If we talk about numbers, February 2025 Indian government data shows that over 28 lakh companies registered in India of which 18.1 lakh companies are active.
This data shows how easy and convenient company registration online in India has become.
Now entrepreneurs and business owners can start their business quickly without the hassle of long paperwork and process or visiting the government offices.
This guide is totally dedicated on how to register a company in India with registration process, document requirements and complete overview on businesses.
What is Company Registration?
Company registration is a process of officially creating a company or firm so it can do business without any complications.
It means telling the officials (government) that your company exists, giving it a name and getting permission to work legally.
Once your company is registered it gets a special number form that you can open bank accounts, sell your products or services, or also hire people.
Benefits of Registering a Company Online in India
There are plenty of benefits of registering a company in India, Those are as follow:
- Quick and Easy Process – You can register from home using the internet, without visiting government offices.
- Saves Time and Money – Online registration takes less time and usually costs less than doing it offline.
- Government Support – Registered companies can get help and benefits from government schemes and loans.
- Legal Protection – A registered company is legally recognized and protected under Indian law.
- Builds Trust – Customers, clients, and investors trust registered companies more.
- Limited Liability – If something goes wrong, your personal money is safe, and only the company is responsible.
- Can Open a Business Bank Account – You can open a bank account in the company’s name.
- Easy to Grow – It’s easier to bring in partners or investors and expand the business.
Exploring Different Types of Companies in India?
There are several types of companies in India, but I am listing the 9 major types of companies with their tax advantages and ideal for:
1. Private Limited Company (Pvt Ltd)
This type of company is the most common type for small and medium growth enterprises. A company with this type can have at least two shareholders and two directors, but no more than 200 shareholders.
Ideal for: Small or medium-sized businesses that want to limit liability, so they increase pathways for growth and expansion.
Tax Advantages:
- Lower tax on such companies than any other form of business.
- Business expenditure deducted.
- Dividend Distribution Tax (DDT) is exempted for shareholders of the company.
2. Public Limited Company (Ltd)
These companies are those that can raise funds by issuing shares to the public and listing themselves on a recognized stock exchange. This type of company requires at least 7 shareholders in addition to 3 directors.
Ideal for: Large companies that intend to raise capital from the public and wish to be listed on stock exchanges.
Tax Advantages:
- Tax rates similar to private limited companies.
- Can avail exemptions and tax benefits under special schemes for companies raising funds from the public.
You should be set up in all states for an OPC because it allows a person to have a company without other shareholders and provides limited liability to that one shareholder.
Ideal for: Solo entrepreneurs who want limited liability protection while running a business independently.
Tax Advantages:
- Taxed similarly to a private limited company but with the simplicity of having only one shareholder.
- Exemptions from some compliance requirements compared to regular companies.
4. Limited Liability Partnership (LLP)
This is a hybrid form of business between a partnership and company. It allows two or more partners to run a business with limited liability protection. The partners’ personal assets are protected.
Ideal for: Small to medium-sized businesses with partners who want limited liability protection and flexibility in management.
Tax Advantages:
- No dividend distribution tax (DDT).
- Taxation occurs on a pass-through basis as the profits are taxed at the level of the partners not the business level.
A partnership firm is an organization formed by two or more persons acting either as owners or managers of a business. In this form, owners share profits, losses, and liabilities.
Ideal for: Small businesses with multiple partners that want simple and flexible management.
Tax Advantages:
- Profits are taxed at the personal level of the partners.
- Can claim deductions for business expenses, but no tax advantages like limited companies.
A business owned by one person who also runs this business. The sole proprietor looks after the business and is responsible for everything concerning the business.
Best for: The little businessman who wants to hold full control over the business, as well as avoid being burdened by any company structure.
Tax Advantages:
- Simple tax structure where business income is taxed directly as personal income.
- Low compliance costs but no liability protection.
7. Producer Company
The term producer company designates a body formed by farmers, producers, or growers who come together in a company for the welfare of their interests like marketing and production.
Ideal for: Groups of farmers or producers who desire to forge together for collective business ventures such as production, marketing, and processing.
Tax Advantages:
- Similar to a private limited company, it benefits from lower corporate tax rates.
- Can avail various government subsidies and schemes for producers.
8. Section 8 Company (Non-Profit Company)
A Section 8 company is a non-profit entity, often created for social, charitable, or educational purposes, which does not share any of its earnings (profit) with its members.
Good for: NGO’s, charitable organizations, or any company incorporated for social, educational, or charitable purposes.
Tax Advantages:
- Exempt from paying income tax on earnings used for charitable purposes.
