Company Formation in India — A Complete Overview

Expert Business Registration Services by Mundra Legal Consultants

Company Formation — An Overview

Forming a company in India is the first and most crucial step towards establishing a legally recognized business. At Mundra Legal Consultants, we simplify the company formation process for entrepreneurs, startups, and growing enterprises across India.

Company formation gives a business its legal identity, limited liability protection, and corporate credibility under the Companies Act, 2013. It allows the business to function as a separate legal entity—capable of owning property, entering into contracts, and continuing operations regardless of ownership changes.

Depending on the business goals, one can choose from several structures such as:

Private Limited Company (Pvt. Ltd.)
One Person Company (OPC)
Limited Liability Partnership (LLP)
Public Limited Company
Section 8 (Non-Profit) Company
Partnership Firm or Proprietorship

Each structure carries its own compliance framework, tax benefits, and suitability for business size and nature. Our experts at Mundra Legal guide you through selection, documentation, registration, and post-formation compliance.

Why is Company Formation Important?

Company formation legally establishes your business as an independent entity. It strengthens your credibility, protects personal assets, and provides a professional foundation for sustainable growth.

Legal Recognition

Enables your business to operate under Indian law with full legal protection.

Separate Legal Identity

The company can own assets, sue, and be sued independently of its owners.

Limited Liability

Protects owners' personal assets from business debts and liabilities.

Funding Access

Helps raise capital from investors, banks, and financial institutions.

Perpetual Succession

The company continues regardless of ownership changes or death of founders.

Brand Credibility

Registered businesses gain trust from customers, vendors, and partners.

Tax Benefits

Companies are eligible for various deductions, incentives, and GST benefits.

Advantages of Registering Your Company with Mundra Legal

                        Key Benefits of Company Registration
                        Limited Liability Protection: Protects personal wealth from company liabilities, ensuring financial safety for shareholders
Separate Legal Entity: The company operates independently of its owners, maintaining distinct legal status
Increased Credibility: A registered entity builds confidence among clients, banks, and investors
Access to Capital: Enables fundraising through equity, loans, or venture investments
Perpetual Existence: The business remains unaffected by the death or withdrawal of shareholders
Tax Efficiency: Eligible for corporate tax deductions, start-up incentives, and GST benefits
Ease of Expansion: Registered entities can easily scale operations, hire staff, and open branches

                    

Eligibility Criteria for Company Formation in India

As per the Ministry of Corporate Affairs (MCA), the general eligibility requirements include:

Minimum two directors (one must be an Indian resident)
Minimum two shareholders (can be the same individuals)
A unique company name approved by the Registrar of Companies (ROC)
A registered office address in India
Mandatory PAN, TAN, and GST registration
Preparation of Memorandum of Association (MoA) and Articles of Association (AoA)
Appointment of a Chartered Accountant as company auditor

Our professionals at Mundra Legal ensure every eligibility requirement is met before filing to avoid rejection or delay.

Documents Required for Company Formation

For Directors and Shareholders

PAN Card (for Indian nationals) / Passport (for foreign nationals)
Aadhaar Card / Voter ID / Driving Licence
Passport-size photograph
Digital Signature Certificate (DSC)
Director Identification Number (DIN)
Proof of address — utility bill, bank statement, or rent agreement (not older than 2 months)

For Registered Office

Proof of ownership (Sale Deed) or Rent Agreement
NOC from the property owner
Latest electricity, water, or gas bill

Step-by-Step Company Formation Process with Mundra Legal

Step 1: Initial Consultation

We assess your business model and advise on the most suitable company structure.

Step 2: Digital Signature (DSC) & DIN Application

We obtain DSCs for all directors and apply for their Director Identification Numbers.

Step 3: Company Name Reservation

We reserve a unique name through the MCA's RUN or SPICe+ system, ensuring compliance with Rule 8 of the Companies (Incorporation) Rules.

Step 4: Preparation of Incorporation Documents

Drafting and filing SPICe+, e-MoA (INC-33), and e-AoA (INC-34) forms online.

Step 5: Submission to MCA

All incorporation documents are filed electronically with the Registrar of Companies (ROC).

