One-Person Company (OPC) Registration Process: Step-by-Step Guide

Dec 31, 2024
Private Limited Company vs. Limited Liability Partnerships

In the dynamic world of entrepreneurship, One-Person Companies (OPCs) have emerged as a game-changing business structure for solo entrepreneurs. These entities offer limited liability protection and the simplicity of a sole proprietorship. It empowers individuals to have a business without the complexity of managing multiple partners.

Table of Contents

Overview of One-Person Company Registration

A One-Person Company (OPC) is a business entity that allows a single individual to establish a company with limited liability. Unlike traditional business structures, OPCs provide entrepreneurs with a legal framework that protects personal assets while offering the flexibility of single ownership. This model bridges the gap between sole proprietorship and traditional multi-member companies.

Eligibility Criteria for the Incorporation of One-Person Company

To register an OPC in India an individual must be an Indian resident and can be both the director and shareholder. The company requires a minimum authorised share capital of ₹1 lakh, and the proposed company name must be unique. Also, the individual can be a member of only one OPC and they should not have any criminal record.

One-Person Company Registration Steps

OPC registration process has following steps:

Step 1: Initial Preparation

Obtain a Digital Signature Certificate (DSC) and Director Identification Number (DIN) using the MCA portal. Select a unique company name that complies with Companies (Incorporation Rules) 2014.

Step 2: Nominee Appointment

Identify and secure consent from a nominee who can become a director in case of the original promoter's incapacitation. Ensure the nominee meets legal and professional eligibility criteria.

Step 3: OPC Documentation

Compile essential documents including proof of registered office, director identification, address proof, and business plan. Maintain the mandatory minimum authorized capital of ₹1 lakh.

Step 4: Online Registration

Complete registration through the MCA portal by uploading the required documents, verifying DIN, and submitting all necessary forms.

Step 5: Certificate and Compliance

Receive the Certificate of Incorporation within 3-5 days after verification. Subsequently, maintain ongoing regulatory compliance like annual filings and adherence to OPC-specific requirements.

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Documents Required for One-Person Company Registration

  • Identity proof (PAN card, Aadhaar card)
  • Residence proof (utility bills, bank statements)
  • Proof of registered office (rent agreement or ownership documents)
  • Nominee consent documents
  • Digital Signature Certificate

Timelines for OPC registration

You can obtain their Digital Signature Certificate (DSC) and Director Identification Number (DIN) within one day. The Certificate of Incorporation typically takes between 3 to 5 days to process. From start to finish, the entire incorporation process can be completed in approximately 10 days.

Post-Incorporation Formalities for OPC

After registering an OPC company, you must complete several key steps as highlighted below:

  • Open a dedicated company bank account and deposit share capital within 60 days.
  • Issue share certificates to shareholders within two months as proof of ownership.
  • Register for GST if goods or service supply exceeds thresholds.
  • Maintain statutory registers to document company activities.
  • Prepare for annual tax return filing and ensure ongoing regulatory compliance.

Features of One-Person Company (OPC)

  1. Single Ownership: Allows a single individual to form a company, providing complete control and ownership under Section 3(1)(c) of the Companies Act.
  2. Innovative Nominee System: Requires a nominee who can take over company ownership in case of the original member's death or incapacitation, ensuring business continuity.
  3. Flexible Management: Permits 1-15 directors, with minimal administrative complexity and no minimum paid-up capital requirement.
  4. Limited Liability Protection: Separates personal assets from business risks, offering entrepreneurs crucial financial security.
  5. Simplified Compliance: Provides a streamlined approach to business registration and management, making corporate structure accessible to individual entrepreneurs.

Advantages of One-Person Company Registration

  • One of the biggest advantages of an OPC company is that the OPC structure provides a separate legal entity status that helps protect the individual's personal assets from business liabilities.
  • This model enables easier fundraising opportunities, as banks and financial institutions typically prefer lending to registered companies over sole proprietorships.
  • OPCs also provide a clear path for business continuity through the mandatory nominee appointment, ensuring the potential for perpetual succession.
  • The simplified management structure allows for quick decision-making.

Disadvantages of OPC

While One-Person Companies present numerous benefits, they also come with certain limitations that you should carefully consider:

  • The OPC structure is primarily suitable for small business operations, with strict restrictions on expanding ownership or raising additional capital.
  • There are notable limitations on business activities, particularly prohibiting non-banking financial investment activities.
  • The close alignment between ownership and management can create potential challenges, as the sole member may have unchecked control over business decisions.
  • As the business grows, the OPC model may become restrictive, potentially requiring a transition to a more complex business structure.

Frequently Asked Questions

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Private Limited Company
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  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
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  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

One Person Company
(OPC)

1,499 + Govt. Fee
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  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

How to do OPC registration?

Obtain a Director Identification Number (DIN) and Digital Signature Certificate (DSC). Choose a unique OPC name and get MCA approval. File incorporation documents with the Registrar of Companies (RoC), including MOA, AOA, and proof of address, identity, and ownership. Receive the Certificate of Incorporation upon approval.

