How to Start a Company in Delhi: A Complete Formation Guide

Starting a business in Delhi, India’s vibrant capital, can be an exciting yet complex journey. With its growing infrastructure, talent pool, and investor-friendly environment, Delhi remains a prime choice for entrepreneurs. However, understanding the legal and regulatory framework is crucial for a smooth business setup.

At K.B. Chandna & Co. , one of the most trusted and experienced accounting firms in Delhi since 1961, we help businesses navigate every step of the company formation process — from structuring the business to compliance and tax planning.

Here’s a complete guide to help you start your company in Delhi.

1. Choose the Right Business Structure

The first and most critical step is selecting the appropriate business structure, based on your ownership, liability, and tax preferences. Some common types in India include:

• Private Limited Company (Pvt. Ltd.)
• Limited Liability Partnership (LLP)
• One Person Company (OPC)
• Sole Proprietorship
• Partnership Firm

Tip from K.B. CHANDNA & CO.: Most startups prefer a Private Limited Company due to ease of fundraising and limited liability protection.

2.Register Your Company with MCA

Company registration in India is governed by the Ministry of Corporate Affairs (MCA). The steps include:

1. Obtain DSC (Digital Signature Certificate) for all directors.
2. Apply for DIN (Director Identification Number).
3. Name Approval via RUN (Reserve Unique Name) form.
4. Incorporation using SPICe+ Form, including:
   • Company details
   • PAN & TAN allotment
   • EPFO, ESIC, GST registrations
   • Bank account opening

K.B. CHANDNA & CO. Pro Insight: The MCA now offers a single-window registration system (SPICe+) to streamline processes.

3. Apply for PAN, TAN & GST Registration

Post incorporation, your company must:

• Get a Permanent Account Number (PAN) from the Income Tax Department.
• Apply for Tax Deduction and Collection Account Number (TAN).
• Register for Goods and Services Tax (GST), mandatory for businesses with turnover over ₹40 lakhs (₹20 lakhs for service providers).

4. Open a Business Bank Account

A current account in the company’s name is essential for business operations. Most banks require:

• Certificate of Incorporation
• Company PAN
• MOA & AOA
• Board Resolution
• KYC of Directors

5. Maintain Mandatory Compliances

Once your business is up and running, ensure timely compliance with:

• ROC Filings (Registrar of Companies)
• Statutory Audits
• Income Tax Returns
• GST Filings
• TDS Returns
• Labour Law Compliances
• Accounting & Bookkeeping

K.B. CHANDNA & CO. Advantage: We offer end-to-end accounting, audit, and compliance services for startups and established companies alike.

6. Explore Business Licenses Based on Industry

Depending on your sector, you may require additional licenses such as:

• FSSAI License (for food-related businesses)
• Import Export Code (IEC)
• Shops & Establishment Act Registration
• Professional Tax Registration
• Trade License from local authorities

Why Choose K.B. Chandna & Co. for Company Formation in Delhi?

With over six decades of experience, our firm has guided hundreds of Indian and international businesses through successful incorporation. We offer:

• Expert guidance on business structuring
• Seamless company registration and licensing
• Post-incorporation compliance support
• Business valuation, FEMA, labour law and audit services

Final Thoughts

Starting a company in Delhi can be a rewarding experience with the right support and planning. With K.B. CHANDNA & CO.’s legacy of trust and excellence, you can focus on building your dream business while we take care of the legal and financial frameworks.

Need Help Starting Your Business in Delhi?

Get in touch with K.B. Chandna & Co. – Chartered Accountants Since 1961
New Delhi | [email protected]. Chandna & Co.handna.com | www.K.B. Chandna & Co.handna.com