What is Startup Incorporation?
Startup incorporation is the legal process of registering a business entity under Indian law, giving it a separate legal identity distinct from its founders.
Once incorporated, the startup can:
- Enter into contracts
- Open bank accounts
- Raise funding
- Apply for government benefits
- Protect founders from personal liability
Types of Startup Structures in India
Before incorporation, choose the right business structure:
- Private Limited Company (most preferred for startups)
- Limited Liability Partnership (LLP)
- One Person Company (OPC)
Most investors and accelerators prefer Private Limited Companies.
Step-by-Step Startup Incorporation Process
Step 1: Decide Business Structure
Choose the structure based on:
- Number of founders
- Funding plans
- Compliance flexibility
- Taxation requirements
Step 2: Obtain Digital Signature Certificate (DSC)
DSC is required for:
- Directors
- Subscribers to Memorandum of Association (MOA)
DSC is used for online filings with the Ministry of Corporate Affairs (MCA).
Step 3: Apply for Director Identification Number (DIN)
DIN is mandatory for anyone becoming a director in a company.
DIN application is included in the incorporation form itself.
Step 4: Name Reservation
Apply for company name approval through MCA:
- Ensure name is unique and not trademarked
- Should reflect business activity
- Follow naming guidelines under Companies Act
Step 5: Draft MOA & AOA
Prepare:
- Memorandum of Association (MOA) – defines company objectives
- Articles of Association (AOA) – governs internal management
These documents form the legal foundation of the startup.
Step 6: File Incorporation Application
Submit the integrated incorporation form with MCA including:
- Company details
- Director and shareholder information
- Registered office address
- MOA and AOA
Once approved, the Registrar of Companies (ROC) issues the Certificate of Incorporation.
Step 7: Receive Certificate of Incorporation
After approval:
- Company receives Corporate Identification Number (CIN)
- Legal existence of startup begins from this date
Step 8: PAN, TAN & Bank Account
Upon incorporation:
- PAN and TAN are auto-generated
- Open a current bank account in company name
Step 9: Apply for Startup India Recognition (Optional but Recommended)
Register under Startup India to get:
- DPIIT recognition
- Tax exemptions
- Funding and incubation benefits
- Fast-track IPR services
Documents Required for Startup Incorporation
For Directors & Shareholders
- PAN Card
- Aadhaar Card / Passport
- Address proof
- Passport-size photograph
For Registered Office
- Utility bill (electricity/water)
- Rent agreement or ownership proof
- NOC from owner
Post-Incorporation Compliance Checklist
- Appointment of auditor
- Opening statutory registers
- Issuing share certificates
- GST registration (if applicable)
- Bank account activation
- Annual ROC and tax filings
Common Mistakes to Avoid
- Choosing incorrect business structure
- Poorly drafted MOA objectives
- Ignoring post-incorporation compliance
- Not planning for future funding
- Delayed registrations (GST, Startup India)
Why Choose Saving Mantra for Startup Incorporation?
Saving Mantra offers end-to-end startup incorporation and compliance support, including:
- Structure advisory
- MCA filings
- Startup India registration
- Tax and GST setup
- Ongoing compliance and advisory
Disclaimer
This blog is for informational purposes only and does not constitute legal, tax, or professional advice. Laws and procedures may change from time to time. Readers are advised to consult Saving Mantra professionals before starting or incorporating a business.