How to Check if a Company is Legally Registered?

Iccha Shakti

Encourages aspiring entrepreneurs to kickstart their business ventures.

Gyaan Shakti

Offers knowledge and ecosystem support to women entrepreneurs, nurturing entrepreneurship.

Karma Shakti

Provides practical assistance to entrepreneurs in establishing and expanding their businesses.

It specifically provides access to programs for

• Incubation and acceleration
• Entrepreneurship skilling and mentorship
• Marketing assistance
• Funding and financial assistance
• Compliance and tax assistance
• Community and networking

Eligibility

Any woman entrepreneur with an established or new startup or just a business idea can benefit from this scheme.

Application procedure for Startups

• Visit https://wep.gov.in/.
• Click on the “Register” button on the homepage. Following this, a registration form will appear on the screen.
• Fill in all the details and click on the “Register” button at the bottom of the page.
• After completing registration, a page will appear asking for “Areas of Interest” and relevant fields.
• Fill in all the Personal Information, Business Information, and Educational information. Keep in mind that the fields might vary depending on the area of interest you are choosing.
• Successful submission of details leads you to become a member of the WEP and grants you access to several benefits.

Benefits of the WEP

WEP actively hosts a wide range of events as a platform, providing resources and promoting entrepreneurial communities.

• It provides monetary assistance, including seed capital, growth capital, line of credit( LOC), and non-credit support.
• Promotion of offline initiatives and outreach programs by partnering with other organizations.
• Incubation and acceleration support to startups founded or co-founded by women entrepreneurs registered with the program.
• Identification of skill gaps and providing online/offline training on these aspects.
• Marketing and networking support to early-stage or established entities
• Compliance services to registered users, which provides them with the essential tools to adhere to legal compliances, perform registrations, furnish accounts, make loan applications, provide license counseling, and so on.
• A like-minded community to understand the true spirit of entrepreneurship and the way forward.

To provide better support, WEP has tied up with some Fortune companies like CRISIL, Facebook, SIDBI, NASSCOM, DICE, FICCI, Mann Foundations, Shopclues, CII, and many others. The fortunes will play a key role in developing different skill sets important for a robust entrepreneurial ecosystem.

Frequently Asked Questions

Private Limited Company

A Private Limited Company is a widely preferred structure for startups and growing businesses in India. It requires:

• A minimum of 2 directors and 2 shareholders
• Limited liability protection
• Separate legal identity
• Mandatory compliance with the Companies Act, 2013

This structure is ideal for businesses seeking external funding and operational scale. However, it can become administratively heavy for a solo founder or small team.

Related Read: Characteristics of Private Limited Company

One Person Company (OPC)

An OPC is a simplified structure designed for solo entrepreneurs who want the benefits of a corporate entity without the complexities of a Private Limited Company. Key features include:

• Only one shareholder and one nominee required
• Limited liability protection
• Separate legal identity
• Lesser compliance burden

An OPC is ideal for solo founders, consultants, and professionals transitioning from informal to formal business setups.

Related Read: Advantages of One Person Company

Eligibility Criteria for Converting a Company into an OPC

As per Rule 7 of the Companies (Incorporation) Rules, 2014, a Private Limited Company can be converted into an OPC if:

• The company has no more than one shareholder (at the time of conversion)
• The shareholder is an Indian citizen and resident in India (staying in India for at least 120 days during the financial year)
• The company has no outstanding liabilities or ongoing litigation
• The company’s paid-up capital is less than ₹50 lakh, and its annual turnover is under ₹2 crore (as per past financials)

Note: These limits may be relaxed depending on MCA updates, so always check the latest provisions.

Benefits of Converting a Company to an OPC

• Lower compliance requirements – Less paperwork, fewer meetings
• Sole ownership with control – Ideal for solo founders
• Limited liability – Personal assets remain protected
• Separate legal entity – Recognised as a company under law
• Brand credibility – Enjoys more trust than sole proprietorships

Process for Converting a Private Limited Company to an OPC

Here's a step-by-step breakdown:

1. Board Meeting

• Pass a resolution to convert the Pvt Ltd company into an OPC
• Approve a draft of the special resolution for shareholder approval

2. Shareholder Approval

• Convene an Extraordinary General Meeting (EGM)
• Pass a special resolution authorising conversion into an OPC

3. Filing with ROC (Registrar of Companies)

• File Form MGT-14 within 30 days of passing the special resolution
• File Form INC-6 with the following attachments:
  
  • Board & shareholder resolutions
  • Updated MOA & AOA (altered for OPC structure)
  • Declaration by directors and shareholders
  • Latest audited financial statements
  • Affidavit stating the company is free of debts and litigation

4. Scrutiny by ROC

• The Registrar reviews all filings and may request clarifications

Issue of Certificate

Upon successful verification, the ROC issues a Certificate of Incorporation reflecting the conversion from Private Limited to OPC. This certificate carries the same company registration number (CIN), but the company name is updated to include “(OPC) Private Limited.”

Post-Conversion Requirements by the OPC

After conversion, the newly formed OPC must:

• Update PAN, TAN, GST registrations, bank accounts, contracts, etc.
• Use the new name with “(OPC) Private Limited” on all communications
• Maintain books of accounts and comply with annual filing requirements (though fewer compared to a Pvt Ltd)
• Inform all stakeholders, vendors, and customers about the structural change

Final Thoughts

If you're a solo founder managing a Private Limited Company and want to streamline operations while retaining limited liability, converting to an OPC could be a strategic move. With reduced compliance and full control, you get the best of both worlds- formal recognition with solo flexibility.

