How to Register Your Company in India: Procedure, Timelines and Tax Compliances
Registering a company, be it any type of company in India is the first formal step towards building a credible and legally recognised business. With most filings now fully online, the incorporation process is faster and more transparent than ever. Still, understanding the procedure, timelines and post-registration compliances can save time, cost and future legal trouble.
Step-by-step procedure with timelines
1. Choosing the right business structure
Start by deciding the type of entity that best suits your business, such as a private limited company, LLP or one person company. For startups and growing businesses, a private limited company is generally preferred due to ease of fundraising and limited liability.
2. Obtain Digital Signature Certificates
All proposed directors must obtain a Digital Signature Certificate, which is required to sign electronic incorporation forms filed with the Ministry of Corporate Affairs.
3. Apply for Director Identification Number (DIN)
DIN is allotted through the incorporation form itself. Separate applications are no longer required for most cases.
4. Name reservation
A unique company name must be approved by the Registrar of Companies. It should not conflict with existing names or trademarks and must align with your business activity.
5. Filing incorporation documents
The incorporation form is filed along with the Memorandum of Association and Articles of Association. Once verified, the Registrar issues the Certificate of Incorporation, PAN and TAN.
Post-registration tax and legal compliances
After incorporation, open a company bank account and register under GST if turnover thresholds are crossed or if the business falls under mandatory GST categories. Companies must also comply with income tax filings, GST returns, statutory audits (if applicable) and annual MCA filings. Maintaining proper books of accounts and statutory registers is essential from day one.
FAQs
1. Is physical presence required for company registration?
No, the entire process is completed online.
2. Can foreigners or NRIs be directors?
Yes, subject to compliance with FEMA and identification requirements.
3. Is GST mandatory for all companies?
No, it depends on turnover and nature of business.
4. What happens if annual compliances are missed?
Penalties apply and directors may face disqualification.
5. Can the company name be changed later?
Yes, through a prescribed legal process with ROC approval.
