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Company Incorporation in India – An Overview
Company incorporation is the legal process of registering a business as a separate legal entity under the Companies Act, 2013. In India, entrepreneurs typically choose structures like Private Limited Company, LLP, or One Person Company depending on their goals.
The incorporation process involves obtaining Digital Signature Certificates (DSC), Director Identification Numbers (DIN), name approval through RUN or SPICe+, and filing incorporation documents with the Ministry of Corporate Affairs (MCA).
Once incorporated, the company receives a Certificate of Incorporation, PAN, TAN, and is recognized as a legal entity eligible to operate anywhere in India.
Benefits of Company Incorporation
Limited Liability Protection
Shareholders’ personal assets remain safe — only the company’s assets are liable for debts.
Separate Legal Entity
The company can own assets, enter contracts, and sue or be sued in its own name.
Improved Credibility
Incorporated companies are seen as more trustworthy by banks, investors, and clients.
Easy Fundraising & Investment
Companies can raise equity capital through investors, venture capitalists, or loans.
Perpetual Existence
The company continues to exist despite changes in ownership or the death of directors.
Tax Advantages
Companies may benefit from lower tax rates and deductions available to registered entities.
Transferability of Shares
Ownership can be transferred easily by selling shares, depending on the company type.
Who Needs company incorporation?
Startups
Anyone starting a new business who wants legal recognition, limited liability, and easier access to funding.
Freelancers & Professionals
Those looking to scale up, build trust with clients, or separate personal and business finances.
Structured Partnerships
Existing partnerships seeking more credibility, compliance, and growth opportunities.
Businesses Planning to Raise Funds
Registration is essential to attract investors, apply for loans, or issue shares.
Anyone Looking for Legal Protection
To protect personal assets and operate within a legal, tax-efficient structure.
Online Sellers & E-commerce
Most marketplaces require a registered business for seller onboarding and GST compliance.
Requited Documents for Company Incorporation
Private Limited Company (Pvt. Ltd.)
- PAN Card of all directors/partners
- Aadhaar Card / Passport
- Bank statement / utility bill
- Passport-size Photo
- Email ID & Mobile Number
- Registered Office Address Proof
- Any other additional docs
- DIN & DSC for directors
- Min 2 directors and 2 shareholders
Public Limited Company (Ltd.)
- PAN Card (of all D & S)
- Aadhaar Card (of all D & S)
- Bank statement ( of all D & S)
- Passport-size Photograph ( of all D & S)
- Utility Bill (For Ragistered Address)
- Rent Agreement (if rented)
- NOC from Property Owner
- Min 3 Directors and 7 Shareholders
One Person Company (OPC)
- PAN & Aadhaar Card of D & S
- Bank statement of D & S
- Passport-size Photograph of D & S
- Email ID & Mobile Number
- PAN and Aadhaar Card of Nominee
- Address Proof of Nominee
- Nominee’s Consent in INC - 3
- Latest Utility Bill
- Rent Agreement or NOC
Limited Liability Partnership (LLP)
- PAN Card of all partners
- Aadhaar Card of all Partners
- Bank statement of all partners
- Passport-size Photograph of all P
- Email ID & Mobile Number of all P
- Latest Utility Bill
- Rent Agreement
- NOC from the property owner
- Capital contribution details
Section 8 Company (Non-Profit Organization)
- PAN Card for all D & S
- Aadhaar Card for all D & S
- Bank statement for all D & S
- Photograph for all D & S
- Email ID for all D & S
- Mobile Number for all D & S
- Latest Utility Bill
- Rent Agreement (If Rented)
- NOC from the owner of the premises
Nidhi company
- PAN and Aadhaar Card of all D & S
- Bank Statement of all D & S
- Passport-size Photo of all D & S
- Email ID of all D & S
- Mobile Number of all D & S
- Rent Agreement (if rented)
- NOC from the owner
- Electricity Bill
- Details of business activity
- Details of capital contribution
Step by Step Company Incorporation
Violations & Non-Compliance and Penalty & Offences
Violations & Non-Compliance
False Information
Failure to register when required can lead to penalties.
Non-Filing of Forms
Not filing forms like INC-20A, DIR-12, etc., within the prescribed time.