Importance of a Director Identification Number (DIN)

The Director Identification Number (DIN) is of significant importance in India's corporate governance framework. Here are some key reasons why DIN is crucial:

•  Unique Identification

• DIN provides a unique identification number to each director, ensuring there is clarity among individuals holding directorial positions in various companies.

•  Transparency and Accountability

• DIN enhances transparency by making director-related information publicly available.
  Stakeholders, including shareholders, regulators, and investors, can access the DIN database to verify the credentials and track the activities of directors across different companies.

•  Regulatory Compliance

• Obtaining a DIN is a mandatory requirement for individuals aspiring to become directors of Indian companies. The DIN system in India was implemented through Sections 266A to 266G of the Companies (Amendment) Act, 2006.

•  Ease of Business Operations

• DIN streamlines administrative processes related to director appointments and changes.
  By having a standardized identification system for directors, companies can efficiently manage their board compositions, update regulatory filings, and ensure compliance with legal requirements.

•  Investor Confidence

• The existence of a robust director identification system like DIN instills confidence among investors, both domestic and international.

Format of a Director Identification Number

The DIN is an 8-digit identifier issued by the Ministry of Corporate Affairs (MCA), the regulatory authority overseeing corporate affairs in India.

Each DIN is unique to the individual director and remains valid for their lifetime unless surrendered or revoked by the MCA due to non-compliance or other regulatory reasons.

Example of a DIN: 002345678

Documents required for obtaining a Director Identification Number

For SPICe+:

• Proof of Identity
• Proof of Address
• NOC or Rental Agreement

For DIR 3:

• Proof of Identity
• Proof of Residence
• NOC or Rental Agreement
• Digital Signature Certificate (DSC)
  Note: The identity proof and Address proof must be attested by the Company Secretary, a CA or, any professional. ,

How to apply for a Director Identification Number?

Obtaining a Director Identification Number (DIN) is mandatory before being appointed as a director of an existing company in India.

While the DIN for directors of a new company is allotted during the company's incorporation through an integrated SPICe+ Form, if you’re seeking directorship in existing companies or LLPs, you must apply for a DIN separately. The application process, known as DIR-3, can be completed online through the official website of the Indian Ministry of Corporate Affairs (MCA).

Application for DIN Through SPICE+

If you don’t have a Director Identification Number (DIN) and intend to serve as the first director in a new company, you must submit an application using the eForm SPICe+.

• Obtain the Digital Signature Certificates (DSCs) for the proposed Directors,
• Log in to the MCA portal with valid credentials.
• Navigate to the 'SPICe+' application from the application history on the user dashboard.
• Submit the SPICe+ Part A application.
• Click on the 'Proceed for incorporation' button.
• Access the SRN dashboard by clicking on the relevant SRN/SPICe+ application with the status as 'Draft.'
• Click on "Form No. SPICe + Part B”.
• Complete and Submit the SPICe+ Part B application along with the linked forms.
• Upload the DSC-affixed PDF document(s).
• Pay the fees.
• An intimation mail, along with the Certificate of Incorporation, PAN, TAN, etc., will be generated upon processing the web form.
• If the forms are uploaded successfully and the payment is made, the Approved DIN will be generated if there are no indications of potential duplication. However, if the details are flagged as potentially duplicate, a Provisional DIN will be generated instead.

Note: A provisional DIN will remain valid for a period of 60 days from the date on which it was generated.

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Application for DIN Through DIR 3

If you intend to become a Director in an existing company, you must submit an application using eForm DIR-3 and adhere to the process outlined below.

• Visit the official MCA website.
• Register as a new user if you haven't already done so, or log in using valid credentials.
• Select the "e-Forms" tab and click on the "e-Form upload" link to access the e-Form DIR-3.
• Complete the DIR-3 form with accurate details.
• Scan and upload the necessary supporting documents (attested) as per the requirements specified in the DIR-3 form.
• Form DIR-3 must be signed by you and digitally verified by a Company Secretary employed full-time by the company or by the Managing Director, Director, CEO, or CFO of the existing company where you intend to be appointed as a director.
• Pay the prescribed fee for processing.
• Once the verification process is completed and the application is found to be in order, you will be allotted a DIN.
• However, if the details are flagged as potentially duplicate, a Provisional DIN will be generated by the MCA.

As a director, you must notify all companies where you hold a directorship about the DIN within one month of receiving it from the central government. Subsequently, the company must inform the Registrar of Companies (RoC) within 15 days from the date when the director notifies them of their DIN. Failure to do so can incur penalties.

Common Causes of Rejection of a DIN

Here are some common mistakes that lead to the rejection of the DIN application:

• Failure to submit supporting documents
• Submission of invalid application or supporting documents
• Lack of attestation on documents
• Absence of a valid Digital Signature Certificate (DSC) for DIR3 applications

Validity of the Director Identification Number

In India, the Director Identification Number (DIN) remains valid for the lifetime of the individual director unless surrendered or revoked by the Ministry of Corporate Affairs (MCA) due to non-compliance, disqualification, or other regulatory reasons.

Fees for the Director Identification Number in India

If you are applying for a DIN through SPICe+, there are no additional charges as it is included in the fees of the SPICe+ application.

However, if you are applying through DIR-3, a fee of Rs 500 will be associated with it.

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