An Indian company is a type of company incorporated under the Companies Act, 2013, that is a private limited company, a type of business owned by the stakeholders in a personal capacity. It offers limited liability protection, where shareholders’ liability is restricted only to the unpaid amount of their shares. This means their assets are protected against company debts. A private limited company will have at least two directors, two shareholders and a maximum of 200 members. Shares cannot be traded publicly, and ownership is restricted to select individuals or entities. The structure provides operational independence, perpetual succession, the ability to own property and enter into contracts, and encourages growth by attracting investors and talent, making it a popular choice for startups and SMEs in India.
Incorporation of private limited company in India is a regulated process through Ministry of Corporate Affairs (MCA). Below are the comprehensive steps:
Who needs it: All proposed directors and shareholders.
Why: Required for signing electronic documents during registration.
How: Apply online from authorised agencies by submitting PAN Card, Aadhar Card, a passport-sized photo, and email/phone details.
Who needs it: Each director of the company.
How: Apply via Form DIR-3 on the MCA portal, providing identity proof, address proof, and a photograph. The DIN uniquely identifies directors and is mandatory for their appointment.
How: Submit Part A of the SPICe+ form on the MCA portal to propose up to two names for your company.
Rules: unique and do not contravene MCA name requirement.
Fee: ₹1,000 for name reservation.
Memorandum of Association (MOA): Defines company's objectives.
Articles of Association (AOA): Lay down rules of operation.
Supporting Documents: address/ identity proof of directors/ shareholders, business address proof, PAN, and bank details.
Details to enter: Registered office address, share capital, details of subscribers and directors, attachments (MOA, AOA, ID proofs, address proofs).
Apply for: PAN and TAN of the company simultaneously.
Digital Submission: All documents can be signed and uploaded using DSC.
Purpose: Apply for GST registration, Employees’ Provident Fund Organization (EPFO), Employees’ State Insurance Corporation (ESIC), Professional Tax (if applicable), and bank account opening all at once.
Mandatory for: Companies intending to employ staff or deal with goods/services requiring GST.
Govt Registration Fee: Varies by state and authorized share capital (commonly ₹7,000–₹15,000).
Stamp Duty: Paid online; it depends on the state and company's capital.
MCA Verification: The Registrar of Companies (ROC) scrutinises all documents.
Outcome: Upon approval, you get the Certificate of Incorporation (COI), Company Identification Number (CIN), PAN, and TAN, confirming the legal existence of your company.
First Board Meeting: Within 30 days of incorporation.
Open Bank Account: Use COI and PAN.
Statutory Books: Maintain company records and registers.
Register Filings: File annual returns, maintain compliance with the Companies Act.
Total Duration: 7–15 working days, depending on document readiness, regulatory timelines, and state-specific factors.
Expense Type |
Amount/Range |
Government Fees |
₹7,000–₹15,000 |
MCA Name Reservation |
₹1,000 |
Incorporation Fees (Capital-dependent) |
₹5,000–₹15,000+ |
Stamp Duty (State-dependent) |
₹135–₹15,020+ |
SPICe+ Form Fee |
₹500 (>₹15 lakh capital) |
DSC (per person) |
₹1,500–₹2,000 |
DIN (per director) |
₹500 |
Professional Fees (CA/CS) |
₹15,000–₹25,000 |
PAN & TAN Application |
₹443 |
Post-registration (bank a/c, seal, etc.) |
₹500–₹1,500+ |
GST Registration (if applicable) |
Govt fees free + Professional charges |
Note: Actual costs may vary by state due to stamp duty differences and additional compliance requirements. For city-specific fees (e.g., Bangalore/Delhi), see below.
Checklist for Directors/Shareholders (Indian Nationals):
PAN Card (mandatory for all directors/shareholders)
Aadhar Card
Passport-size photograph
Address proof (Utility bill, Passport, Driving License)
Email ID & phone number
Registered office address ( utility bill, rent/ lease, No objection certificate by the owner)
Bank account details
Checklist for Foreign Nationals:
Notarized/apostilled PAN equivalent & address proof
Passport
Proof of residency overseas
Step |
Key Actions/Details |
DSC & DIN |
Obtain for directors/shareholders |
Name Approval |
Propose 2 names, pay the reservation fee |
MOA & AOA |
Drafted and signed electronically |
SPICe+ & AGILE Forms |
Fill, attach documents, and submit online |
Fees & Stamp Duty |
Pay as per capital and state |
Verification |
ROC checks documents; issues COI, CIN, PAN, TAN |
Post-registration |
First meeting, open bank, comply with statutory filings |
Minimum directors/shareholders 2 each ( 1 director must be an Indian resident )
Maximum shareholders: 200
Minimum authorised capital: ₹1,00,000 (no minimum capital requirement since Companies Act amendment, but some fees/stamp duty depend on capital)
Documents: PAN, Aadhar, address proof, photos, business address (ownership/rent/NOC), bank details, MOA/AOA
Professional help: Highly recommended for accurate filings and compliance
This process ensures your private limited company is fully compliant with Indian law and ready for business operations in 2025.
Limited Liability: Owners’ assets are safe.
Separate Legal Entity: The Company can hold possessions and to sign contracts.
Fundraising: Easy to attract investors.
Growth & Compliance: Well-regarded by banks and stakeholders.
Our Company i.e. Adih Biztech Private Limited has a skilled team of Chartered Accountants, Company Secretaries, and Lawyers, as well as on-call support to handle all your financial, legal, and company formation needs.
The government fees depend on authorized capital and state of registration. Professional fees may also apply.
Yes, foreign nationals and NRIs can become directors and shareholders, provided there is at least one resident Indian director.
No, the entire process can be completed online through the Ministry of Corporate Affairs (MCA) portal.
There is no minimum paid-up capital requirement. You can start with as little as ₹1 as your initial capital.
On average, registration can take 7–10 working days, provided all documents are submitted correctly and promptly.
Common required documents include:
PAN Card and Aadhaar Card (for Indian nationals)
Passport (for foreign nationals)
Address proof (utility bill, bank statement)
Recent passport-sized photographs
Proof of registered office address
You need a minimum of two directors and shareholders, a registered office address in India, and the directors must have valid identification and proof of address.
Any two or more individuals (Indian citizens or foreign nationals) can register a Private Limited Company in India provided they have all the required documents.
A Private Limited Company is a business entity held by a small group of people. It limits owner liability to their shares and restricts shareholders from publicly trading shares.
A Private Limited Company must file annual returns, maintain statutory registers, hold board meetings, appoint auditors, and comply with tax filings.
Yes, existing businesses can be converted into a Private Limited Company by following MCA guidelines.
Profits are taxed at a flat corporate tax rate as per prevailing Indian laws. Additional taxes may apply for distributed dividends.