What is a business license?

A business license is an official document issued by the government that enables your company to conduct lawful business in a specific area. Depending on your industry and the location of your operations, a variety of business licenses and permissions may be needed.

What is the cost of a business license in India?

Depending on the kind of business, the location, and other factors, a business license in India might cost different amounts. There may be associated fees for various licenses, and expenses for document processing and verification may also be included in the total cost. To find out the precise expenses that apply to your firm, it is advised that you speak with a professional or the local regulatory authorities.

Is a business license the same as a permit?

A business license is not the same as a permit. While permits ensure that your business adheres to safety and preventative measures, business licenses attest to your company's compliance with state legislation.

How can I obtain a business license?

To obtain a business license, go to the office or website of the state regulatory body where the enterprise is situated. After you've determined the licenses your company needs, it's time to gather the required paperwork and submit an application for a business license. Most of the time, you can apply for a business license online, but in other situations, you might need to send or fax your application to the appropriate authority.

What happens if you run a business without a license?

If the company doesn't follow the rules, the regulating body has the right to punish it or even ask that it close.

What type of business license do I need?

While business licenses are handled locally in certain states, there are general business licenses in others. Your industry, town, county, or city may need additional licenses and permits. Before opening your firm, make sure you have everything.

Do business licenses expire?

The response is contingent upon your particular business. Certain business licenses are still in effect as long as your company is operating and you fulfil the license conditions. Other business licenses need to be updated periodically or annually. To find out if and when your license may expire, research your state's licensing rules.

How do I renew a business license?

When it's time to update or renew your company license, you must go to your state's revenue agency and complete the required procedures. Remember that the procedure could vary depending on the state where your firm is located.

Can I transfer my business license?

In some situations, a business license can be transferred. Remember, nevertheless, that the legislation of the jurisdiction where your license was submitted as well as your business may have an impact on the transfer of your business license. Depending on whether you're starting a new company or taking over an established one, you could occasionally need to apply for a new business license under your new name. Verify whether it is permissible to transfer your company license by contacting the appropriate state agency.

Private & Public Limited Company Registration in India

Get your Private or Public Company Off the Ground with Experts

Start a Private or Public Company in a Hassle-Free Way with MyBizCFO

We simplify and streamline the process for companies with hassle-free registration
Get off the mark with a lightning-fast turnaround time
Services at an optimal cost, with a transparent pricing policy and no hidden fees
Comprehensive services, from registration to compliance with the law

Why Choose MyBizCFO for Private and Public Limited Company Registration?

Private and Public Company registration are preferred options for businesses in India. With these, founders get limited liability protection due to a separate legal existence. These entities have better credibility and can raise external funds. However, business owners must complete registration with the Ministry of Corporate Affairs (MCA) to set up their company legally. MyBizCFO can help you complete the formalities of registration seamlessly. Working with us offers various benefits such as:

On-call support with dedicated account managers

An easy and quick online company registration process

A team of qualified experts such as lawyers, CA, and CS

Fast turnaround and cost-effective services

Benefits of Registering a Private Limited Company

Distinct Legal Status

The business and its owners have different legal identities. It has the ability to possess property, sign contracts, and bring legal action against third parties under its own name. Even when the members' lives are over, it continues to exist as a separate entity.

Management and Ownership Clarity

The directors of the corporation make management choices, even though the shareholders own the company. This enables the company to gain from expert management without reducing the promoters' and shareholders' ownership stake.

Limited Liability

Owners can restrict their liabilities according to their capital contribution by establishing a PLC in India. Unlike partnerships and sole proprietorships, their personal assets are shielded from any significant debt or loss in the company.

Ease of Funding

Banks like to lend to companies and limited liability partnerships (LLPs) because of their high compliance. Key benefits of a Pvt Ltd company are limited liability protection for owners and simplicity of ownership transfer. Private limited corporations are preferred by investors such as venture capitalists, private equity firms, and HNIs.

