Mumbai, formally known as Bombay is one of the largest cities in India and the capital of Maharashtra state. Mumbai serves as India’s financial, entertainment, and commercial capital. It is a thriving metropolis with thousands of businesses and headquarters for some of India’s most prominent MNCs. It also houses some of the country’s foremost scientific and nuclear institutions. Mumbai is well-known for industry sectors like jewelry, entertainment, fashion, banking, and other financial services. It has an advantageous economic climate that makes it suitable for private limited company registration, due to its port facilities, favorable financial framework, access to hydropower, and skilled workforce.
Company registration is the first and most integral step for a business owner before starting any business. Choosing the correct business structure is a key decision and can be done only after looking at the factors and available options for company registration in Mumbai. This article covers the types of company registration, primary requirements, the process of registration, documents, and government fees for company registration.
Types of Company registration in Mumbai
The Ministry of Corporate Affairs (MCA) governs the company registration process in India. Depending upon suitable structure and future business prospects, entrepreneurs can go for any of the below company registration in Mumbai.
- Private Limited Company (Pvt Ltd): Best suitable for a group of people starting a business with a plan to raise funds in the future from outsiders along with easy transferability of shares and limited liability of owners. The cost of compliance is moderate in this structure.
- One Person Company (OPC): Advisable for an individual who wants to start a business as a single owner with multiple managers. The cost of compliance is moderate here.
- Limited Liability Partnership (LLP): It is ideal for a close group of people wishing to start a business with the limited liability of partners and a minimal external contribution. The cost of compliance is the lowest in this structure.
- Public Limited Company: It is a company that offers its shares to the public at large. Anyone can buy shares of a public company from the secondary market. And it is regulated strictly under the Companies Act, 2013 and SEBI Act, 1992. The cost of compliance is highest in this structure.
Pvt Ltd is considered the most favorable business structure due to features like the limited liability of owners, clarity in management and ownership, easy transferability of shares, and ease in raising or borrowing funds from outsiders.
Primary conditions for company registration in Mumbai
The government of India has made company registration completely online and paperless under its initiative ‘Ease of Doing Business’. The following are the requirements for company registration in Mumbai under this initiative:
- The proposed company must have a minimum of 2 directors. And at least one director must be a permanent resident of India.
- A registered office address in Mumbai is a must.
- A minimum of 2 shareholders are a must. The first shareholders execute the Article of Association (AOA) and Memorandum of Association (MOA) to register a company.
- The proposed company’s name should be unique.
- The authorized capital of INR.1 Lakh is a must. (Pro Tip: There is no limit on paid-up capital however it is advisable to keep the paid-up capital more than the face value of shares of a company.)
Process for company registration
The average time taken to register a new company in Mumbai is 10-15 working days. However, it might take longer since it is subject to approval by the MCA online. Following is the 4 simple step process to register a company in Mumbai:
- Apply for the Digital Signature Certificate (DSC) of all Directors,
- Apply for Name Reservation of proposed company in RUN (SPICe+ Part A form),
- Drafting and filling of web forms i.e, SPICe+ Part B, Agile Pro, SPICe+AOA(Article of Association), SPICe+MOA (Memorandum of Association).
- Payment of company registration fees and stamp duty on the MCA portal for further processing of the application.
Keep in mind that all the proofs should be recent and not older than 2 months. Below is the list of documents necessary to register a new company in Mumbai:
In the case of a director/shareholder who is an Indian National:
- Self-Attested copies of PAN and Aadhar of all the directors and shareholders
- Passport size photograph
- Proof of Identity with self-attestation i.e, Voter ID/Passport/Driving License
- Address Proof with self-attestation i.e, Mobile Bill/Telephone Bill/Electricity Bill/Latest Bank Account Statement not older than 2 months
In the case of a director/shareholder who is a Foreign National:
All the documents should be notarized and apostilled in the case of a foreign director/shareholder:
- Proof of nationality i.e, a copy of a passport
- Address proof such as Driving License/Bank Statement/utility bill
- Passport size photograph
Documents for Registered Office
- Business address proof i.e, Electricity Bill/Telephone Bill/Water Bill/Gas Bill
- Copy of Rent Agreement in case of rented property
- No objection Certificate (NOC) from the owner of the Property
While registering a company there are 2 types of government fees. One is stamp duty which is based on authorized capital and the state of company registration. And another one is MCA form filing fees which are paid online through the MCA portal. Government fees start from INR. 1300 for a company with a minimum authorized share capital of INR. 1,00,000 in Mumbai. In case someone wants to apply for a particular name for the proposed company, fees of INR. 1,000 is applicable for each RUN form filing.
Frequently Asked Questions