ROC Compliance Calendar 2025–2026: Important Filing Due Dates for Companies & LLPs

Jul 29, 2025
Private Limited Company vs. Limited Liability Partnerships

Companies and LLPs in India are legally obligated to comply with annual filing requirements under the Companies Act, 2013, and the Limited Liability Partnership Act, 2008. These filings with the Registrar of Companies (ROC) must be completed annually or triggered by specific events. Timely compliance is crucial for companies and LLPs to avoid substantial penalties that can negatively impact business operations and reputation.

Table of Contents

The ROC is a regulatory body under India's Ministry of Corporate Affairs (MCA) responsible for company registration, statutory record maintenance, and ensuring adherence to the Company Act and associated regulations. Non-compliance with ROC filings can result in:

  • Fines and penalties
  • Legal actions against the company and directors
  • Damage to the company's credibility and reputation
  • Difficulties in seeking funding or partnerships

On the other hand, timely compliance demonstrates a commitment to transparency and good governance, which can attract customers, partners, and investors. It also helps avoid heavy penalties and late fees that can strain a company's finances.

ROC Filing Due Date: Detailed Calendar

Here are the key ROC compliance forms and ROC filing due dates for the financial year 2025-2026:

Form Purpose Applicable To Due Date
MSME-1 Reporting outstanding payments to MSMEs > 45 days All specified companies 30.04.2025 (Oct–Mar) 31.10.2025 (Apr–Sep)
NDH-3 Half-yearly return filing for Nidhi companies Nidhi companies 30.04.2025 (Oct–Mar) 30.10.2025 (Apr–Sep)
Form-11 (LLP) Annual return of LLP with business and partner details All registered LLPs 30.05.2025
FC-4 Annual return of foreign company Foreign companies 30.05.2025
NDH-1 Return of statutory compliances Nidhi companies (as applicable) 29.06.2025
DPT-3 Reporting deposits and loans Every company 30.06.2025
PAS-6 Share Capital Audit Report Reconciliation Unlisted public companies 30.05.2025 (Mar) 29.11.2025 (Sep)
FLA Annual return to RBI for FDI/ODI holders Companies with FDI/ODI 15.07.2025
DIR-3 KYC KYC of Directors/DPs All DIN/DPIN holders as on 31.03.2025 30.09.2025
FC-3 Filing annual accounts of foreign company Foreign companies’ branches, liaison, and project offices 31.12.2025
CRA-2 Appointment of Cost Auditor Companies requiring cost audit 30 days from BM or 180 days from 01.04.2025, whichever is earlier
ADT-1 Appointment of Auditor Every company 14.10.2025 (15 days post AGM) 11.10.2025 (OPC)
AOC-4 / XBRL / CFS Filing of annual financial statements Specified companies 29.10.2025 (30 days from AGM) 27.09.2025 (OPC)
MGT-14 Filing resolutions on board report and accounts adoption Limited companies 30 days from board meeting
Demat for Pvt Cos Mandatory demat compliance under amended rules Private companies (excluding small/govt. companies) 30.06.2025
Form-8 (LLP) LLP’s Statement of Account & Solvency Every LLP 30.10.2025
MGT-7 / MGT-7A Annual return with company details MGT-7: All companies MGT-7A: Small Co. / OPC 28.11.2025
CRA-4 Filing of Cost Audit Report Companies under cost audit 30 days from receipt of cost audit report
CSR-2 Reporting on Corporate Social Responsibility contribution Companies required to comply with CSR provisions Due date generally aligns with AOC-4 filing

It's important to note that these ROC filing due dates are tentative and may be revised by the regulatory authority from time to time. Additionally, certain event-based compliances are also applicable in addition to these basic annual compliance obligations. It's crucial to keep track of the applicable due dates for each form to ensure timely compliance and avoid penalties.