What is the minimum capital for a one-person company?

A one-person company (OPC) can be established with an authorised capital of at least ₹1 lakh, but there is no requirement for a minimum paid-up capital.

What is the cost of one person company registration in India?

OPC registration fees start at INR 900 and depend on authorized capital, ranging from nil to ₹2,06,000+.

Is audit compulsory for OPC?

Yes, an audit is compulsory for an OPC.

What documents are required for OPC?

  • Proof of Identity of the sole director (e.g., Aadhaar, PAN)
  • Proof of Address (e.g., utility bill, bank statement)
  • Passport-sized Photograph of the director
  • No Objection Certificate (NOC) from the owner of the registered office
  • DIN and DSC of the director
  • Memorandum of Association (MOA) and Articles of Association (AOA)

What is a necessary step in setting up an OPC?

The most necessary step in setting up an OPC is to choose a suitable name for the company and ensure it complies with the Ministry of Corporate Affairs (MCA) naming guidelines.

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What is Winding up of a Company?: Process and Modes Explained

What is Winding up of a Company?: Process and Modes Explained

The winding up of a company is the process of dissolving a company and distributing its assets to claimants. Also known as liquidation, winding up typically occurs when a company is insolvent and unable to pay its debts when they are due. However, a solvent company may also be wound up voluntarily by its shareholders and directors.

In India, the winding up of companies is governed by the Companies Act, 2013 and the Insolvency and Bankruptcy Code, 2016 (IBC). The IBC has significantly changed the winding up regime in India and introduced a time-bound insolvency resolution process

Table of Contents

What is the Winding Up of a Company?

Winding up a company refers to the legal process of closing its operations permanently. It involves selling the company's assets, settling its debts and liabilities, and distributing any remaining surplus among shareholders according to their rights. Once the process is complete, the company is dissolved and ceases to exist as a legal entity. Winding up may be voluntary, initiated by members or creditors, or compulsory, ordered by a court.

The main reasons for winding up a company include:

  • Ceasing the company's operations
  • Collecting the company's assets
  • Paying off the company's debts and liabilities
  • Distributing any remaining assets to the members

The main reasons for winding up a company include:

  • Inability to pay debts (insolvency)
  • Completion of the purpose for which the company was formed
  • Expiry of the period fixed for the duration of the company
  • The passing of a special resolution by the members to wind up the company

Key Aspects of Winding Up of a Company

The winding up of a company involves several key aspects that need to be considered:

1.  Appointment of Liquidator

A liquidator is a person or entity responsible for managing the winding-up process of a company, including selling assets, settling liabilities, and distributing remaining funds to stakeholders. A liquidator is appointed to manage the winding up process. He is appointed by members or creditors in voluntary winding up or by the court in compulsory winding up. 

2.  Realisation of Assets

The liquidator takes possession of all the company's assets and realises them into cash. This may involve selling the company's property, plant and equipment, collecting debts from debtors, and recovering any unpaid capital from the contributors.

3.  Payment of Liabilities

The liquidator settles all the company's liabilities, including debts owed to creditors, outstanding taxes and employee dues. The order of priority for payment is fixed by law, with secured creditors being paid first, followed by unsecured creditors and members.

4. Distribution of Surplus

After settling all the liabilities, surplus assets are distributed among the members in proportion to their shareholding. Preference shareholders are paid first, including any arrears, as per their rights. Once their claims are fully settled, the remaining surplus is allocated to equity shareholders in proportion to their shareholding. This process adheres to the company’s articles and legal requirements, ensuring an equitable distribution.

5. Dissolution of Company

Once the winding up process is complete, the liquidator submits a final report to the Tribunal or the ROC. The Tribunal then orders the dissolution of the company, and its name is struck off from the register of companies.

Types of Winding Up

There are three main modes of winding up of a company under the Companies Act 2013:

  1. Compulsory Winding Up of a Company (By the Tribunal)
  2. Voluntary Winding Up of a Company

a) Members' Voluntary Winding Up

b) Creditors' Voluntary Winding Up

  1. Winding Up Subject to the Supervision of the Tribunal

Let us discuss each of these types in detail.

1. Compulsory Winding Up (By the Court)

Compulsory winding up of a company is when a company is wound up by an order of a court or tribunal. This is also known as "winding up by the court". The court may order a company to be wound up on various grounds specified in Section 433 of the Companies Act, 1956 (now governed by Chapter XX of the Companies Act, 2013).

Compulsory winding up of a company is initiated by a petition filed before the National Company Law Tribunal (NCLT) by:

  • The company itself
  • The company's creditors
  • The company's contributors
  • The Registrar of Companies
  • Any person authorised by the Central Government

The grounds for compulsory winding up include:

  • Inability to pay debts
  • Acting against the sovereignty and integrity of India
  • Conducting affairs in a fraudulent manner
  • Failure to file financial statements or annual returns for five consecutive years
  • The Tribunal is of the opinion that it is just and equitable to wind up the company

If the NCLT is satisfied that a prima facie case for winding up is made out, it admits the petition, appoints an official liquidator and makes an order for winding up.

