The procedure for a firm establishment is the main step of starting any corporation in India. Company incorporation is the process that makes a business legitimate. Selecting what business entity to establish is counted as the main business decision. The Indian government has now introduced a digital process of incorporation to simplify business for people. Nevertheless, there are several points that businessmen need to focus on and note before they initiate the registration process. In this blog, we will discuss how to register a company in Mumbai, and why should corporations go for it.
Register A Company In Mumbai
India is a highly populated nation, and Mumbai bags the position of 2nd highest populated city. Mumbai is a financial hub for various types of corporations. Another interesting fact about Mumbai is that it is also India’s entertainment, commercial, and financial capital. Everything starting from the RBI to SEBI is present in this city.
The process of company registration in Mumbai takes place as per the provisions of the 2013 Companies Act and provides businessmen limited liability. The office of the Companies Registrar is present both in Pune and in Mumbai. Below is given the list for all the regions that fall under their governance:
The Registrar of Companies in Mumbai is known to monitor and regulate the establishment of firms in all other regions. The process of registration is processed and regulated by the Registrar of Companies, Central Registration Centre, and by the Ministry of Corporate Affairs.
Eligibility Criteria To Register a Company in Mumbai
Here’s a brief list of the requirements that firms must complete to register as a firm in Mumbai.
- Most private limited businesses should have at least 2 shareholders, the 1st of which must approve the Memorandum and Articles of Association for the business to be registered.
- A privately owned business must also have at least 2 directors. Furthermore, only persons may be appointed directors in a business, and at least 1 director should be a resident of India. All electronic filings made through the MCA’s website must be authenticated and signed with a Digital Signature Certificate.
- The directors should come up with a decent firm name before establishing the business. The selected name must adhere to the business naming standards outlined in the Companies Act of 2013.
- In Mumbai, there is no need for a qualifying paid-up share capital value when forming a private limited firm. The needed minimum authorized share capital is INR 1 lakh. Your registration or processing charge, on the other hand, will be determined by the amount of money you acquire.
- If you want to finish the business registration process in India, you’ll need to create a business address. All formal correspondence for entrepreneurs should be sent to this address.
Checklist For Registering A Company in Mumbai
At least 2 shareholders are required to file a private firm in Mumbai. The Memorandum and Articles of Association should be signed by the initial shareholder(s) to establish the firm.
2. Managing Directors
At least 2 directors are required for a private firm. A company’s board of directors can only be made up of persons. When two or more 2 existing businesses or LLPs form a new firm, the promoter business or LLP can select individuals to serve as executives of the startup entity. To reach the position of director of a corporation, an individual must have a certified DIN.
3. Certificate of Electronic Signatures
All filings must be done on the internet via the MCA system application and must be accompanied by a certified Digital Signature Certificate (DSC).
4. Share Capital
Share capital in a firm is the funds put in by the firm owners for keeping the business operations running. There isn’t any set amount for the capital. But the registration fee needed to be submitted to the RoC is based on multiple slabs of the firm’s authorized capital.
5. Firm’s registered business address
The authorized correspondence location of a corporation or its major business premises is referred to as the official address of a firm in Mumbai. All formal communications from the business will be sent to this address.
Choose A Name When You Register a Company in Mumbai
Picking a name for your firm should be done as per the provisions stated by the 2013 Companies Act. The naming of a firm is the most important part of registering a firm. Let’s have a glance at the naming provisions that corporations have to abide by when picking a company name:
- Pick a name that’s easy to speak, remember, and gives an idea about your business
- One must make sure that the name is reflecting your complete objective and mission and is different from other brands
- Check the availability of a domain name as it will make it easy for you to create an online site in the firm’s name.
- If you want to incorporate words like Scheme, Prime Minister, Federal, National, and Small-scale, you’ll have to get approval from the Indian government beforehand.
- Just like that, incorporating financial words like Bank, Venture Capital, Mutual funds, etc needs permission from SEBI, RBI, and IRDA.
Documents Required To Register a Company in Mumbai
Here is a list of documents that are needed to fulfill the process of incorporation:
- Directors’ consent, Form INC – 32
- Directors’ declaration, Form INC – 9
- Simplified Proforma for Registering Firm Digitally, Form INC – 32
- e-Articles of Association and e-Memorandum of Association, Form INC – 33 and INC – 34
- Directors’ e-signature certificate and DIN
- Directors’ passport size pictures
- Evidence of address of the business site
- If the business place is rented, NOC by the owner
- Address and identity proof of every director.
- Aadhaar card
- PAN card
- Voter identity card
- Driving license
- Utility bill < three months
- Bank account statement or passbook
Procedure To Register a Company in Mumbai
The steps of the process to register a firm in Mumbai are as follows:
- Firstly, businessmen must contact a legal agent and pick what business entity would be best for them
- Then, based on the chosen business entity the firm owners should pick an appropriate name for their company, and check if it’s available.
- As soon as the name gets approval, the team can start collecting all the mandatory documents.
- In the next step, the businessmen should hire a lawyer and file for registration with the Registrar of Companies.
- Firms with an authorized share capital of an amount lower than 15Lakhs don’t have to give any registration fee. But they are required to submit the stamp duty for the filing process and its processing fee.
Advantages of Registering A Company In Mumbai
Let’s have a look at the list of advantages one gets after registering a company in Mumbai:
- Improved acceptance, trustworthiness, and credibility
- Access to enhanced funding and capability to grab more consumers
- Ease of bagging better workers
- Improved protection because of limited liability
- Security of the individual assets of shareholders
The process of company registration in Mumbai is simple and beneficial at the same time. In this article we have discussed all the aspects related to company registration in Mumbai, such as its process, documents required, checklist for company name selection, advantages, etc. If you wish to take external help for Mumbai company registration, contact us at ODINT Consulting.
One can expect a good acceptance, credibility, better staff, improved security because of limited liability, etc.
Some of the documents that are to submit when asked for address and identity proof are, PAN card, Voter ID card, Aadhar Card, Driving License, etc.