Why Private Limited is the default for funded startups
If you plan to raise external capital, a Private Limited Company is almost always the right structure. It offers limited liability, a clean cap table, the ability to issue equity and ESOPs, and it is the only structure most VCs and angels will invest into.
What you need before you start
- Digital Signature Certificate (DSC) for every proposed director
- Director Identification Number (DIN) — now allotted inside SPICe+
- A unique company name (check on the MCA portal + trademark search)
- Registered office proof (rent agreement + NOC, or ownership proof)
- PAN & Aadhaar of all directors and shareholders
The SPICe+ process, step by step
Incorporation in India runs through the MCA’s SPICe+ form, which bundles name reservation, incorporation, PAN, TAN, EPFO, ESIC, profession tax and a bank account into one flow.
- Part A: Reserve your company name (two choices allowed).
- Part B: File incorporation details, capital, directors and registered office.
- Attach: e-MOA (INC-33) and e-AOA (INC-34), signed with DSC.
- AGILE-PRO: GSTIN (optional), EPFO, ESIC and bank account.
Timeline and realistic cost
With documents in order, incorporation typically completes in 7–12 working days. Government fees are modest for authorised capital up to ₹15 lakh; the bigger variable is professional fees and stamp duty, which differ by state.
The most common rejection reason is a name that clashes with an existing company or trademark. Spend an extra day on name search — it saves a week of re-filing.
After incorporation
- Open the current account and deposit subscription money
- File INC-20A (commencement of business) within 180 days
- Appoint an auditor within 30 days
- Issue share certificates and pay stamp duty on them
Need help putting this into action? Book a free 15-minute call with a Vaishnav Catalyst specialist.