Legal Framework for Startups in India:...
10 Dec 2025
Registering a company in India has never been simpler or faster thanks to the fully digital SPICe+ process, and in 2026, it’s streamlined even further with integrated services and AI-assisted checks. This complete guide walks you through every step, from picking the right structure to getting your Certificate of Incorporation (COI), so you can launch legally without the old headaches of paperwork and delays. Whether you’re a solo founder or teaming up with partners, follow these steps precisely to avoid common pitfalls and go live in days, not weeks.
Before diving into forms, decide on the structure that fits your vision—it’s the foundation of everything else. Private Limited Companies remain the top choice for most startups due to limited liability, easier funding, and flexibility, but One Person Companies (OPC) suit solo entrepreneurs, while LLPs work for professionals like consultants.
Private Limited: Minimum 2 directors/shareholders, no public trading, ideal for scaling businesses.
OPC: Just 1 director, converts automatically if turnover exceeds limits.
LLP: Partners with limited liability, great for service firms.
Pick based on your funding plans, liability needs, and growth stage. A mismatch here leads to costly restructurings later, so think long-term.
DSCs are your digital “ink” for signing forms—they’re mandatory for all directors and professionals involved. Issued by licensed Certifying Authorities like eMudhra or Sify, a Class 3 DSC costs ₹1,500–₹2,500 per person and takes 1–2 days.
Apply online with PAN, Aadhaar, photo, and address proof. All proposed directors (at least 2 for Pvt Ltd) need DSCs before starting SPICe+. Without them, you can’t upload or sign anything on the MCA portal.
Head to the MCA portal (mca.gov.in), log in, and access SPICe+ under “MCA Services.” Propose up to 2 names in order of preference—they must be unique, reflect your business, and follow naming rules (no “Ltd” if not approved yet, avoid generic terms).
Check availability first via MCA’s name search tool.
Submit Part A with DSC; fee is ₹1,000.
Approval comes in 1–3 days, or resubmit alternatives if rejected.
A strong name boosts branding from day one—think memorable, keyword-rich for SEO.
With name approved, jump to Part B—the heart of registration. This single form handles incorporation, DIN allotment for up to 3 directors, PAN/TAN, and optional GST/EPFO/ESIC via linked AGILE-PRO.
Key details to enter:
Registered office address (with proof like rent agreement/NOC/utility bill).
Authorized capital (start low at ₹1 lakh to minimize fees).
Director/shareholder KYC (PAN, Aadhaar, passport for NRIs).
Business activities (NIC codes).
Shareholding pattern.
Attach e-MoA/e-AoA (digital constitution docs) and INC-9 declaration. Affix DSCs, pay fees online, and submit.
Gather these digitally scanned (PDF, <10MB each) before starting—no physical copies needed.
For Directors/Shareholders:
PAN Card (Indian), Passport (NRIs).
Aadhaar/Voter ID/Driving License/Passport.
Latest photo, bank statement (3 months).
Address proof (utility bill/bank statement).
For Registered Office:
Rent agreement/ownership deed.
NOC from owner.
Utility bill (electricity/water, <2 months old).
Other:
MoA/AoA (auto-generated or custom).
Professional declaration (CA/CS signed).
NRIs need apostilled docs; keep everything crisp and legible.
Expect ₹7,000–₹25,000 total, depending on capital and state stamp duty. Here’s the real breakdown:
| Category | Item/Details | Cost (₹) |
|---|---|---|
| Government Fees | SPICe+ filing (capital ≤1L) | 5,000 |
| Capital 1–10L | 7,500 | |
| Stamp Duty | Varies by state (e.g., Delhi) | 1,000–15,000 |
| DSCs | 2 directors | 3,000–5,000 |
| Professional Fees | CA/CS drafting/filing | 5,000–15,000 |
| PAN/TAN | Included in SPICe+ | 443 |
| Total Estimate | Basic Pvt Ltd | 10,000–25,000 |
Shop around for pros; startups often get packages under ₹15,000.
After Part B submission:
MCA auto-allots DINs, generates PAN/TAN.
ROC reviews (1–7 days); track via “View Public Documents.”
Approved? Download COI with CIN—your company is live!
Post-incorporation: Open bank account, apply GST if needed, hold first board meeting.
First-timers trip here—don’t be one of them.
Wrong name choice: Too generic or trademarked; always pre-check.
Incomplete KYC: Mismatched PAN/address details cause instant rejection.
High capital: Over ₹1L hikes fees unnecessarily.
Missing proofs: No office NOC/utility bill? Back to square one.
DSC errors: Wrong class or un-affixed signatures.
NIC code mixup: Wrong activity classification delays approval.
No professional declaration: INC-9 must be signed by CA/CS.
Double-check everything; one error means refiling fees.
Smooth filings take 3–10 days total. Speed up by:
Prepping docs in a shared folder.
Using MCA’s pre-scrutiny tool.
Hiring a CA/CS for complex cases (NRIs, high capital).
For foreign founders: Possible 100% FDI in most sectors, but get DSC via embassy.
Ready to launch without stress? TrustLink India handles the full SPICe+ process end-to-end, ensuring zero rejections and fast approvals—connect today for your seamless incorporation.
1. How long does company registration take via SPICe+?
Typically 3–10 working days if documents are perfect; name reservation is 1–3 days.
2. What’s the minimum authorized capital needed?
No minimum since 2015, but ₹1 lakh is standard to keep fees low.
3. Can NRIs register a company online?
Yes, fully digital with apostilled docs, valid DSC, and Indian director (optional in some cases).
4. Do I need a physical office for registration?
No, virtual offices qualify with proper NOC/utility proof.
5. What if my SPICe+ gets rejected?
Fix issues (usually docs/name), resubmit Part A/B; no extra fee if within 20 days.
References (for context, not to copy text from):
by Corporate Advisory, TRUSTLINK
