Types and Benefits
🏢 Types of Companies You Can Incorporate in India
| Type of Company | Key Features | Suitable For |
|---|---|---|
| 1. Private Limited Company (Pvt Ltd) | - Min. 2, Max. 200 members - Limited liability - Cannot raise public funds | Startups, SMEs seeking investment |
| 2. Public Limited Company (Ltd) | - Min. 7 members, no max limit - Can raise funds from public - Higher compliance | Large businesses planning IPO or external funding |
| 3. One Person Company (OPC) | - Single shareholder/director - Limited liability - Converts to Pvt Ltd if criteria exceed | Solo entrepreneurs |
| 4. Limited Liability Partnership (LLP) | - Min. 2 partners - Hybrid of company + partnership - Separate legal entity | Professional services, small businesses |
| 5. Partnership Firm (Registered/Unregistered) | - Min. 2 partners - Unlimited liability - Simple structure | Traditional businesses, family-run ventures |
| 6. Sole Proprietorship | - Owned & managed by one person - No separate legal entity - No registration with MCA (not a company per se) | Small local businesses |
| 7. Section 8 Company (Non-Profit Organization) | - Formed for charitable/social purposes - No profit distribution - Special license from MCA | NGOs, charitable trusts, foundations |
| 8. Producer Company | - For farmers/agriculture producers - Min. 10 producers or 2 institutions - Registered under Companies Act | Agribusiness cooperatives |
✅ General Benefits of MCA-Registered Companies
- Limited Liability – Personal assets of members are protected.
- Separate Legal Entity – Company can own property, enter contracts, sue or be sued.
- Credibility & Trust – Legal structure builds trust with investors, banks, customers.
- Perpetual Succession – Company continues regardless of changes in ownership.
- Funding Access – Eligible for equity funding, bank loans, government schemes.
- Startup India Benefits – Tax exemptions, faster IP registration, funding support (if DPIIT-recognized).
Documents
📄 Document List for Company Incorporation
| Document Type | Required From | Documents |
|---|---|---|
| ✅ Identity Proof | All directors/shareholders | PAN Card (mandatory for Indian citizens) |
| ✅ Address Proof | All directors/shareholders | Aadhaar Card / Passport / Voter ID / Driving License |
| ✅ Photograph | All directors/shareholders | Passport-sized color photo |
| ✅ Business Address Proof | Company | Electricity bill / Rent agreement / NOC from owner |
| ✅ Digital Signature Certificate (DSC) | All directors | Required for filing with MCA |
| ✅ Director Identification Number (DIN) | All directors | Can be applied during incorporation (SPICe+ form) |
| ✅ MOA & AOA | Company | Draft of Memorandum and Articles of Association |
| ✅ Declaration and Consent Forms | Company/Directors | INC-9 and DIR-2 |
📌 For foreign nationals or NRI founders, passport and notarized address proof (bank statement, utility bill) are also required.