2. Voluntary winding up of a company

Voluntary winding up is when a company is wound up by its members or creditors without the intervention of a court or tribunal. Voluntary winding up is initiated by the company itself by passing a special resolution in a general meeting. There are two types of voluntary winding up:

1. Members' Voluntary Winding Up

This occurs when the company is solvent and can pay its debts in full. A declaration of solvency is made by a majority of the directors, stating that they have made an inquiry into the company's affairs and believe that the company has no debts or will be able to pay its debts in full within three years from the commencement of the winding up.

2.  Creditors' Voluntary Winding Up: 

This occurs when the company is insolvent and unable to pay its debts in full. No declaration of solvency is made in this case. The creditors play a greater role in this type of winding up compared to a members' voluntary winding up.

In a voluntary winding up, the company appoints a liquidator in a general meeting to conduct the winding up proceedings.

3. Winding Up Subject to the Supervision of the Court

A voluntary winding up (whether members' or creditors') may be converted into a winding up by the Tribunal if the Tribunal is of the opinion that the company's affairs are being conducted in a manner prejudicial to the interests of the public or the company.

In such cases, the Tribunal may order that the voluntary winding up shall continue but subject to the supervision of the Tribunal. The Tribunal may appoint an additional liquidator to conduct the winding up along with the liquidator appointed by the company.

Winding Up a Company Process

The procedure for winding up of a company in India depends on the mode of winding up. Here is a step-by-step procedure for compulsory winding up of a company in India and voluntary winding up:

H3 - Compulsory Winding Up H3 - Voluntary Winding Up
1. The winding-up process begins when a petition is filed before the National Company Law Tribunal (NCLT) by creditors, shareholders, or the government. 1.Passing of special resolution for winding up: The process begins when shareholders pass a special resolution in a general meeting, requiring a three-fourths majority, to wind up the company.
2.Admission of Petition and Publication of Notice: Once the petition is accepted, the NCLT admits the case and orders the publication of a notice. 2. Declaration of solvency (in case of members' voluntary winding up): If the company is solvent, the directors must file a Declaration of Solvency with the Registrar of Companies (RoC).
3 Appointment of Provisional Liquidator: The NCLT may appoint a provisional liquidator to temporarily manage the company’s assets and prevent them from being misappropriated during the winding-up process. 3. Appointment of liquidator: After the special resolution, members appoint a liquidator to manage the winding-up, sell assets, settle liabilities, and distribute remaining funds.
4. The NCLT issues an order for the company’s winding up, which formally starts the dissolution process. 4. Giving of notice of appointment of liquidator to Registrar: The company must notify the Registrar of Companies (RoC) about the appointment of the liquidator.
5. The directors of the company are required to submit a statement of affairs to the liquidator. 5. Realisation of assets and payment of debts by liquidator: The liquidator takes control of the company’s assets, sells them, and pays off debts, prioritising secured creditors, then unsecured creditors.
6. Appointment of Official Liquidator: The NCLT appoints an official liquidator who takes full control of the company’s assets and liabilities. 6. Calling of final meeting and presentation of final accounts: After settling debts and realising assets, the liquidator calls a final meeting to present the final accounts, detailing the liquidation process and asset distribution.
7. The liquidator liquidates or sells the company’s assets to generate funds.The liquidator uses the proceeds to pay off the company’s creditors, including secured creditors, employees, and unsecured creditors, according to the legal priority order. 7. Dissolution of company: After approval of the final accounts, the company applies to the RoC for dissolution, and once approved, it is removed from the RoC register.
8.Submission of Final Report by Liquidator: Once all assets are realised and debts paid, the liquidator prepares a final report that details the liquidation process.
9. Dissolution of company: After the final report is submitted and all obligations are met, the NCLT issues a dissolution order, removing the company from the RoC register and formally ending its existence.

The process of winding up of a company in India is complex and involves several legal formalities. It is advisable to seek the assistance of a professional (such as a company secretary or a lawyer) to ensure compliance with all the requirements.

Example of Winding up of a Company

One notable example of the winding up of a company in India is the case of Kingfisher Airlines Limited. Kingfisher Airlines was a prominent Indian airline that ceased operations in 2012 due to financial difficulties and mounting debts.

In 2016, the Karnataka High Court ordered the winding up of the company on a petition filed by the Airports Authority of India, which was one of the company's creditors. The court appointed an Official Liquidator to take charge of the company's assets and manage the winding up process.

The liquidator faced several challenges in the winding up process, including the recovery of dues from the company's debtors and the sale of its assets. The company had a fleet of aircraft and other assets, which had to be valued and sold to pay off the creditors.

One of the major issues in the winding up of Kingfisher Airlines was the recovery of dues from its promoter, Vijay Mallya. Mallya had given personal guarantees for some of the loans taken by the company, and the creditors sought to recover these dues from him. However, Mallya fled to the UK, and the Indian authorities have been trying to extradite him to face charges of fraud and money laundering.