Frequently Asked Questions

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Limited Liability Partnership
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  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

One Person Company
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  • Freelancers, Small-scale businesses
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Private Limited Company
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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 is the due date for ROC filing?

The due dates for ROC filing vary depending on the specific form and the company's financial year-end. Key due dates include:

  • Form-11 (LLP): Within 60 days from the end of the Financial Year
  • DPT-3: On or before 30th June
  • DIR-3 KYC: 30th September
  • AOC-4: Within 30 days of AGM conclusion
  • MGT-7: Within 60 days from AGM conclusion

Refer to the detailed list of forms and due dates in the article for more information.

How to check ROC compliance status?

You can check your company's ROC compliance status by following these steps:

  1. Visit the Ministry of Corporate Affairs (MCA) website: www.mca.gov.in
  2. Click on the "MCA Services" tab and select "View Company/LLP Master Data"
  3. Enter your Company Identification Number (CIN) or Limited Liability Partnership Identification Number (LLPIN) and captcha code

Click on "Submit" to view your company's master data, which includes the compliance status for various filings

What are the ROC compliances?

ROC compliances refer to the mandatory filings and disclosures that companies and LLPs must make with the Registrar of Companies (ROC) as per the Companies Act, 2013, and the Limited Liability Partnership Act, 2008. These include:

  • Annual filings such as AOC-4 (Financial Statements), MGT-7 (Annual Return), and Form-11 (Annual Return for LLPs)
  • Event-based filings such as PAS-6 (Share Capital Audit Report Reconciliation), ADT-1 (Appointment of Auditor), and MGT-14 (Filing of Resolutions)
  • KYC filings such as DIR-3 KYC for directors and designated partners
  • Other filings like DPT-3 (Return of Deposit), MSME-1 (Outstanding Payments to MSMEs), and CSR-2 (Corporate Social Responsibility Contribution)

How to do ROC form filing?

To file ROC forms, follow these general steps:

  1. Obtain a Digital Signature Certificate (DSC) for the authorised signatory
  2. Register on the MCA portal (www.mca.gov.in) using the DSC
  3. Select the appropriate e-Form from the MCA portal
  4. Fill in the required details and attach necessary documents
  5. Pay the applicable filing fees online
  6. Digitally sign the e-Form using the DSC
  7. Submit the e-Form on the MCA portal

Note that the specific process may vary slightly depending on the form being filed. It's advisable to consult a professional or refer to the MCA's detailed instructions for each form.

Are the forms that need to be filed with ROC monthly or yearly?

Most ROC forms are filed annually or based on specific events, rather than monthly. Some key annual filings include:

  • AOC-4 (Financial Statements)
  • MGT-7 (Annual Return)
  • Form-11 for LLPs (Annual Return)
  • DIR-3 KYC for directors and designated partners

However, certain forms like MSME-1 (Outstanding Payments to MSMEs) and PAS-6 (Share Capital Audit Report Reconciliation) are filed half-yearly. Event-based filings such as ADT-1 (Appointment of Auditor) and MGT-14 (Filing of Resolutions) are submitted as and when the relevant events occur.

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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Registering a Freelance Business in India: What You Need to Know

Registering a Freelance Business in India: What You Need to Know

The freedom to work on your own terms, choose your clients, and chart your career path makes freelancing an attractive option for many Indians today. With the rise of the digital economy, more professionals are ditching traditional jobs in favour of independent work.

Along with flexibility and autonomy comes the responsibility of understanding the legal, tax, and business aspects of freelancing in India. Many beginners wonder:

  • Do I need to register as a freelancer?
  • What about taxes and GST?
  • How do I protect myself legally with clients?

We’ll simplify everything you need to know, from why freelancing is worth considering to taxes, contracts, and registration requirements, so you can confidently start your freelance journey.

Table of Contents

Why Start Your Own Freelancing Business in India?

