Here are clear answers to the questions founders ask most often about registering a company in India. The answers follow the Companies Act, 2013 and the MCA’s current rules, and they replace the older version of this page, which contained figures that are no longer correct. If you do not find your question, write to us and we will reply.
If you have already decided on a private limited company, our page on private limited company registration explains the process, documents and costs in detail.
Company Basics
What is company registration?
Company registration, or incorporation, is the process of creating a company under the Companies Act, 2013 through the Ministry of Corporate Affairs (MCA). Once the Registrar issues the Certificate of Incorporation, the company is a separate legal entity. It can own property, enter contracts and sue or be sued in its own name, and its members’ liability is generally limited.
What types of company can be registered?
Under the Companies Act you can register a private company, a One Person Company (OPC), a public company or a Section 8 company, and special forms such as a Producer Company or a Nidhi. A Limited Liability Partnership (LLP) is registered under a separate law, the LLP Act, 2008. Our guide to the types of companies in India compares them.
Is it compulsory to register a business?
Registration is compulsory if you want to operate as a company or an LLP. A sole proprietorship does not need company-law registration, but the business may still need GST, a trade licence or other registrations depending on its activity.
Why should I register a company?
A company is a separate legal entity, so it can open a current account, sign contracts and hold assets in its own name. Banks, investors and large customers generally find it easier to deal with a registered company, and its members’ liability is generally limited to the amount unpaid on their shares.
Private Limited Company
How many members and directors does a private company need?
A private company needs at least 2 members and may have up to 200. It needs at least 2 directors and may have up to 15, and it can appoint more than 15 after passing a special resolution. The same people can be directors and shareholders.
Is there a minimum capital to start a company?
No. The Companies (Amendment) Act, 2015 removed the minimum paid-up capital for private and public companies. Authorised capital is the ceiling on the shares a company may issue; paid-up capital is the money shareholders actually pay in. The state stamp duty on the incorporation documents depends on the authorised capital you choose.
Does a director have to be resident in India?
Every company must have at least one director who stays in India for 182 days or more during the financial year. For a newly incorporated company, this applies proportionately in its first financial year.
Can a foreign national or NRI own a company in India?
A company can have foreign members, and the Companies Act requires at least one director who stays in India for 182 days or more during the financial year. Foreign investment rules under FEMA also apply, and foreign individuals’ documents are generally notarised and apostilled, so check the sector and route before filing.
Is physical presence needed to incorporate a company?
No. The SPICe+ form is filed online and processed centrally by MCA’s Central Registration Centre, and the directors sign electronically with their digital signature certificates.
What are the rules for naming a private company?
The name must end with “Private Limited” and must not resemble an existing company, LLP or registered trademark. MCA usually refuses names that use restricted words such as Bank, Insurance, National or Board without approval, do not match the company’s main objects, are offensive or suggest a government link. You can propose up to two names in SPICe+ Part A, with one resubmission, and an approved name is reserved for 20 days. You can check company name availability before applying.
One Person Company, LLP and Section 8
What is a One Person Company, and who can form one?
An OPC is a company with only one member. The memorandum names a nominee who takes over if the member dies or becomes incapable of contracting. Only a natural person who is an Indian citizen can form an OPC, and since 1 April 2021 that person need not be resident in India. A person can be a member of only one OPC. See our page on One Person Company registration.
Does an OPC have to convert when it grows?
No. The earlier rule that forced conversion once paid-up capital crossed ₹50 lakh or turnover crossed ₹2 crore has been removed, and an OPC can continue as an OPC. It can also convert voluntarily into a private or public company at any time, after increasing its members and directors to meet the requirements of that type.
What is a Limited Liability Partnership?
An LLP is a body registered under the Limited Liability Partnership Act, 2008 that combines partnership flexibility with limited liability for its partners. It needs at least two designated partners, and at least one of them must be resident in India. It is incorporated through Form FiLLiP. Our page on Limited Liability Partnership registration explains it.
What is a Section 8 company?
A Section 8 company is formed to promote commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment or similar objects. It must apply its profits to those objects and cannot pay dividends to its members. A licence from the Central Government is required, and for a new company it is applied for within the SPICe+ form. See our page on Section 8 company registration.
What is a public company?
A public company needs at least seven members and three directors. The Companies Act no longer fixes a minimum paid-up capital for it. A private company can also be converted into a public company.
Documents and Process
What are the MOA and AOA?