The winding up process of Kingfisher Airlines is still ongoing, and the liquidator is working to realise the company's assets and settle its liabilities. The case highlights the challenges involved in the winding up of a large and complex company with multiple stakeholders and legal issues.

The Kingfisher Airlines case also underscores the importance of timely action by creditors in the event of default by a company. Many of the company's creditors, including banks and airports, had allowed the debts to accumulate for several years before initiating legal action. This delay made it more difficult to recover the dues and increased the losses for the creditors.

In conclusion, the winding up of Kingfisher Airlines is a cautionary tale for companies and creditors alike. It highlights the need for effective risk management, timely action in case of default, and the importance of following due process in the winding-up of a company.

Conclusion

In conclusion, the winding up is a legal process of  liquidating a company's assets, settling of liabilities and distributing surplus to its members. It is a complex process that requires careful planning and execution, and the guidance of professional advisors. 

There are three modes in winding up under companies act 2013: compulsory winding up by the Tribunal, voluntary winding up by the members or creditors and winding up under the Tribunal's supervision. 

These modes of winding up have specific requirements and procedures. Proper planning and professional guidance can help minimise the impact on stakeholders like creditors, employees and members, ensuring a smoother and compliant winding-up process.

Frequently Asked Questions

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Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

What does winding up mean?

Meaning of winding up of a company: It is the process of dissolving a company and distributing its assets to claimants. It involves closing down the company's operations, realising its assets, paying off its debts and liabilities and distributing the surplus (if any) to the members.

What is Creditors' Voluntary Winding Up?

Creditors' Voluntary Winding Up is a type of voluntary winding up of a company that occurs when the company is insolvent and unable to pay its debts in full. In this type of winding up, the creditors have a greater say in the appointment of the liquidator and the conduct of the winding up proceedings.

Who can be appointed as a liquidator?

A liquidator can be an individual or a corporate body. They must be independent and should not have any conflict of interest with the company being wound up. Usually, professionals such as chartered accountants, company secretaries, cost accountants or advocates are appointed as liquidators.

What is a Statement of Affairs?

A Statement of Affairs is a document submitted by the directors of a company to the liquidator in a winding up. It shows the particulars of the company's assets, debts and liabilities, the names and addresses of the creditors, the securities they hold and other relevant details.

What is the process of dissolution of a company?

The process of dissolution of a company involves the following steps:

a. Passing a special resolution to wind up the company

b. Appointment of a liquidator to manage the winding-up process

c. Realisation of the company's assets and settlement of its liabilities

d. Distribution of any surplus assets to the members

e. Submission of the final report by the liquidator to the Tribunal or ROC

f. The passing of an order by the Tribunal dissolving the company

g. Striking off the company's name from the register of companies by the ROC

What are the effects of winding up a company?

The main effects of winding up of a company are:

  • The company ceases to carry on its business except for the beneficial winding up of its business.
  • The powers of the board of directors cease, and the liquidator takes over the management of the company.
  • Legal proceedings against the company are stayed.
  • The company’s assets are realised and distributed to the creditors and members.
  • The company is eventually dissolved and ceases to exist as a legal entity.

Akash Goel

Akash Goel is an experienced Company Secretary specializing in startup compliance and advisory across India. He has worked with numerous early and growth-stage startups, supporting them through critical funding rounds involving top VCs like Matrix Partners, India Quotient, Shunwei, KStart, VH Capital, SAIF Partners, and Pravega Ventures.

His expertise spans Secretarial compliance, IPR, FEMA, valuation, and due diligence, helping founders understand how startups operate and the complexities of legal regulations.

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Pharma Company Registration: How to Open a Pharma Company in India?

Pharma Company Registration: How to Open a Pharma Company in India?

India is the world’s third-largest pharmaceutical market by volume and a key player in the global healthcare ecosystem. With its robust manufacturing base, cost efficiency, and innovation-driven approach, India has earned the reputation of being the “pharmacy of the world.” 

Both Indian pharmaceutical giants and foreign companies entering the market are shaping this growth trajectory, making the sector one of the most lucrative industries to invest in.

If you are an entrepreneur or investor looking to establish a pharmaceutical company in India, understanding the regulatory requirements and registration process is essential. 

This article provides a step-by-step guide on everything you need to know to register a pharma company in India, ensuring compliance while tapping into this high-growth industry.

Table of Contents

About the Pharma Company in India

A pharmaceutical company is an entity involved in the development, manufacturing, distribution, and marketing of medicines and healthcare products. Depending on the business model, pharma companies in India are typically classified as:

  • Manufacturing companies: involved in the production of drugs and medicines.
  • Marketing companies: focus on branding and distribution, often outsourcing manufacturing.
  • Wholesale businesses: supply medicines in bulk to retailers, hospitals, and distributors.
  • Retail businesses: run pharmacies and directly sell medicines to consumers.

