Company Formation in India
The company formation is the beginning of an ambitious project wherein ideas, commitment, and goals come together to form a tangible entity.
Starting a company in India is simpler than it seems, especially when you have trusted partners guiding you through each step. With our team of experienced professionals, navigating the process of forming your own company becomes effortless, allowing you to focus on your business goals without the hassle.
Mercurius is a one-stop solution for all your business needs. We provide pre and post-incorporation support that helps you run your business smoothly. Our major services include:
- Business Set-up Consultation
- Company formation
- Post Incorporation Support
- Bookkeeping
- Tax Compliances
- Audit and Assurance
- Payroll Processing
- Tax Planning
- Various Registrations (FSSAI, MSME, Trademark, IEC, LEI etc.)
- Other Tailor-made Services Based on Requirements.
Introduction
Private Limited Company is the preferred choice for business setup in India; It's loved for its easy registration, fewer hassles with rules, and smooth closure process.
This type is more popular among new businesses and growing companies, giving shareholders limited liability while delivering beneficial features. It's the cornerstone for many successful companies.
Minimum Requirements
Requirements | |
---|---|
Capital | No minimum capital requirement |
Subscribers/Members | 2 Minimum / 200 Maximum |
Directors | 2 Minimum / 15* Maximum |
Authorized Representative | Required in case of wholly owned subsidiary. |
Resident Director | At least 1 director who stays in India for 182 days during the financial year and each of the subsequent financial year. |
* More than 15 persons can be appointed as directors by passing a Special Resolution
Step of Incorporation
Step 1: Obtain a Digital Signature Certificate
Step 2: Perform Name Availability Search
Step 3: Draft Charter Documents
Step 4: File Relevant Form for Approval of Name
Step 5: File Relevant Forms for Incorporation
Step 6: Obtain Post-Incorporation Registrations
Step 7: Deposit the Subscription Amount into the Bank
Step 8: File Relevant Form for Commencement of Business
Step 9: Report FDI inflow to RBI
Deliverables
- Digital Signature Certificates
- Certificate of Incorporation
- Director Identification Number/DPIN
- Tax Registration :
- a) Permanent Account Number (PAN)
- b) Tax deduction / Collection Account Number (TAN)
- Memorandum Of Association & Articles Of Association
- Share Certificates
Documents Required
- For Directors / Shareholders / Members / Authorized Representatives
- Permanent Account Number (Mandatory for Indian residents)
- Passport (Mandatory for foreigners/NRI)
- Voter ID /Driving Licence/Passport (any one) - Identity Proof
- Bank Statement/Electricity Bill/ Telephone Bill (Not older than 2 months) - Address Proof
- Photograph Passport Size (3.5 X 4.5 cm)
For Registered Office:
i) If Owned by Subscriber / Director
- Ownership Deed / House Tax receipt
- Utility Bill (Not older than 2 months)
ii) If Rented
- Rent Agreement
- No Objection Certificate from Landlord
- Utility Bill (Not older than 2 months)
For Foreign Entity
- Certificate of Incorporation
- Address Proof – Bank Statement / Utility Bill (not older than 2 months)
- Board Resolution for Incorporating a Subsidiary in India
Information Required - For Directors / Shareholders / Members / Authorized Representatives
- Father’s Name
- Place of Birth
- Duration of Stay at Present Address
- Occupation
- Educational Qualification
- Email Id
- Mobile Number
Introduction
LLP is a hybrid form of entity blending the characteristics of a Company and a Partnership. Within this structure, partners enjoy limited liability, restricted to their agreed contribution amounts. This shields their personal assets from implications in instances of insolvency or bankruptcy, offering a protective framework for collaborative ventures.
Minimum Requirements
Requirements | |
---|---|
Capital | No minimum capital requirement |
Designated Partner | 2 Minimum |
Authorized Representative | Required in case of for foreign Company. |
Resident Designated Partner | At least 1 designated partner who stays in India for 120 days during the financial year and each of the subsequent financial year. |
Step of Incorporation
Step 1: Obtain Digital Signature Certificate
Step 2: File Relevant Form for Approval of Name
Step 3: Draft LLP Agreement and other Documents
Step 4: File Relevant Form for Incorporation
Step 5: File Relevant Form for Registration of LLP Agreement
Deliverables
- Digital Signature Certificates
- Certificate of Incorporation
- Director Identification Number/Designated Partner Identification Number
- Tax Registration:
- a) Permanent Account Number (PAN)
- b) Tax deduction / Collection Account Number (TAN)
- LLP Agreement
Documents Required
- For Designated Partners/ Authorized Representative
- Permanent Account Number (Mandatory for Indian Resident)
- Passport (Mandatory for foreigners/NRI)
- Voter ID /Driving Licence/Passport (any one) - Identity Proof
- Bank Statement/Electricity Bill/ Telephone Bill (Not older than 2 months) - Address Proof
- Photograph Passport Size (3.5 X 4.5 cm)
For Registered Office:
i) If Owned by Designated Partner/Partner
- Ownership Deed/House Tax Receipt
- Utility Bill (Not older than 2 months)
ii) If Rented
- Rent Agreement
- NOC from Landlord
- Utility Bill (Not older than 2 months)
For Foreign Entity
- Certificate of Incorporation of the Foreign Entity
- Address Proof for the Foreign Company – Bank Statement / Utility Bill (not older than 2 months)
Information Required - For Designated Partners / Authorized Representative
- Father’s Name
- Place of Birth
-
Duration of Stay at Present Address
- Occupation
- Educational Qualification
- Email Id
- Mobile Number
Introduction
A Public Company is an entity that extends ownership to the general public through freely tradable securities. It presents an opportunity to raise funds for business expansion by allowing public investment. These securities are accessible through methods like Initial Public Offers (IPOs), over-the-counter exchanges, and trading on national and international stock exchanges, providing broad accessibility and potential for investment growth.
