From the Knowledge Centre
Private Limited, OPC or Section 8: Choosing a Company Form and Getting It Registered
Choosing a company form decides how you can raise money, who controls the business and what you must file every year. Here is how the common forms compare and how incorporation works in 2026.
The common company forms
| Form | Minimum members | Minimum directors | Typical use |
|---|---|---|---|
| Private limited | 2 | 2 | Growing businesses, start-ups, family enterprises |
| One Person Company | 1 (plus a nominee) | 1 | Solo founders who want limited liability |
| Public limited | 7 | 3 | Businesses that may raise money from the public |
| Section 8 | 2 | 2 | Charitable, educational and social objects |
There is no minimum paid-up capital requirement for private or public companies. Founders can start with a modest amount and add capital later.
One Person Company after the 2021 changes
The Companies (Incorporation) Second Amendment Rules, 2021 removed the earlier ceilings on paid-up capital and turnover that forced an OPC to convert. They also allowed Non-Resident Indians to form an OPC. The residency period for a resident Indian was reduced to 120 days. An OPC can now convert into a private or public company at any time.
Section 8 companies
A Section 8 company needs a licence from the Central Government, which is now built into SPICe+. Its profits must be applied to its objects, and no dividend can be paid to members. Section 8 is often preferred over a trust or society by organisations that expect CSR funding, because the governance framework is familiar to corporate donors.
How SPICe+ works
Incorporation is filed on the MCA V3 portal through the SPICe+ web form (INC-32). The form has two parts:
- Part A reserves the name. It can also be filed together with Part B.
- Part B covers incorporation, DIN allotment for up to three directors, PAN, TAN, EPFO and ESIC registration, and professional tax registration where a state levies it. GSTIN and a bank account can be applied for through the linked AGILE-PRO-S form.
The electronic Memorandum (INC-33) and Articles (INC-34) are filed with SPICe+. Once the Registrar approves, the Certificate of Incorporation is issued with the CIN, PAN and TAN.
Common reasons for resubmission: a name that is too close to an existing company or trademark, a registered office proof older than two months, mismatches between PAN and Aadhaar details, or objects that are too broad or vague.
First-year compliance that is often missed
- INC-20A – a declaration of commencement of business must be filed within 180 days of incorporation, after the subscribers have paid for their shares. The company cannot start business or borrow until it is filed. Failing to file it can lead to penalties and to the company being struck off.
- First auditor – the Board must appoint the first auditor within 30 days of incorporation.
- Share certificates – these must be issued within 60 days of incorporation. Private companies also need to plan for dematerialising their securities under the 2023 amendment to the Prospectus and Allotment Rules.
- Statutory registers and first Board meeting – the first Board meeting must be held within 30 days of incorporation.
- Annual filings – AOC-4 and MGT-7/7A, plus a statutory audit, apply from the first financial year whatever the turnover.
Before you decide
A company carries more compliance than a proprietorship or an LLP. If you have no plans to raise equity and the business is small, an LLP may give you limited liability at lower cost. Read our article on LLPs and partnership firms for that comparison.
The information in this article reflects the law as on the date of publication and is for general guidance only.