Incorporation Compliance

Starting a business in India has never been more promising—or more regulated. Whether you’re an aspiring entrepreneur or an established professional branching out on your own, understanding how to legally incorporate your company is essential for success. This guide breaks down the entire process of company incorporation in India, updated for 2025, in simple, actionable steps.

Why Incorporate a Company in India?

Incorporating your business is more than just a legal formality. A registered company:

✅ Gains credibility with clients and investors
✅ Protects the personal assets of directors and shareholders
✅ Facilitates easier access to funding
✅ Enables smoother business expansion
✅ Enjoys various tax benefits and exemptions

India continues to improve its Ease of Doing Business rankings, offering digital platforms and streamlined processes. However, the procedures can still feel daunting without the right guidance.

Types of Business Structures in India

Before diving into the incorporation process, you must decide on the right business structure. Here are the most common options in India:

Pro Tip: Most startups prefer registering as a Private Limited Company due to investor trust, limited liability, and ease of ownership transfer.

Step-by-Step Process of Incorporation (2025 Update)

Let’s walk through each step in detail:

Step 1: Obtain Digital Signature Certificate (DSC)

All proposed directors must secure a Digital Signature Certificate (DSC) to sign e-forms. You can get a DSC from government-approved certifying authorities.

Documents Required:

  • PAN Card
  • Aadhaar Card
  • Passport-size photograph
  • Email ID and phone number

Estimated Time: 1–2 days

Step 2: Apply for Director Identification Number (DIN)

A Director Identification Number (DIN) is mandatory for every director. You can apply through the SPICe+ form (explained below), which has integrated DIN allotment.

Estimated Time: Alongside incorporation approval

Step 3: Name Approval via RUN or SPICe+

Choosing a unique name is critical. You can reserve your company name through:

  • RUN (Reserve Unique Name) service for name reservation only
  • SPICe+ Part A for name reservation and incorporation together

Make sure your name complies with MCA naming guidelines and isn’t identical to existing trademarks.

Tips for Approval:

  • Avoid generic words
  • Include unique prefixes
  • Attach NOC if using registered trademarks

Estimated Time: 2–3 days

Step 4: File SPICe+ Form (INC-32)

The SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form is an integrated web form covering:

✅ Company incorporation
✅ PAN & TAN allotment
✅ GST registration (optional)
✅ EPFO & ESIC registration
✅ Professional Tax registration (for applicable states)

Attachments Required:

  • Memorandum of Association (MOA)
  • Articles of Association (AOA)
  • Declaration by directors and subscribers
  • Address proof of the registered office

Estimated Time: 3–5 days

Step 5: Pay Government Fees and Stamp Duty

The fees depend on:

  • Authorized capital
  • Company type
  • State of incorporation

Payment is made online during form submission.

Step 6: Certificate of Incorporation Issued

Once the Registrar of Companies (RoC) reviews and approves your application, you’ll receive:

✅ Certificate of Incorporation (COI)
✅ Company Identification Number (CIN)
✅ PAN and TAN

Congratulations—your company is now officially registered!

Step 7: Open a Business Bank Account

Use your Certificate of Incorporation, PAN, and other documents to open a current account in your company’s name.

Step 8: Comply with Post-Incorporation Requirements

After incorporation, remember to:

  • File the Commencement of Business (INC-20A) within 180 days
  • Maintain statutory registers and records
  • Issue share certificates to subscribers
  • Appoint an auditor within 30 days

Common Mistakes to Avoid

🚫 Picking a conflicting or prohibited company name
🚫 Missing mandatory attachments in SPICe+
🚫 Delaying post-incorporation filings
🚫 Underestimating compliance obligations

Expert Tips for a Smooth Incorporation

💡 Consult a Professional: Engaging a CA or Company Secretary saves time and prevents costly errors.

💡 Plan Your Authorised Capital: Increasing authorised capital later involves extra paperwork and fees.

💡 Digitize Early: Use cloud-based accounting and compliance tools from day one.

Conclusion

Incorporating a company in India has become more accessible with digital platforms, but the process still requires careful attention to detail. By following this step-by-step guide, you can set up your business legally and confidently.

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Frequently Asked Questions (FAQs)

Q1. How long does it take to incorporate a company in India in 2025?

Ans. Typically 7–10 business days if all documents are in order.

Q2. Can I register a company online myself?

Ans. The MCA portal allows self-service registration, though professional assistance is recommended.

Q3. Is GST registration mandatory at incorporation?

Ans. It’s optional unless your turnover exceeds the GST threshold.