Incorporating a company in India is a structured process that involves several steps, associated costs, and specific timelines. Understanding these elements is crucial for entrepreneurs aiming to establish a legal business entity in the country.

Process of Company Incorporation in India

Obtain Digital Signature Certificate (DSC): All proposed directors must acquire a DSC to sign electronic documents. This step typically takes 1-2 days.

Apply for Director Identification Number (DIN): Each director needs a DIN, which can be obtained alongside the incorporation application in the SPICe+ form. This process usually takes 1 day.

Reserve a Unique Company Name: Through the Reserve Unique Name (RUN) service, propose a company name. Approval generally takes 1-2 days, provided the name complies with the Ministry of Corporate Affairs (MCA) guidelines.

Prepare Memorandum of Association (MoA) and Articles of Association (AoA): These documents define the company's objectives and internal regulations. Drafting them typically takes 2-3 days.

File the SPICe+ Form: This integrated form facilitates multiple registrations, including company incorporation in India, Permanent Account Number (PAN), Tax Deduction and Collection Account Number (TAN), and Goods and Services Tax Identification Number (GSTIN). Filing usually requires 2-4 days.

Obtain Certificate of Incorporation (CoI): Upon approval, the MCA issues the CoI within 1-2 days, officially establishing the company's legal existence.

Associated Costs

The cost of incorporation of a company in India varies based on factors such as the type of business entity, state-specific fees, and professional services. Key expenses include:

Government Fees:

Name Reservation: Approximately ₹1,000.

Incorporation Filing Fee: Varies with authorized capital, typically ranging from ₹1,000 to ₹5,000.

Stamp Duty: Depends on the state; generally between ₹1,000 to ₹5,000.

Professional Fees:

Charges for services like document preparation, obtaining DIN and DSC, and form filing range from ₹5,000 to ₹25,000, depending on complexity.

Digital Signature Certificate (DSC):

Each DSC costs between ₹500 to ₹1,500.

Miscellaneous Costs:

Expenses for notarization, stamping, and document printing can add up to ₹500 to ₹2,000.

Estimated Timeline

The entire process of company incorporation in India typically spans 10 to 15 working days, contingent on factors like document accuracy, compliance checks, and MCA processing speed. Delays may occur due to name approval issues or document discrepancies.

Conclusion

Incorporation of a company in India involves a series of well-defined steps, each with associated costs and timelines. By meticulously following the process and ensuring all documentation is accurate, entrepreneurs can establish their business entities efficiently.

To ensure a smooth and legally compliant company incorporation in India, consult with the experienced legal team at Ahlawat and Associates. Our experts provide end-to-end assistance, from documentation to regulatory compliance. Get in touch today and take the first step toward successfully incorporating your company!