So, you're thinking about starting a company in India? That's awesome! But before you get caught up in logo designs and office decor, there's a critical first step you can’t skip — company incorporation in india. Think of it as getting a birth certificate for your business. Without it, your business technically doesn’t exist in the eyes of the law.
Let’s dive into everything you need to know — the paperwork, the process, the pitfalls — and how to get your company up and running legally in India.
This is the go-to option for most startups and small businesses. It offers limited liability and is easier to raise funds under this structure.
2. Public Limited CompanyIdeal for large-scale businesses. A public company can raise capital from the general public by issuing shares but comes with stricter compliance.
3. One Person Company (OPC)Perfect for solo entrepreneurs who want the benefits of a company without a co-founder. Limited liability, full control — best of both worlds.
4. Limited Liability Partnership (LLP)More flexible and ideal for professionals like consultants, designers, or legal firms. LLPs offer the benefits of a partnership and limited liability company.
First things first — decide what kind of company you want to register. Your decision will affect everything from how you pay taxes to how you raise capital.
2. Selecting a Unique Company NameYour business name must be unique and not violate any trademarks. You can check name availability using the MCA (Ministry of Corporate Affairs) portal.
3. Appointing Directors and ShareholdersA private limited company requires at least 2 directors and 2 shareholders. For an OPC, you need just one. All directors must have a valid DIN.
4. Defining the Company’s Registered OfficeYou’ll need a physical address in India as your registered office. This is where all official correspondence will go.
To incorporate a company, each director and shareholder must submit:
2. PAN CardMandatory for Indian nationals. It serves as the primary identity proof.
3. Aadhar Card / Passport / Voter IDUsed for address verification. For foreign nationals, a notarized passport is required.
4. Proof of Registered Office AddressUtility bills (like electricity or water bills) and a rental agreement or ownership deed are needed. These should not be older than two months.
5. Digital Signature Certificate (DSC)Used to digitally sign documents on the MCA portal. Every proposed director must obtain a DSC from a certified authority.
6. Director Identification Number (DIN)A unique number required for each director. You can apply via the SPICe+ form or separately using Form DIR-3.
Outlines your company’s main business objectives and powers. It defines the scope of your business activities.
2. Articles of Association (AoA)Details the rules for internal management and operations. It’s like a rulebook for running your company.
3. Declaration by Professionals (INC-8)A declaration signed by a chartered accountant, advocate, or company secretary confirming all compliance requirements are met.
4. Consent to Act as Director (DIR-2)Every proposed director must sign a DIR-2 form to confirm their willingness to take the role.
5. Affidavit and Declaration by Subscribers (INC-9)Each subscriber must declare that they are not convicted of any offence related to company formation or management.
Apply through a certified agency. You’ll need ID and address proof and a passport-size photo.
Step 2: Apply for Director Identification Number (DIN)This can be done within the SPICe+ form or separately through DIR-3.
Step 3: Name Approval via RUN or SPICe+Submit a name approval request. Make sure it’s unique and in line with naming guidelines.
Step 4: File SPICe+ Form (INC-32)This integrated form includes everything — DIN, name approval, incorporation, PAN, and TAN. Attach required documents like MoA, AoA, and proofs.
Step 5: PAN, TAN & Bank Account OpeningOnce approved, you’ll receive the Certificate of Incorporation (COI), PAN, and TAN. Then, head to the bank to open a business account.
Timeline and Cost of Company IncorporationTypically, incorporation takes 7–10 working days. The cost depends on professional fees and the type of company. On average:
Use your Certificate of Incorporation and PAN to open an account in the company’s name.
2. Applying for GST RegistrationIf your turnover exceeds ₹40 lakhs (₹20 lakhs for services), GST registration is mandatory.
3. Statutory Books and RecordsMaintain registers of members, directors, shareholding patterns, and more.
4. Filing ROC Annual ReturnsFile your company’s annual returns and financial statements with the Registrar of Companies. Late filings = heavy penalties!
Starting a company in India is exciting, but it comes with responsibilities. If you tick all the right boxes — from choosing the right structure to filing every document properly — you’ll save yourself a lot of headaches down the line. Remember, incorporation is not just paperwork — it’s the legal birth of your business. So take it seriously, and get it done right.
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