The Memorandum of Association (MoA) sets out the company’s name, registered office state, objects, liability of members and capital. The Articles of Association (AoA) are the rules for running the company internally. In SPICe+ they are filed as the e-MoA (INC-33) and e-AoA (INC-34).
What are a DSC and a DIN?
A Digital Signature Certificate (DSC) lets a director or subscriber sign MCA forms electronically. MCA accepts Class 2 or Class 3 certificates. You can apply for a digital signature certificate online. A Director Identification Number (DIN) is a unique number for every director, and SPICe+ allots DINs for up to three new directors. The equivalent for an LLP is the DPIN.
What documents are needed to register a company?
Each Indian director and shareholder provides a PAN (mandatory), an identity proof such as Aadhaar, voter ID, passport or driving licence, a residence proof such as a bank statement or a utility or mobile bill not older than 2 months, a photograph, an email address and a mobile number. For the registered office you need a utility bill not older than 2 months, a no-objection certificate from the owner and, if rented, the rent agreement.
How long does company registration take?
For a private company it typically takes 7 to 10 working days, subject to MCA processing. Delays usually come from a refused name or documents that do not match across PAN, Aadhaar and address proof.
Fees and Costs
What are the MCA fees for registering a company in 2026?
Under SPICe+, a company with authorised capital up to ₹15 lakh pays no MCA filing fee for the form, the MoA or the AoA, and only state stamp duty is payable. Reserving a name separately through SPICe+ Part A costs ₹1,000. Above ₹15 lakh of authorised capital, a fee applies by authorised capital slab, so check the MCA fee calculator before filing. Stamp duty varies by state, and our private limited company registration page explains it for Pvt Ltd companies.
Is there a fixed MCA fee for the minimum authorised capital?
No. Up to ₹15 lakh of authorised capital the MCA filing fee is nil, and only state stamp duty is payable. Fees quoted as a fixed amount for a ₹1 lakh authorised capital are out of date.
Do I need GST registration for a company?
A company must register for GST when its aggregate turnover crosses the limit notified under the CGST Act, and in some cases regardless of turnover, such as when it makes inter-state supplies of goods. Exporting goods counts as an inter-state supply. Our GST registration team can check whether and when you need it.
After Registration
What must a company do in its first 180 days?
Hold the first board meeting and appoint the first auditor within 30 days of incorporation, and issue share certificates within 2 months. Within 180 days, a director must file the declaration that every subscriber has paid for the shares agreed to be taken (Form INC-20A) under Section 10A, and a company should not commence business before it is filed. Our guide to post-incorporation compliances explains each step.
What annual filings does a company have?
A company holds an annual general meeting, has its accounts audited and files its financial statements (Form AOC-4) and annual return (Form MGT-7, or the abridged MGT-7A for an OPC or small company). See annual compliance for private limited companies for the schedule.
What is a small company, and what are the current limits?
A small company is a company, other than a public company, whose paid-up share capital does not exceed ₹10 crore and whose turnover does not exceed ₹100 crore. Both conditions must be met. These limits took effect on 1 December 2025 under MCA notification G.S.R. 880(E). They replaced the earlier limits, so figures quoted before that date are out of date. A holding company, a subsidiary, a Section 8 company and a company governed by a special Act cannot be a small company.
What relaxations does a small company get?
Among them: it need not include a cash flow statement in its financial statements; it is treated as compliant with the board meeting rule if it holds at least one board meeting in each half of the calendar year with a gap of at least 90 days between them; its annual return can be signed by the company secretary or, if there is none, by a director, and it files the abridged Form MGT-7A; and some penalties are limited to half the usual amount, up to a ceiling. An OPC has several of the same relaxations.
What is DIR-3 KYC, and how often must it be filed?
DIR-3 KYC is the annual identity and contact-detail update that every individual holding a DIN completes on the MCA portal. Since 31 March 2026 it is filed once in every third consecutive financial year, by 30 June, in the single form DIR-3-KYC-Web. A director who has completed KYC up to now is next due by 30 June 2028. Filing on time carries no fee, but a DIN deactivated for non-filing costs ₹5,000 to reactivate, and updating a mobile number, email address or residential address within 30 days of the change costs ₹500. Our DIR-3 KYC filing service can handle it.
Is a common seal compulsory?
No. Since the Companies (Amendment) Act, 2015, a company is not required to have a common seal. If it has one, its name must be engraved on it.
What is Startup India?
Startup India is a Government of India initiative launched on 16 January 2016 to support startups. An eligible company can apply for recognition from the Department for Promotion of Industry and Internal Trade (DPIIT), subject to the conditions of the scheme. See our page on Startup India registration.
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