From sole proprietorship to private limited company — complete step-by-step guide, documents required, costs, and official portals. Everything in one place.
Simplest form. You are the business. No formal registration needed — just a bank account in your business name. Ideal for freelancers, small shops, home businesses.
Two or more people run a business together. Governed by a Partnership Deed. Simple to form but partners have unlimited personal liability.
Best of both worlds. Partnership flexibility + limited liability like a company. Partners' personal assets are protected. Popular with professionals and startups.
A private limited company with just one director and one shareholder. Full limited liability protection for solo founders. Introduced for solo entrepreneurs who want corp benefits.
The gold standard for startups and growth businesses. Separate legal entity, limited liability, can raise investment, issue shares. Required for most VC funding and big contracts.
| Structure | Min Members | Liability | Cost | Time | Best For |
|---|---|---|---|---|---|
| Proprietorship | 1 | Unlimited | ₹0 | 1 day | Freelancers, small shops |
| Partnership | 2 | Unlimited | ₹1K–3K | 1–3 days | Family business, agencies |
| LLP | 2 | Limited | ₹5K–15K | 10–15 days | Professionals, consultants |
| OPC | 1 | Limited | ₹7K–20K | 15–20 days | Solo founders scaling up |
| Pvt Ltd | 2 | Limited | ₹10K–25K | 15–20 days | Startups, funding seekers |
Required for all directors. Apply through MCA-empanelled agencies (eMudhra, Sify, NSDL). Cost: ₹1,000–2,000. Takes 1–3 days.
Unique ID for each director. Applied via SPICe+ form on MCA portal. Free when filed with incorporation.
Reserve your company name at mca.gov.in. Suggest 2 names. Must include "Private Limited". Approval takes 1–3 days. ₹1,000 fee.
Memorandum of Association (company's objectives) and Articles of Association (internal rules). A CA or CS usually does this for ₹3,000–8,000.
Single window for incorporation + PAN + TAN + EPFO + ESIC + Profession Tax + Bank Account opening. File at mca.gov.in. Govt fee: ₹500–2,000 based on capital.
MCA issues digitally signed COI with CIN number. Usually 15–20 working days. You're now officially a company!
Open current account with COI + MOA + PAN. Apply for GST if turnover expected > ₹20L. Register on Udyam portal for MSME benefits.
💡 Pro tip: You can use your home address as registered office. This saves rent cost when starting out. Just keep the electricity bill + aadhaar address matching.