Company Formation in India — Private Limited, OPC & More
A company is the most trusted, scalable, and investment-ready business structure in the world. GCA handles the complete incorporation process via MCA's SPICe+ portal — from name reservation and DSC to Certificate of Incorporation, PAN, TAN, and all post-formation compliances.
What is a Company — and Why is It the Most Preferred Business Form?
A company is a legal entity formed by a group of individuals to engage in and operate a business. Unlike a proprietorship or partnership, a company has a separate legal existence from its owners — it can own assets, enter contracts, borrow money, and sue or be sued entirely in its own name. This is the foundational feature that makes the corporate form the most trusted business structure worldwide.
In India, companies are governed by the Companies Act, 2013 (specifically Sections 3–22 and the Companies (Incorporation) Rules, 2014) and registered with the Registrar of Companies (ROC) under the Ministry of Corporate Affairs (MCA). Every company is issued a unique Corporate Identity Number (CIN) and is required to maintain its registers, file annual returns, and comply with statutory requirements throughout its existence.
The first step in forming a company is promotion — where a person (the promoter) decides to incorporate a company, persuades others to contribute capital, and arranges for the company's formation. Promoters can enter into pre-incorporation contracts on behalf of the proposed company. Once the Certificate of Incorporation is issued by the ROC, the company comes into legal existence.
Types of Companies You Can Register in India
The Companies Act, 2013 provides for several types of companies suited to different business objectives, sizes, and ownership structures. GCA handles all of the following:
Private Limited Company
Most Popular Startup India EligibleThe most widely chosen corporate structure in India. Governed by Section 2(68), Companies Act 2013. Combines the benefits of limited liability, separate legal identity, and the ability to raise equity funding. Name must end with "Private Limited."
| Members | Minimum 2, Maximum 200 |
| Directors | Minimum 2, Maximum 15 (at least 1 Indian resident) |
| Min. Capital | No minimum — can be as low as ₹2 |
| Tax Rate | 22% (concessional) / 25% (for turnover ≤ ₹400 Cr) + surcharge + cess |
| Audit | Mandatory every year |
One Person Company (OPC)
Solo FoundersIntroduced by Section 2(62), Companies Act 2013 to enable a single entrepreneur to operate a business with the benefits of limited liability and corporate identity — without needing a co-founder. A nominee director must be appointed who takes over in case of death or incapacity of the sole member.
| Members | Exactly 1 (Indian resident only) |
| Directors | Minimum 1, Maximum 15 + 1 Nominee |
| Min. Capital | No minimum |
| Conversion | Voluntary conversion to Pvt Ltd (no mandatory threshold since 2021) |
| Audit | Mandatory every year |
Public Limited Company
Large EnterprisesGoverned by Section 2(71), Companies Act 2013. A Public Limited Company can raise capital from the general public through a public issue of shares (IPO). It has the highest credibility and can be listed on stock exchanges (BSE/NSE). Name must end with "Limited" (without "Private").
| Members | Minimum 7, No maximum limit |
| Directors | Minimum 3, Maximum 15 (+ Independent Directors if listed) |
| Public Offer | Can raise funds from public via IPO/FPO |
| Compliance | Highest — SEBI, ROC, listed exchange (if listed) |
Section 8 Company (Not-for-Profit)
NGO / CharitableA company formed to promote charitable objects — education, art, science, commerce, religion, environment, social welfare — and applies all profits towards those objects. No dividend is distributed to members. Governed by Section 8, Companies Act 2013. Eligible for 80G and 12AB income tax exemptions on donations received.
| Members | Minimum 2 (no upper limit) |
| Directors | Minimum 2 |
| Dividend | Cannot be distributed — profits applied to objects only |
| Licence | Special licence from Central Government required |
Producer Company
Farmers / ProducersGoverned by Sections 378A–378ZU, Companies Act 2013. A special type of company designed for primary producers — farmers, artisans, and craftsmen — to come together, pool resources, and collectively market their produce. Minimum 10 individual members (all must be primary producers), 5 directors. Combines features of a cooperative society with a corporate structure. Eligible for government grants and NABARD support.
