Company registration in India

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Anyone who aims to build a successful startup must also know where to start from. While in practice you can start operating your business the minute you have an idea and a system and a team to execute it, a company or a startup is a legal entity and it must be registered with the government and have a proper, and legally-recognizable status. A company can achieve that by “incorporating” or formally registering itself as a commercial entity. However the process can be long, tedious or simply you don;t know the first thing about the formalities involved in incorporating your company.

The folks at came cross dozens of queries about what is the procedure to incorporate a company, how long it takes and so on. So, they made a quick but comprehensive compendium of the entire process of formation of a private limited company and various formalities that are required to be fulfilled. The entity in question here is a private limited company, a popular choice of a legal entity by startups.

Did you know, in year 2014-15, approx 272370 private limited companies were incorporated in New Delhi alone.

Let us start with basic requirements and characteristic of a Private Limited company:

  • Minimum 2 Directors are required to incorporate a company, 1 director needs to be Resident of India (ROI).
  • Maximum 15 Directors can be appointed, further can be appointed only after passing special resolution.
  • Maximum 200 shareholders, subject to some certain condition.
  • Prohibits any invitation to public to subscribe for any securities (shares).
  • Restriction on Unsecured Loan.

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