India’s pharmaceutical industry has been expanding rapidly. As of 2025, it is valued at $55 billion and is projected to reach $120–130 billion by 2030. The government has also introduced several supportive measures:

  • 100% Foreign Direct Investment (FDI) allowed in greenfield pharma projects.
  • ₹15,000 crore PLI (Production Linked Incentive) scheme to promote domestic manufacturing.
  • Incentives for Active Pharmaceutical Ingredients (APIs) and medical devices to reduce import dependency.

With this growth potential, starting a pharmaceutical business in India is both a profitable and impactful opportunity.

Choosing the Right Business Structure for a Pharma Company

The first step in starting a pharmaceutical business in India is selecting the proper business structure. The choice depends on the scale of operations, funding requirements, and ownership preferences. Common structures include:

  • Limited Liability Partnership (LLP): Offers flexibility with limited liability.
    Private Limited Company (Pvt Ltd): Ideal for manufacturing and marketing businesses due to scalability and investor appeal.
  • Public Limited Company: Suitable for large-scale operations planning to raise funds from the public.
  • Indian Subsidiary of a Foreign Company: Allows foreign companies to establish a presence in India and leverage the growing market.

India ranks 3rd in the world by volume and 14th by value in pharmaceuticals, making it a preferred hub for domestic and international players. Choosing the right structure ensures smooth registration and compliance.

Eligibility for Registering a Pharma Company

Eligibility criteria are designed to maintain quality and compliance in the pharma sector. Key rules include:

  • The applicant must be legally competent to enter into a contract.
  • The company must appoint qualified directors and pharmacists, depending on the business type.
  • Proper compliance with the Drugs and Cosmetics Act of 1940 is mandatory.
  • Only individuals or entities with relevant pharmaceutical qualifications/experience can run such businesses.

Requirements for Registering a Pharma Company

Corporate & Structural Requirements

These are the standard legal requirements for forming a company under the Ministry of Corporate Affairs (MCA).

  • Directors and Members: The structure depends on your company type. For a Private Limited Company, a minimum of two directors and two members (shareholders) are required. The same individuals can hold both positions.
  • Director Credentials: Every proposed director must have a Digital Signature Certificate (DSC) for online document submission and a Director Identification Number (DIN), a unique identifier issued by the MCA.
  • Unique Company Name: Your proposed company name must be unique and not resemble any existing company or trademark. It must be approved and reserved through the MCA portal.
  • Registered Office Address: You must provide a physical address in India as the company's official registered office. Proof of address, such as a utility bill or rental agreement, is mandatory for verification.

Pharmaceutical & Technical Requirements

These are specific mandates from the Drugs and Cosmetics Act, 1940, enforced by state drug control departments, which are essential for obtaining a drug license.

Qualified Technical Personnel: 

You must employ qualified individuals to supervise the sale and distribution of drugs. The requirements vary based on the business type:

  • For Wholesale Business (Distribution): The operations must be supervised by a "Competent Person." This can be:
    • A Registered Pharmacist.
    • A graduate with at least one year of experience in dealing with drugs.
  • For Retail Business (Pharmacy): All sales and dispensing activities must be conducted under the direct supervision of a Registered Pharmacist.

Adequate Storage Premises: 

You must have a proper commercial space for storing medicines. The premises are inspected by a Drug Inspector and must meet specific conditions:

  • Minimum Area: Typically, a minimum of 10 square meters is required for a wholesale license. This can vary by state.
  • Proper Storage Facilities: The premises must be clean, well-lit, and equipped with necessary storage solutions like cupboards, racks, and, crucially, a refrigerator and freezer to store temperature-sensitive drugs like vaccines and serums.

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How to Start a Pharmaceutical Company in India?

The incorporation process is now simplified through the SPICe+ (Simplified Proforma for Incorporating a Company Electronically Plus) form by the Ministry of Corporate Affairs. Steps include:

Phase 1: Business Incorporation

The first step is to register your business as a legal entity with the Ministry of Corporate Affairs (MCA). The modern SPICe+ (Simplified Proforma for Incorporating a Company Electronically Plus) form has streamlined this process significantly.

  • Get Director Credentials: All proposed directors of the company must obtain a Digital Signature Certificate (DSC) and a Director Identification Number (DIN). The DSC is an electronic signature used for filing documents online, and the DIN is a unique number assigned to each director.
  • Reserve a Company Name: You must apply for and reserve a unique name for your company. This can be done through the MCA portal's RUN (Reserve Unique Name) service or directly within the SPICe+ form.
  • Draft Foundational Documents: Two critical documents need to be prepared:
    • Memorandum of Association (MoA): This document defines the company's objectives and the scope of its business activities.
    • Articles of Association (AoA): This document outlines the internal rules and regulations for managing the company.
  • File the SPICe+ Form: This single, integrated web form is used to file for incorporation. It combines applications for the company name, DIN allotment, and issuance of important tax numbers like PAN and TAN.
  • Receive Certificate of Incorporation: Once the MCA approves your application, you will receive a Certificate of Incorporation. This certificate includes your unique Corporate Identity Number (CIN) and officially marks the legal birth of your company.

