Frequently Asked Questions

•    A One Person Company (OPC) is recognized as a private limited company, however certain provisions of private limited company do not apply to a One Person Company
•    For formation of an OPC only one member or individual is sufficient. One Person Company has the privilege to not hold Annual General Meeting (AGM)
•    The information to be provided in the Directors’ Report is bare minimum as compared to a private limited company
•    In case of an OPC, the Annual report may be signed by either the Company Secretary or the director whereas Annual Returns of private or public limited companies are to be signed by both the Director and the Company Secretary and in case of no Company Secretary being hired, by a practicing company secretary.
•    If One Person Company has more than one director then at least one meeting of the Board of Directors is to be held in each half of calendar year and the gap between two meetings should not be less than ninety days.
 

• We are required to apply online for Director’s Identification Number (DIN) and the Digital Signature Certificate (DSC).
• Then we apply online for reservation of the name for the OPC. The Govt. fee for one name reservation is Rs. 1000.
• We also prepare Memorandum of Association (MOA), Articles of Association (AOA) and other clauses such as name clause, liability clause and Capital clause.
• Once the above stated documents are ready, we apply for registration of One Person Company.
• After all the clarification from MCA, Certificate of Incorporation and Corporate Identity Number (CIN) is issued.
 

The documents required for OPC incorporation are as following:
•    ID proof of proposed member, nominee, and director.
•    Aadhar card and PAN card.
•    Photograph of the proposed director.
•    Passport or Voter’s ID or Driving License.
•    Address proof of proposed member, nominee, and director.
•    Telephone bill/Mobile Bill/Bank Statement/Electricity Bill.
•    Rent agreement with rent slip.
•    Property papers/Registry.
 

To incorporate an OPC in India, the applicant must:
•    Be a natural person (not a legal entity like a company or trust),
•    Be an Indian citizen,
•    Be a resident of India (i.e., stayed in India for a minimum of 120 days during the previous financial year),
•    Not be a member or nominee in more than one OPC at a time.

The incorporation cost for One Person Company includes Govt. fee in the form of stamp duty and RUN platform for Name reservation, DSC and DIN fees, SPICE portal for Incorporation, besides the consulting fee of the vendor providing this service.

A Proprietorship Registration is an official document that serves as proof of existence and registration of a sole proprietorship business in India.
Since a sole proprietorship is not a separate legal entity from the owner, no specific government-issued certificate exists solely called "Proprietorship Registration." Instead, a combination of business registrations and approvals is used to establish and validate the identity and legal status of a proprietorship.
 

There is no single government-issued Registration titled "Proprietorship Formation" in India. Instead, a set of business registrations/approvals together act as proof of proprietorship.
To legally establish and prove a proprietorship, you must obtain at least two or more of the following registrations:
1. Udyam (MSME) Registration
2. GST Registration (if applicable)
3. Shop and Establishment Act Registration (state-specific)
4. FSSAI Registration (if food business)
5. MunicipalTrade Registration from your local municipality
6. Business PAN (Owner’s PAN)
Together, these serve as your "Proprietorship Registration" and allow you to:
• Open a current bank account in the business name
• Apply for loans or government schemes
• Do business legally and professionally
 

There is no Central or State Government fee for formation of a sole proprietorship because a sole proprietorship is not formed through a single official certificate.
Instead, you register for registrations (like GST, Udyam / Udyog Adhar, Shop & Establishment) which together act as proof of your proprietorship. The total cost depends on which registrations you choose and your State/Local regulations.
 

• The partnership not created by status- the relationship of partnership derives from the contract and not from status
• The maximum number of members cannot be more than one hundred (100)
• Property of the firm is to be considered as the property of an individual
• Creditors of a partnership are creditors of individual partners
• A partner cannot contract with his firm
• A partner cannot transfer his share and make the transferee a member of the firm without the consent of the other partners
• Unlimited liability
• The death or insolvency of a partner dissolves the firm unless otherwise provided

A Partnership Firm is a popular form of business structure governed by the Indian Partnership Act, 1932. While registration of a partnership firm is not mandatory under the Act, it is highly advisable due to the significant legal advantages a registered firm enjoys over an unregistered one.
 