Deciding the Name of Your Private Limited Company

Here are a few things you must keep in mind when deciding the name of your private limited company:

Distinct Name:

A unique name that isn't already a trademark or company registration has a higher possibility of being approved by the MCA.

Suffix to Name:

The company's name must conclude with Pvt. Ltd., or Private Limited Company.

Commercial Operations:

Ideally, the second element of the name should allude to the company's line of work.

Benefits of Registering a Public Limited Company

Extensive Business Opportunities:

A company's listing on a stock exchange guarantees that hedge funds, mutual funds, and other traders are aware of its activities. There can be more commercial opportunities for the Public Limited Company as a result.

Capital Abundance:

Anyone can invest in a public limited business since its shares are open to the general public. This leads to a rise in the company's capital. Entrepreneurs need not struggle to get funds to start the business.

Risk Dissemination:

The market's unsystematic risk is dispersed because the shares are offered for sale to the general public. This reduces the risk factor for the business owners setting up the company in the first place.

Possibilities for Growth and Expansion:

There is a great chance to grow and extend the firm by using the funds obtained from shares to invest in new projects because there is less risk involved. Over time, the company builds its reputation too.

Eligibility Criteria to Set Up a Public Company

Minimum 3 Directors

Nil minimum capital requirement

Minimum 7 shareholders

DIN of the Directors

DSC of the Directors

Documents Required to Register a Private Limited Company

Identity Proof: Driving License, Passport, or Voter ID of the shareholders and directors

Aadhaar Card and PAN: Both Aadhaar Card and PAN of all Indian shareholders and directors

Address Proof: Copy of the latest bank account statement, telephone bill, or electricity bill the shareholders and directors

Business Address Proof: Latest Property Tax Bill or Utility Bill of the registered office address/Rent agreement and owner NOC for a rented property

Photographs: Passport-size photographs of shareholders and directors

Our Process: Steps to Register your Private/Public Company with MyBizCFO

Step 1: Answer Our Questions

Pick the relevant package
Answer a few simple questions
Provide documents according to our checklist
Pay through a secured payment gateway

Step 2: Connect with Our Experts

We will assign a dedicated relationship manager
Our experts draft and file your documents
Get answers to queries within 24 business hours

Step 3: Get on Track with Your PLC Registration

Complete the process in 10-12 working days
We ensure that your business is compliant.

Get on a free assessment call with an expert.

Company Registration Timeline

Days 1 - 2

Your documents and information are reviewed by our experts
We apply your Digital Signature Certificate (DSC)

Days 3 - 6

We check the name availability for your PLC on MCA and IP India Portals
We apply for a company name reservation
Our experts draft MoA and AoA

Days 7 - 9

We fill out the form for a Certificate of Incorporation (COI)
We file the DIN allotment application
We file PAN and TAN application

Day 10 - 12

MCA approval awaited to get started

One-Person Company Registration

A One-Person Company (OPC) is an ideal option if you want to own a business solo, with limited liability and continuity in mind. Here’s a quick overview:

Solo Ownership:

One shareholder owns 100% of the company.

Nominee Requirement:

A nominee is appointed to ensure continuity in case of the owner’s incapacity.

Private Limited Structure:

Enjoy the benefits of a private limited company with the simplicity of one-person ownership.

MyBizCFO can help you set up and manage your One-Person Company with ease.

Want to know the details?