Phase 2: Securing Pharmaceutical Licenses

This is the most critical phase and is specific to the pharmaceutical industry. These licenses are granted by the Central Drugs Standard Control Organization (CDSCO) and State Drug Control Departments.

  • Drug License: This is the primary license required to deal with drugs and cosmetics. The type of license depends on your business model:
    • Manufacturing License: Required if you plan to manufacture drugs. This involves a rigorous inspection of your manufacturing facility to ensure it complies with Good Manufacturing Practices (GMP) and has the necessary technical staff and equipment.
    • Wholesale/Distribution License: Required for stocking, selling, and distributing drugs. This requires having adequate storage premises with proper refrigeration facilities and employing a registered pharmacist.
  • GST Registration: Before you can apply for a drug license, you must complete your Goods and Services Tax (GST) registration. The GSTIN is a mandatory requirement for the drug license application.

Phase 3: Brand and Tax Formalities

With your company and licenses in place, the final step is to protect your brand and manage your finances.

  • Trademark Registration: It is highly advisable to register your company name, logo, and the brand names of your pharmaceutical products. This protects your intellectual property and prevents others from using similar names.
  • Bank Account Opening: You can open a corporate bank account using the Certificate of Incorporation and other registration documents.

Get started with Razorpay Rize and complete your company registration online in just a few clicks. Fast approvals, 100% digital process, and expert support to make your pharma business official.

Documents Required to Register a Pharma Company

Here’s a checklist of essential documents required to open pharma company:

For Indian Directors/Shareholders:

  • PAN Card
  • Aadhaar Card
  • Passport-size photographs
  • Address proof (utility bill, bank statement)

For Foreign Directors/Shareholders:

  • Passport (notarised and apostilled)
  • Proof of overseas address
  • Photograph

For the Company:

  • Registered office address proof (rent agreement/ownership proof)
  • Utility bill of the premises (electricity/water bill)
  • MoA and AoA

Other Registrations Required for a Pharma Company

After incorporation, a pharma company must obtain additional registrations and licenses to operate legally:

  1. Drug License (under the Drugs and Cosmetics Act, 1940)


    • Manufacturing License
    • Wholesale License
    • Retail License
    • Loan License (for outsourcing manufacturing)
    • Import License (for foreign medicines)

  2. GST Registration – Mandatory for taxation and interstate sales.
  3. FSSAI Registration – Required if dealing with nutraceuticals or dietary supplements.
  4. Trademark & Patent Registration – Protects brand identity and intellectual property.
  5. Import Export Code (IEC) – For companies engaged in pharma exports/imports.

Frequently Asked Questions (FAQs)

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(OPC)

1,499 + Govt. Fee
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  • Freelancers, Small-scale businesses
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Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
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Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
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Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

What is the minimum investment required to open a pharmaceutical company in India?

The minimum investment depends on the type of pharma business you plan to set up:

  • Retail pharmacy/wholesale distribution – ₹5–10 lakhs (primarily for licenses, shop setup, and inventory).
  • Small-scale manufacturing unit – ₹2–5 crores (including land, plant, machinery, and approvals).
  • Marketing company (without manufacturing) – ₹10–20 lakhs (mainly for licenses, branding, and distribution network).

The costs vary depending on location, scale, and whether you plan to export.

Which business structure is best for a pharmaceutical startup in India?

The Private Limited Company structure is considered the most suitable for pharmaceutical startups because:

  • It provides limited liability protection to the founders.
  • It is preferred by investors and VCs, making it easier to raise funds.
  • It ensures better compliance and credibility with regulators, suppliers, and customers.

For foreign companies, setting up an Indian subsidiary is often the best route to enter the Indian pharma market.

How long does it take to register a pharma company?

Registering a pharmaceutical company in India through the SPICe+ process generally takes 10–15 working days, provided all documents are in order.

Do I need separate licenses for manufacturing and marketing drugs?

Yes. The licenses are different depending on your business model:

  • Manufacturing License: Required if you are producing drugs and medicines.
  • Marketing License: Required for companies that outsource production but handle branding and distribution.
  • Wholesale/Retail License: Required for distribution or retail pharmacy operations.

So, you must apply for the specific license(s) that match your pharma company’s scope of operations.

How can I protect my pharma brand name and logo from competitors?

To secure your brand identity in the competitive pharma market, you should:

  1. Register a Trademark: Protects your brand name, logo, and tagline under the Trademarks Act, 1999.
  2. Patent Registration: If you’ve developed a new drug formula or process, apply for patents to secure exclusivity.

Copyright Protection: For marketing materials, packaging, and designs.

Mukesh Goyal

Mukesh Goyal is a startup enthusiast and problem-solver, currently leading the Rize Company Registration Charter at Razorpay, where he’s helping simplify the way early-stage founders start and scale their businesses. With a deep understanding of the regulatory and operational hurdles that startups face, Mukesh is at the forefront of building founder-first experiences within India’s growing startup ecosystem.

An alumnus of FMS Delhi, Mukesh cracked CAT 2016 with a perfect 100 percentile- a milestone that opened new doors and laid the foundation for a career rooted in impact, scale, and community.