The Partnership Deed is the most critical document defining the relationship among partners.
• Name and address of the firm and partners
• Nature and scope of business
• Date of commencement and duration of partnership
• Capital contribution by each partner
• Profit/loss sharing ratio
• Rights and duties of partners
• Interest on capital, drawings, and loans
• Admission, retirement, and expulsion of partners
• Dissolution of the firm
• Dispute resolution mechanisms
Stamp Duty must be paid on the deed, as per the respective State Stamp Act. The deed must be signed by all partners and witnessed.
 

The fee for registration of a Partnership Firm in India is relatively modest, but it varies depending on the state where the firm is being registered.
Registration Fee for Partnership Firm in India (Approximate)
This is the fee paid to the Registrar of Firms:
 

State    -             Govt fee

Maharashtra    - ₹1,600 – ₹2,000

Delhi     -           ₹1,000 – ₹1,500

Karnataka     -    ₹1,000 – ₹1,500

Tamil Nadu   -    ₹1,200 – ₹2,000

Gujarat     -         ₹750 – ₹1,200

West Bengal -    ₹1,000 – ₹1,500

Uttar Pradesh  -  ₹1,000

Other States  -     ₹500 – ₹2,000

 

Documents Required for Partnership Firm Registration

1. Application Form
2. Identity Proof of Partners (any one)

• PAN Card (mandatory for all partners)
• Aadhar Card
• Voter ID
• Passport
• Driving License

3. Address Proof of Partners (any one)

• Aadhar Card
• Voter ID
• Passport
• Utility bill (electricity, water, etc.)

4. Address Proof of Registered Office of the Firm

• Owned Premises:
• Rented Premises:

5. Affidavit

• Declaring that the details provided are correct
• Signed by all partners
• Sometimes required by the Registrar of Firms depending on the state

6. PAN Card of the Partnership Firm

• Required for tax and banking purposes
• Applied separately using Form 49A after the partnership deed is executed

7. Passport-size Photographs of All Partners
• Recent color photos, required in some states for identification and file records
 

When seven or more than seven persons are interested to share their profit and liability and they register their entity under Companies Act, 2013 which is not a private company. As per sec 2(71) of the Companies Act, 2013, A ‘Public Company’ means a company which has minimum paid-up share capital as may be prescribed and which is not a private company. Characteristics of a Public Limited Company Corporate Personality- A company incorporated under this act is vested with corporate personality, company have its own name, seal and assets and distinct from its members. Members- Public Limited Company requires at-least seven members for registration under the Companies Act, 2013. Directors- Minimum three directors are required for a Public Limited Company  Perpetual succession- A company has perpetual succession, i.e. the death or insolvency of a shareholder or all of them does not affect the life of the company. Limited Liability-Liability of members is extended to amount of share he purchased or guarantee given to the company. Apart from above, shareholders are not liable to pay any extra amount. Any losses incurred by the company do not create any liability for members.

The documents required for a Public Limited Company Incorporation are:
• Aadhar Card (in India)
• Utility Bill (Electricity/Water/Gas)
• Permanent Account Number (PAN) 
• Passport-Size Photographs
• Digital Signature Certificate (DSC)
• Director Identification Number (DIN)
 

• Company Name (RUN) – Rs.1,000 Govt. Fee per RUN
• Memorandum & Articles – Rs.300 charges
• SPICe+ Forms – Rs. 200 charges
• Incorporation Filing – Rs.500 charges
• GST certificate – Rs.300 charges
• PAN & TAN – Rs.100 charges
• PF Registration – Rs.100 charges
• ESI Registration – Rs.100 charges
   

