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How Do We Help?

  • Pre Startup: We assist you to identify upcoming challenges and survival techniques in the startup ecosystem
  • Startups: We are a one stop shop for all your needs, helping you from incorporation to employee policies
  • Right Team of Advisors: With a vast work experience of 15+ years, our teams are equipped to cater to all your requests and queries
  • Suitable Services: Our array of expertise enables us to identify exact requirements leading us to fulfill the exact needs of our clients
  • Flexible Engagement: Our services are aimed to enable you to get the right start in the right manner and work around your timelines and abilities without the burden of rigid costs
  • Easy and Prompt Access: We are a phone call away to discuss your requirements and our response time to any form of communication is unmatched

Setting Up Private Limited Company

In India, there are a number of ways in which you can start a Business in India. These include, set up or incorporation of the following types of entities:

  • Partnership
  • One Person Company/ Sole proprietorship
  • Private Limited Company
  • Public Limited Company
  • Unlimited Company
  • Limited Liability Partnership (LLP)
  • Cooperatives
  • Trust
  • Societies

Of the abovementioned, for incorporation of a company, Pvt Ltd Company Registration in India is the most popular and done with ease. The step by step process involved in Pvt Ltd Company Registration has been made less cumbersome and the documentation needed has been minimised. Thus, emphasising on the need for having clear and well drafted documentation and experienced filing for a Private Limited Company registration.

What is needed for Registering a Private Limited Company in India:

Paid up Capital - Minimum of INR 1,00,000/- (Indian Rupees One Lakh) as Paid up Capital for the Pvt Ltd Company;

Members and Directors – For registering a private limited company, a minimum of 2 members/ shareholders and a maximum of 200 members/ shareholders are needed. There will be a minimum of 2 directors and maximum of 15 directors.

Registered Office – When registering a private limited company, an address/ location of place of business, is required to be filed, which for all future purpose will be known as the registered office of the company. This is also where all official correspondence from the Ministry of Corporate Affairs will be sent. There are a number of options available now for a company from buying a property, renting a space, using a co-working spaces address (after executing the requisite documents) or even using your lawyers address (after acquiring the requisite permissions). A virtual office space is another option that a lot of entrepreneurs and companies are favouring due to the ease of doing business and correspondence. A temporary office address can be provided to while filing for incorporation, however, within 15 days of incorporation of the company, an official registered office address must be provided.

Change in the Registered Office - The registered office can be changed within the local limits of any city, town or village where such office is situated by just providing a notice within 30 days after the date of the change.

Suitable Name – There are a few naming guidelines laid down as per law that are required to be followed while registering a private limited company in India. For a name to be approved for the incorporation of a new company, it must be both unique and desirable. A must is a search on the MCA website and a trademark for similar names before and making sure that the proposed name is unique before applying. No less than six different names in order of preference have to be provided while applying for registration of private limited company and the names should be indicative of the main objects of the company.

DIN and DSC – Due to the numerous forms to be filled it is mandatory to get a DIN (Director Identification Number) and DSC (Digital Signature Certificate)

Documents to be Drafted

  • Memorandum of Associate (MOA) – This is the base document which lays down the constitution/ foundation of the company. The purpose of the MOA is to display the permitted range of activities of a company for the guidance of shareholders, creditors and others. When incorporating or registering a private limited company, proper advice must be taken to draft a proper Memorandum of Association to safeguard yourself and the business in the long term.
  • Articles of Association (AoA) – This document regulates the domestic management of a private limited company and creates certain rights and obligations between the members and the company. The Articles of Association are in fact the by-laws of the company according to which directors and other officers are required to perform their function as regard the management of the company, its accounts and audit.
  • Forms – Various forms need to be filled carefully and submitted to the Registrar of Companies (RoC)

Time Frame to Register Pvt Ltd Company

Depending on the citizenship of the members/ directors, 2 – 6 weeks.

Advantages

  • Separate Legal Identity
  • Limited Liability
  • Continuality of Existence
  • Greater scope of Funding and Expansion
  • Tax Benefits
  • Flexible Designations within the Company

Foreigner in a Pvt Ltd Company

A foreigner can act as a Director of an Indian company, there will be addition paperwork that will need to be submitted such as passport, identity and address proof attested by Indian consulate of the home country of the foreigner, application forms for digital signatures, etc.

India has several policies in place to encourage Foreign Direct Investment (FDI) and if a particular sector permits 100% FDI, an Indian shareholder is not needed. There is however, a requirement to have an “India resident” director in all companies under the new Indian Companies Act. This person does not have to be an Indian national, but must be someone who has been a tax resident in India for the previous year.