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How to apply for a Digital Signature Certificate in India | Razorpay Rize

How to apply for a Digital Signature Certificate in India | Razorpay Rize

A Digital Signature Certificate (DSC) is a secure digital key issued by a trusted authority, known as a Certificate Authority (CA), that is used to authenticate the identity of individuals, organizations, or devices in the digital world.

It is a digital equivalent of a handwritten signature or a stamped seal, providing assurance of the signer's identity and the integrity of the signed document or message. In general, a DSC includes details such as name, postal code, country, email address, certificate issuance date, and the name of the certifying authority.

In this blog, we'll explore the significance of DSCs, the process of applying for them in India, and their key features.

Table of Contents

Importance of a Digital Signature Certificate

The importance of a Digital Signature Certificate (DSC) lies in its ability to provide strong authentication, integrity, and proper encryptions in digital transactions and communications.

Importance of a Digital Signature Certificate in India

Here are several key reasons why DSCs are important and why you should apply for one as a founder:

1. Authentication

  • DSCs verify the identity of individuals, organizations, or devices involved in digital transactions, ensuring that the sender is who they claim to be.

2. Integrity

  • Digital signatures created using DSCs ensure the integrity of electronic documents or messages by detecting any unauthorized changes or tampering.

3. Security

  • DSCs use strong cryptographic techniques to protect sensitive information and prevent unauthorized access.

4. Legal Recognition

  • In India, many industries and regulatory frameworks require the use of DSCs for specific types of transactions or communications to comply with security and privacy regulations.

5. Government Services

  • DSCs play an important role in the company registration process irrespective of the company type. Accessing government services, filing tax returns, or participating in e-tendering processes require digital signatures for authentication and authorization.

6. Efficiency

  • DSCs streamline digital workflows by enabling secure and paperless transactions without the physical presence.

Overall, DSCs offer numerous benefits, including enhanced security, legal validity, efficiency, and cost savings, making them indispensable for digital transactions and communications

Different Classes of Digital Signature Certificates (DSCs)

Certifying authorities issue 3 types of DSCs to accommodate various needs and purposes.The type of applicant and the intended use of the Digital Signature Certificate determine the specific kind of DSC that should be sought based on the requirements.

Class 1 DSC:

  • These certificates are issued for individuals or private users and are primarily used for email communication and basic transactions.
  • Verification requirements are minimal, typically involving email validation or verification of basic personal information.

Class 2 DSC:

  • Class 2 certificates are used for both individual and organizational purposes and offer a higher level of security and trust compared to Class 1.
  • To obtain a Class 2 DSC, the applicant's identity is verified against a trusted government-issued identity document, such as a passport or driver's license.

Class 3 DSC:

  • Class 3 certificates provide the highest level of security and are typically used for online transactions involving high-value financial transactions, e-commerce, and government applications.
  • The verification process for Class 3 DSCs involves rigorous identity verification procedures, including in-person verification and submission of supporting documents.

Certifying Authorities in India

Certifying Agencies are designated by the office of the Controller of Certification Agencies (CCA) in accordance with the provisions of the IT Act, 2000. Currently, there are eight Certification Agencies authorized by the CCA to issue Digital Signature Certificates (DSCs).

Major DSC Certifying Authorities in India

Format of a Digital Signature Certificate

A DSC typically contains the following components:

1. Public Key

  • A cryptographic key that is made publicly available and used to verify digital signatures created by the corresponding private key.

2. Private Key

  • A secret key that is securely held by the owner and used to create digital signatures for documents or messages.

3. Certificate Information

  • Details about the certificate, including the issuer (Certifying Authority), the validity period, a unique identifier, the subject (owner), and the digital signature of the CA to confirm its authenticity.

4. Digital Signature

  • A unique digital signature generated using the private key of the certificate, which can be verified using the corresponding public key.

The format of a Digital Signature Certificate (DSC) can vary depending on the issuing Certificate Authority (CA) and the type and class of the certificate.

Documents required for obtaining a Digital Signature Certificate

The documents required for obtaining a Digital Signature Certificate (DSC) include:

  • Proof of Identity: Copy of any one of the following government-issued identity documents attested by a Gazetted officer:
    • Passport
    • Aadhaar Card
    • PAN Card
    • Voter ID Card
  • Proof of Address: Copy of any one of the following documents showing the applicant's residential address attested by a Gazetted officer:
    • Utility bill (electricity, water, gas, telephone)
    • Bank statement
    • Rent agreement
  • Passport Size Photograph: Recent passport-size color photograph of the applicant.
  • Self-attested Copy of PAN Card: A self-attested photocopy of the applicant's PAN Card.
  • Organization Documents (if applicable):For organizations, additional documents such as the Certificate of Incorporation, Memorandum of Association (MOA), Articles of Association (AOA), or Partnership Deed may be required.

It's important to note that the specific documents required may vary depending on the type of Digital Signature Certificate (e.g., Class 1, Class 2, Class 3), the Certification Authority (CA) issuing the certificate, and the purpose for which the certificate is being obtained.