Freelancing is much more than just escaping the 9-to-5 grind. It’s a path to professional freedom and personal growth. Here’s why many choose to start their freelance business in India:

  • Independence: You control your schedule, projects, and clients.
  • Earning Potential: With the right skills, you can earn more than a fixed salary, often in foreign currency.
  • Learning Curve: Freelancing pushes you to learn business skills, client management, negotiation, and personal branding that regular jobs may not offer.
  • Creative Freedom: You get to work on diverse projects across industries, honing your skills and building a versatile portfolio.
  • Work-Life Balance: Freelancers often have more flexibility to balance personal and professional commitments.

If you value autonomy and are willing to take charge of your career, freelancing can be a rewarding and liberating choice.

Turn your freelance hustle into a registered business—get started with expert-led Company registration today.

What Are the Benefits of Freelancing in India?

Freelancing in India comes with tangible benefits that extend beyond financial gains:

1. Flexibility and Remote Work

Work from anywhere, anytime. Freelancers aren’t tied to office spaces or strict schedules, making it easier to balance other life priorities.

2. Access to Global Clients

With platforms like Upwork, Fiverr, LinkedIn, and direct outreach, Indian freelancers have access to clients worldwide and often earn in USD, EUR, or GBP.

3. Diverse Projects and Skill Growth

You can work on multiple projects across different industries, which accelerates skill development and keeps work exciting.

4. Building a Personal Brand and Network

Freelancing pushes you to market yourself, opening doors to collaborations, partnerships, and a professional network that can lead to bigger opportunities.

5. Control Over Earnings

Unlike fixed salaries, freelancing income has the potential to grow as your skills, client base, and rates increase.

Freelancer’s Tax in India

As a freelancer, you’re considered a self-employed professional under Indian tax laws. Here’s what you need to know about taxes:

GST for Freelancers

If your annual turnover exceeds ₹20 lakh (₹10 lakh for Northeastern states), GST registration is mandatory under the GST Act. GST applies at 18% for most professional services, but you can claim Input Tax Credit on business-related expenses.

Freelance Income Tax

Freelancers are taxed under the “Profits and Gains from Business or Profession” head. You are subject to regular income tax slabs applicable to individuals.

Feature Description
Shared Objectives Both aim to achieve mutual business goals.
Resource Pooling Involves combining assets, expertise, or capital.
Contract-Based Governed by agreements that outline roles, rights, and responsibilities.
Profit Sharing Both involve sharing profits, though the ratio may differ.
Collaborative Decision-Making Decisions are made collectively or as per agreed terms.
Risk Sharing Losses and liabilities are often shared based on contribution or agreement.

Freelance Contract

A written agreement between a freelancer and a client that clearly outlines the scope of work, payment terms, deadlines, and other important conditions of the project. It helps protect both parties by setting clear expectations and serves as a legal safeguard in case of disputes.

Key Clauses to Include in a Freelance Contract:

  1. Scope of Work: Define the exact services you will provide. Include deliverables, timelines, and expectations.

  2. Payment Terms: Payment amount, mode, currency, and schedule. Specify advance payments, milestones, and late fees.

  3. Confidentiality Clause: Protect sensitive client information and intellectual property rights.

  4. Termination Clause: Define under what circumstances either party can terminate the contract.

  5. Revision & Change Requests: Set clear terms for additional work or revisions.

  6. Dispute Resolution: Choose a method for resolving disagreements (e.g., mediation, arbitration).

  7. Jurisdiction Clause: State the legal jurisdiction under which the contract will be governed (Indian Contract Act, 1872).

Frequently Asked Questions (FAQs)

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

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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

Do freelancers pay tax in India?

Yes, they do. Freelancers in India are taxed just like any other self-employed individual. Your freelance income is treated as “Profits and Gains from Business or Profession” under the Income Tax Act, and you need to pay tax based on your total annual income.

Do freelancers need to file an ITR?

