Frequently asked questions.

It's the legal process of incorporating a business as a distinct entity under the Companies Act, 2013 (or the LLP Act, 2008 for LLPs), through the Ministry of Corporate Affairs.

Solo founders often start with an OPC, service partnerships lean toward LLP, and startups planning to raise funding typically choose a Private Limited Company.

PAN and Aadhaar of directors or partners, passport-size photos, proof of the registered office, and a recent utility bill are the core requirements.

Yes, at least one proposed director needs a DSC to file the incorporation form; a DIN is generated automatically for first-time directors through the SPICe+ form.

Typically 7-15 working days when documents are complete and there are no name or resubmission issues.

No. A residential address is accepted as the registered office at incorporation.

A Certificate of Incorporation along with PAN and TAN, after which you can open a current bank account and begin operations.

Startups planning to raise funding, scale operations, or hire a team typically choose this structure for its fundraising flexibility.

A minimum of 2 directors and 2 shareholders is required; the same individuals can hold both roles.

No. There is no mandatory minimum paid-up capital for a Private Limited Company in India.

Yes, this is its key advantage — it can issue shares to angel investors and venture capital firms, unlike an LLP or OPC.

Annual ROC filings, income tax returns, board meetings, and a statutory audit are mandatory regardless of turnover.

As a separate legal entity, at applicable corporate tax rates, distinct from the personal income of its shareholders.

Professionals, consultants, and service partnerships that want liability protection with lighter compliance than a Private Limited Company.

A minimum of 2 partners, with no upper limit on the maximum number.

No. LLPs cannot issue shares, which makes them less suited to startups planning to raise venture capital.

Yes, it must be filed with the ROC within 30 days of incorporation, setting out partner rights, duties, and profit-sharing.

Only if annual turnover exceeds ₹40 lakh or capital contribution exceeds ₹25 lakh.

Form 8 (Statement of Accounts) and Form 11 (Annual Return) each year, along with income tax returns, regardless of activity.

Solo entrepreneurs who want limited liability and a corporate identity without needing a co-founder.

A person named at incorporation who takes over ownership if the sole member dies or becomes incapacitated.

No. OPCs cannot issue shares to external investors, which limits equity fundraising.

Under current company law rules, a One Person Company (OPC) is no longer subject to mandatory conversion into a Private Limited Company based on exceeding paid-up capital or turnover thresholds. Instead, conversion to a Private Limited Company is entirely voluntary and can be done at any time to accommodate business growth.

Yes, regardless of turnover, similar to a Private Limited Company.

No. A person can be a member of only one OPC at a time.

Businesses crossing ₹40 lakh turnover (₹20 lakh for services in most states), plus certain categories like e-commerce sellers and inter-state suppliers regardless of turnover.

Typically 3-7 working days when documents are complete and there are no departmental queries.

PAN, Aadhaar, proof of business registration, address proof of the business premises, bank details, and photographs of proprietors, partners or directors.

Yes, and it helps with claiming input tax credit and building credibility with B2B clients.

A simplified scheme for businesses with turnover up to ₹1.5 crore, offering a lower fixed tax rate with reduced compliance, but without input tax credit.

Typically GSTR-1 for outward supplies, GSTR-3B as a monthly summary return, and an annual return, GSTR-9.

No. A residential address, rented space, or co-working address is accepted with the right supporting proof.