Company Incorporation Process: Steps, Fees, and Timeline

Starting a company in India is a structured and formal process governed by the Ministry of Corporate Affairs (MCA). Whether you're an entrepreneur, a small business owner, or a startup founder, registering your company legally gives it recognition, protection, and credibility. This project outlines each step involved in the incorporation process, offers clarity on government charges and professional fees, and provides an expected timeline from start to finish. Objective: The goal is to help new business owners gain clarity on the procedural steps of incorporating a company in India, estimate the cost involved, and understand how long it may take. The process applies to private limited companies, limited liability partnerships (LLPs), one-person companies (OPCs), and other legal business entities. Step-by-Step Process of Company Incorporation Decide on the Business Structure The first step is to choose a suitable structure: Private Limited Company, Public Limited Company, LLP, OPC, or Sole Proprietorship. Each structure has different legal, tax, and compliance requirements. Apply for Digital Signature Certificate (DSC) A digital signature is mandatory for directors and shareholders to sign the incorporation documents electronically. This is issued by authorized certifying agencies in India. Director Identification Number (DIN) Allotment DIN is a unique identification number for each director. It is applied along with the incorporation form or separately if the person is already appointed as a director in another company. Name Reservation with MCA (RUN or SPICe+) You must apply for name approval through the Reserve Unique Name (RUN) service or within the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form. The chosen name must follow naming guidelines and should not resemble existing companies or trademarks. Drafting of MOA and AOA The Memorandum of Association (MOA) defines the scope of activities of the company, while the Articles of Association (AOA) lay down internal rules. These documents must be prepared and submitted with the registration application. Filing the SPICe+ Form SPICe+ is the official incorporation form, which includes multiple services such as PAN, TAN, GSTIN, ESIC, EPFO registration, and professional tax (in applicable states). All details about directors, shareholders, and capital structure are filled here. Opening a Bank Account (Post-Incorporation) Once the Certificate of Incorporation (COI) is received, the next step is to open a current account in the name of the company. This allows you to start financial transactions. Commencement of Business Certificate (if applicable) Private limited companies must file a declaration of the commencement of business (Form INC-20A) within 180 days of incorporation to start operations. Government Fees and Other Charges The cost of company registration depends on the following factors: Authorized Capital: Government fees are calculated based on the capital declared. For example, a private limited company with an authorized capital of ₹1 lakh may pay lower fees than one with ₹10 lakh. Stamp Duty: Varies by state and the type of company. DSC Cost: Generally ranges from ₹1,000 to ₹1,500 per person. Professional Fees: If you choose to work with a company registration consultant, the fees for preparing documents, filing forms, and handling queries usually range between ₹4,000 and ₹15,000, depending on complexity. Timeline for Company Incorporation The incorporation process can take anywhere between 7 to 15 working days, depending on document readiness and approval times. Typical Timeline: Day 1–2: Collection of documents and DSC application Day 3–4: DIN application and name reservation Day 5–7: Drafting MOA/AOA, filling SPICe+ form Day 8–10: Verification and processing by MCA Day 11–15: Certificate of Incorporation issued In ideal scenarios where documents are in order and no resubmissions are required, it is possible to receive the COI within 7–8 days. Documents Required For Directors and Shareholders: PAN Card (mandatory for Indian citizens) Aadhaar Card or Passport Address Proof (bank statement, utility bill) Passport-sized photo Email ID and phone number For Registered Office: Rent agreement or property ownership proof No Objection Certificate (NOC) from property owner Utility bill (not older than 2 months) Why This Project Helps New Businesses This project aims to make the process of company incorporation less overwhelming by breaking it into clear, actionable steps. Business owners can use this guide to understand where to begin, what documents they need, how much it may cost, and how long the process will take. It reduces the risk of delays and helps maintain compliance from day one.