submit to MCA.
- Professionals who assist you in registering the company prepares these documents for you.
- Agile Pros: In the final stages of company formation, you’ll receive an Agile Pros form, which grants you a GST registration number, EPFO (Employees Provident Fund Organization) credentials, and an ESIC (Employee State Insurance Corporation) credential. In addition to opening a current account, you can also open a Shop and Establishment account using this form, if applicable.
- Form INC-9: Once the above forms are filed, an auto-generated form should be submitted. This is known as a shareholder and director declaration.
It’s almost over! You only need to wait for the Certificate of Incorporation after the practicing professional has completed all these steps.
Certificate of Incorporation (COI)
The MCA issues certifications for this product. Upon receiving it, you are receiving a legal statement that your company was incorporated legally with the MCA. There are four fields in this document: the date of incorporation, the Company Identification Number (CIN), the Permanent Account Number (PAN), and the Tax Identification Number (TAN). The numbers of the directors are also included.