Founding & Capital Parameters
Configure your venture's structure to simulate compliance and MCA online filing workflows.
Number of Founders:
2
1 (Solo)
5 Founders
10 (Max)
Initial Authorized Capital:
₹500,000
₹1 Lakh
₹25 Lakhs
₹50 Lakhs
Quora Legal Pro-Tip:
"Closely held (Private Limited) is preferred by VCs for outside equity. While an LLP has lower ongoing maintenance (up to ₹12k setup), institutional investors cannot invest via equity instruments in LLPs without prior conversion."
Estimated Incorporation Cost
₹25,000
Range: ₹10,000 - ₹30,000
Investor Readiness
High (10/10)
Equity dilution & ESOPs ready
First-Year Compliance
₹24,500
Statutory audit, MCA ROC & DIR-3 KYC
Recommended Structure
MCA Online SPICe+
Closely held (Private Limited) Company
Preferred by VCs, ideal for outside equity, full limited liability protection despite higher initial setup and compliance.
Startup India DPIIT Recognition
Eligible for DPIIT Recognition after incorporation
• Tax Holiday: 3 consecutive years 100% tax exemption under Section 80-IAC.
• IPR Fast-Tracking: 80% rebate in patent filing & 50% rebate in trademark filing.
• Self-Certification: Exemption from inspections under 6 labor and 3 environmental laws for up to 5 years.
• IPR Fast-Tracking: 80% rebate in patent filing & 50% rebate in trademark filing.
• Self-Certification: Exemption from inspections under 6 labor and 3 environmental laws for up to 5 years.
| Legal Structure | Setup Cost | Liability | Investor Appeal | Annual Compliance |
|---|---|---|---|---|
| Private Limited Company | ₹15,000 – ₹30,000 | Limited | Top Tier (VC / Angel) | High (Mandatory Audit, ROC Forms) |
| Limited Liability Partnership (LLP) | ₹8,000 – ₹15,000 | Limited | Moderate (Debt / Internal) | Low-Medium (Audit only >₹40L turnover) |
| Traditional Partnership | ₹4,000 – ₹10,000 | Unlimited (Personal Risk) | Low (Not VC investable) | Low (ITR filing only) |
| Sole Proprietorship | ₹1,500 – ₹4,000 | Unlimited (Personal Risk) | None (Sole individual) | Minimal (Individual Tax Return) |
Mandatory pre-incorporation and incorporation milestones on the Ministry of Corporate Affairs (MCA) portal:
Class 3 DSC for all proposed directors to sign digital PDF attachments on MCA v3.
Prerequisite Completed
Unique 8-digit identity number assigned by MCA via SPICe+ Part B (or DIR-3).
Prerequisite Completed
Integrated web form Part A (Name Reservation: RUN) & Part B (Incorporation, PAN, TAN, EPFO, ESIC, Professional Tax, Bank Account).
Prerequisite Completed
Filing of electronic Memorandum of Association (INC-33) and Articles of Association (INC-34).
Pending Submission
| Cost Component | Government / Statutory Fee | Professional Fee (CA/CS) | Subtotal |
|---|---|---|---|
| Class 3 DSC (2 Directors) | ₹1,500 | ₹1,500 | ₹3,000 |
| SPICe+ Name Reservation (RUN) | ₹1,000 | ₹1,000 | ₹2,000 |
| MCA Incorporation & Stamp Duty (₹5L Capital) | ₹2,000 | ₹12,000 | ₹14,000 |
| PAN, TAN, Bank Opening & e-MOA/AOA | ₹1,000 | ₹5,000 | ₹6,000 |
| Estimated Total Incorporation Expense | ₹25,000 | ||
Exports verified schema with DSC/DIN prerequisites, DPIIT eligibility, and full compliance roadmap.