Why should any business opt for company registration in Delhi?

New Delhi is the political capital of India and is the major commercial capital of the country. It has varied industries like Information Technology, Telecommunications, Media, Banking, Hotels, Tour and Tourism.

The service sector is the largest employer of Delhi after manufacturing. There are five flatted factory complexes in Delhi and 29 industrial estates.

Every year, thousands of new businesses are set up, and companies are registered in Delhi. Being the capital of India and proximity to Gurgaon, which is home to thousands of multinational companies, Delhi and the NCT region attracts more and more people from India and abroad for registering a company in India.

Delhi NCT is also home to lots of startup companies in India. With the government of India’s initiatives and ease of doing business, the company registration process in India has been simplified.

In this write-up, we have tried to provide a guide for Company Registration in Delhi.

Approval for Company incorporation in Delhi is given by ROC Delhi, which is regulated by the Ministry of Corporate Affairs (MCA). The entire company incorporation procedure in India is now online, and no need to visit any office.

One can sit at the comfort of his home and office and register any private limited company, public limited Company, or LLPs anywhere in India. This has simplified the procedure of registering a company in India.

Steps involved in Company Registration in Delhi:

Following steps are involved in company registration:

1. The first step involved is applying for the Class 3 Digital Signature Certificate (DSC) of all Directors of the Company. DSC is required to prove the authenticity of the documents submitted online. The Controller of Certification Agency issues it. The validity of the Digital Signature Certificate is two years, and it cannot be shared with two businesses. It must be renewed after every two years.
2. Once DSC is prepared, one has to apply to ROC to reserve the Company’s proposed name. The name of the Company must be following its aims and objectives. The MCA is providing a facility called Reserve Unique Name (RUN). The applicant must propose two to three alternative names of the Company in the application to avoid applying for a new name if one is rejected. Name approval is the most crucial part of the entire company registration, and the applicant must carefully choose the name for approval.
3. The third step involved is drafting a Memorandum and Article of the Association of Company and applying for Director Identification Number (DIN). A Memorandum of Association (MOA) is a document that provides details regarding the relationship between the Company and the shareholders. It also contains the objectives of the Company. Articles of Association (AOA) define the purpose of the Company. It provides all the rules and regulations that must be followed in the organization. This charter gives the appointment of directors and how the business’s financial records must be handled. DIN is a person-specific, unique 8-digit number provided by MCA. Even if a person serves as a director in more than one Company his/her DIN will be the same. This helps to maintain a database with the necessary details of the directors.
4. Simultaneously, along with the third step, PAN, TAN, ESI, PF registration is applied. Also, the banker’s name needs to be provided with whom the current account would be opened after company incorporation in Delhi.
5. Finally, a Certificate of Incorporation is granted containing the Name of Company, CIN, PAN, and TAN of the Company.

This completes the process of company registration in Delhi. However, to fully operate the business, the following additional things are required.

The Company also needs to apply for GST registration and certificate of commencement of business before issuing invoices for goods sold or services rendered.

What are the lists of compliances which need to be done by every Company every year? 

Post company registration in India, every Company need to do the following compliances every year :

1. GST Returns- 16 returns need to be filed if Turnover< Rs 5 crore
2. GST Returns- 25 returns need to be filed if Turnover> Rs 5 crore
3. TDS Returns- 8 returns need to be filed ( 2 returns every qtr)
4. ROC Returns- 6 returns need to be filed
5. Income Tax Returns- 1 return needs to be filed
6. Accounting- Need to be done on a daily/weekly/monthly basis
7. Financial Statements need to be prepared i.e, BS, PL, CFS
8. Statutory Audit/ Financial Audit to be done by CAs even if NIL TO
9. Tax Audit to be done by CAs if TO> Rs 1 crore/5 crore
10. ROC Compliance- 4 Board meetings and 1 AGM need to be held

Note: Please note that all the compliance above need to be done even if there is NIL sales, NIL revenue, or very less sales or very less revenue in Company. Non Compliance will lead to a heavy penalty.