How GCA Registers Your Company — Step by Step (SPICe+)
All new company registrations in India are done through Form SPICe+ (INC-32) on the MCA21 V3 portal — mandatory since 23 February 2020. SPICe+ is an integrated form that delivers 10+ services in a single filing, covering three Central Government Ministries and one State Government. Here is how GCA manages the complete process:
DSC (Digital Signature Certificate) for All Directors
Before any MCA filing, each proposed director must obtain a Class 3 DSC — a USB-based token that digitally signs the SPICe+ form. GCA coordinates DSC procurement for all directors. DSC is issued by licensed certifying authorities. Valid for 1–2 years. Foreign directors require additional attestation.
SPICe+ Part A — Company Name Reservation
GCA proposes up to two preferred company names in SPICe+ Part A on the MCA portal. The name must comply with MCA naming guidelines — unique, not similar to any existing company or trademark, reflective of the business activity, and ending with "Private Limited" (or "Limited" for public). GCA conducts a thorough name availability check before submission. Approval typically within 1–3 working days. The approved name is valid for 20 days (including weekends) — Part B must be filed within this window.
SPICe+ Part B — Incorporation Filing + Linked Forms
GCA prepares and files SPICe+ Part B along with four linked forms:
Part B includes details of directors (DIN allotment for up to 3), shareholders, registered office address, authorized & subscribed capital, NIC business activity code, and shareholding pattern. All forms are digitally signed using DSCs and submitted together.
MCA Fee Payment & CRC Processing
After submission, an SRN (Service Request Number) is generated and government fees are paid online. The Central Registration Centre (CRC) of MCA processes the application. If any errors or missing information are flagged, GCA addresses resubmission within the allowed 15-day window. One resubmission is permitted.
Certificate of Incorporation Issued ✓
Upon approval, the ROC issues the Certificate of Incorporation (CoI) along with the company's CIN, PAN, and TAN — all sent to the registered email. The company is now a legal entity. GCA also follows up for EPFO/ESIC activation and bank account opening through AGILE-PRO-S.
Form INC-20A — Commencement of Business Declaration
Within 180 days of the Certificate of Incorporation, the company must file Form INC-20A — a declaration confirming that the subscribed share capital has been deposited in the company's bank account. Failure to file attracts a penalty of ₹50,000 on the company and ₹1,000 per day on every defaulting officer. GCA files this automatically as part of the post-formation process.
Documents Required for Company Registration
All documents must be self-attested by the respective person and uploaded on MCA21 V3 in the prescribed format and size. GCA verifies all documents for compliance before submission.
Click on each category below to expand the checklist.
Mandatory Post-Incorporation Compliance — What You Cannot Miss
Incorporation is just the beginning. A company must comply with a series of mandatory requirements immediately after the Certificate of Incorporation is issued — and on an ongoing annual basis. GCA manages all of these for you.
⏱ Immediate (Within Days of Incorporation)
📅 Annual Compliance for Private Limited Company
| Form / Compliance | Purpose | Due Date | Penalty for Default |
|---|---|---|---|
| ADT-1 | Auditor appointment / reappointment | Within 15 days of AGM | ₹300/day (max ₹12,000) |
| AOC-4 | Filing of Financial Statements (Balance Sheet, P&L) | Within 60 days of AGM (by 29 Nov for 30 Sep AGM) | ₹100/day of default (no cap) |
| MGT-7 / MGT-7A | Annual Return of the company | Within 60 days of AGM (by 29 Nov for 30 Sep AGM) | ₹100/day of default (no cap) |
| DIR-3 KYC / Web KYC | Annual KYC of every director holding DIN | 30 September each year | ₹5,000 per director (DIN deactivated) |
| AGM | Annual General Meeting of shareholders | Within 6 months of financial year end (by 30 Sep) | ₹1 Lakh + ₹5,000/day on directors |
| ITR-6 | Income Tax Return of the company | 31 Oct (tax audit) / 30 Sep (otherwise) | ₹5,000 – ₹10,000 late fee + interest |
| GSTR-1, GSTR-3B | Monthly/quarterly GST returns | 11th and 20th of following month | ₹50/day + 18% p.a. interest |
| TDS Returns | Quarterly TDS filing (Form 24Q, 26Q) | 31st of month after quarter (Q4: 31 May) | ₹200/day (Sec 234E) + ₹10,000–₹1L (Sec 271H) |
| MSME Form-1 | Disclosure of dues to MSME suppliers | 31 Oct (Apr–Sep) & 30 Apr (Oct–Mar) | ₹25,000 – ₹3 Lakh on officers |
What to Register After Your Company is Incorporated
Once your company is incorporated, several additional registrations are required or strongly recommended depending on your business type. GCA handles all of them:
Free Udyam registration — enables collateral-free MSME loans, government tender preferences, and protection against delayed payments.
