Incorporation means registering a business as an independent legal entity, distinct from its owners. Once incorporated, the company gains legal personality — it can own assets, enter into contracts, bear liabilities, and sue or be sued in its own name.
Key Steps in Incorporation (India, 2025)
Obtain Digital Signature Certificates (DSC): Required for digitally signing official documents.
Apply for Director Identification Numbers (DIN): Every proposed director must possess a DIN.
Name Reservation (SPICe+ Part A): The company’s proposed name is approved by MCA ensuring uniqueness and compliance.
Drafting MoA & AoA: The Memorandum of Association (MoA) defines objectives; the Articles of Association (AoA) set internal governance rules.
Filing SPICe+ Part B with MCA: Includes company details, capital structure, address, subscribers, and directors’ information.
Certificate of Incorporation: Once verified and approved, MCA issues this certificate with Company Identification Number (CIN), PAN, and TAN.
Types of Incorporated Entities
Under Indian law, common incorporated entities include :
- Private Limited Company (Pvt. Ltd.) – Ideal for startups and SMEs.
- Public Limited Company (Ltd.) – Suitable for large-scale operations and share trading.
- One Person Company (OPC) – For single entrepreneurs.
- Limited Liability Partnership (LLP) – Hybrid structure combining partnership flexibility with limited liability.
- Section 8 Company – Nonprofit entities focusing on charitable or social objectives.
Advantages of Incorporation
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