Skip to main content Skip to search

Company Registration FAQs

Company Registration FAQs

Company is an association of persons registered under the Companies Act 1956. It has a legal personality separate from the persons who own or manage it.

The following are the types of companies that can be registered in India.

  1. Private Limited Company
  2. Public Limited Company
  3. Unlimited Liability Company
  4. Non profit Organisations (Generally known as Sec.25 Companies)

Private Limited Company is formed with minimum of 2 members and 2 Directors. Maximum number of members in a private company is restricted to 50. The name of the company shall end with the words ‘Private Limited’.

Public Limited Company is formed with minimum of 7 members and 3 Directors. There is no restriction on maximum number of members. The name of the company shall end with the word ‘Limited’.

Sec.25 Company is formed for the purpose of promoting commerce, art, science, religion, charity or any other useful objects and not with the object of making profit. Registration of such companies require prior permission from the Central Government and the words ‘Private Limited’ or ‘Limited’ can be dispensed from the name.

Foreign Company is a company registered outside India, under a foreign law other than Indian law.

A Foreign Company can open a Branch / Liaison office in India subject to the approval of Reserve Bank of India (RBI). Up on receipt of approval from RBI, the Branch / Liaison office has to be registered with the office of Registrar of Companies New Delhi by filing necessary documents.

Limited liability means liability of a member in a company is limited to the extent of their shareholding in the company. The shareholders of the company are not personally liable for the liabilities of the company and his liability is limited to the unpaid amount on shares registered in his name.

The name of the company shall be unique for registration. The name of a Private / Public Company shall end with the words “Private Limited” or “Limited” respectively. The name of the company shall comply with the Guidelines for Name Availability as prescribed by the Ministry of Corporate Affairs.

A company is promoted to carry out particular activity(ies). These activity(ies) are otherwise called as objects of the company. The Main objects of the company for which the company is registered should be detailed in the Memorandum of Association of the Company.

Capital of a company is the contribution by shareholders towards the corpus of the company. The Capital of the company is divided in to smaller units of shares.

Authorised Capital (Registered Capital) of a company is the upper ceiling limit of capital which a company can issue shares and collect money from the shareholders. Authorised Capital of a company can be enhanced by a Resolution at a meeting of Shareholders.

Issued Capital is the portion of Authorised Capital that the company has issued shares to the shareholders of the company.

Called up capital is the portion of Issued Capital that the shareholders are requested to pay to the company.

Paid up capital is the portion of Called up capital that is paid by the shareholders to the company.

Private Companies should have Minimum Capital of Rs.1 Lakh and Public Company should have Minimum Capital of Rs.5 Lakhs for registration.

Digital Signature is a legally recognised method of signing documents electronically. A digital signature is a type of asymmetric cryptography used to simulate the security properties of a handwritten signature on paper. Digital signature schemes normally give two algorithms, one for signing which involves the user’s secret or private key, and one for verifying signatures which involves the user’s public key. The output of the signature process is called the “Digital Signature”.

Directors Identification Number or DIN is an identification number issued by the Ministry of Corporate Affairs to a director or a prospective director of a company. For obtaining a DIN, an online application has to be made to the Ministry of Corporate Affairs and the documents supporting Identity / Address Proof has to be submitted to their office. On verification of the documents, MCA will allot the DIN.

The Digital Signature of a person has to be registered against the DIN with the MCA. Registration of DIN with MCA is a prerequisite for accepting the forms signed with the Digital Signature. Role Check is being done to map the DSC with the respective DIN.

The Director of company is responsible for the management of the affairs of the company and is responsible for all the legal compliance under various laws. Directors are normally appointed by shareholders. Indian companies law prescribes only an individual can be appointed as a director of a company.

DIN1- Application to obtain DIN
DIN2- Intimation by the Director to the Company
DIN3- Intimation by the Company to the ROC
DIN4- Information to MCA about changes in address / details of the Director.

Shareholders / Members are the persons holds shares in a company.

A shareholder who holds the shares on behalf of another person by making required disclosures.

MOA is the charter document, by which a company is registered. It contains name of the company, state in which the registered office of the company is situated, objects of the company, capital and subscribers / promoters / first shareholders of the company.