View MSME services →Protect your brand name and logo immediately after incorporation. Your company name is registered with MCA — not the trademark. Register both.
View Trademark services →Mandatory for any food business — manufacturing, trading, distribution, restaurant, cloud kitchen, or e-commerce food seller.
View FSSAI services →Mandatory 10-digit DGFT code for any company importing goods or exporting goods/services. One-time registration, lifetime validity.
View IEC services →EPFO registration mandatory for 20+ employees (ESIC for 10+). SPICe+ auto-registers both — but activation and monthly compliance must be managed.
Enquire →Apply for DPIIT Startup India recognition — unlocks Section 80-IAC tax holiday, self-certification for 9 labour laws, and fast-track IP processing.
View Business Setup →Frequently Asked Questions — Company Registration
What is SPICe+ and why is it used for company registration? +
SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) is the mandatory integrated web form on the MCA21 V3 portal for registering a company in India — applicable to all new incorporations since 23 February 2020. It combines over 10 services (name reservation, incorporation, DIN, PAN, TAN, EPFO, ESIC, GSTIN, bank account, and Profession Tax) into a single filing across three Central Government Ministries. Before SPICe+, each of these required a separate application and visit. Now, a company can be fully incorporated and ready-to-operate through a single end-to-end online process.
Can I use my home address as the registered office of the company? +
Yes. There is no restriction on using a residential address as the registered office of a Private Limited Company. You need to provide the latest utility bill (electricity/gas — not older than 2 months) and a No Objection Certificate (NOC) from the property owner (or yourself, if you own it). The registered office address appears on all MCA records and official correspondence. Once you have a commercial office, you can change it by filing Form INC-22 with the ROC.
What is the difference between authorized capital and paid-up capital? +
Authorized capital is the maximum amount of share capital that a company is authorized to issue to shareholders, as stated in the MOA. It is not the actual capital — it is the ceiling. Typically set at ₹1 lakh for new companies. MCA charges a nominal stamp duty based on authorized capital. Paid-up capital is the actual amount received by the company from shareholders for the shares issued. For example: Authorized ₹1 lakh, Issued 10 shares of ₹10 each = ₹100 paid-up. There is no minimum requirement for either under the Companies Act, 2013.
Is a company required to have a statutory audit every year even if there is no business? +
Yes. A Private Limited Company, OPC, and Public Limited Company are required to get their accounts audited by a Chartered Accountant every financial year — regardless of turnover or whether any business was conducted. This is a mandatory statutory audit under the Companies Act, 2013. The auditor's report must be attached to the financial statements filed via Form AOC-4 with the ROC. Failure to appoint an auditor or file audited accounts attracts significant penalties under the Act.
How is a company's income taxed in India? +
A domestic company's net income (profits) is taxed at: 22% (base rate) under Section 115BAA (concessional new regime, no exemptions/deductions used); or 25% for companies with total turnover not exceeding ₹400 crore in FY 2021-22; or 30% under the old regime. Surcharge and Health & Education Cess of 4% are additional. Dividend distributed to shareholders is taxed in the shareholder's hands at their individual slab rate. A company also pays Advance Tax quarterly and must file Form ITR-6 annually.
What is Form INC-20A and what happens if it is not filed? +
Form INC-20A is a mandatory declaration of commencement of business that every company with share capital must file within 180 days of the date of incorporation. It confirms that the subscribers (shareholders) have paid up the share capital they subscribed for, and the amount has been received in the company's bank account. If not filed: (1) The company faces a penalty of ₹50,000, (2) Every defaulting officer faces ₹1,000 per day of default, and (3) The ROC may initiate action to remove the company's name from the register. GCA files INC-20A as a standard step in all company formations.
Register Your Company — Affordable, Fast & Fully Compliant
SPICe+ filing · MOA & AOA drafting · DSC procurement · PAN + TAN · INC-20A · Post-incorporation setup — all by a qualified CA firm
New Business Setup · LLP Registration · MSME Registration · Trademark · All Services
