New Company Registration in Mumbai 

The Companies Act, 2013 governs the registration or incorporation and winding up of the Company. The process of registration of the company gives birth to a company and the company is treated as a separate legal entity. By the process of registration, the company can enjoy all the benefits conferred under Companies Act, 2013.

In India and in Mumbai, there are generally two types of companies: Private Limited Company and a Public Company.

Private Limited Company is most favoured form of company in Mumbai as it is flexible and requires fewer funds in comparison with the public company. To start as private limited company, the basic requirement is that there must be at least 2 members in the company and their objective must be legal whereas there must be at least 7 members to start a public limited company.

Importance of Company Registration in Mumbai 

The registration of companies is important due to following reasons:

1.       Evasion of personal risks: The registration of company disposes off the personal obligations. Personal assets cannot be put at risk; rather the liability is limited to the number of shares held in the company.

2.       Separate Legal Entity: By incorporation, a company gets its own identity and enjoys the benefits in its own name.

3.       Perpetual succession: The Company enjoys the right of perpetual succession as it has unlimited time span. Employees and members of the company may come and go, but the company exists until it is legally winded.

4.       Reputation: The registration of the company highlights its permanent nature and effective management which gives confidence to the customers, clients and other parties.

5.       Legal Protection: If the company gets incorporated, the name of the company is protected and nobody can have the similar name. Also, the unauthorised use of the company name is protected after registration.

Company Registration Process in Mumbai 

The procedure of registration of a company in Mumbai is prescribed under section 7 of Companies Act, 2013.

·         STEP 1: Obtaining Digital Signature Certificate (DSC) for the Directors of Company and obtaining Director Identification Number (DIN) for the Directors of the Company.

After obtaining DSC and DIN, an application must be applied for the name of the company.

·         STEP 2: The promoters of the Company should suggest one or more names for the company. The names must not be similar or identical to any other registered company’s name or the trademark. The name of the company should have “Private Limited” at the end as suffix.

The registrar will look and finalise one of the names within 3 to 5 working days.

·         STEP 3: After finalizing the name, the promoter will file an application to the registrar along with the documents: Articles of Association, Memorandum of Association, Affidavits of the Directors and Declaration from Directors.

The MOA and AOA shall be signed by the subscribers. The promoters of the company should provide the relevant information regarding the registered office of the company to the registrar within 15 days of filing the documents of incorporation.

·         STEP 4: After filing all the details and the relevant documents, the registrar will issue a Certificate of Incorporation and company get its separate legal entity.

It should be noted that if any person furnishes any false information or prohibits furnishing any material information that is to be filed with the registrar, then he shall be punished under section 447 of the Companies Act, 2013.

At Legalo, our experts will guide you in your new company registration in Mumbai under the Companies Act, 2013. Contact us to see how we can help you.

Aston Building, 10th Floor, Lokhandwala Complex,

Andheri West, Mumbai, Maharashtra 400053

+919167688129