Starting a company in India in 2026 is faster than ever — the SPICe+ form (introduced 2020) bundles Name Approval, Incorporation, DIN, PAN, TAN, GST, ESIC, EPFO, Bank Account, and Profession Tax into one flow. End-to-end, you can go from “I want to start a company” to “I have a Certificate of Incorporation” in 10–15 working days, with government fees of ₹4,000–₹15,000 depending on entity type and capital structure.

This is the practical playbook for first-time founders — the decision points, the gotchas, the order of operations.

Step 0: Pick the right entity

Most Indian founders pick between three:

  • Private Limited Company (Pvt Ltd) — for any business planning to raise external funding (VC, angel, debt). Limited liability, separate legal entity, mandatory board, audited financials. Compliance burden: high. Government fee: ~₹4,000 + stamp duty (state-dependent).
  • Limited Liability Partnership (LLP) — for service businesses (agencies, professional firms, consulting). Limited liability with partnership flexibility. No mandatory audit if turnover < ₹40L. Compliance burden: moderate. Cannot raise equity easily — VCs won't invest in LLPs.
  • One Person Company (OPC) — for solo founders who want corporate structure but no co-founder. Auto-converts to Pvt Ltd at ₹50L turnover or ₹2Cr paid-up capital. Limited liability. Useful for solo SaaS / consultants.

Skip these unless you know why:

  • Sole Proprietorship — no separate legal entity, unlimited liability, but zero incorporation friction. Use for very small businesses or initial testing.
  • Partnership Firm — registered under Indian Partnership Act 1932, unlimited liability. Mostly legacy; LLP is strictly better.
  • Section 8 Company — for non-profits/NGOs.
  • Producer Company — for farmer/producer collectives.

Step 1: Name approval (SPICe+ Part A)

Before anything else, your name has to clear MCA. As we covered in our MCA company name check guide, about 30–40% of name applications get rejected on first submission. Run a pre-check on BrandAuditor to flag conflicts before paying ₹1,000.

What to file:

  • Up to 2 proposed names in priority order
  • Object clauses (what your business will do — broadly stated)
  • NIC code (industry classification, e.g. 62012 for software development)
  • State of incorporation

Approval takes 1–3 working days. The name is reserved for 20 days — you must file Part B within that window.

Step 2: DSC + DIN for directors

Every proposed director needs a Class 3 Digital Signature Certificate. Apply through any licensed CA (eMudhra, Sify, nCode, Capricorn). Cost: ₹1,000–₹2,000 per DSC. Validity: 1–2 years (renewable).

DIN (Director Identification Number) is allotted automatically for first-time directors when filing SPICe+ Part B. Existing directors with DIN don't need a new one.

Step 3: Incorporation (SPICe+ Part B)

What you need:

  • MOA (Memorandum of Association) — defines the company's objects (what it can do)
  • AOA (Articles of Association) — internal rules (board, meetings, share transfers)
  • Registered office proof — utility bill (within 60 days) + NOC from owner if rented
  • Director KYC — PAN, Aadhaar, photo, bank statement, residential proof
  • Capital structure — authorised + paid-up capital, shareholding pattern
  • INC-9 declaration from each director/subscriber

For a Pvt Ltd with ₹1L authorised capital and 2 directors, expected cost: ₹4,000–₹8,000 in government fees (varies by state) + ₹3,000–₹15,000 in CA/agent fees if you use one.

Step 4: Receive CoI + DIN + PAN + TAN + GST

Within 7–10 working days of Part B filing, you receive (via email):

  • Certificate of Incorporation (CIN)
  • DIN for new directors
  • PAN of the company
  • TAN of the company
  • GST registration (if applied)
  • ESIC + EPFO (if applied)
  • Profession Tax (if applicable to state)

Step 5: Open current account, start operating

Use CoI + PAN + Board Resolution to open a current account at any scheduled bank. ICICI, HDFC, Kotak, and Axis are the standard startup choices for digital-first banking. Razorpay X / Open offer neobank-style accounts but require a tie-up with a sponsor bank.

Don't forget: trademark

Company registration ≠ trademark. Even if MCA approves your company name, someone else can still own the trademark on it. Filing your trademark right after incorporation (or before) is critical — see our how to register a trademark in India guide for the full process. For DPIIT-recognized startups, trademark fees are 50% lower (₹4,500 instead of ₹9,000 per class). See our DPIIT startup recognition guide.

Post-incorporation compliance (the part nobody tells you)

The Pvt Ltd burden, in approximate order of urgency:

  • Commencement of Business (Form INC-20A) — within 180 days. Skip this and the Registrar can strike off your company.
  • First Board Meeting — within 30 days of incorporation.
  • Annual Return (MGT-7) — every year by Sep 30.
  • Financial Statements (AOC-4) — every year by Oct 30.
  • DIR-3 KYC — annual director KYC by Sep 30.
  • Income tax return — by Sep 30 (audit cases) or Jul 31.
  • GST returns — monthly (GSTR-1, GSTR-3B) or quarterly (QRMP).
  • TDS returns — quarterly if applicable.

Budget ₹15,000–₹50,000/year for a basic compliance package via a CA firm. Don't skimp — non-compliance penalties are brutal (₹1L–₹5L for missing filings).

The cheapest path

If budget is tight and you don't need a co-founder structure:

  1. Start as Sole Proprietorship + Udyam registration (₹0).
  2. Get GST registration if needed (₹0).
  3. Operate, generate revenue, validate idea.
  4. Convert to Pvt Ltd / LLP when raising or scaling.

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