✅ Frequently Asked Questions (FAQs)

1. What law governs company formation in India?
Company formation is governed by the Companies Act, 2013, administered by the Ministry of Corporate Affairs (MCA).

2. What types of companies can be registered?

• Private Limited Company
• Public Limited Company
• One Person Company (OPC)
• Limited Liability Partnership (LLP)
• Section 8 Company (Non‑profit)

3. How long does incorporation take?
With the SPICe+ form, incorporation can be completed in 7–10 working days, provided documents are in order.

4. What is the minimum requirement for a Private Limited Company?

• 2 directors (at least one must be Indian resident)
• 2 shareholders (can be the same as directors)
• Registered office address in India

5. Is GST registration mandatory?
Only if annual turnover exceeds the prescribed threshold (₹40 lakh for goods, ₹20 lakh for services).

6. Can foreign nationals register a company in India?
Yes, subject to compliance with Foreign Direct Investment (FDI) rules.

📝 Step‑by‑Step Procedure

1. Obtain Digital Signature Certificate (DSC)
   • Required for directors and shareholders to sign electronic forms.
2. Apply for Director Identification Number (DIN)
   • Unique ID for directors, applied via MCA portal.
3. Name Reservation
   • File through RUN (Reserve Unique Name) or directly in SPICe+.
   • Ensure name is unique and not infringing trademarks.
4. Drafting of Documents
   • Memorandum of Association (MoA): Defines objectives of the company.
   • Articles of Association (AoA): Governs internal rules.
5. Filing SPICe+ Form
   • Integrated form covering incorporation, PAN, TAN, GST, EPFO, ESIC, and bank account.
6. Payment of Fees & Stamp Duty
   • Based on authorized capital.
7. Certificate of Incorporation (CIN)
   • Issued by Registrar of Companies (RoC).
   • Confirms legal existence of the company.
8. Post‑Incorporation Compliance

• Open bank account.
• Apply for GST if applicable.
• Hold first board meeting within 30 days.
• Maintain statutory registers.

📋 Checklist for Company Formation

• Identity Proof: PAN card, Aadhaar, Passport (for foreign nationals).
• Address Proof: Utility bill, bank statement.
• Registered Office Proof: Rent agreement/ownership deed + utility bill.
• Photographs: Passport‑size photos of directors/shareholders.
• Digital Signature Certificates (DSC) for all subscribers.
• Director Identification Number (DIN) for directors.
• MoA & AoA drafted and signed.
• SPICe+ Form completed and filed.
• PAN & TAN application included.
• Payment of fees to MCA.
• Certificate of Incorporation (CIN) received.
• Post‑incorporation tasks: Bank account, GST, statutory registers, board meetings.

⚠️ Key Risks & Considerations

• Name rejection: Ensure proposed name is unique and compliant.
• Documentation errors: Incorrect proofs delay approval.
• Compliance burden: Annual filings and board meetings are mandatory.
• Tax implications: Choose structure wisely (Pvt Ltd vs LLP) for tax efficiency.

Sources: TaxGuru – Checklist for Company Incorporation, IndiaFilings – Company Registration Guide, BusinessSetup – FAQs on Company Registration

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