Yes, if your total income exceeds ₹2.5 lakhs in a financial year (₹3 lakhs if you're above 60), filing an Income Tax Return (ITR) is mandatory. Most freelancers use ITR-3 or ITR-4 (under the Presumptive Taxation Scheme), depending on their income and the nature of their business.

What is the TDS rate for freelancers?

If a client pays you more than ₹30,000 in a financial year, they’re usually required to deduct 10% TDS (Tax Deducted at Source) under Section 194J before making the payment. This amount gets credited to your PAN, and you can adjust it while filing your ITR.

Do freelancers need to pay both GST and income tax?

It depends.

  • Income Tax is always applicable if your annual income crosses the basic exemption limit.

GST (Goods and Services Tax) is required only if your annual turnover exceeds ₹20 lakhs (₹10 lakhs for special category states) or if you work with clients outside India (export of services), in which case registration is often recommended, even if optional.

Sarthak Goyal

Sarthak Goyal is a Chartered Accountant with 10+ years of experience in business process consulting, internal audits, risk management, and Virtual CFO services. He cleared his CA at 21, began his career in a PSU, and went on to establish a successful ₹8 Cr+ e-commerce venture.

He has since advised ₹200–1000 Cr+ companies on streamlining operations, setting up audit frameworks, and financial monitoring. A community builder for finance professionals and an amateur writer, Sarthak blends deep finance expertise with an entrepreneurial spirit and a passion for continuous learning.

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Authorized vs Paid Up Capital: Expert Guide to Company Registration [2025]

Authorized vs Paid Up Capital: Expert Guide to Company Registration [2025]

Starting a company in India has never been easier. You can begin with just ₹1,000 as paid-up capital. The Companies Amendment Act, 2015 eliminated the minimum capital requirement, making business ownership more available to everyone.

The difference between authorized and paid-up capital is vital to understand during company registration. Your authorized capital sets the maximum share capital limit for company issuance (like ₹10,00,000). The paid-up capital shows what shareholders have actually invested (say ₹1,00,000). This is a big deal as it means that your compliance needs, registration fees, and financial flexibility depend on these numbers.

Your paid-up capital must stay within the authorized capital limit - this creates a compliance boundary every business owner needs to follow. The authorized capital can increase through proper legal procedures, giving your business room to grow with future funding needs.

This piece will help you understand everything about authorized versus paid-up capital. You'll learn to pick the right amounts for your venture and create smart strategies to optimize your company's capital structure while keeping registration costs low.

Table of Contents

Understanding Company Capital Structure in 2025

Authorized capital is the maximum amount of share capital that a company is authorized to issue, while Paid-Up Capital is the actual amount of share capital issued and paid for by shareholders.

A company's capital structure forms the bedrock of its financial framework. This structure shows how a business funds its operations by mixing equity and debt to create a roadmap for growth and stability.

What is authorized capital and how is it defined in MOA?

Authorized capital (also called nominal or registered capital) sets the maximum share capital a company can legally issue to shareholders. The company's Memorandum of Association (MOA) clearly defines this limit under the Capital Clause.

This capital acts as a regulatory boundary. A private limited company with an authorized capital of ₹10 lakh can't issue more shares beyond this amount unless it changes its MOA. The company needs shareholder approval for this change and must file it with the Registrar of Companies within thirty days.

Paid-up capital meaning and its role in equity funding

Paid-up capital is the actual money shareholders give to a company when they buy shares. Unlike authorized capital, this represents real money in the company's accounts that it can use for business operations.

The 2015 Companies Act amendment removed the minimum paid-up capital requirement. Now entrepreneurs can start with just ₹5,000. This money proves valuable because you don't need to pay it back like a loan. The paid-up capital also shows the company's financial health, how much it relies on equity, and its loan repayment capacity.

Why capital structure matters during company registration

A well-laid-out capital structure shapes a new company's operations and growth potential. Your company's capital structure during registration affects:

  1. Financial flexibility - A smart capital structure lets you raise future funds without changing legal documents often.
  2. Risk assessment - Investors and lenders look at your capital structure to check financial stability.
  3. Registration costs - Your authorized capital amount decides the registration fees and stamp duty.

