Free guide · Updated 2026

How to incorporate a startup in India

If you are a first-time founder in India, the legal wrapper is not the company — but getting it wrong will stall a bank account, a GST invoice, or a term sheet. This is the sequence most product and services startups actually follow.

1. Pick the entity before you pick the logo

Private Limited is the default if you will raise capital, issue ESOPs, or hire at any scale. Indian VCs almost never close into an LLP. An OPC works for a solo founder who wants limited liability now and can convert later. An LLP fits professional firms that will not sell shares. A sole proprietorship is fine while you are testing a service with your own money.

Read the full comparison: Pvt Ltd vs LLP vs OPC andwhy VCs insist on a Pvt Ltd. You can convert later, but it is slower than starting with the right form.

2. How a Private Limited actually gets registered

  1. DSC and DIN. Every proposed director needs a digital signature. DIN is allotted during SPICe+ if they do not already have one.
  2. Name reservation (SPICe+ Part A). Avoid names too close to a trademark or an existing company. Keep two backups.
  3. Incorporation (SPICe+ Part B). MOA, AOA, registered-office proof, and KYC. PAN, TAN, EPFO, ESIC, and sometimes GST can ride along.
  4. Certificate of Incorporation. You now have a CIN. Open a current account, deposit share capital, issue certificates.

Step-by-step with forms: How to reserve a name and incorporate.

3. After you have a CIN — do not stop

First board meeting, first auditor, statutory registers, and a calendar for AOC-4 / MGT-7.First-year Pvt Ltd compliance is the list investors will ask about in diligence.

Register GST when you hit the threshold, sell inter-state, or a customer refuses to pay without a GSTIN. Apply for DPIIT recognition if you want Startup India schemes or a cleaner conversation with banks.Udyam is free and often requested for MSME-linked credit.

NRIs and foreign co-founders: you still need one resident director, and share allotment is FDI paperwork. See Can an NRI be a founder?

4. What founders actually budget

Government fees are usually modest. Professional fees plus first-year audit and bookkeeping are the real number.Typical incorporation cost for a simple two-director company.

5. Every incorporation question on this site

This guide is for education. MCA fees, GST thresholds, and FEMA rules change. Confirm the current position with a CA or company secretary before you file.