  • Satisfied Clients 200+
  • Company Registered 500+
  • Trademark Applied 2000+
  • Startups Served 100+

FAQs

Business in India

Do I need a lawyer to start a business? Can’t my chartered accountant handle everything?

More often than not, a person/company is made to believe that the accountant can draft the incorporation documents and do all the necessary filings. However, in our experience most companies come to us after they realise that the accountant has failed to or missed drafting an essential clause due to which the company faces penalties or their rights have been protected properly.

Thus, it is vital to engage a lawyer and an accountant to do their respective jobs, to ensure that you are protected.

The advantages of hiring a lawyerat the stage of conception are multi fold. There are numerous matters such as contractual disputes, property disputes, environmental disputes that have to be dealt by a business owner and in order to prevent these disputes from arising, the services of a lawyer prove essential.

Do I need to execute employment contracts?

Yes, it is pertinent to execute employee contracts as it lays down the rights and responsibilities of the employee and the obligations of the employer as per the law.

Such as:

  • It is mandatory that all employees in factories or establishment shall be insured.
  • Maternity benefit, sickness benefit, disablement benefit have to be provided.
  • Any establishment with over 20 employees, has to be registered with the Employee Provident Fund Organisation.

It is also beneficial to have a lawyer draft an employee manual to ensure that the employees are aware of the governance of your establishment.

Do I need to get my tradename registered?

It is better if the tradename is registered as it gives you the exclusive right to use such tradename. It is not mandatory to register a trademark however to be on the safe side, it is better to get it registered. Due to the awareness created about the rights and privileges of ownership, today, it is relatively easy to get your trademark registered, provided you have the right person/ firm to do the filings.

How important is it to protect my intellectual property?

Intellectual property rights are valuable assets to your company. Once you have created a distinctive intellectual property, it is necessary to get it registered.Some of the benefits that you receive by registering your intellectual property is as follows:

  • The exclusive right to use such registered intellectual property.
  • You can obtain relief from a court of law if infringement of your intellectual property takes place.

A registered intellectual property dissuades others from using such property.

How will I qualify as a “Start Up” according to Indian Law?

In order to promote entrepreneurship in the country, the Government of India recently amended the definition of a Startup:

  • Considering the long gestation period by Startups to establish, an entity shall be considered a Startup up to seven years from the date of its incorporation/ registration (from earlier 5 years). However, in the case of Startups in the biotechnology sector, the period shall be up to ten years from the date of incorporation/ registration.
  • The turnover does not exceed 25 crores in the last five financial years.
  • The work involved should be aimed towards innovation, development, deployment, and commercialisation of new products, processes, or services driven by technology or intellectual property.
Should I invest in real estate? What are my other options?

A lot of factors have to be looked into before investing in real estate. However, the major issue that start-ups face is availability of funds. If you have enough funds to rent a property then that is a viable option. The other option that you have is to take up a space as per your requirement at one of the various co working centres. Co working is a style of work that involves a shared working environment.

The reasons it the most practical option for a Start Up are:

  • It is cheaper which means the cost of the startup is lower.
  • It is flexible since as the business grows it is easier to scale up a shared office.
  • There are networking opportunities in a co working space.
Should I require prospective angel or venture capital investors to sign a Non-Disclosure Agreement (NDA) so they don’t steal my idea?

It is not advisable to get a Non-Disclosure Agreement (NDA) signed by prospective angel and venture capital investors. The reason for the same is that venture capitalists meet a lot of entrepreneurs and therefore they have to look into a lot of ideas that are similar to one anotherdue to which they prefer not to get entangled in NDAs. It is better to build a relationship with the venture and angel capitalists instead of getting a Non-Disclosure Agreement signed.

What kind of documentation do I need if I am planning to get investment?

Prior to approaching an investor, ensure that all your registrations, permits, consents, licenses required for your work have been obtained and your books of accounts are updated. Ideally, your lawyer should be able to identify whether all your compliances are in order and if you require any further protection.

You should have a clear business plan drawn out and a reasonably good track record to be able to leverage investment into your company.

What type of Company should I start?

Depending on the kind of work, capital available and your general business plan, you have the following options:

  • Sole proprietorship
  • Private Ltd Company
  • Public Ltd Company
  • Unlimited Company
  • Partnership
  • Limited Liability Partnership (LLP)

You also have the option of converting one entity to another at a later stage, such as a sole proprietorship into a partnership, or a partnership into a private limited company.

For a foreign Investor in India it is very important to choose the right kind of corporate entity best suited for its purposes, takes care of liability and tax planning issues.