- 1. Agree the structure
Confirm founders, directors, share ownership, lawful objects and the proposed registered office.
- 2. Prepare evidence
Collect identity, address, premises consent and the information needed for signing and filings.
- 3. File through MCA
Use the current SPICe+ and linked-form process, review the generated documents and respond to queries.
- 4. Start compliance
Check incorporation details, complete applicable post-registration actions and maintain the company’s records.
Decide whether a company suits your plans
A private company may suit founders who want share-based ownership, future investment or clearer separation between the business and individuals. It also requires accounts, governance and recurring filings. Compare the expected annual effort with an LLP or sole proprietorship before choosing it only because the name sounds more established.
For an ordinary private company, the Companies Act provides for two or more persons forming it and a minimum of two directors. Shareholders own shares; directors manage the company. The same individuals may perform both roles, subject to eligibility and the law. Review director eligibility, resident-director requirements and any disqualification before filing.
A company limited by shares usually limits a member’s liability to the unpaid amount on their shares, but that does not remove personal guarantees, liability for misconduct or a director’s statutory duties. Avoid promising that incorporation protects founders from every business risk.
Agree the share split, contribution, roles and decision process in writing. If a founder is providing work instead of immediate cash, or expects shares later, document the proposal properly rather than inserting an unsupported arrangement in an application. A founders’ agreement should be coordinated with the company’s articles and the intended share issue.
Choose a name, activity and capital with care
The proposed name should be checked against existing company and LLP names and relevant trademarks. Name approval and trademark registration serve different purposes. Do not print packaging, commission expensive signage or promise a brand to investors solely because a basic availability search returned no match.
Describe the activities the company genuinely intends to carry on. The memorandum records its objects; the articles govern its internal management. A generic collection of unrelated activities can create inconsistencies with the application and commercial plan. Regulated words or activities may require additional permissions or evidence.
Distinguish authorised share capital, the ceiling recorded in the company’s constitutional documents, from subscribed and paid-up capital. Plan the number of shares, face value, subscriber commitments and future needs. These figures must agree across the filings. Share capital is funding or a commitment by subscribers; it is not the same as a professional incorporation charge.
| Decision or document | Prepare | Common mistake to avoid |
|---|---|---|
| Founders and directors | Identity, address, nationality, contact details and existing DIN where applicable | Spelling or PAN mismatches across forms and evidence. |
| Ownership and capital | Share split, share details, subscriber commitments and lawful funding plan | Treating capital as a registration fee or leaving the founders’ agreement unclear. |
| Company activity and name | Genuine business objects and a checked name proposal | Assuming name approval creates trademark ownership. |
| Registered office | Address evidence, owner’s consent and rent/lease documents where relevant | Incomplete address or consent referring to the wrong company. |
| Digital signing | Appropriate DSCs, MCA user setup and signatory association | Using another person’s signature or an unassociated certificate. |
| After incorporation | Bank, capital, books, governance and applicable filing calendar | Assuming the certificate finishes all compliance. |
Collect legible, matching documents
For Indian individual subscribers and directors, prepare PAN and the identity and residential-address evidence required by the current form. Check names, date of birth, contact details and document validity before starting. Where a body corporate subscribes, its incorporation evidence and authorisation may be needed. Foreign subscribers or directors can require separate authentication, notarisation, apostille or other formalities based on the facts.
For premises, keep a complete address and the appropriate ownership evidence, utility bill, owner’s no-objection consent and rent or lease documents. Ensure the proposed company’s name and the owner’s authority are correct. A residential address should be reviewed for lawful use, owner consent and local restrictions; there is no need to invent a commercial lease to make the application look larger.
Where documents are in a regional language, check the translation requirement in the current instructions. Use legible files and preserve the originals. The supporting address should agree with the application’s state, district, PIN code and other details; minor-looking differences can lead to resubmission.
Understand the MCA SPICe+ and linked filing process
The current MCA incorporation process uses SPICe+ and linked forms on the V3 portal. Part A concerns name reservation, while Part B handles incorporation information. Follow the live instructions on whether you are applying for name reservation separately or proceeding with the linked incorporation application.
The connected set includes constitutional documents and declarations, with AGILE-PRO-S covering linked services. Applicability and the required information vary with the company and registrations. Read each declaration before signing. Integrated PAN or TAN processing is different from assessing GST liability, employment-related obligations or a sector licence.
The appropriate signatories need correct MCA user setup and associated digital signatures. Review the generated application, memorandum, articles and linked documents together before submission. Obtain the professional certification required by the filing rather than assuming a do-it-yourself upload removes that requirement.
Keep the service request number, payment acknowledgement and submitted set. If a resubmission request arrives, respond to each point within the time stated for that application. Avoid claiming a fixed approval date: document readiness, name examination, portal functioning and authority queries all affect completion.
Budget transparently and plan the first months
Ask for a quotation separating government filing or name-related amounts, state-dependent stamp duty, DSC or token costs, professional charges and applicable GST, all in ₹. Obtain the actual basis for any concession. A low advertised package may exclude resubmissions, foreign-document work, address arrangements or post-incorporation support.
After approval, check the certificate, CIN, name, registered address, PAN and TAN information for consistency. Arrange the company’s bank and accounting setup, document subscription money and review any applicable commencement declaration before starting business or borrowing. Schedule board and auditor actions, statutory registers and ownership disclosures according to the company’s requirements.
Maintain company money separately from personal spending and record reimbursements with evidence. Set up invoices, customer contracts and bookkeeping from the first transaction. Check GST and local or sector licences for the actual activity. Track annual financial statements, audit and MCA return obligations even if turnover is low or the company has not yet begun trading.
Frequently asked questions
How many people are needed for an ordinary private company?
The Companies Act provides for two or more persons forming an ordinary private company and a minimum of two directors. Eligibility and resident-director requirements must also be checked.
Does company name approval register my trademark?
No. Name approval and trademark protection are separate. Review brand clearance and any trademark application independently.
Can I use my home as the registered office?
Review lawful use, the owner’s consent, address evidence and local restrictions. The documents must support the actual address; approval is not guaranteed.
Is GST registration automatic for every new company?
Company incorporation and GST liability are separate questions. Assess turnover, activity, supplying locations and applicable provisions before selecting GST treatment.
Does incorporation complete all company compliance?
No. Applicable bank, capital, governance, auditor, commencement, accounting and recurring filing requirements still need to be managed.
Get help with a defined scope
Before requesting incorporation support, send the proposed activity, founder and director details, share plan, registered-office state, premises arrangements and any foreign or corporate subscriber information. Ask LIQUETAX to define incorporation deliverables and the separate work needed after approval.
The engagement should identify who drafts and certifies the filings, the documents you must supply, fees in ₹, exclusions and how authority queries are handled. Name approval, incorporation and bank activation depend on the relevant review; a professional should not promise an outcome or date.