No Auditor Appointment
Failing to appoint a statutory auditor within 30 days.
Invalid Registered Office
Not maintaining or verifying the registered office address.
Premature Use of Company Name
Using the company name before receiving the incorporation certificate.
Delay in Share Certificate Issue
Not issuing share certificates within 60 days of allotment.
Non-Compliance with Member/Capital Norms
Not meeting the minimum requirements (e.g., in OPC, Nidhi, or Section 8 companies).
Penalty & Offence
Providing false information or documents
Fine up to ₹5 lakh; imprisonment up to 6 months to 10 years (Section 448 & 449 of Companies Act, 2013)
Failure to file INC-20A
Penalty of ₹50,000 on company + ₹1,000/day for directors (up to ₹1 lakh)
Failure to appoint auditor
₹25,000 to ₹5 lakh for company; ₹5,000 to ₹1 lakh for officers in default
Non-maintenance of registered office
₹1,000/day of default (up to ₹1 lakh)
Commencement of business without Certificate
Company liable for penalty of ₹50,000 + ₹1,000/day for each officer
Default in issuing share certificates
₹1,000/day of default per officer (up to ₹5 lakh)
Different types of Company Incorporation
Post-Incorporation Compliance for Company Incorporation
Obtain (COI)
Issued by the ROC, confirms legal existence of the company.
File INC-20A
Must be filed within 180 days of incorporation (not applicable to OPCs).
Open Current Bank Account
In the company’s name using COI, PAN, and address proof.
Deposit Paid-Up Capital
Promoters must deposit the subscribed capital into the company’s bank account.
Appoint First Auditor (Form ADT-1)
Within 30 days of incorporation (if not appointed in incorporation form).
Issue Share Certificates
Must be issued to shareholders within 60 days of allotment.
Register for Statutory Taxes
GST Registration, Profession Tax (for some states), Shops & Establishment License (for offices)
Maintain Statutory Registers & Records
Like Register of Members, Directors, Share Certificates, etc.
Apply for Company PAN & TAN
Usually allotted along with incorporation but ensure activation.
Display Company Name & Details
Company name, CIN, registered office, email ID must be displayed outside premises and on company letterhead, invoices, etc.
Maintain Books of Accounts
As per Companies Act, including cash flow, assets, liabilities, etc.
Board Meeting
First Board Meeting should be held within 30 days of incorporation.
Features of Company Incorporation
Separate Legal Entity
A company is legally independent from its owners. It can own property, sue, and be sued in its own name.
Limited Liability
Shareholders' personal assets are protected. Their liability is limited to the amount invested in the company.
Perpetual Succession
The company continues to exist even if shareholders or directors change or die.
Transferability of Shares
Ownership can be transferred easily (in private and public limited companies), helping with investment and exit.
Corporate Structure
A structured and regulated format with clear roles (Directors, Shareholders) enhances business credibility.
Access to Funding
Companies can raise equity capital from investors, venture capitalists, or the public (in case of public companies).
Regulated by Law
Governed under the Companies Act, 2013, with mandatory filings and disclosures, ensuring transparency.
Brand Recognition & Trust
Incorporated companies are perceived as more professional and reliable by customers, vendors, and investors.
🔍 Private Limited Company vs LLP: Which One to Choose?
| Feature | Private Limited Company (Pvt Ltd) | Limited Liability Partnership (LLP) |
|---|---|---|
| Governing Law | Companies Act, 2013 | LLP Act, 2008 |
| Legal Status | Separate legal entity | Separate legal entity |
| Liability | Limited to shareholding | Limited to contribution |
| Minimum Members/Partners | 2 Directors & 2 Shareholders | 2 Partners |
| Maximum Limit | 200 shareholders | No upper limit on partners |
| Ownership Transfer | Easily transferable (via shares) | Less flexible |
| Fundraising | Can raise funds from VCs, angels, banks | Difficult to raise external equity funding |
| Tax Rate | ~22% (with applicable surcharges) | ~30% (Flat for LLPs) |
| Audit Requirement | Mandatory irrespective of turnover | Mandatory only if turnover > ₹40 lakh or capital > ₹25 lakh |
| Suitable For | Startups, growing businesses, funding seekers | Consultants, professionals, family-run firms |
| Name Ends With | "Private Limited" | "LLP" |
| Credibility | High (preferred by investors, vendors, clients) | Moderate (acceptable but less trusted by investors) |
🤝 How Taxamicus Helps Simplify the Company Incorporation Process
Expert Consultation
Get the right advice on choosing the most suitable company type for your goals (Pvt Ltd, LLP, OPC, etc.).