Companies should balance their original capital structure based on what their industry needs, how they plan to grow, and where they can get funding.

Authorized Capital vs Paid-Up Capital: Key Differences

Understanding the distinction between authorized capital and paid-up capital is fundamental to grasping a company's capital structure. This knowledge is crucial for effective corporate governance, regulatory compliance, and financial planning.

Legal Definitions and Compliance Framework

  • Authorized Capital is the maximum share capital a company is legally permitted to issue, as specified in its Memorandum of Association (MoA). This acts as a ceiling, ensuring that the company cannot issue shares beyond this limit without amending its foundational documents.
  • Paid-Up Capital is the actual amount of money received from shareholders in exchange for shares issued. By law, paid-up capital must always be less than or equal to authorized capital.

Impact on Share Issuance and Fundraising

  • Authorized capital represents the company’s potential for raising funds, setting the upper boundary for share issuance. It provides flexibility for future fundraising and expansion without the need for immediate regulatory changes.
  • Paid-up capital reflects the real investment made by shareholders and is the actual capital available for business operations. It is recorded in the company’s financial statements and directly impacts the company’s financial strength and investor confidence.

When a company reaches its authorized capital limit with paid-up capital, it faces two choices:

  • Increase authorized capital through a formal amendment to the MoA, requiring shareholder approval and regulatory filings.
  • Facilitate share transfers among existing and new shareholders, without increasing the total capital.

Capital Flexibility: Changes and Procedures

  • Authorized Capital: Can be increased or decreased by amending the MoA, which involves:
    • Reviewing the Articles of Association (AoA) for relevant provisions.
    • Passing a board resolution to convene a shareholders' meeting.
    • Obtaining shareholder approval via an ordinary or special resolution.
    • Filing statutory forms (such as eForm SH-7 and eForm MGT-14) with the Registrar of Companies within the prescribed timeframe.
  • Paid-Up Capital: Changes only when the company issues new shares or when existing shares are fully paid up. This directly affects the company’s liability for dividends and its operational capital.

Comparative Table: Authorized Capital vs Paid-Up Capital

Parameter Authorized Capital Paid-Up Capital
Definition Maximum capital allowed to be issued by the company Actual capital received from shareholders
Legal Reference Stated in MoA Reflected in financial statements
Purpose Sets fundraising potential and regulatory ceiling Represents real funds for business operations
Change Process Requires shareholder approval and legal filings Changes with issue and payment of new shares
Impact on Company Indicates growth capacity and future fundraising ability Shows current financial strength and equity base
Regulatory Role Determines ROC/government fees and compliance boundaries Used for daily operations and shareholder liability
Net Worth Does not determine net worth Forms part of the company's net worth

How to Decide Capital Amounts for New Companies

You need a well-laid-out approach to calculate the right capital amounts for your new company. This helps balance your current needs with future growth. Here's how you can break this down into four practical steps:

Step 1: Estimate operational and contingency needs

Start with a financing plan that shows your startup costs. Your plan should cover equipment purchases, premises costs, inventory, and working capital needs for your first 6-12 months. You'll need enough buffer money to handle unexpected expenses that could disrupt your operations. Capital projects always face uncertainties, so you should set aside a contingency fund—about 30% of your total estimated needs—to maintain financial stability. This fund serves as your safety net against future uncertainties.

Step 2: Set authorized capital for future scalability

After you figure out your requirements, you should set your authorized capital at 5-10 times your original paid-up capital. This gives you room to raise funds later without changing your MOA. To cite an instance, see how a ₹2 lakh immediate paid-up capital works better with ₹10-20 lakh authorized capital to create flexibility. Keep in mind that authorized capital sets your fundraising limit but doesn't represent actual money you can use.