Minimum Requirements
Requirements | |
---|---|
Capital | No minimum capital requirement |
Subscribers/Members | 7 Minimum / 200 Maximum |
Directors | 3 Minimum / 15* Maximum |
Authorized Representative | For Foreign Company |
Resident Director | At least 1 director who stays in India for 182 days during the financial year and each of the subsequent financial year. |
* More than 15 persons can be appointed as directors by passing a Special Resolution
Woman Director:- Certain public Companies are required to have at least 1 woman Director
Step of Incorporation
Step 1: Obtain a Digital Signature Certificate
Step 2: File Relevant Form for Approval of Name
Step 3: Draft Chartered Documents
Step 4: File Relevant Form for Incorporation
Step 5: Deposit Subscription Amount into Bank by Subscriber
Step 6: File Relevant Form for Commencement of Business
Deliverables
- Digital Signature Certificates
- Certificate of Incorporation
- Director Identification Number/DPIN
- Tax Registration :
- a) Permanent Account Number (PAN)
- b) Tax deduction / Collection Account Number (TAN)
- Permanent Account Number
- Tax Deduction / Collection Account Number
- Permanent Account Number
- Memorandum Of Association & Articles Of Association
- Share Certificates
Documents Required
- For Directors / Shareholders / Members / Authorized Representatives
- Permanent Account Number (Mandatory for Indian residents)
- Passport (Mandatory for foreigners)
- Voter ID /Driving Licence/Passport (any one) - Identity Proof
- Bank Statement/Electricity Bill/ Telephone Bill (Not older than 2 months) - Address Proof
- Photograph Passport Size (3.5 X 4.5 cm)
For Registered Office:
i) If Owned by Promoter/Director
- Ownership Deed / House Tax receipt
- Utility Bill (Not older than 2 months)
ii) If Rented
- Rent Agreement
- No Objection Certificate from Landlord
- Utility Bill (Not older than 2 months)
For Foreign Entity
- Certificate of Incorporation of the Foreign Entity
- Address Proof for the foreign company – Bank Statement / Utility Bill (not older than 2 months)
- Board Resolution for Incorporating a Subsidiary in India
Information Required - For Directors / Shareholders / Members / Authorized Representative
- Father’s Name
- Place of Birth
- Duration of Stay at Present Address
- Occupation
- Educational Qualification
- Email Id
- Mobile Number
Note: At Mercurius, we offer tailor made solutions and assist in setting up your business in India by carrying out business registration under the respective governing laws such as The Companies Act 2013, The Indian Partnership Act, 1932, and The Limited Liability Partnership Act, 2008.
FAQs
The forms of establishing a company in India are as follows:
- Public limited company
- Private limited company
- One person company (OPC)
- Section 8 company
Other forms of setting up business in India are listed here under:
- Sole proprietorship
- Partnership firm
- Limited liability partnership (LLP)
The respective governing laws under which you can carry out the registration of your business are:
- The Companies Act, 2013
- The Indian Partnership Act, 1932
- The Limited Liability Partnership Act,2008
The benefits of forming a company in India are as follows:
- It protects you from personal liability for business risks and losses
- It makes you look serious and attract more customers
- Creates better image and credibility in the market
- Easier to get bank credit and investment from investors
- Creates faith in employees and easy to draw a talented workforce
- It is very convenient to exit or sell the business due to less documentation and cost.
As defined by the Companies act 2013, the requirements for registering a company in India are as follows:
- Two directors
- Unique name
- Minimum capital contribution
- Registered office
The documents which the MCA accepts for the online company registration process are listed below:
- Identity and address proof:
- Scanned copy of PAN card or passport
- Scanned copy of voter-id/ passport/ driving license
- Scanned copy of the latest bank statement/telephone or mobile bill/ electricity or gas bill
- Scanned passport-sized photograph specimen signature
- Registered office proof:
- Scanned copy of the latest bank statement/telephone or mobile bill/ electricity or gas bill
- Scanned copy of the notarized rental agreement in English
- Scanned copy of no-objection certificate from the property owner
- Scanned copy of sale deed/ property deed in English
A foreign national can incorporate a company in India provided another person stays in India for a total period of not less than 182 days during the financial year which shall be counted as resident director.
Expand your Business - Your Ambitions are our Target!
Discover a legacy of global excellence since 2008. Mercurius specializes in business setup, accounting & bookkeeping, audit and tax compliance.
Schedule an appointment, and let's broaden your business horizon!