Eligibility Criteria for Company Registration: Who Can Register?

Any individual who is a citizen of India, or a foreign national, or an entity (corporate or otherwise) can register a company in India, provided they meet the basic requirements under the Companies Act, 2013. The primary eligibility conditions relate to the number of members, the type of company, and the identity of the proposed directors. For a private limited company, you need at least two members and two directors. For a public limited company, you need at least seven members and three directors. One person can also register a One Person Company (OPC), with one member and one director.

The Companies Act, 2013 does not restrict company registration based on nationality or residency for members. However, at least one director of a company must be a resident of India. A resident director is defined as someone who has stayed in India for a total period of not less than 182 days in the previous calendar year. This rule applies to all types of companies, including private limited, public limited, and OPCs.

To be eligible as a director of a company, an individual must have a valid Director Identification Number (DIN) obtained from the MCA. The person must also be at least 18 years of age. There is no upper age limit, but a person of unsound mind or an undischarged insolvent cannot be appointed as a director. Additionally, a person convicted of an offence involving moral turpitude and sentenced to imprisonment for six months or more is disqualified from being a director for a period of five years from the date of release.

For a One Person Company (OPC), the sole member must be a natural person who is an Indian citizen and resident in India. A resident in India means a person who has stayed in India for a period of not less than 182 days during the immediately preceding one calendar year. A minor cannot be a member of an OPC, nor can a person of unsound mind.

Yes, a foreign national, Non-Resident Indian (NRI), or a foreign entity can register a company in India. They can be a member (shareholder) or a director of an Indian company. However, the requirement of at least one resident director applies to all companies. If all proposed directors are foreign nationals, at least one of them must be a resident of India as defined earlier. Alternatively, a foreign company can incorporate a wholly owned subsidiary in India, which is treated as an Indian company.

Foreign nationals and NRIs must provide additional documents for verification, such as a copy of their passport, proof of residential address, and a notarised or apostilled copy of their identity documents. They also need to obtain a Digital Signature Certificate (DSC) and a Director Identification Number (DIN) if they are to be appointed as directors. The process is largely the same as for Indian residents, but with additional compliance for foreign documentation.

The eligibility criteria vary based on the type of company you wish to register:

• One Person Company (OPC): Only one member and one director. The member must be a natural person, an Indian citizen, and a resident of India. The member and director can be the same person.
• Private Limited Company: Minimum two members and two directors. Maximum 200 members. No restriction on nationality for members, but at least one director must be a resident of India.
• Public Limited Company: Minimum seven members and three directors. No maximum limit on members. At least one director must be a resident of India. A public company can invite the public to subscribe to its shares.
• Section 8 Company (Non-Profit): Requires at least two members (for private) or seven members (for public). The company must be formed for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, or protection of the environment. The income and property must be applied solely for promoting these objectives.

To prove eligibility for company registration, you need to submit the following documents to the MCA through the SPICe+ form:

• For Directors: PAN card (for Indian residents), Aadhaar card, passport-sized photograph, proof of residential address (bank statement, utility bill, or rent agreement), and a declaration of no disqualification.
• For Foreign Directors: Passport (notarised or apostilled), proof of residential address (bank statement or utility bill), and a declaration of no disqualification.
• For Members: PAN card (for Indian residents), Aadhaar card, and proof of address. For foreign members, passport and proof of address.
• For the Company: Registered office address proof (utility bill or rent agreement with NOC from the owner), and a declaration of compliance with the Companies Act.

All documents must be self-attested by the respective individuals. For foreign nationals, documents must be notarised or apostilled as per the Hague Convention, if applicable.

If you meet the basic eligibility criteria, you can proceed with the company registration process on the MCA portal. However, the documentation and compliance requirements can be complex, especially for foreign nationals or specific company types. It is advisable to consult a qualified company secretary or a corporate lawyer to ensure your application is correctly filed and all legal requirements are met.

---

This page provides preliminary information. It is not legal advice. For your matter, consult a qualified professional.