How to Register a New Company in Delhi

Why Register a Company in Delhi?

Delhi offers a strategic location, robust infrastructure, and access to a vast market, making it an ideal hub for entrepreneurs. Registering a company not only provides legal recognition but also enhances credibility, enables tax benefits, and facilitates access to funding. Whether you're launching a private limited company, a one-person company (OPC), or a partnership, understanding the registration process is crucial.

Types of Companies You Can Register

Before diving into the process, choose the business structure that suits your needs:

• Private Limited Company (PLC): Ideal for startups and small businesses, offering limited liability and flexibility.
• One Person Company (OPC): Suitable for solo entrepreneurs, allowing a single individual to operate a corporate entity.
• Limited Liability Partnership (LLP): Combines the benefits of a partnership and limited liability.
• Public Limited Company: Best for large-scale businesses planning to raise capital publicly.

Each structure has unique requirements, so select one aligned with your business goals.

Step-by-Step Guide to Registering a Company in Delhi

1. Obtain a Digital Signature Certificate (DSC)

A Digital Signature Certificate is mandatory for signing electronic documents during the registration process.

• How to Apply: Approach a certified agency like e-Mudhra or Sify to obtain a DSC for the proposed directors.
• Documents Required: Aadhaar card, PAN card, and a passport-sized photograph.
• Timeline: Typically issued within 1-2 days.

2. Apply for Director Identification Number (DIN)

Each director of the company needs a unique DIN, issued by the Ministry of Corporate Affairs (MCA).

• How to Apply: File Form DIR-3 online or apply for DIN during the company incorporation process via SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus).
• Documents Required: Identity proof (Aadhaar/PAN) and address proof (utility bill or bank statement).

3. Name Approval for Your Company

Choosing a unique and compliant name is critical.

• Guidelines: The name should not violate trademarks, be offensive, or resemble existing companies. Include words like "Private Limited" or "LLP" as per the structure.
• How to Apply: Submit up to two name choices via the MCA’s RUN (Reserve Unique Name) service or SPICe+ form.
• Timeline: Name approval usually takes 2-3 days.

4. File the SPICe+ Form for Incorporation

The SPICe+ form streamlines company incorporation, covering DIN allotment, name reservation, and registration.

• Details Required: Company name, registered office address, details of directors and shareholders, and Memorandum of Association (MOA) and Articles of Association (AOA).
• Documents Required:
• Proof of registered office (rental agreement or ownership deed).
• Utility bill of the office premises (not older than two months).
• Consent letters from directors and subscribers.
• Submission: File the form online on the MCA portal with the required fees.

5. Obtain Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN)

Upon successful submission of the SPICe+ form, the MCA issues a Certificate of Incorporation (COI), along with the company’s PAN and TAN.

• Purpose: PAN is required for tax filings, while TAN is used for deducting and collecting tax at source.

6. Open a Bank Account

Open a corporate bank account in the company’s name to manage business transactions.

• Documents Required: COI, MOA, AOA, PAN, TAN, and board resolution authorizing the account opening.
• Banks in Delhi: Major banks like HDFC, ICICI, SBI, and Axis offer business accounts with tailored services.

7. Register for GST (If Applicable)

If your business’s annual turnover is expected to exceed ₹40 lakh (₹20 lakh for specific categories), register for Goods and Services Tax (GST).

• How to Apply: Apply online via the GST portal using the COI, PAN, and bank account details.
• Timeline: GST registration takes 3-7 working days.

8. Comply with Additional Licenses

Depending on your business type, additional licenses may be required:

• Shops and Establishment License: Mandatory for businesses operating in Delhi.
• FSSAI License: Required for food-related businesses.
• Trade License: Issued by the Municipal Corporation of Delhi for specific trades.
• Professional Tax Registration: If employing staff, register with the Delhi government.

For more information https://www.psrcompliance.com/company-registration-in-india