What is the Minimum Age for Company Registration in India?
With the increasing growth in the economy, there has been a noticeable change in the industrial sector of the country. The entrepreneurs wish to start up their own companies to contribute towards the growth. For this to happen, the registration of a company is a must. But however, the important question that arises is what the minimum age for company registration in India is?
To answer this question and to know more about the company registration, we will talk about it in the below article.
What is the Minimum age for Company Registration?
In India, any adult person who has attained the age of 18 years can apply for registering a company.
The Companies Act 2013 does not mention any age criteria for the registration of a company. It states that at least 2 Directors (1 for One Person Company) are required to register a company. For this, a Director Identification Number (DIN) for every director has to be applied. And the minimum age for obtaining a DIN is 18 years.
Procedure to Register a Company
The following steps are required to register a company in India:
- Obtaining Digital Signature Certificate (DSC).
- Obtaining Director Identification Number (DIN).
- Registering on the MCA Portal or New User Registration.
- Incorporation Certificate.
What are the Documents required for Company Registration?
The lists of the documents which are required to register a company are:
- Letter from Register of Companies (ROC) confirming the name of the company.
- Director Identification Number (DIN) of all the directors.
- Digital Signature Certificate (DSC).
- Form 1 that states the incorporation of the company.
- Form 18 that states the address of the company.
- Form 32 that states the details about the manager, Proposed Directors and secretary.
What are the Types of Companies that can be incorporated in India?
Private Limited Company
This type of company is set up for a small business operation by a minimum of two members and a maximum of two hundred members. The public cannot trade shared and the ownership of shares are transferrable to any employee in a Private Limited Company.
Public Limited Company
This type of company is governed under the provisions of Companies Act, 2013. The public can trade the shares of this company and they are listed in the Stock Exchange Board of India. A minimum of 7 stakeholders and 3 directors are required under Public Limited Company registration. It requires Certificate of Incorporation from Register of Companies (ROC) and DIN of the proposed Directors to conduct business operations.
Two or more partners are required to start a business and share the profits and liabilities under a partnership company. A partnership deed is an essential document, signed between the partners for the registration of this firm.
One Person Company
A one person company is operated by one person as incorporated under the Companies Act, 2013. A minimum of 1 Director and a maximum of 15 Directors can be appointed for carrying business operations.
A single individual/person is the sole proprietor under this type of company. Sole Proprietorship does not require registration under the Ministry of Corporate Affairs (MCA) and therefore it also does not require DIN.
What are the rules required for the Registration of a Company?
The following rules are required for the registration of a company: –
- Minimum of 2 Directors (1 in case of One Person Company).
- Applying for Director Identification Number (DIN) by all the proposed Directors.
- Minimum age to obtain DIN is 18 years.
- Minimum age to subscribe Memorandum of Association (MOA) and Articles of Association (AOA) is 18 years.
An entrepreneur should have a clear idea of all the legal compliances and business structure before starting up and registering a company. When a company is registered under the Companies Act, 2013, it helps the company to raise funds and have a unique identity of its own. Even though the Companies Act does not directly states the minimum age for Company Registration but, it is technically 18 years in accordance with the requirements for registering a company.
Besides Registration, it is important that an entrepreneur should have a sound knowledge of types of business structures and must be able to identify the type of business that its entity suits the best. This helps to facilitate the efficient and proper functioning of the business.