End-to-End Documentation
We handle all paperwork, form filing, and drafting of MOA, AOA, and other incorporation documents.
Faster Processing
Our team ensures your application is submitted correctly the first time — reducing rejections and delays.
Regular Updates & Follow-Ups
We track your application at every stage and keep you informed — no chasing, no confusion.
Post-Incorporation Support
From PAN/TAN to GST registration and bank account setup, we help you become fully operational.
Legal Compliance Ready
Get guidance on post-registration compliances like filing INC-20A, appointing auditors, and more.
Faqs for Company Incorporation:-
What is company incorporation?
Company incorporation is the legal process of forming a new company as a separate legal entity registered with the Ministry of Corporate Affairs (MCA) in India.
Why should I incorporate a company?
Incorporation gives your business legal recognition, limited liability, better credibility, and ease in fundraising.
What types of companies can be incorporated in India?
Private Limited, Public Limited, One Person Company (OPC), LLP, Section 8 Company, Nidhi Company, Producer Company, etc.
Which is better: Private Limited or LLP?
Pvt Ltd is better for startups seeking funding, while LLP is ideal for professionals and small businesses with fewer compliance needs.
How long does it take to incorporate a company?
On average, 5–10 working days, if all documents are correctly submitted.
Can I register a company alone?
Yes, through a One Person Company (OPC). For Pvt Ltd, you need at least 2 shareholders and 2 directors.
Is GST registration mandatory after incorporation?
Only if your business crosses the threshold limit or deals in taxable supplies.
What is DIN and how do I get it?
Director Identification Number (DIN) is a unique ID for directors. It’s allotted during incorporation through the SPICe+ form.
What is the minimum capital required?
There’s no minimum capital requirement. You can start with ₹1 as authorized capital.
Can a foreigner register a company in India?
Yes, with some restrictions. Foreigners can register companies with proper documentation and local representation.
What is the cost of incorporating a company in India?
No, even a residential address can be used as the registered office.
Do I need GST registration if I deal in exempted goods?
It varies based on the type (Pvt Ltd, LLP, etc.) and professional fees, but typically starts around ₹6,000–₹10,000 for basic Pvt Ltd.
What is SPICe+ form?
It’s the integrated MCA form used for company incorporation, covering name reservation, incorporation, PAN, TAN, etc.
Do I need a company PAN and TAN separately?
No, they are auto-generated and issued during the incorporation process.
What are MOA and AOA?
Memorandum of Association (MOA) and Articles of Association (AOA) define your company’s objectives and rules of governance.
Is a digital signature (DSC) mandatory?
Yes, DSCs are mandatory for signing online incorporation forms.
Can I change the company name later?
Yes, but you need ROC approval through a separate name change process.
What is a Certificate of Incorporation (COI)?
It’s the legal proof that your company has been officially registered.
Is audit compulsory after incorporation?
Yes, for Pvt Ltd companies. For LLPs, only if turnover > ₹40 lakh or capital > ₹25 lakh.
What is Form INC-20A?
A declaration of business commencement. It must be filed within 180 days of incorporation (not required for OPC).
Can I convert my LLP to a Private Limited company?
Yes, it’s possible through a structured conversion process under the Companies Act.
What if I don’t comply with post-incorporation steps?
You may face penalties, and your company can be marked inactive or struck off.
Can I register multiple companies on the same address?
Yes, as long as proper documentation and NOC are provided.
Who regulates companies in India?
The Ministry of Corporate Affairs (MCA) and Registrar of Companies (ROC).
Why choose Taxamicus for company registration?
We simplify the process, handle all paperwork, offer expert guidance, and ensure fast, error-free company incorporation.