- Donors may get tax deductions for donations to Section 8 companies.
9. Foreign Company
A foreign company is a company set up outside India but having a place of business within India as a branch, subsidiary, or joint venture.
Ideal for: Foreign entities wanting to establish a branch or subsidiary in India to operate a business.
Tax Advantages:
- Subject to Indian taxation, but may derive benefits under double taxation treaties between India and the home country, avoiding double taxation.
- Depending on various conditions, tax deductions may be provided for, say, business expenditures or as per transfer pricing regulations.
Understanding The Difference Between One Person Company And Proprietorship Firm
Here is a simple comparison between OPC Company and Proprietorship firm as follow:
| Feature | OPC | Proprietorship Firm |
| Ownership | Owned by only one person. | Owned by only one person. |
| Liability | Limited liability (personal assets are protected). | Unlimited liability (owner’s personal assets are at risk). |
| Legal Structure | Separate legal entity from the owner. | Not a separate legal entity; it’s the owner themselves. |
| Registration | Needs formal registration with the government. | Simple registration (less paperwork). |
| Taxation | Taxed as a company, generally higher taxes. | Taxed as personal income of the owner. |
| Name | Must have “OPC” in the name. | No special name requirement. |
| Continuity | Can continue even if the owner changes. | Ends if the owner dies or decides to close it. |
| Funding | Can raise funds through loans or investors. | Limited funding options (only personal funds). |
| Compliance | Requires more legal compliance (like audits). | Less compliance needed. |
Steps to Register a Company Online in India
Simple guide on company registration process in India: five easy steps
Step 1: Obtain Digital Signature Certificate (DSC)
Firstly you need a digital signature certificate to sign the registration forms electronically.
To accomplish this, you will need identity proof (Aadhaar, passport, or voter ID) and address proof (utility bill).
The cost of the DSC usually lies somewhere between Rs 500 and Rs 2000.
Step 2: Get Director Identification Number (DIN)
Now, obtain a director identification number for each director of the company.
Identity proof, address proof, and one passport-sized photo will be necessary here.
The DIN application is typically free if done alongside the company registration process.
Step 3: Choose and Reserve a Company Name
After obtaining the DSC and DIN, the next step is to choose a unique name for your company.
You’ll need to check the availability of the name on the MCA portal and submit 2-3 preferred names.
Make sure the name has not already been taken by someone.
Step 4: Documents Preparation for Company Registration
Once the name is reserved, prepare the necessary documents for registration which are:
- Memorandum of Association (MOA) and Articles of Association (AOA): These define the company’s objectives and rules.
- Proof of office address (rental agreement, utility bill).
- ID and address proof of all directors and shareholders.
Step 5: Submit the Application for Incorporation
Finally, submit the application for company registration through the MCA portal by filling out the SPICe+ form and attaching all the required documents (MOA, AOA, proof of identity, and address).
Fee: The company registration fee depends on the authorized share capital:
- Up to ₹1 Lakh capital: ₹600 to ₹2,000.
- Has authorized capital of more than ₹1 Lakh: Fees are based on the authorized capital (which can be above ₹100,000 depending on the share capital).
The Registrar of Companies, once submitted, will examine your application, and if they can, they will register your company! The Company will receive a Certificate of Incorporation.
How to Choose the Right Business Structure During Company Registration Process?
Selecting the right business is very important at the time of company registration because it affects how your business operates, how taxes are paid, and level of personal liability.
There are many common business structures to choose from as I have listed them above, and the right one depends on your specific needs.
This is where Regible Corporate Advisor LLP helps you with your decision by offering you expert advice and assisting you throughout the business registration process.
Summary
Company registration has become easier these days but many people find it still difficult to do, but never forget to run a business with full proof and legally you need to register your company and get approved by the government to run the business smoothly.
But if you still need help then a professional consultant like Regible Corporate Advisor is here with you in every step to make your idea into reality.
Frequently Asked Questions
How Much Does it Cost to Register a Company Online?
As of the cost it generally costs around ₹6,000 to ₹30,000 depending which type of company it is and what type of services they are providing.
How Many Days Does It Take To Register My Company?
It generally takes around 7 to 15 days only if your documents and paperworks are all in order.
What Happens If My Company Name is Already Taken by Someone Else?
If your firm name is already taken by someone then you have an option to choose a different name which represents your company.
How to Check If My Company Name is Taken By Someone or Not?
Using the Ministry of Corporate Affairs (MCA) website or online tool you can check name availability.
Where Can I Register My Company Online?
You can either register at the MCA portal or through different online services that offer company registration.
