Legal Requirements for Starting a Company

Starting a company in India involves several legal requirements to ensure your business is compliant with the law. Here's a comprehensive list of key legal requirements for starting a company:

✅ 1. Choose Business Structure
Select the right type of entity based on your goals:

Proprietorship

Partnership Firm

Limited Liability Partnership (LLP)

Private Limited Company

One Person Company (OPC)

Public Limited Company

Each has different compliance, tax, and liability implications.

✅ 2. Register the Company
If you're forming a company (like Pvt Ltd, LLP, or OPC), registration with the Ministry of Corporate Affairs (MCA) is mandatory:

Name Reservation (RUN or SPICe+ Part A)

Incorporation (SPICe+ Part B) with:

Memorandum of Association (MoA)

Articles of Association (AoA)

Director and Shareholder details

Obtain Certificate of Incorporation (COI)

✅ 3. Obtain PAN and TAN
Apply for:

PAN (Permanent Account Number)

TAN (Tax Deduction and Collection Account Number) – mandatory if your company deducts TDS.

✅ 4. Open a Business Bank Account
Open a current account in the company’s name using:

PAN

COI

Board resolution (for companies)

✅ 5. Register for GST (if applicable)
Mandatory if:

Annual turnover exceeds ₹40 lakh (₹20 lakh for services)

Inter-state sales

E-commerce involvement

✅ 6. Professional Tax Registration
Required in certain states (e.g., Maharashtra, Karnataka) for companies and employees.

✅ 7. Shops and Establishment Registration
Mandatory for most businesses operating from a commercial premises.

✅ 8. Register for EPF and ESIC
Applicable if:

EPF: 20 or more employees

ESIC: 10 or more employees (₹21,000 salary or less)

✅ 9. Compliance with Labour Laws
Ensure compliance with:

Payment of Wages Act

Minimum Wages Act

Gratuity Act

Employment contracts and offer letters

✅ 10. Apply for Other Licenses (as needed)
Depending on business type:

FSSAI (for food-related businesses)

Import Export Code (IEC) – for import/export

Trade License – from local municipal authority

Environmental clearance – if applicable

✅ 11. Maintain Statutory Registers & Records
Companies must maintain:

Register of Members, Directors, etc.

Minutes of board meetings

Financial records

✅ 12. Annual Filings & Tax Compliance
File Income Tax Returns (ITR)

File MCA annual returns (Form AOC-4, MGT-7 for companies)

Maintain books of accounts

Conduct statutory audit (mandatory for companies)