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Company Registration via MCA (Private Limited / LLP)

Legal Guide

India offers multiple business structures. Choosing the right one depends on your scale, liability preference, and funding plans.


Business Structures Comparison

StructureMin. PeopleLiabilityBest For
Sole Proprietorship1UnlimitedVery small businesses
Partnership2UnlimitedSmall businesses with partners
LLP2LimitedProfessional services, small firms
Pvt Ltd Company2 directors, 2 shareholdersLimitedFunded startups, scaling businesses
One Person Company1LimitedSolo entrepreneurs wanting limited liability

Private Limited Company Registration

Step 1: Obtain DSC and DIN

  • Apply for Digital Signature Certificate (DSC) from certifying authority
  • Director Identification Number (DIN) is obtained during SPICe+ filing

    • Step 2: Name Reservation

  • Reserve the name through Part A of the SPICe+ form on the MCA portal (RUN is now used only when an existing company changes its name)
  • Check name availability and get approval (usually 1-2 days)

    • Step 3: File SPICe+ Form

  • SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) is the integrated incorporation form
  • Includes: company incorporation, DIN allotment, PAN, TAN, GSTIN, EPFO, ESIC, and bank account opening

    • Step 4: Submit MOA and AOA

  • Memorandum of Association (MOA): company's objectives
  • Articles of Association (AOA): company's rules and regulations

    • Step 5: Certificate of Incorporation

  • MCA issues Certificate of Incorporation with CIN
  • Typically within 3-7 working days

    • Costs

  • Government fees. Nil incorporation fee for authorised capital up to ₹15 lakh, plus ₹1,000 for name reservation and state stamp duty on MOA and AOA
  • Professional fees (CA/CS): ₹5,000 – ₹15,000
  • DSC: ₹500 – ₹2,000 per director

    • LLP Registration

    Similar process using FiLLiP form on MCA portal. Minimum ₹1 lakh capital contribution not mandatory. Suitable for professional services and small partnerships wanting limited liability.

    Key Takeaways

    • Pvt Ltd Company offers limited liability and is preferred by investors
    • SPICe+ form integrates incorporation with PAN, TAN, GST, EPFO, and ESIC
    • Total cost including professional fees: ₹7,000 – ₹20,000
    • LLP is simpler and cheaper but cannot raise equity funding
    • Process takes 3-7 working days on MCA portal

    Official Links

    MCA PortalMCA V3 Portal

    Related Business Ideas

    App DevelopmentDigital Marketing Agency

    Related Government Schemes

    Startup IndiaCgtmse

    Disclaimer

    This guide is provided for informational and educational purposes only. EduMetrics is not a legal, tax, or financial advisor. Regulations, procedures, and fees are subject to change. Please verify all information on the respective official portals and consult a qualified professional before taking any action.