Complete Procedure to Form a Company in India

Complete Procedure to Form a Company in India


Forming a company in India involves a systematic procedure that ensures legal compliance and establishes a strong foundation for business operations. This comprehensive guide provides an overview of the complete procedure to form a company in India, outlining each step involved.

Step 1: Decide the Type of Company

The first step is to determine the type of company you wish to form. In India, common types include private limited company, public limited company, one person company (OPC), and limited liability partnership (LLP). Consider the nature of your business, ownership structure, and liability preferences to choose the appropriate type.

Step 2: Director Identification Number (DIN) and Digital Signature Certificate (DSC)

To register a company, directors must obtain a Director Identification Number (DIN) from the Ministry of Corporate Affairs (MCA). Additionally, directors and shareholders need a Digital Signature Certificate in Hyderabad (DSC) to sign electronic documents. These can be obtained from certified agencies.

Step 3: Name Reservation

Select a unique name for your company and apply for name reservation through the RUN (Reserve Unique Name) service offered by the MCA. Ensure the chosen name complies with the guidelines for company names and is not already registered by another entity.

Step 4: Memorandum and Articles of Association (MOA & AOA)

Draft the Memorandum of Association (MOA) and Articles of Association (AOA) for your company. These documents outline the company’s objectives, rules, and regulations, as well as details of shareholders, directors, and share capital. Consult with a legal professional or company secretary to ensure compliance with the Companies Act, 2013.

Step 5: Company Incorporation

Once the name is reserved and the MOA and AOA are prepared, file an application for company incorporation with the Registrar of Companies (ROC). Submit necessary documents, including the signed MOA, AOA, and other required forms. Pay the required registration fees based on the authorized share capital.

Step 6: Obtain the Certificate of Incorporation

Upon successful scrutiny of the application, the ROC will issue a Certificate of Incorporation, confirming the formation of your company. This certificate includes the company’s Corporate Identification Number (CIN) and date of incorporation.

Step 7: PAN, TAN, and GST Registration

After obtaining the Certificate of Incorporation, apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department. Depending on the nature of your business, register for Goods and Services Tax (GST) with the GSTN.

Step 8: Opening a Bank Account and Commencing Operations

Open a bank account for your company using the Certificate of Incorporation and other relevant documents. Acquire necessary registrations and licenses specific to your industry. Now, you can commence business operations, hire employees, and manage the company in compliance with applicable laws and regulations.


Forming a company in India involves a sequential process, from deciding the type of company to commencing operations. Following this step-by-step guide ensures legal compliance and establishes a solid foundation for your business. Remember to consult with legal professionals or company secretaries to navigate the complexities of company formation in India successfully. By meticulously following the procedure and meeting all compliance requirements, you can set up your company and embark on your entrepreneurial journey with confidence.

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