How to apply for a Digital Signature Certificate?

Razorpay Rize simplifies this process by streamlining e-filing on the MCA portal (company registration process), and as part of the package, you can acquire 2 Digital Signature Certificates for the involved directors/partners.

Note: It's necessary to obtain a Digital Signature Certificate (DSC) of either the Class 2 or Class 3 signing certificate category issued by a licensed Certifying Authority (CA) to facilitate e-filing on the MCA Portal for company registration processes.

Alternatively, you also have the option to apply for DSCs through designated certifying agencies through the following steps.

  • Choose a Certifying Authority (CA) accredited by the Controller of Certification Agencies (CCA) under the provisions of the IT Act, 2000.
  • Determine the type and class of DSC required based on your needs and the level of security required (e.g., Class 1, Class 2, Class 3).
  • Gather the necessary documents, including proof of identity, proof of address, passport-size photograph, self-attested copy of PAN card, and any organization-related documents (if applicable).
  • Obtain and fill out the DSC application form provided by the chosen Certifying Authority. Fill in the necessary details like the Class of the DSC, validity, type, applicant name and details, residential address, etc.
  • Undergo the identity verification process as per the CA's requirements, which may involve in-person verification or online verification, depending on the type of DSC and the CA's policies.
  • Pay the prescribed fees.
  • Upon successful verification and payment, the Certifying Authority will generate a unique key pair consisting of a public key and a corresponding private key.
  • Once the key pair is generated, the Certifying Authority will issue the Digital Signature Certificate.
  • Install the DSC on the appropriate device or token as per the CA's instructions.

Validity of the Digital Signature Certificate

Digital Signature Certificates (DSCs) are commonly issued with either a one-year validity or a two-year validity period.

These certificates can be renewed upon expiry of the initial validity period. Renewal procedures typically involve submitting updated documentation and undergoing identity verification processes, similar to the initial application process.

Fees for the Digital Signature Certificate in India

If you’re registering your business with Razorpay Rize, DSCs are commonly included in the package regardless of the company type.

In the case of direct applications, the fees include various components, including the one-time cost of the medium (such as a USB token), the Digital Signature Certificate (DSC) issuance cost, the renewal cost after the validity period expires, and the support costs (if any).

The costs, as mentioned on the MCA website, are as follows-

Certifying Authority Cost of DSC with one-year validity,
excluding USB token cost & Taxes
Cost of DSC with two-year validity,
excluding USB token cost & Taxes
MTNL CA Rs. 300/- (for MTNL phone subscribers) and Rs. 450/- for others Rs. 400/- (for MTNL phone subscribers) and Rs. 600/- for others
TCS Rs. 1245 (Inclusive of 12.24% Sales Tax.) Rs. 1900/- (Inclusive of 12.24% Sales Tax)
IDBRT Rs. 750/- (Rs. 500/- towards administrative expenses and Rs. 250/- for Certificate) Rs. 1500/-
SAFESCRYPT Rs. 995/- Rs. 1650/-
NIC NIL for Government Rs. 150/- for PSU, Autonomous & Statutory Bodies NIL for Government Rs. 150/- for PSU, Autonomous & Statutory Bodies
Central Excise and Customs NA NA
e-Mudhra Rs. 899/- Rs. 1149/-

Frequently Asked Questions

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Register your Limited Liability Partnership in just 1,499 + Govt. Fee

Register your business

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

Is there a difference between a digital signature and a DSC?

Yes, a digital signature refers to the cryptographic technique used to sign electronic documents, while a DSC is the digital certificate that contains a digital signature key pair and is used to verify the signer's identity.

What are the different types of DSCs valid during Company registration?

The different types of Digital Signature Certificates currently valid during company registration are class 2 and class 3 types.

Is a Director Identification Number (DIN) required to apply for DSC?

No, you can apply for a DSC without the DIN with supported documents as mentioned in the above sections

How can I check the validity of a DSC?

To check the validity of a Digital Signature Certificate (DSC), you can follow these steps:

  • Access the different USB token tools that are currently available.
  • Login & enter the token password when prompted.
  • Select your certificate name from the list.
  • Once selected, the certificate will open. Navigate to the ‘Details’ tab, where you will find comprehensive information about your certificate, including its validity details.

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Exciting news! Incorporation of our company, FoxSell, with Razorpay Rize was extremely smooth and straightforward. We highly recommend them. Thank you Razorpay Rize for making it easy to set up our business in India.
@foxsellapp
#razorpayrize #rizeincorporation
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foxsell.app
We would recommend Razorpay Rize incorporation services to any founder without a second doubt. The process was beyond efficient and show's razorpay founder's commitment and vision to truly help entrepreneur's and early stage startups to get them incorporated with ease. If you wanna get incorporated, pick them. Thanks for the help Razorpay.

#entrepreneur #tbsmagazine #rize #razorpay #feedback
Dhaval Trivedi
TBS Magazine
Hey, Guys!
We just got incorporated yesterday.
Thanks to Rize team for all the Support.
It was a wonderful experience.
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