Step 6: Verification and Approval

The ROC reviews your application. Upon approval, the Certificate of Incorporation (COI) is issued along with PAN and TAN.

Step 7: Post-Incorporation Formalities

Opening a corporate bank account, GST registration, EPF/ESI registration, and setting up statutory records.

Typical Timeline: 10–15 working days (depending on government processing).

Types of Business Entities in India

Business Type	Legal Act	No. of Owners	Separate Legal Entity	Liability	Audit	Foreign Ownership	Ideal For
Private Limited Company	Companies Act, 2013	2–200	Yes	Limited	Mandatory	Permitted	Startups, SMEs
One Person Company (OPC)	Companies Act, 2013	1	Yes	Limited	Mandatory	Not Permitted	Solo founders
Limited Liability Partnership (LLP)	LLP Act, 2008	2+	Yes	Limited	Conditional	Permitted	Professionals, small firms
Public Limited Company	Companies Act, 2013	7+	Yes	Limited	Mandatory	Permitted	Large-scale enterprises
Section 8 Company	Companies Act, 2013	2+	Yes	Limited	Mandatory	Permitted	NGOs, charitable orgs
Partnership Firm	Partnership Act, 1932	2–50	No	Unlimited	Not mandatory	Limited	Traditional businesses
Proprietorship	Not governed by specific act	1	No	Unlimited	Not mandatory	No	Freelancers, small traders

Mundra Legal helps you select and register the entity best aligned with your business goals.

Post-Incorporation Compliance

After company formation, maintaining compliance is mandatory under Indian corporate law. We provide end-to-end assistance for all ongoing filings and statutory obligations.

                        Mandatory Compliance Includes:
                        First Board Meeting within 30 days of incorporation
Appointment of First Auditor within 30 days
Issuance of Share Certificates within 60 days
Annual General Meeting (AGM) within six months of financial year-end
Filing of Annual Return (Form MGT-7)
Filing of Financial Statements (Form AOC-4)
Income Tax Return Filing
Maintenance of Statutory Registers (members, directors, charges, etc.)
Display of Company Name and CIN on all official materials

                    

Mundra Legal's compliance team ensures timely filings and avoids penalties.

Role of Directors and Shareholders

👔 Directors

Manage daily operations and decision-making
Ensure statutory and financial compliance
Represent the company before authorities
Are accountable for governance and reporting

💼 Shareholders

Own equity in the company
Vote on key resolutions and appointments
Receive dividends and returns on investment
Have limited liability restricted to their shareholding

Choosing the Right Structure

Choosing the correct business structure depends on:

👥 Number of Promoters

Solo founder, partnership, or multiple shareholders

📊 Scale of Operations

Small business, startup, or large enterprise

💰 Investment Requirements

Self-funded, angel investment, or VC funding

📈 Tax Planning Needs

Optimal tax structure based on revenue projections

🌍 Future Expansion Goals

Domestic market or international expansion plans

🌐 Foreign Funding Goals

FDI, foreign investors, or overseas partnerships

Mundra Legal helps you compare structures objectively and choose the most efficient and compliant option.

Securing a Company Name

Steps to secure your company's name legally:

Conduct a name search on the MCA portal
Ensure it is not identical to an existing company or trademark
Submit an application through RUN or SPICe+ Part A
On approval, proceed with incorporation
Apply for Trademark Registration to protect the name
Register a matching domain name for online presence

Mundra Legal manages the entire name approval and trademark process for your brand.

Why Choose Mundra Legal for Company Formation?

                        ✅ Expert Legal Advisors: In-house team of corporate lawyers, CAs, and CS professionals
📋 End-to-End Assistance: From planning and documentation to incorporation and compliance
💰 Transparent Pricing: No hidden fees, clear cost structure
⚡ Faster Processing: Optimized filing and name approval timelines
🆔 PAN, TAN & GST Setup: Included with all formation packages
📊 Post-Incorporation Support: Annual filings, audit setup, and corporate compliance
🇮🇳 Nationwide Reach: Services available across all Indian states
💻 100% Digital Process: Paperless, efficient, and MCA-approved online workflow

                    

Ready to form your company? Contact Mundra Legal Consultants today for expert guidance and seamless business registration. Fill the form on the right or call us directly!