Step 3: Determine paid-up capital based on shareholder commitment

Your shareholders' realistic contribution becomes your paid-up capital—the actual money invested in your company. Most startups work well with paid-up capital between ₹1 lakh and ₹5 lakh, based on what their industry needs. The final amount should match both your immediate operational needs and your shareholders' risk appetite.

Step 4: Consider ROC fees and stamp duty implications

The regulatory costs change with different capital amounts. ROC filing fees increase as your authorized capital grows—from ₹4,000 for capital under ₹1 lakh to ₹1,56,000 plus extra fees when capital exceeds ₹1 crore. The stamp duty (usually 0.15% of authorized capital) applies when you register or increase capital. A 2021 Supreme Court ruling made this duty a one-time payment with a maximum cap, whatever the future capital increases might be.

Case Study: Capital Planning for ABC Pvt Ltd

Let's get into how ABC Pvt Ltd planned its capital structure to balance current costs with future growth needs.

Original capital structure: ₹10 lakh authorized, ₹1 lakh paid-up

ABC Pvt Ltd set up its capital framework with ₹10 lakh authorized capital against ₹1 lakh paid-up capital. The company followed the post-2015 Companies Act amendment that removed the minimum paid-up capital requirement. This 10:1 ratio creates a perfect balance. It gives enough operational funds through actual investment while leaving room for future growth without needing regulatory changes.

ROC fee effects based on capital tiers

The company thought about how fees work at different capital levels. ABC Pvt Ltd kept its authorized capital at ₹10 lakh to avoid higher fee brackets. The ROC fee stays around ₹35,000 plus extra charges for authorized capital under ₹10 lakh. The company would pay much more if they go beyond this limit - ₹1,35,000 plus ₹100 per ₹10,000 for capital between ₹50 lakh and ₹1 crore.

Flexibility for future share issuance without MOA change

ABC Pvt Ltd can issue extra shares worth ₹9 lakh without changing its MOA. This difference between authorized and current paid-up capital gives them room to grow. Going beyond the ₹10 lakh mark would need shareholder approval, a board resolution, an extraordinary general meeting, and filing Form SH-7 with the Registrar within thirty days.

Cost-benefit analysis of higher authorized capital

The company's capital planning shows smart financial thinking. The ₹10 lakh authorized capital balances several factors:

Current savings: Lower ROC fees and stamp duty (usually 0.15% of authorized capital) Future flexibility: Room to issue extra shares worth ₹9 lakh without paperwork Credibility advantage: Better stability in the eyes of potential investors and partners

ABC Pvt Ltd shows how smart capital planning helps long-term business goals while keeping initial registration costs low. This matters a lot for new companies with tight budgets.

Frequently Asked Questions

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Register your Private Limited Company in just 1,499 + Govt. Fee

Register your business
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Register your One Person Company in just 1,499 + Govt. Fee

Register your business
rize image

Register your Business starting at just 1,499 + Govt. Fee

Register your business
rize image

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

What is paid up capital with an example?

Shareholders provide paid-up capital to companies in exchange for shares. To cite an instance, XYZ Pvt. Ltd. issues 50,000 shares with a face value of ₹10 each. The paid-up capital would reach ₹5,00,000 when shareholders fully pay for all shares. This money becomes available for company operations and shows up in the balance sheet's equity section.

What is an example of authorized capital?

A corporation might decide to authorize 10,00,000 shares as specified in its Articles of Incorporation, with each share valued at ₹10. The authorized capital would equal ₹1,00,00,000 in this scenario. Companies can't issue more capital than this amount without changing their Memorandum of Association.

What is 1lakh paid up capital?

Shareholders' contribution of ₹1,00,000 to a company creates a paid-up capital of ₹1 lakh. The Companies Act required this amount as minimum paid-up capital for private limited companies before its 2015 amendment. This requirement no longer exists, though companies still need ₹1 lakh authorized capital.

