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Directors Identification Number(DIN)-

As per section 153 of the Companies Act, 2013, no person can be appointed as the director of the Company until he has been allotted the eight digits Directors Identification Number by the Ministry of Company Affairs in India.

Directors Identification Number is applied online along with the proof of identity and residential address of the Director and prescribed fees.

It is not necessary to apply Directors Identification Number every time you are appointed Director in a Company, once this number is allotted it would be used in all the companies in which you will be appointed.

Digital Signatures Certificates (DSC)+

All the forms which are required for the purpose of incorporating a Company are filed electronically through the medium of Internet. Since all these forms are required to be signed by the director of the proposed Company and as all these forms are to be filed electronically, it is not possible to sign them manually. Therefore, for the purpose of signing these forms, at least one of the directors of the proposed Company needs to have a Digital Signature Certificate (DSC).

The Digital Signature Certificate once obtained will be useful in filing various forms which are required to be filed during the course of existence of the Company with the Registrar of Companies.


Directors are the person who are elected by the shareholders and who manages the Company on behalf of the shareholders, in most cases the shareholders themselves are the directors of the Company. The Directors are responsible for day to day management and overall business of the Company, they stand in a position of trust with the shareholders.

Private Company: There must be Minimum 2 Director and 15 director as limits is prescribed

Public Company: There must be Minimum 3 and Maximum 15 Directors which can be increased subject to approval of Central Government


Promoters /Shareholders are persons who are interested in incorporating the company and who will invest there hard earned money in the form of capital in the Company, they are the persons who ultimately run and own the Company. The shareholders of company are also known as members of the company.

Private Company: There must be Minimum 2 and Maximum 200 Shareholders (excluding employees and former employee who are shareholders ).

Public Company: There must be Minimum 7 and there is no limit for maximum number of Shareholders.

Company Name+

Selection of the name for the proposed Company to be incorporated, is one of the important process of the entire incorporation process, ideally the name of the company should be such which represents the business or activity intended to be carried on by the company. Before selecting the name of the company it is necessary to evaluate the proposed name under the following 4 given criteria’s:

Company with Similar Name:The proposed name of the Company should not be similar to the name of the Company which is already registered in India.

For example:
Name of Company already registered: Oasis Water Treatments Pvt Ltd Name of Proposed LLP: Oasis Water Treatment LLP Whether Proposed Name would be available: No

Oasis Water India Pvt Ltd

Whether Proposed Name would be available: No

Prohibited Name: The Ministry of Company Affairs of India has prescribed certain words, which should not form part of the name of Company intended to be incorporated in India, such words are prohibited under The Emblems and Names (Prevention of improper use) Act, 1950.

Click here To check the list of Prohibited Names

Names Based on Approval:Various government regulatory authorities operating in India like Securities & Exchange Board of India, Reserve Bank of India, has prescribed certain words, which if forms part of the name of the proposed Company to be incorporated, requires there first hand approval

Click here To check the Names

Registered Office+

The Registered office of the Company is the place where all correspondence related with the Company would take place. A registered office is required for following purposes:

All the Government records and books of accounts of the Company will be maintained at this office.

The meeting of shareholders will be held at Registered Office of the Company.

The Jurisdiction of Registrar of Companies is based on the registered office of the Company

One should keep in mind the following criteria’s while selecting the place of its registered office

Management Convenience

Administrative Convenience

Stamp Duty.

Note: The stamp duty differs from state to state in India.

Memorandum & Articles of Association+

Memorandum of Association

It is the principal document of the Company which defines its constitution and lays the down the foundation on which the structure of the Company stands. It defines the scope of business activity and its relationship with outside world. The Memorandum of Association is divided into the following six clauses:

Name Clause: It states the name of the Company

Situation Clause: It states the State in India in which the Company is registered

Main Object Clause: It is divided into

The Main Activities, which would be immediately carried on by the Company after its incorporation

Liability Clause: It states whether the liability of members is limited or unlimited

Articles of Association

This document of the Company states the bye-laws or rules and regulations that govern the management of its internal affairs and conduct of its business. It defines the duties, rights and powers of governing body as between themselves and the Company at large. Some of the issues which are covered under this document are mentioned herewith:

Share Capital

Procedure & Rights regarding Transfer or Transmission of shares.

Directors & their remuneration

Powers of Board of Directors

Share Capital+

The share capital of the Company has following two major components:

Authorized Share Capital

Authorized Share Capital is the maximum amount of capital which can be raised by the Company by issue of shares during the course of its existence. The registration fees for incorporation also depend upon the Authorized Capital of the Company. The amount of Authorized Capital can be increased by the Company during the course of its business according to his needs.

There is no limit as to the maximum amount of Authorized Capital which a Company may have, but the Companies Act, 2013 has prescribed the minimum amount of Authorized capital which every Company should have:

Public Companies: Rs 5 lakhs

Private Companies: Rs 1 Lakh

One Person Company: Rs 1 Lakh

In certain cases the minimum Authorized Capital also depends upon the Name of the Company.

Paid-up Share Capital

Paid-up share Capital is that part of Authorize Share Capital which is being actually being allotted to the shareholders and on which they had paid money to the company.

The Companies Act, 1956 has prescribed the minimum amount of paid-up capital every company incorporated in India:

Public Companies: Rs 5 lakhs

Private Companies: Rs 1 Lakhs

One Person Company: Rs 1 Lakh

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