Setting up a company in India is now faster and more streamlined, thanks to government-led digital reforms. Whether you’re an Indian entrepreneur or a foreign investor, the process to incorporate a company in India is clearly defined and can be completed in a matter of weeks.
Here’s a step-by-step guide to help you navigate the process with confidence and compliance.
Choose the Right Business Structure
-
Selecting the correct entity type is crucial—options include Private Limited Company, One Person Company (OPC), Limited Liability Partnership (LLP), or Public Limited Company.
-
Each structure has different implications for taxation, compliance, liability, and scalability.
-
Most startups begin with a Private Limited Company due to flexibility and funding options.
Obtain Digital Signature Certificates (DSC)
- Directors and authorized signatories must obtain Digital Signature Certificates to sign incorporation documents electronically.
- This step can be completed online through licensed certifying authorities.
- A Class 3 DSC is typically required for incorporation purposes.
Apply for Director Identification Number (DIN)
-
A DIN is mandatory for all individuals who wish to become company directors.
-
You can apply for DIN alongside the incorporation application using the SPICe+ form.
-
No separate process is needed for obtaining DIN now if you’re filing incorporation directly.
File the SPICe+ Form
- SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) is the integrated form for incorporation in India.
-
It covers everything from name reservation to GST, EPFO, ESIC, PAN, and TAN registrations.
You must fill both Part A (name reservation) and Part B (company incorporation details) to complete the process.
Draft and Submit Incorporation Documents
-
Memorandum of Association (MOA) and Articles of Association (AOA) define the company’s purpose and rules.
-
ID and address proof of directors, business address proof, and declarations are also required.
-
These are submitted through the MCA (Ministry of Corporate Affairs) portal.
Receive Certificate of Incorporation
-
Once approved, you’ll receive a Certificate of Incorporation (COI), which includes your CIN (Corporate Identification Number).
-
Alongside, PAN and TAN are automatically generated and mailed to your registered office.
-
Your company is now legally incorporated and ready to operate.
Final Thoughts
The decision to incorporate a company in India opens doors to growth, legal recognition, and funding opportunities. By following the step-by-step process—from choosing the right structure to filing the SPICe+ form—you ensure a compliant and professional foundation for your business.
If you're not confident in handling this process yourself, it’s wise to consult a company secretary or chartered accountant.
Frequently Asked Questions (FAQs)
1. How long does the incorporation process take in India?
Typically 7 to 15 working days, depending on the accuracy of documents and name approval.
2. Can I incorporate a company online in India?
Yes, the entire process is digital and can be done through the MCA portal.
3. Is it mandatory to register for GST during incorporation?
If your annual turnover exceeds the threshold limit (₹40 lakh for goods, ₹20 lakh for services), GST registration is required. You can apply simultaneously through the SPICe+ form.
4. What are the government fees for incorporation?
Fees vary based on authorized capital, but for small companies, they are relatively low. PAN and TAN are issued free through SPICe+.
5. Can NRIs or foreign nationals incorporate companies in India?
Yes, subject to FDI norms and required documentation, NRIs and foreign nationals can become directors and shareholders.