AOA is the bylaws for the internal management of a company. This document defines the relationship of members and directors. It also restricts powers of directors, transfer of shares etc.

Subscribers to MOA are the promoters / first shareholders of a company. They are the persons forming the company. By subscription, they are agreeing to take such number of shares in the company and legally binding themselves to the company to pay the amount of shares subscribed by them.

Execution of MOA/AOA means signing of the MOA / AOA by the subscribers. Subscribers has to write their name, fathers name, residential address, occupation and the number of shares they agree to take by own handwriting and sign the document.

Registered Office is the registered address of the company or the principal place of business. The address of the Registered Office will be used for all official communications of the company. Registered Office of the company can be shifted from one place to another in the same State or from one State to another State after complying the legal requirements.

PAN means Permanent Account Number allotted by the Department of Income Tax. This is the number every tax assesses need to be obtained from Income Tax department. PAN is used for filing Income Tax return.

MCA means Ministry of Corporate Affairs. MCA 21 is the electronic filing system of documents with MCA through the web site

Service Request Number (SRN) is the unique number generated by MCA 21 while filing an electronic document with the MCA web site.

Corporate Identification Number (CIN) the number allotted to a Company registered in India by the Ministry of Corporate Affairs.

Electronic Forms (E-Forms) are the forms prescribed by the Ministry of Corporate Affairs for filing applications / returns by a company based on events by a company.

Form 1A is the Application Form to be filed with Ministry of Corporate Affairs to check the availability a proposed name for registration of new company or for changing the name of an existing company.

Form 1 is the Statutory Declaration to be filed at the time of incorporation of a company confirming the compliance of legal requirements under the Companies Act for registration of a new company.

Form 32 is the return to be filed with MCA regarding the appointment / cessation of Directors / Secretary / Manager of the company.

Form 18 is the notice of situation of registered office to be filed with MCA. The address stated in this form will be Registered Office of the company.

Companies Act requires certification of certain forms to be filed with MCA. The certification, wherever required is to be done by Company Secretaries / Chartered Accountants.

Certificate of Incorporation (COI) is the certificate issued by Registrar of Companies confirming the registration of the company.

Certificate for Commencement of Business (CCOB) is the certificate to be obtained by a Public Company before commencing commercial operation.

Statement of Lieu of Prostrates (SLP) is the document to be filed by a Public Company for obtaining the Certificate for Commencement of Business (CCOB)

Statutory Meeting is the meeting to be convened by a Public Company with in such time as stipulated by Law to transact the business as required under the Companies Act.

Statutory Meeting is the meeting to be convened by a Public Company with in such time as stipulated by Law to transact the business as required under the Companies Act.

Annual General Meeting (AGM) is the meeting of shareholders required to convened by a registered company in every calendar year.

Extra Ordinary General Meeting (EGM) is the meeting of shareholders of a company other than Statutory Meting and AGM.

Minutes means the recorded proceedings of a meeting. The minutes of the meetings of shareholders and directors of the company are required to be maintained for proper recording of the decisions taken at the meeting.

Resolution means the formal recording of a decision taken at a meeting.

Registers that are required to be maintained as per Company Law such as Register of Members, Register of Directors etc. are generally called as Statutory Registers.

Resolutions passed at a meeting of shareholders where votes casted in favour of the resolution are 3 times or more than the votes casted against the resolution.

Resolution passed at a meeting of shareholders where votes casted in favour of the resolution are more than votes casted against the resolution.

Company is a legal person and can not sign any document like a natural person. A Company executes the documents by affixing an impression seal called Common Seal duly witnessed by its Director / authorised representative as per the provisions of its Articled of Association.

Share Certificate is the proof of share holding in a company in the name of a person.

Basic information of a company stored in the database of MCA website.

Registrars of Companies are the officers vested with the primary duty of registering companies in respective States. These offices function as registry of documents filed by the companies which are available for inspection by public on payment of the prescribed fee.

Government Fees payable for registration of a company is Registration Fees. This varies with the Authorised Capital.

The rate of stamp duty payable on registration of varies according to respective State Stamp Law. You can find out the stamp duty payable in different states through the link in our Home page.