How to calculate authorized capital?

The authorized capital calculation uses this formula: Authorized Capital = Number of Authorized Shares × Par Value per Share

A company with 1 lakh authorized shares at ₹100 face value would have an authorized capital of ₹1 crore.

What is the formula for paid up capital?

This formula determines paid-up capital: Paid-up Capital = Par Value of Shares + Additional Paid-in Capital

The calculation combines nominal value (face value × number of shares) with any premium above par value. A company that issues 100 shares at ₹10 par value but sells them at ₹15 each would have ₹1,500 paid-up capital (₹1,000 par value + ₹500 additional paid-in capital).

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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Startup India Scheme: Eligibility Criteria, Benefits & Application Details

Startup India Scheme: Eligibility Criteria, Benefits & Application Details

The Startup India Scheme is a flagship initiative by the Government of India aimed at fostering entrepreneurship, innovation, and economic growth. Launched in 2016, this scheme provides startups with financial assistance, tax exemptions, and regulatory benefits to help them scale efficiently. This blog explores the eligibility criteria, benefits, and application process to guide aspiring entrepreneurs on leveraging this initiative for their business growth.

Table of Contents

Definition of "Startup"

As per the Startup India Scheme, a "Startup" is defined by the following criteria:

  • The entity should be incorporated as a Private Limited Company, a Limited Liability Partnership (LLP), or a Registered Partnership Firm.
  • The age of the company should not exceed 10 years from the date of incorporation.
  • The annual turnover should not exceed INR 100 crore in any of the financial years since incorporation.
  • The business should be working towards innovation, improvement of products/processes/services, or scalable business models with high potential for employment generation and wealth creation.
  • Startups should be recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) to avail of scheme benefits.

What Is the Startup India Scheme?

The Startup India Scheme was launched in 2016 with the objective of encouraging entrepreneurship, generating employment, and fostering innovation. This initiative is managed by the Department for Promotion of Industry and Internal Trade (DPIIT) and aims to position India as a global startup hub by offering regulatory support, funding access, and tax exemptions.

Why Was Startup India Launched?

India has always been home to entrepreneurs, but before 2016, starting and scaling a business came with significant roadblocks- complex regulations, limited funding options, and restricted market access. Recognising this, the Government of India launched the Startup India initiative on January 16, 2016, to create a more supportive ecosystem for startups.

Here’s why the initiative was needed and how it helps:

  • Reducing Bureaucratic Hurdles
  • Easing Financial Constraints
  • Encouraging Job Creation & Innovation
  • Enabling Market Access & Growth
  • Creating a Culture of Entrepreneurship

Since its launch, over 100,000 startups have been recognised under the scheme, creating jobs, driving innovation, and strengthening India’s position as a global startup hub.

Top Features Of the Startup India Scheme

The Startup India Scheme offers multiple benefits to startups, including:

  • Tax Exemptions: Startups are eligible for a three-year income tax exemption.
  • Funding Support: Access to government funds and venture capital assistance.
  • Simplified Compliance: Reduced regulatory burden with self-certification for labour and environmental laws.
  • Fast-Tracked Patent Registration: Reduced fees and faster processing for patent applications.
  • Networking Opportunities: Participation in government-organised startup festivals and events.
  • Access to Government Tenders: Startups receive preference in public procurement without prior experience requirements.

Eligibility Criteria for the Startup India Scheme

To be eligible, startups must meet specific criteria set by the Department for Promotion of Industry and Internal Trade (DPIIT).

Here’s a detailed breakdown of the eligibility requirements:

  • Be incorporated as a Private Limited Company, LLP, or a Registered Partnership Firm.
  • Be less than 10 years old from the date of incorporation.
  • Have an annual turnover not exceeding INR 100 crore.
  • Focus on innovation, scalability, and employment generation.
  • Obtain DPIIT recognition for startup status.