• The directors of the proposed company must have DIN (Directors’ Identification Number) and digital signature certificate (DSC) to digitally sign the incorporation and other related documents.
• Reservation of name- An online application for reservation of name shall be made through website www.mca.gov.in by using RUN (Reserve unique Name) along with fees of Rs.1000 as per Companies (Registration Offices and fees), Rules,2014 which may either be approved or rejected, by the Registrar, Central   Registration Centre (CRC).
• Preparation of Memorandum of Association (MOA)- Drafting of MOA is generally a step subsequent to the reservation of name made by registrar. The following are the main clauses of MOA

1. Name Clause
2. Registered office clause
3. Object clause
4. Liability Clause
5. Capital Clause
6. Association clause

• Preparation of Article of Association (AOA)- Articles of Association is an instrument that defines the purpose of the company and specifies the regulation for its operation.
• Filling of the documents with Registrar of Companies (ROC)-An application shall be filed, with the Registrar of Companies within whose jurisdiction the registered office of the company is proposed to be situated, in form No.INC 32 (SPICe+) along with following documents.

1. Memorandum of Association
2. Article of Association
3. Id proof of proposed directors and members
4. Address proof of proposed directors and members
5. Address proof of the principle place of business
6. Certificate of incorporation and allotment of Corporate Identity Number (CIN)

• If the Registrar of Companies is satisfied that everything as per rule and regulation in regard to incorporation of companies. he/she shall issue a certificate of incorporation in form no INC 11.

Incorporating a Private Limited Company (Pvt Ltd) involves a structured process that ensures the company is legally recognized and compliant with government regulations.

Before starting the registration process, finalize:

•    Proposed company name
•    Business activity (objects clause)
•    Registered office address
•    Shareholding pattern
•    Directors and shareholders (minimum 2; can be the same person)

Obtain Digital Signature Certificate (DSC)

•    Required for signing digital documents during incorporation.
•    All proposed directors and shareholders must obtain a DSC.
•    Issued by government-approved certifying authorities.
•    Documents needed: PAN (for Indian nationals), Aadhar, passport photo, email ID, and phone number.

Apply for Director Identification Number (DIN)

•    DIN is a unique identification number required for all company directors.
•    Applied along with the incorporation form (SPICe+ in India) or separately if needed.
•    Foreign nationals can also obtain DIN with valid passport and address proof.

Reserve Company Name

•    Conduct a name availability search on the MCA (Ministry of Corporate Affairs) portal.
•    File Part a of Spice+ form for name reservation via the RUN (Reserve Unique Name) service.
•    Guidelines:
-    Name must be unique and not infringe trademarks.
-    Must end with "Private Limited".
 

When two or more than two persons are interested to share their profit and liability and register their business entity under the Companies Act, 2013, it is called a Private Limited Company. As per Sec 2(68) of the Companies Act, 2013, a private Company means a company, which has such minimum paid-up share capital as may be prescribed and which by its articles provides the following.

Key features of a private limited company

• Minimum no of Members is Two and maximum should not be more than 200
• Need to have at least Two directors
• The Name of a private limited company must end with the word “Private Limited”
 

Every director and shareholder must provide the following documents for identity and address verification:

1. Identity Proof (Any one of the following)

• PAN Card (mandatory for Indian nationals)
• Passport (mandatory for foreign nationals)
• Voter ID card
• Driving License
• Aadhar Card

2. Address Proof (Any one, dated within last 2–3 months)

• Bank Statement (with name and address)
• Utility Bill (electricity, telephone, water)
• Passport (if not already used as ID)
• Aadhar Card (if not used as ID)

3. Passport - sized Photograph

• Clear, recent photo with light background (digital format)

4. Digital Signature Certificate (DSC)

• A valid DSC is mandatory to file incorporation forms online.
• Issued by authorized certifying agencies.
 

• Company Name (RUN) – Rs.1,000 Govt. Fee per RUN
• Memorandum & Articles – Rs.300 charges
• SPICe+ Forms – Rs. 200 charges
• Incorporation Filing – Rs.500 charges
• GST certificate – Rs.300 charges
• PAN & TAN – Rs.100 charges
• PF Registration – Rs.100 charges
• ESI Registration – Rs.100 charges