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Module 1 · Incorporation & Setup

The Incorporation Process & Costs

10 min5 sections

Lesson content

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What you'll take away

  • Obtain Class 3 DSC for each proposed director (₹1,000–₹1,500 per DSC, 1–2 days).
  • Apply for name reservation via RUN or Part A of SPICe+ (have 2–3 unique names ready).
  • Draft MOA/AOA aligned to objects clause — investors read this in due diligence.
  • File SPICe+ Part B with capital, registered office, subscriber details.
  • Receive COI, PAN, TAN; open current account with COI + MOA/AOA + board resolution.

SPICe+ in plain English

Most new Private Limited companies in India are incorporated through MCA's SPICe+ form on the Ministry of Corporate Affairs portal.

One integrated filing can grant DIN (Director ID), PAN, TAN, EPFO/ESIC registration (where applicable), GSTIN (optional in same flow), and Certificate of Incorporation (COI).

Timeline is typically 7–15 working days after documents are clean — delays usually come from name rejection or DSC issues, not 'government is slow' alone.

Step-by-step checklist

  • Obtain Class 3 DSC for each proposed director (₹1,000–₹1,500 per DSC, 1–2 days).
  • Apply for name reservation via RUN or Part A of SPICe+ (have 2–3 unique names ready).
  • Draft MOA/AOA aligned to objects clause — investors read this in due diligence.
  • File SPICe+ Part B with capital, registered office, subscriber details.
  • Receive COI, PAN, TAN; open current account with COI + MOA/AOA + board resolution.
  • File INC-20A (commencement of business) when applicable; activate GST if liable.

Estimated costs (indicative)

ItemTypical range (₹)
DSC (2 directors)2,000 – 3,000
Government fees + stamp duty2,000 – 12,000 (state-dependent)
Professional fees (CA/CS)5,000 – 15,000
Registered office / virtual office (annual)3,000 – 15,000
Total first-year setup12,000 – 35,000

Documents founders should prepare early

  • PAN and Aadhaar of all directors and subscribers.
  • Address proof (utility bill / bank statement) — not older than 2 months.
  • Passport-size photo and specimen signature.
  • Registered office proof: rent agreement + NOC from owner, or owned property papers.
  • Main objects clause in plain language (what you actually sell).

After COI: don't stop here

Incorporation is step one. Within 30–60 days most startups need: bank account, GST (if applicable), professional tax, shop establishment (state), and founder agreement.

Missing INC-20A or first-year ROC filings can block future funding or cause director disqualification — treat post-incorporation as a checklist, not a celebration pause.

Questions about this lesson?

Talk to a Pelago advisor — we'll map the right structure and compliance for your stage.