Company Registration in Delhi (UPDATED FEB 2017)

When you put up a new business, it’s best to make sure that you keep everything legal, and one of the first things you should do is make sure...
Company Registration in Delhi

When you put up a new business, it’s best to make sure that you keep everything legal, and one of the first things you should do is make sure that you follow the rules of company registration in Delhi.

You see, registration is important so that when you run your business, you can be sure that you won’t have to deal with lawsuits. According to the Companies Act of 1956, a company is considered a legal entity, which should be registered with the state’s company registrar, so it can have “limited”, “incorporated”, or “LLC” attached at the end of its name.

So, how exactly does company registration in Delhi happen, then? Read on, and find out.

Private and Public Companies

First of all, you have to understand that there are two main types of companies, and these are 1) Private, and 2) Public. You have to know which of these categories your company falls under before you go ahead with the process of company registration in Delhi.

Here are their differences:

  1. Private Companies. A private company has a minimum of 2 board members, a maximum of 50 members, and at least 2 directors. A private company can also start their operations exactly after being incorporated, but should at no time be able to sell their shares or invite people to obtain company shares.
  2. Public Companies. Meanwhile, a public company should have around 5 board members, 3 directors, and any number of members. It is also important that public companies do not start operations until they get a certificate of business commencement, but they are allowed to invite people about company shares, in the event that they use a prospectus—a printed document that talks about what kind of company it is, who they are, and what they are trying to do, among others.

 

 Documents You Should Have on Hand

Before you proceed to go for company registration in Delhi, you first have to make sure that you have the following documents on hand:

  1. This stands for Director Identification Number, which has been a compulsory requirement for every company director ever since 2006.
  2. Form-1. This is also sometimes called DIN-1 Form.
  3. DSC, or Digital Signature Certificate.
  4. Form-18. This is used to determine the address or location of the company that has been proposed.
  5. ROC Formal Letter. You will need to get an original copy of this document as it means that the company name you are trying to go for is still available for use.
  6. Form-32. Finally, this is used to know the particulars of managers, directors, and secretaries.

Now, the formal process of company registration in Delhi should begin.

First Step: DIN Acquisition

The number 1 process in company registration in Delhi is the acquisition of the DIN. Even if you have already been a director of a company before, if you are part of putting up a new one, it is still required that you get a DIN.

You can get the DIN at the Ministry’s Official Site. Just look for the tab that says DIN-1 Form, and then do the following:

  1. Go to Delhi’s Ministry of Corporate Affairs website, and have yourself registered. Choose your log-in ID, password and other particulars. Then, check the tab with the DIN-1 Form, fill it up with the required information, and then have it uploaded to the website by clicking the eForm upload You will see that there are some fees that you have to pay, so just go ahead and prepare for them. To properly register, you have to make sure that:
  • Your computer has an OS of Windows 2000 or later versions;
  • You have internet access, and that you are using Internet Explorer 9, Chrome 33 and above, or Firefox 24 and above;
  • You have Java Runtime Environment running at JDK1.6U30, and above;
  • You should have access to a scanner—because you will have to scan the documents;
  • You have Adobe Acrobat 11 installed;
  • You should have MCA21 Portal pop-ups ready to show on your computer, and;
  • You should have access to a printer so you can have the documents printed out.
  1. Now, you should have your company integrated with your DIN—so your own brand will be created. What you can do here is fill up the DIN-2 Form.
  2. Next, make sure that your company name has not been used by others before by getting a certification from the Registrar of Corporates (ROC). For this, fill up the DIN-3 Form.
  3. If in case you need to change details in your DIN-1 Form, make sure to have it properly edited by answering and submitting the DIN-4 Form, and have it uploaded through the website.

Second Step: Digital Signature Certificate Acquisition

The next step in company registration in Delhi is to get DSC, or Digital Signature Certificate. This has to be authentic, and documented well—and you can find it on your DIN-1 Form. It is known as one of the safest ways of securing signatures, as opposed to the old-school type of just writing everything out on paper.

