Choose structure first, then file
Here's the thing: most founders get super excited and rush to register without understanding what they're actually building.
I get it — you want to feel official. But the entity you pick today defines your liability, funding options, and compliance headaches for years. So maybe spend an afternoon on this instead of picking the first option on Google?
Common structures (aka your commitment level)
- Private Limited Company: The VC darling. Needs 2+ directors and 2+ shareholders, so grab a co-founder or your mom. Limited liability, separate legal entity, and investors will actually take you seriously.
- LLP (Limited Liability Partnership): Perfect for when you and your friends want to start a consultancy without the full corporate circus. Lower compliance than Pvt Ltd, and partners aren't personally bankrupt if things go south.
- OPC (One Person Company): "I work alone" energy. Limited liability for solo founders, but VCs will ghost you. Great for bootstrapped side projects that might actually make money.
- Partnership Firm: The "let's just start something" option. Dead simple to set up, but unlimited liability means they can come after your car if you mess up. Not ideal if you plan to raise funds (or own nice things).
The SPICe+ registration flow
India's Ministry of Corporate Affairs created SPICe+ — an integrated online form that's supposed to make this easy. Spoiler: it does, if you have your docs ready.
- Get Digital Signature Certificate (DSC) for all directors — ₹1,000-₹2,000 per person to prove you're not a bot.
- Apply for Director Identification Number (DIN) — ₹500 each, because the government needs to track you properly.
- Reserve company name via SPICe+ Part A — brainstorm unique names and pray nobody took "YourStartup Technologies Private Limited" already. Check trademark conflicts or you'll get rejected.
- File SPICe+ Part B with MOA/AOA, registered office proof, capital structure, and director details. This is the actual paperwork mountain.
- Receive Certificate of Incorporation with CIN, PAN, and TAN auto-issued. You're now a real company (congrats, I guess?).
- Open business bank account and apply for GST if you're crossing thresholds. Now the fun compliance part begins.
Timeline: 2-4 weeks total if your documents are clean and the planets align.
Budget and hidden costs (yes, there are hidden costs)
| Entity Type | Government + Professional Fees |
|---|---|
| Private Limited | ₹7,000 - ₹25,000 |
| LLP | ₹6,000 - ₹12,000 |
| OPC | ₹7,000 - ₹20,000 |
Oh, and add costs for registered office address proof, stamp duty (which varies wildly by state because why would it be consistent), and GST registration if applicable.
Don't have physical office space? Virtual office services exist and they're totally legitimate. You're basically paying someone to receive government mail on your behalf.
What breaks the process (learn from others' pain)
- Unclear name: Trademark conflicts or names too similar to existing companies will delay approval by weeks. "TechSolutions India Pvt Ltd" is probably taken. Be creative.
- Wrong address proof: Your registered office needs a valid rent agreement/NOC or ownership docs. Screenshots of Google Maps won't cut it.
- Rushed MOA/AOA: These define your company's scope and governance rules. Copy-pasting a template is tempting, but it creates real problems during funding rounds or exits when lawyers actually read them.
Get the paperwork right once. Amendments cost time, money, and your sanity. Future you will thank current you for not cutting corners.