Checklist: Documents Needed to Start a Company in India

Introduction

This blog provides a list of all the documents Needed to Start a Company whether you are starting a private limited company, LLP, and one person company. It’s an adjustable checklist with explanations, formats, and guidelines for avoiding routine documentation mistakes.

Starting a business in India is an exciting move, but it’s also a move that demands recognition of details – more so in terms of documentation. Legal documentation for business registration in India is unavoidably complicated and time-consuming.

The usual cause of lag and even rejection in company formation is the lack or incompleteness of documents. Hence why the necessary documents to start a company are important to ensure seamless registration experience without unnecessary fuss.

This blog describes a company formation checklist which will help you to pass through all startup documentation needed for the registration of a company. Whether you are running a Private Limited Company, Limited Liability Partnership (LLP) or put together a One Person Company (OPC), this list suits you.

Founders’ Documents Needed to Start a Company(Directors/Shareholders)

Documents required by founders (pillars and shareholders) are an essential part of company registration. Here is the requirements.

PAN Card (valid only for Indian Citizens ).

All Indian citizens who are directors or shareholders of the company need to provide a PAN card. This is a critical document for tax purposes which will be necessary during the business registration at India.

• Note: The name should be the same which is written on the PAN card as Aadhar

Aadhaar Card or Voter ID/Passport/Driving License (as ID proof).

Along with the PAN card you need an ID proof. You can use your Aadhaar card, Voter ID, Passport or Driving License as a valid ID proof of everyone from India.

• Tip: Ensure that the name and details of the other documents needed to start a company are clear for all records.

Address Proof

The address proof can be latest bank statement or electricity or mobile bill (not older than 2 months). This document confirms that you live here.

Passport (Mandatory for Foreign Nationals)

Passport will be compulsory if any of the company’s directors are foreigners. Fees will also be levied on foreign directors to submit their visa details and residence address proof.

Photograph

A photo measuring passport size with a white background is needed. For easy uploads with the registration process this picture should be in JPEG/PNG format.

Registered Office Documents Needed to Start a Company

Having a registered office as a legal requirement for any company, it is important to have proper documentation for this address so as to be in the right business registration. Below are the document requirements to prove the existence of the office address.

Notice of Electricity Bill / Notice of Gas Bill / Notice of Water Bill / Property Tax Receipt

The bill has to be issued in the last two months to be taken to be valid. These are important documents needed to start a company to prove the solidity of the registered office.

NOC from Property Owner

In case the office space is hired you will be required to produce No Objection Certificate (NOC) from the owner of the property. This letter ought to say that the owner has no problem with you having their property as the official business address.

Rent Agreement (if rented)

A rent agreement is compulsory if the property is rented. The terms of the agreement should be registered in a name of a company or the owner and should concretely state the terms of the rental.

Property Deed (if owned)

In the case that the office is owned, a property deed will be required to give proof of ownership of the premises.

Digital Signature Certificate (DSC)

All potential directors of the firm require a Digital Signature Certificate (DSC). The DSC is a kind of way of digitally signing company documents during registration, during registration including the MOA & AOA. It is necessary when filing electronic documents with the Ministry of Corporate Affairs (MCA).

• Issued by Certifying Authorities: The DSC should be redeemed through government approved certifying authorities eMudhra, Sify or others.
• Required Documents: For applying for DSC, directors have to send self-attested copies of their ID proof (PAN or Aadhaar), address and a passport-size photograph. The online procedure of application can be done through the portal of certifying authority.
• Validity: The DSC is generally applicable for one or two years after which it becomes necessary to revamp the same. It is also utilized to sign other legal documents such as annual returns and financial statements.

Director Identification Number (DIN)

The Director Identification Number (DIN) is a unique number that must be stated for all the directors of any company. It is used as a proof of identity and provides MCA with an accounting of director positions in the registered companies.

• Application Process: To apply for the DIN, directors must utilize the business incorporation form. This form is known as SPICe+. DIN application does not need separate documents as it will be filed concurrently with the company registration if the application is sent through SPICe+.
• No Separate Document Needed: Different from other papers, one does not have to send any separate proof for DIN. But, the directors will have to sign a declaration that they are not disqualified to be a director and are eligible to act in that capacity. The declaration is generally filed along with the incorporation papers.
• Disqualifications: Particular criminal convictions or a court decline to apply for a DIN prevents directors from doing so and this can even hold up the company’s registration before it is clarified.

Company Documents

The following are the paperwork necessary to create the firm. These are generally filed during incorporating.

Name Reservation Letter (after name approval, from MCA)

Having identified a name for your firm, is then necessary to complete the name reservation application form, and to send it to the Ministry of Corporate Affairs (MCA). After this, you will get a Name Reservation Letter.

Memorandum of Association (MOA)

The MOA clarifies the company’s goal, its relationship with the shareholders and directors’ rights.

Articles of Association (AOA)

The Articles of Association (AOA) explain the inner workings of the company, which includes the regulations for conducting business in the company, rights of the shareholders, and duties of directors.

Inc-9 and Dir-2 Declaration by Direct and Subscribers

INC-9 and DIR-2 forms should be signed by the directors and subscribers who need to confirm that they agree to become part of the company. This is a conventional procedure for the course of company registration.

Consent to Act as Director (DIR-2)

This document is required from all directors who agree to become a director of the company.

Company-Specific Requirements

Every type of companies has special documentation requirements. Below are the additional documents that you might need depending on the structure of your company.

For Private Limited Company

Minimum of 2 directors and 2 shareholders.

Receipt from shareholders (Subscription sheet) attesting to shareholding.

For LLP

A draft LLP agreement, which specifies the structure and working of the LLP.

For One Person Company (OPC)

Nominee’s ID and address proof. Such an OPC must have a nominee to counter case of death or incapacity of the sole member.

Optional but Recommended Documents

While these are not required for registration, they are highly recommended:

• Trademark search results to make sure you name your company will not clash with other brands.
• Proposal/business plan/executive summary that will be presented to investors, banks or other financial institutions when you want funding or open a corporate bank account.

Format & Document Submission Tips

Timely presenting of the documents will save you from unnecessary delays. Here are some tips:

• For considering all documents including IDs and Address Proof a self attestation is needed. Notarization is optional for NRIs.
• Always please submit scanned PDF copies of documents and make sure they are not more than 2MB in size.
• Clarity is essential. Ensure that scanned copies of documents – particularly ID cards and photos – are not blurry or unclear.

Documents Checklist

Common Mistakes to Avoid

• Name mismatch in PAN to Aadhaar details – Your PAN and Aadhaar details must be identical.
• Return old utility bills – Use a bill that is not older than 2 months.
• Blurry or unfocused scans – Make sure that scans are clear and readable. Scans need to be clear and legible.
• Not self-attesting or notarizing (for NRIs) – Failure to self-attest can slow the process down.

Final Thoughts

The registration process becomes smooth, provided you have all the documents needed to start a company in order. A soft and hard copy should both be kept ready to be submitted. Utilize cloud storage solutions such as Google Drive or Notion for easy access of these documents anytime. Organization and meticulousness with regard to your startup documentation will save you time and make your company formation process easier.

Following this thorough company formation checklist, you will avert common error and guarantee a successful, fast company registration.