A private limited company remains the preferred structure for businesses that intend to raise capital, take on partners or scale beyond a founder-led operation. It offers limited liability and a separate legal identity, at the cost of an ongoing compliance obligation that a proprietorship does not carry.

What you need before you start

Every proposed director needs a Director Identification Number (DIN) and a digital signature certificate (DSC). You will also need identity and address proof for each director and shareholder, plus proof of the registered office address.

The incorporation steps

Name approval comes first, through the RUN or SPICe+ Part A facility. Once reserved, the SPICe+ Part B form handles incorporation, PAN, TAN, EPFO, ESIC and the bank account opening in a single integrated filing. The Memorandum and Articles of Association are filed alongside as linked forms.

What happens after incorporation

This is the part founders routinely underestimate. Within 180 days you must file a declaration of commencement of business. You then have an annual calendar: board meetings, statutory registers, the annual return in MGT-7, financial statements in AOC-4, director KYC, and an audit regardless of turnover.

Choosing the structure honestly

If you do not intend to raise external capital and your turnover is modest, an LLP or proprietorship may serve you better and cost less to maintain. The right structure is the one matched to where the business is actually going.