Choose the Right Business Structure by Comparing Entity Types

Title	Comparison Criteria	Private Limited Company	Public Limited Company	One Person Company (OPC)
1	Applicable Law	Companies Act, 2013	Companies Act, 2013	Companies Act, 2013
2	Registration	Mandatory; must be registered with MCA under the Companies Act	Mandatory; must be registered with MCA under the Companies Act	Mandatory; same as Private Limited Company
3	Number of Owners	Minimum: 2; Maximum: 200. Includes only shareholders and excludes present or former employees	Minimum: 7; No maximum limit	Only 1 shareholder allowed; sole ownership structure
4	Separate Legal Entity	Yes; PLC is a separate legal entity, capable of owning assets or entering into contracts independently	Yes; Public Limited Company operates as a separate legal entity	Yes; operates as a separate legal entity similar to a Private Limited Company
5	Liability Protection	Limited to the unpaid amount of shares held. May vary if specified as unlimited liability in the Memorandum of Association (MOA)	Limited to the unpaid amount on shares	Limited to the unpaid amount on shares held by the sole member
6	Statutory Audit	Mandatory; required to appoint a statutory auditor within 30 days of company incorporation	Mandatory; same as Private Limited Company	Mandatory; same audit requirements as Private Limited Company
7	Ownership Transferability	Restricted; transfer of shares requires the consent of other shareholders, making it less flexible for external investors	Freely transferable; shares can be bought or sold easily, allowing for capital raising through public trading	Restricted; 100% ownership lies with a single owner, and transfer requires 100% share transfer
8	Perpetual Existence	Yes; continues despite changes in ownership or management	Yes; existence remains unaffected by changes in shareholders or management	Yes; perpetual succession, but only one owner allowed at any time
9	Foreign Ownership	Allowed under RBI and FEMA guidelines, typically through the automatic route	Allowed; foreign nationals can invest as per RBI and FEMA guidelines, generally under the automatic route	Not allowed; only Indian citizens and residents can establish an OPC
10	Taxability	- 25% if turnover < ₹400 crores - 25% for manufacturing companies (post-March 1, 2016) under Section 115BA - 22% for companies not claiming exemptions under Section 115BAA - 15% for new manufacturing (post-Oct 1, 2019) under Section 115BAB - 30% for others	Same as Private Limited Company	Same as Private Limited Company
11	Compliance Requirement	High; includes annual filing of financial statements, annual returns, holding board meetings, and maintaining statutory registers	Very high; includes all private company compliances plus requirements like AGMs, quarterly financial results, and SEBI compliance (if listed)	Moderate; includes annual filing of financial statements, annual returns, and limited board meetings. No AGM required

Frequently asked questions

What are the requirements for private limited company registration?

At least directors and shareholders should be on board, with one of them being an Indian citizen and resident
Name of the company according to the MCA guidelines
A valid registered office address for the business
Clear and legible documents for shareholders and directors
Minimum authorised and paid-up capital

What are authorised and paid-up capital?

The most money that a business can raise, either now or in the future, through the issuance of shares is known as authorised capital. If the business wants to raise money by issuing new equity, authorised capital can also be raised later. The authorised capital is used to pay the stamp duty required for company registration. On the other hand, paid-up capital is the sum that shareholders actually pay to issue shares. In India, a company may be incorporated with any paid-up capital, which may be less than or equal to the authorised capital.

What is the minimum capital required to set up a private limited company?

Starting a private limited company does not require a minimum amount of paid-up capital. But according to the Companies Act, a business must maintain a minimum of ₹1 Lac in authorised capital, which must be split up into 10,000 equity shares, each worth ₹10. To introduce a suitable quantity for operating the firm, each shareholder must subscribe for a minimum of one share. The paid-up capital must be placed as share capital in the company's current account.

Can my residential address be the same as my company’s registered address?

It is possible to register a Private Limited Company using your residential address. Proof of business address can be produced in the form of the most recent utility bill (phone, gas, water, and electricity) or property tax bill. You must provide an NOC with the form if the property is owned by a different family member. A registered office is where the MCA and other relevant agencies communicate with the company. This address is also shown on the Ministry's website. Additionally, property taxes that apply to commercial premises may be applied to a residential address utilised for business purposes.

What is the minimum number of people needed to form a public limited company?

At least three directors and seven shareholders are required for a public limited company.

Does a public limited company's director have any duties to settle the company's debts?

No, because the firm is a limited liability entity, a member's responsibility is capped at the face value of the shares they own. He is not required to make any contributions to settle the company's debts after the full face value has been paid.

