Choosing Your Business Structure
The first decision for any Indian entrepreneur is which structure to register. A Private Limited Company (Pvt Ltd) is ideal for startups seeking funding, as it allows equity dilution and has strong creditor protection. An LLP (Limited Liability Partnership) combines the flexibility of a partnership with limited liability, making it popular for professional services firms. A One Person Company (OPC) is perfect for solo entrepreneurs who want the benefits of incorporation without a co-founder.
Private Limited Company: The Startup Default
Most funded startups choose Private Limited. Requirements include a minimum of 2 directors, a unique company name approved by MCA, a registered office address in India, and minimum share capital of ₹1 lakh (though this can be symbolic). The entire process now takes 7-15 working days online via the MCA21 portal.
Step-by-Step Registration Process
Step 1: Obtain a Digital Signature Certificate (DSC) for all directors — costs ₹1,000-2,000 per director. Step 2: Apply for Director Identification Numbers (DINs) through the MCA portal. Step 3: Reserve your company name via the RUN (Reserve Unique Name) form. Step 4: File the SPICe+ form (Simplified Proforma for Incorporating Company Electronically) which now combines company incorporation with PAN, TAN, GST, EPFO, ESIC, and bank account opening in a single application. Step 5: Draft and file the Memorandum of Association (MoA) and Articles of Association (AoA).
Costs in 2026
Government fees for a company with ₹1 lakh authorised capital start from ₹5,000-7,000. Professional fees (CA/CS) typically add ₹8,000-15,000. Total cost for a basic Pvt Ltd registration: ₹13,000-25,000. Avoid chartered accountants who quote more than ₹30,000 for a straightforward incorporation.
