Step 1: Select a Unique Company Name

Although there are certain stringent guidelines around it, your company’s name is a significant part of your brand identification. In accordance with the 2013 Companies Act, your name should:

• Not sound like the name of an already-existing business or LLP
• Avoid terms like “government,” “national,” or “bank” unless authorized
• Be relevant to your line of work

The Reserve Unique Name (RUN) service offered by the MCA can be used to verify name availability.

Have 2–3 name ideas ready. MCA approval usually takes 2–3 business days. After approval, the name is reserved for 20 days.

Step 2: Obtain Digital Signature Certificates (DSC)

A Digital Signature Certificate (DSC) is required by all directors and subscribers to sign documents electronically. DSCs are:

• Valid for 1–2 years and renewable
• Issued with proof of identity, address, and a passport photo
• Provided as USB tokens

DSCs must be obtained before submitting the SPICe+ form.

Step 3: Request a Director Identification Number (DIN)

DIN is mandatory for individuals intending to become directors. DIN is auto-assigned to up to 3 directors via SPICe+.

For more than 3 directors, apply separately using Form DIR-3.

Required Documents:

• PAN (for Indian nationals)
• Proof of address (voter ID, passport, etc.)
• Passport-size photo

Step 4: Submit the SPICe+ Incorporation Form

Use the SPICe+ form to incorporate a business and apply for registrations. It includes:

Section A: Reservation of Name

Allows reservation of the company name.

Section B: Incorporation + Additional Services

• Incorporation
• PAN and TAN
• GSTIN (optional)
• EPFO and ESIC registration
• Opening a bank account

Documents Required:

• Memorandum of Association (MoA)
• Articles of Association (AoA)
• Declaration (Form INC-9)
• Registered office address proof

After review, the Registrar of Companies (RoC) issues the Certificate of Incorporation.

Step 5: Open a Bank Account and Get PAN/TAN

Upon incorporation, PAN and TAN are issued. To open a bank account in the company’s name, you’ll need:

• Certificate of Incorporation
• PAN
• MoA and AoA
• Board resolution authorizing the account

Step 6: Register for Mandatory Taxes and Licenses

• GST: Required if turnover exceeds ₹40 lakhs (₹20 lakhs for services) or if interstate supply is done.
• Professional Tax: Applicable in states like Maharashtra, Karnataka, West Bengal.
• Shop & Establishment License: Required in most states.
• Import Export Code (IEC): Required for international trade.
• EPFO & ESIC: Mandatory for 10+ (ESIC) or 20+ (EPFO) employees.

These registrations protect and legitimize your business, reducing future risks.

Step 7: Post-Incorporation Compliance

• Appoint an auditor within 30 days
• Hold the first board meeting within 30 days
• Submit audited financials and annual returns to MCA
• File income tax returns
• Maintain statutory registers and records

Non-compliance can result in penalties or director disqualification.

Cost and Time Estimates

• Time: 7–15 business days with proper documentation
• DSC: ₹1,000–₹2,000 per person
• Government fees: Based on authorized capital
• Professional fees: ₹5,000–₹20,000 (optional)

You can register via the MCA portal yourself or use third-party services.

Legal Basis for the Registration of an Indian Company

Different Business Structures in India

• Sole Proprietorship: Simple structure, full control, no liability protection
• Partnership: Shared ownership, governed by Partnership Act, 1932
• Limited Liability Partnership (LLP): Hybrid structure with limited liability
• Private Limited Company (PLC): Separate legal entity, 2 directors and shareholders required
• One Person Company (OPC): Designed for solo entrepreneurs, limited liability
• Public Limited Company (PLC): Can raise public investment, shares traded publicly

Conclusion

In India, registering a company is more than a regulatory step—it establishes your business’s legitimacy. It enables you to raise capital, attract partners, issue invoices, and access government schemes.

The MCA’s digital process makes registration fast, but it’s essential to choose the right structure, prepare documents carefully, and comply with regulations for long-term success.