Take note that your digital signatures should only be acquired by agencies that have been approved by the Controller of Certifications. Do not use it for anything else, lest you want to be labeled with illegal handling of signatures.

However, if you already have an existing digital signature, you can use it for your new business so you can hasten the process of company registration in Delhi. Just make sure that you have it renewed—this usually happens in a matter of 1 to 2 years.

To acquire your digital signature, just check the following agencies:

  1. This stands for Institute of Development and Research in Banking Technology, an operational service dedicated to improving transactions in financial and information technology institutions.
  2. This stands for Tata Consultancy Services, and has been established to help those who need business solutions delivered so certainty in business can be experienced.
  3. SAFESCRYPT. Known as India’s very first licensed certifying authority, you can be sure that the digital signature you will be getting here will really be authentic—and they also have a number of key systems to keep you safe.
  4. This is Mumbai’s Customer Self-Care Program that offers internet access, telephone, and mobile services to customers, and is one of India’s best telecom providers.
  5. nCode Solutions. This is another one of India’s certifying authorities, and is known as a leader of Network and Internet services.
  6. This stands for National Informatics Centre, which is primarily the Indian Government’s prime web services organization.

You can register in other companies, too, but the ones given above are the most trusted ones, so make sure that you opt for them, instead of anything else. Minimal fees have to be paid, as well, so do prepare for that.

Third Step: MCA Account

Then, the next step in company registration in Delhi is to create a new account on the MCA Website, different from the DIN-1 account. This way, you can easily navigate the site, and control your user preferences, and for this, you won’t have to pay for anything.

Once you have created an account, you can expect to experience the following: associate, acquire, and update DSC; inquire DIN status, and verify the said status; view LLP/company master of data; view signatory details and index of charges; view director’s master data; view which LLPs have been registered in the last 30 days; create advanced searches; enter or update details, and file and update eForms, as well as track investor status; create service-related complaints; inquire fees, and get certified copies of important documents, amongst others.

Fourth Step: Have the Company Registered

Finally, you can have your business go through company registration in Delhi—after following the first three steps—by doing the following:

  1. Fill Form-1. This will serve as your declaration that you would like to have the company incorporated.
  2. Fill Form-1A. This would be your main application form to register for the availability, or for the change of a certain company name. You will basically be asked for 4 potential company names so that it will be easy to pick an alternative, in case one of your given names has already been used before. Submit Forms 1 and 1A.
  3. Now, fill Form-18. Fill it up with your authentic office address. You can also use the said form to state that you have changed the place of your office—even one that you have registered previously.
  4. Fill Form-32. This is the notice of appointment for directors, managers, and secretaries if you are trying to have a new company registered. For re-registration purposes, however, this is used for a notice for the change of the said positions.

Fill all these forms up, and submit them to the MCA. Check your email for a confirmation.

In a matter of 10 days, you will get notified by the ROC as to whether your registration has been approved, or if there are any objections. For example, if none of the names you have registered have been approved, you will get a list of new names to choose from, and then you will soon be getting a formal letter to tell you if the new name has been confirmed.

What to do after registration

Company registration in Delhi doesn’t just end after the fourth step. To make sure that everything runs smoothly, you will have to follow up with the following:

  1. TAN Card. Also known as Form 49B, a TAN Card stands for your Tax Application Number—definitely important when you are trying to run a business. You need this because when you have a company, chances are, you will be dealing with eCommerce transactions—and this helps make everything run smoothly—and legally, too.
  2. Shop and Establishment Act Documents. Get some when you have been required to do so. This is mostly used for Delhi Trade Union, and has been around since 1954. For this, you will have to make way for the following to be known:
  • Certification that you are a legal adult (18 years of age and above);
  • The day of the week when the shop shall be closed, if any;
  • The names of your apprentices—or people who are helping you out in the business, or are employed in your company, whether they are paid wages or salary, and who can be trained in your craft;
  • The thought that your company is a commercial establishment—or is working in connection with commercial facilities, and can provide clients with their needs;
  • Opening hours of the business;
  • The time when your shop closes, or “closing time”;
  • Time of day when your shop operates;
  • Name of the employer, or the one who owns the establishment, whether it is a restaurant, shop, or any other form of establishment;
  • The kind of establishment the company is;
  • Names of family members of the employer—nuclear family only;
  • Whether or not your company is a “factory”, as depicted by the Factories Act of 1948;
  • Holidays, or whether the company will operate during holidays, and which specific holidays these are;
  • The name of the Chief Commissioner or Government of Delhi;
  • Residential hotels, or if you have places in the institution where people can sleep, or dwell temporarily;
  • Youth, or if you have employed anyone who is not yet of legal age (18 years and below);
  • Summer months, or what the company plans during the months of April to September, and;
  • Year, or the current Calendar Year.
  1. PAN Card. PAN means Permanent Account Number. You can get this from India’s Income Tax Department. With this, you will easily get access to the Tax Calculator, can apply online for your TAN, view your Tax Credit form, and pay taxes online, as well—so there will be less hassle for you.
  2. Registration of Import Index Code. This is mostly for foreign traders. This way, even if you are a foreigner living in Delhi, you can still be sure that your company will be legal. Any bonafide person wanting to establish business in India should have an Import Index Code that would serve as a primary recognition by the Government of India. With this, you can get the proper payments and benefits. You can apply for this online by downloading the form on the Zonal JDGPT Office—process usually takes 2 days, and you should prepare for the following:
  • Certified self-copy of PAN that has been issued by 2 income tax authorities;
  • Demand drafts or bank receipts that detail your payment for the application fee;
  • 2 copies of passport-size photographs. Please have them attested by your own banker;
  • Banker’s certificate with the Appendix 18A Format, and;
  • Self-addressed stamped envelope where the documents should be stored in.
  1. RBI Approval for foreign companies, if required. This should come from the RBI, or Reserve Bank of India. Basically, this allows you to convert or not convert your earnings into equity, and it also gives you complete instrument pricing. This also covers the following:
  • NRC/FNCR Debit account under a certain category of the person involved;
  • Normal banking channel remittance;
  • Non-interest bearing debit that should be paid in Indian Rupees, with approval from the Office of the Director;
  • Conversion of import payables, share swaps for consideration of issues, and conversion of lump sum or royalties, together with other technical fees.

You need to have these issued at least 180 days after filing for RBI approval. Take note that the following companies are not allowed: lottery, atomic energy, business of Chit Fund, betting and gambling, and NIDHI.

  1. Registration for Software Technologies Parks of India, if required. Also known as STPI, registering for this is free. This covers:
  • Specialized trainings and seminars;
  • Management or establishment of infrastructural resources;
  • The promotion of secondary or tertiary locations related to the company, and schemes that have been announced by the government;
  • To work closely with the state government;
  • To try promotional activities that include market analysis, assessments, market segmentation, and the organization of workshops, conferences, seminars, and exhibitions;
  • The provision of project management and consultancy divisions, and;
  • The promotion of entrepreneurship amongst members of a community.
  1. Valid Digital Certificates for both Indian and Foreign Directors. In case 2 or more nationalities serve as directors of the company, all of them need to have valid digital certificates from authorized agencies.

Once you have passed all that’s required of you, company registration in Delhi becomes complete.

Specific but Legal Process

As you may have noticed, company registration in Delhi is not an easy process. However, it just goes to show that when the proper things are done, a business becomes legal—and there’s no risk that it would be slapped with lawsuits and the like, unless necessary.

If you’re planning to put up a business in Delhi, make sure that you follow the rules of company registration in Delhi, and you’ll be on the right track. Good Luck!

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