Thinking of Starting a Business in India: Think of Hyderabad

Thinking of Starting a Business in India: Think of Hyderabad

Company formation in Hyderabad has long been a lucrative proposition as the City of Pearls alias the City of Historic Charminar offers many strategic and geographic advantages for businesses. It is the second-largest city in India in the total land area and has many national and international IT companies including Facebook, Qualcomm, Accenture, Microsoft, Infosys, TCS, IBM, Tech Mahindra, Cognizant, Wipro, etc. who have significantly scaled up their operations in Hyderabad recently. The city ranks first in office space consumption in India.

Why Should You Start your Business in Hyderabad in the First Place?

Whenever an investor looks for a company formation in India, Hyderabad comes as one of the most preferred destinations due to the following reasons
  • Good land, air and sea connectivity with all major cities
  • Good Infrastructure facilities
  • Wide variety of entertainment and lifestyle choices
  • Lower cost of living compared to other cities
  • Business-friendly government
  • Easy access to credits and fundraising
  • Easy availability of skilled manpower
  • Good market
  • Conducive weather
  • Good governance, safety and security

What are the Steps Involved in Setting up a Company in Hyderabad?

The company registration process in Hyderabad involves the following steps.
  • Submission of Documents
  • Apply for Name approval with the Registrar of Companies (ROC)
  • Apply for Digital Signature Certificate (DSC)
  • Apply for Director Identification Number (DIN)
  • Registration on the MCA portal with SPICe+ Form
  • Obtaining a Certificate of Incorporation including PAN and TAN
  • Opening a current account
Private Limited Company Registration in Hyderabad generally takes 15 to 25 days depending on the approvals required. An incorporation certificate is proof that a company has been created. The certificate carries your CIN number. Company Registration in Hyderabad fees are nominal as the entire process is digitised and online.

What Types of Companies Can be Started in Hyderabad?

Private Limited Company
Limited Liability Partnership(LLP)
Partnership Firm
Sole Proprietorship Firm
Choosing your business structure carefully is very important as it would determine the Income Tax Returns. Moreover, each business structure will have different levels of compliance requirements. While a sole proprietorship business needs to file only an income tax return, a company has to file an income tax return as well as annual returns with the Registrar of Companies, spending more money on legal compliance. A company, however, can more easily raise funds relative to a sole proprietorship business. There are reputed and professional Company-Registration-Consultants-in-Hyderabad who can help you choose the right business structure based on your business objectives and can guide you through how-to-start-a-company in Hyderabad.

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Why Should You Start your Business in Hyderabad in the First Place?
The following documents are required to register a company in Hyderabad and need to be kept handy while applying for registration.
  • Memorandum of Association (MoA)
  • Articles of Association (AoA)
  • Declaration and Affidavit by directors and first subscribers
  • Proof of Office Address
  • Copy of recent Utility bills e.g.Electricity, Gas, Water Bills etc. and not more than 2 months old
  • Copy of approval if the proposed company name requires separate authorization by the Central government
  • Trademark application copy or trademark registration certificate as appropriate
  • No Objection Certificates from the landlord, sole proprietors partners /associates/ existing company
  • Copy of property deed, if necessary
  • Proof of registered office of the company/LLP
  • Proof of identity and residential address of directors e.g. Pan Card, Aadhar Card etc.

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What are the Structure-Specific Requirements for a Start-Up in Hyderabad?
Private Limited Company
  • Minimum Two Shareholders
  • Minimum Two Directors
  • DIN and DSC for all Directors
  • Minimum Authorised Share Capital 1 Lakh INR
Limited Liability Partnership
  • Minimum Two Designated Partners
  • DPIN for all designated Partners
  • Capital Contribution 10000 INR
One Person Company
  • Minimum One Shareholder
  • Minimum One Director
  • Minimum One Member
  • Minimum Authorised Share Capital of 1 Lakh INR
  • DSC and DIN for Director
Partnership Firm
  • Minimum Two Partners
  • PAN of Partners
  • Capital Contribution of 10000 INR
Sole Proprietorship
  • PAN
  • Aadhaar
  • Bank Details
  • Business Details
  • Investment of minimum 1 Lakh INR

After Company formation in Hyderabad , there are certain compliances to be followed by the company on yearly basis including the appointment of an auditor within 30 days of incorporation, holding a minimum of 4 board meetings during the calendar year at stipulated intervals etc.

All businesses must prepare and maintain a profit and loss account, annual return and balance sheet every financial year together with an auditor’s report and file those with the Registrar of Companies before the due date. Every company is required to maintain certain Statutory Registers as well.

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