Company Registration in Delhi
In FY 2021-22, the Ministry of Corporate Affairs (MCA) registered over 16000 entities in Delhi, embodying the business potential of the nation’s capital. This rise in registration is credited to the paperless process deployed by the MCA. if you own a business and wish to operate it legally, securing company registration should be your priority. Selecting an apt legal structure is the first step when applying for company registration in Delhi. The rest of the steps include document preparation, compliance check, form filing, etc. Let’s dig into these steps to understand the legalities concerning the registration process.
Choosing Legal Structures for Company Registration in Delhi
Choosing a company structure is the first step in the registration journey. Factors like compliance threshold, tax applicability, etc. can help decide which structure to choose and which to avoid.
One Person Company (OPC)
OPC is a popular choice among entities run by a single owner. It ensures utmost control over business affairs and reinforces resilience to withstand financial crises, protecting the owner’s assets. Companies Act 2013 governs OPCs and underpins registration and operational norms.
Limited Liability Partnership (LLP):
Considered the advanced partnership model, LLPs are the obvious choice for entities intended to be run by a group of individuals having a common business goal. LLPs are governed by the legislation viz. LLP Act 2008.
Private Limited Company:
A private limited company upholds the directorship concept and has a provision for board meetings wherein business decisions are taken through mutual discussion. Such structures have better resilience, elevated service life, and improved liability control, allowing peace of mind for shareholders.
Public Limited Company:
A public limited company are formed to extend the operational footprint or raise funds via share trading on the stock exchange. SEBI and MCA regulate such entities as they have sizeable management and undergo share trading with the public for accumulating funds.
Legalities to be fulfilled for Company Registration in Delhi
Entrepreneurs seeking company registration in New Delhi must meet the following conditions in the first place.
- The company name should be unique and abide by the MCA rules.
- Those seeking private limited registration must appoint at least 2 directors. Likewise, in the case of OPC and public limited company, the directors’ number should not be less than 1 and 3, respectively.
- An overseas individual can be appointed as the director of a company, but at least one director should be Indian.
- It is vital to reinforce directors’ identity by securing a Director Identification Number (DIN).
- The company must have a minimum number of members (two members for private company, one member for OPC, and seven for the public company)
- All directors must have a DIN i.e. Digital Signature Certificate to authenticate online documents and e-paper.
- The company must have a registered place wherein business affairs are being handled.
- The company must draft charter documents such as Memorandum of Association (MOA) and Articles of Association (AOA). MOA entails the company’s vision and object, whereas AOA includes the company’s internal rules.
Underscoring Paperwork required for Company Registration in Delhi
- Address Proof for Directors and Shareholders (any one of the following):
- Bank account statement
- Latest electricity, water, or internet bill
- Mobile bill (not older than three months)
- Resident card, bank statement, or driving license (for foreign nationals)
- Proof of Registered Office Address of the Company (any one of the following):
- Electricity, gas, internet, or water bill
- Rental agreement and NOC from the owner (if the premises are leased)
- Latest property tax receipts
- Sale deed or property registration deed (if the premises are owned)
- ID Proof for Directors and Shareholders (any one of the following):
- Aadhaar card
- Voter ID card
- Driving license
- Passport (for foreign nationals)
- PAN Card
- PAN card of every director and shareholder.
Company Registration in Delhi: A Step-by-Step Guide
The process concerning the company registration in Delhi is as follows:
- Apply for DIN and DSC of all the active directors.
- Head to the MCA portal and get access to the form viz. SPICe+, which entails two parts: Part A and Part B.
- Use Part A to secure name approval from the MCA and Part B to apply for company registration
- After filling out Part A and B, proceed with the drafting of charter documents i.e. eMOA and eAOA.
- Get access to the AGILE-PRO form and fill it out to open a corporate bank account and secure approval from EPFO, ESIC, and GSTIN.
- Upload the supporting paperwork.
- Use DSC i.e. Digital Signature certificate to validate the SPICe+ form.
- Submit the applicable fee and RoC stamp duty. Do not forget to generate the challans.
- The authority shall inspect the application as well as the paperwork for accuracy and compliance.
- The ROC conducts the final review and based on the assessment grants the certificate alongside PAN and TAN
Compliances for the holder of the Company registration in Delhi
| S.No | Compliance Requirement | Description |
| 1 | Auditor Appointment | Appoint your first auditor within 30 days of starting your company, and follow up with appointments as needed. |
| 2 | Annual General Meeting (AGM) | Hold an AGM within six months after your financial year ends. |
| 3 | Filing Financial Statements | Submit your financial statements to the Registrar of Companies (RoC) within 30 days after the AGM. |
| 4 | Annual Return | File your annual return using Form MGT-7 within 60 days of the AGM. |
| 5 | Keeping Statutory Registers | Maintain essential records like the Register of Members and Register of Directors. |
| 6 | Directors’ Report | Prepare and file a Directors’ Report along with your financial statements. |
| 7 | Board Meetings | Hold at least four board meetings each year, ensuring no more than 120 days between any two meetings. |
| 8 | Issuing Share Certificates | Issue share certificates to initial subscribers within two months of starting your company. |
| 9 | Directors’ Interest Disclosure | Have directors disclose their interests in other entities at the first board meeting each financial year. |
| 10 | Business Commencement Certificate | File a declaration to start business operations within 180 days of incorporation. |
| 11 | Appointing Key Managerial Personnel (KMP) | Appoint key roles like CEO, CFO, and Company Secretary, if applicable. |
| 12 | Following Secretarial Standards | Adhere to Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI) for meetings and resolutions. |
| 13 | Keeping Books of Accounts | Maintain your books of accounts and other important documents for at least eight years. |
| 14 | Filing Resolutions and Agreements | Submit certain resolutions and agreements to the RoC in specific forms (e.g., MGT-14). |
| 15 | Corporate Social Responsibility (CSR) Compliance | If required, spend on CSR activities as per the rules and file an annual CSR report. |
Conclusion
Company registration in Delhi is a mandatory legal certificate that helps legitimize the business’s identity and unlock a host of benefits. Since applying for company registration attracts various compliance and paperwork, it is vital to proceed cautiously, preferably under the expert’s supervision. At Adviso, we help businesses turn into legal entities with zero hassle and negligible legal complications. If you wish to secure company registration quickly, look no further than Adviso.
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