Is a public limited company's board meeting mandatory?

Yes, a public company is required to file its Statutory Report with the Register of Companies and call its statutory meeting. It is important to remember that a meeting of a public limited company can only be deemed legitimate if the required number of members is present. For a Public Limited Company to have a quorum, five members need to be physically present. Nonetheless, the Articles of Association may include more members than what the Act mandates.

Small Business Registration

What is a Digital Signature Certificate?

The Certified Authorities issue a token known as a Digital Signature Certificate (DSC). A DSC is an electronic signature that directors, promoters, and shareholders use when submitting paperwork to the MCA. To submit e-forms for incorporation, all directors and MOA subscribers (the company's promoters) require DSC. When submitting GSTR, ITR, and ROC forms, the director's DSC is also utilised.

What is a Direction Identification Number?

The Ministry of Corporate Affairs (MCA) assigns a unique number known as the Rector Identification Number (DIN). It is given to people who wish to become authorised partners in an LLP or directors in a firm. An individual is only given a single DIN. By submitting the necessary paperwork to MCA, DIN can be turned in at any moment. Every year, all DIN holders must complete the DIR 3 KYC file in order to activate their DINs.

Can a private company operate several businesses?

Indeed, a private company may operate several companies in the same industry or with related operations. It must be authorised by a registrar and stated in the company's memorandum of agreement. However, businesses are not allowed to include unrelated activities. Fashion design and event management, for instance, are not the same company's primary economic activity because they are so dissimilar.

Whom does the MCA share the incorporation data with?

Information about the newly incorporated company is obtained by authorities such as the Employees State Insurance Corporation (ESIC), Employees Provident Fund Organisation (EPFO), GST Department, Bank, NSDL, Income Tax Department, Commercial Tax Department of the respective states for PT Registration, and Labour Department. Additionally, MCA posts the company's and its directors' fundamental information on its portal under the "Master Data" area.

What are the statutory requirements post company registration?

Following registration, the business must prioritise meeting the following requirements:

Within 30 days of obtaining the PAN card, open an existing bank account.
Select the company's first statutory auditor.
Deposit paid-up capital as specified in the company's memorandum of agreement.
Shares are issued and distributed to subscribers.
Within 180 days of receiving the COI, file INC-20A.

What is a one-person company?

According to Section 2(62) of the Companies Act, a one-person business is one that has just one member. Moreover, a company's members are merely stockholders or subscribers to its memorandum of organisation. Accordingly, an OPC is essentially a business with a single stakeholder.

Who is eligible for a one-person company?

An OPC can only be formed by an Indian person who resides in India. An OPC can only be formed by a natural person, not by a business or other legal organisation. The OPC must be formed by someone who is at least eighteen years old. An OPC can only have one director and shareholder.

Which is better: OPC or Private Limited Company?

Private limited companies (PLCs) and one-person companies (OPCs) both provide special benefits to business owners. It's critical to take your company's objectives, size, and expansion plans into account while choosing between OPC and Pvt Ltd. Pvt Ltd is the greatest option for companies with several stakeholders and long-term growth objectives, while OPC is excellent for sole proprietors looking for limited liability. Although each form has unique benefits, knowing how OPC and Pvt Ltd differ from one another can help you make the best decision.

Do you have more questions? Get in Touch

What Clients Say About Us

Silpa Raut

Local Guide • 4 days ago

These experts did a fantastic job of ensuring that everything went well and that everyone was heard. Excellent team to collaborate with. Many thanks, MyBizCFO!

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Avinash Khullodkar

Local Guide • 2 hour ago

In addition to giving me regular updates and keeping me updated, the experts at MyBizCFO have been incredibly helpful in assisting and counselling me during the company registration process. I will always be grateful for their guidance.

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Komal dangar

2 days ago

I truly appreciate the quick and efficient assistance I received from MyBizCFO. I would definitely recommend them to anyone seeking help with their private limited company registration.

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