Four Steps to Register a Company in India

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India is an emerging market for both Indian and foreign investors. The Government of India offers entrepreneurial friendly policies which makes growth of businesses in India easier. With a population of more than one billion, India offers companies a large, built-in, and dynamic potential market to explore. If you are interested in setting up a company in India, you should know what kind of documents you should provide.  

Four Key Steps to Register a Company in India

Step 1: Acquire Digital Signature Certificate (DSC) 

India’s “The Information Technology Act, 2000″ has provisions for use of digital signatures on the documents submitted in electronic form in order to ensure the security and authenticity of the documents filed electronically. This is secure and authentic way to submit a document electronically. As such, all filings done by companies/LLPs under MCA21 e-Governance program are required to be filed using digital signatures by the person authorized to sign the documents. 

1. Legal Warning: 

You can use only the valid digital signatures issued to you. It is illegal to use digital signatures of anybody other than the one to whom it is issued. 

2. Certification Agencies: 

Certification Agencies are appointed by the office of the Controller of Certification Agencies (CCA) under the provisions of IT Act, 2000. There are a total of eight Certification Agencies authorized by the CCA to issue Digital Signature Certificates (DSCs). The details of these Certification Agencies are available on the portal of the Ministry Certifying Authorities 

3. Class of DSCs: 

The Ministry of Corporate Affairs has stipulated a Class-II or above category signing certificate for e-Filings under MCA21. A person who already has the specified DSC for any other application can use the same for filings under MCA21 and is not required to obtain a fresh DSC. 

4. Validity of Digital Signatures: 

The DSCs are typically issued with one-year validity and two year validity. These are renewable on expiry of the period of initial issue. 

5. Cost of Digital Signatures: 

The digital signature prices includes the cost of medium (a UBS token which is a onetime cost), the cost of issuance of DSC, and the renewal cost after the period of validity. The company representatives and professionals required to obtain DSCs are free to procure the same from any one of the approved Certification Agencies as per the MCA portal. The issuance costs in respect of each agency vary and are market driven. 

6. Obtain Digital Signature Certificate 

– Digital Signature Certificate (DSC) Applicants can directly approach Certifying Authorities (CAs) with original supporting documents, and self-attested copies will be sufficient in this case
– DSCs can also be obtained, wherever offered by CA, using Aadhar eKYC based authentication, and supporting documents are not required in this case
– A letter/certificate issued by a Bank containing the DSC applicant’s information as retained in the Bank database can be accepted. Such letter/certificate should be certified by the Bank Manager 


Step 2: Acquire Director Identification Number (DIN) 

The concept of a Director Identification Number (DIN) has been introduced for the first time with the insertion of Sections 266A to 266G of Companies (Amendment) Act, 2006. As such, all the existing and intending Directors have to obtain DIN within the prescribed time-frame as notified. 

Forms for DIN application and modification thereof: 

  1. SPICeForm: Application for allotment of DINs to the proposed first Directors in respect of new companies shall be made in SPICe form only. 
  2. DIR-3 Form: Any person intending to become a director in an existing company shall have to make an application ineForm DIR-3 for allotment of DIN. 
  3. DIR-6 Form: Any changes in the particulars of the directors shall be filed in form DIR-6


Step 3: Create an account on MCA portal- New user registration @ 

Step 4: Incorporate or apply for the company to be registered

Types of Business Entities in India

  • Private Ltd Company 
  • Public Ltd Company 
  • Unlimited Company 
  • Sole proprietorship 
  • Joint Hindu Family business 
  • Partnership 
  • Cooperatives 
  • Limited Liability Partnership(LLP) 
  • Liaison Office 
  • Branch Office 
  • Project Office 
  • Subsidiary Company

Learn more about the Types of Business Entities in India.

Employee Leasing in India

By hiring employees in India, you can get the perfect balance between affordability and quality.  When compared to hiring talent in European or North American countries the price of software development is low in India. 

The cost of in-house developers is often higher than the cost of hiring offshore developers. In terms of cost-effectiveness, India is considered to be the top countries for employee leasing. You will have a talented pool of employees to hire from and skilled employees who understand the business culture. 

Below is a comparison of US Employment Laws and India Employment Laws.   

US labor law infograph
India employment laws infograph

NNRoad’s team is expert in employment regulations in India and can help navigate the complexities of the local Indian labor laws. NNRoad offers employee leasing, entity set-up, payroll services, and benefits administration in India. 

If you are interested in expanding your business in India, NNRoad assists enterprises with entity formation and handles the entire set-up process for carrying out business in India, enabling your company to focus on your core competencies instead of being tied down with the complex regulatory environment. 

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