Types of Organisations Eligible For the Startup India Scheme

The following entities qualify for the scheme:

  • Private Limited Companies: Must be registered under the Companies Act, 2013.
  • Limited Liability Partnerships (LLPs): Must be registered under the LLP Act, 2008.
  • Registered Partnership Firms: Must be incorporated under the Indian Partnership Act, 1932.

How to Register Your Startup with the Startup India Scheme

Step 1: Incorporate Your Business

Before applying for Startup India recognition, you must officially register your business as a legal entity. Your startup can be incorporated as one of the following:

  • Private Limited Company – Register under the Companies Act, 2013 with the Ministry of Corporate Affairs (MCA).
  • Limited Liability Partnership (LLP) – Register under the Limited Liability Partnership Act, 2008 with the MCA.
  • Partnership Firm – Register under the Indian Partnership Act, 1932 with the respective state authority.

Step 2: Register Under the Startup India Scheme

Once your business is incorporated, you can apply for recognition under the Startup India initiative by following these steps:

  • Visit the Startup India portal www.startupindia.gov.in
  • Click on "Register" and create an account.
  • Log in and navigate to “Recognition” → “Apply for DPIIT Recognition”.
  • Fill in the application form with details about your business.

Step 3: Apply for DPIIT Recognition

To get official recognition as a startup, you must apply for DPIIT (Department for Promotion of Industry and Internal Trade) recognition. DPIIT-recognised startups gain access to tax benefits, easier compliance, and funding opportunities.

Steps to Apply for DPIIT Recognition:

  • Provide business details (name, incorporation date, industry sector, location).
  • Describe your startup’s innovation, scalability, and market potential.
  • Upload supporting documents (explained in Step 5).
  • Submit the application for review.

Step 4: Recognition Application Submission

Once all details are filled in, submit the Startup India recognition application.

The DPIIT reviews applications to ensure the business meets eligibility criteria (e.g., age of the startup, turnover, and innovation focus). If all documents are in order, recognition is granted within 2-3 weeks.

Step 5: Documents Required for Registration

You must upload specific documents during the registration process. Ensure you have:

Mandatory Documents:

  • Certificate of Incorporation / Registration – Proof that your business is legally registered.
  • Detailed Business Description – A document explaining how your startup is innovative and scalable.
  • PAN (Permanent Account Number) – A copy of your business’s PAN card for tax purposes.

Additional Documents (If Applicable):

  • Patent or Trademark Details – If your startup has intellectual property rights, submit supporting documents.
  • Letter of Recommendation (Optional) – From an incubator, industry expert, or recognised institution supporting your innovation.

Step 6: Get Your Recognition Number

Once your application is approved, you will receive a Startup Recognition Number from DPIIT. This confirms that your business is officially recognised under Startup India and is eligible for various benefits.

Step 7: Some Other Important Things To Follow

  • Ensure compliance with tax laws and regulatory requirements.
  • Utilise government schemes and incentives to scale operations.

Benefits From DPIIT

Startups recognised under DPIIT receive several benefits, including:

  • Tax exemptions under Section 80 IAC of the Income Tax Act.
  • Easier access to government grants and funds.
  • Self-certification for labour & environmental laws, reducing compliance costs.
  • Simplified compliance and faster patent approvals.
  • Gain visibility through Startup India showcases and events.

Advantages of the Startup India Scheme

  • Financial Support: Grants, loans, and venture capital funding assistance.
  • Regulatory Benefits: Self-certification for labor and environmental laws.
  • Tax Relief: Exemption from income tax for 3 years.
  • Market Access: Access to government tenders and public procurement schemes.
  • Networking Opportunities: Participation in startup events and mentorship programs.

Conclusion

India is rapidly becoming a global hub for startups, and the Startup India Scheme is at the heart of this transformation. By nurturing innovation, job creation, and economic development, the initiative is shaping the future of entrepreneurship in India.

Frequently Asked Questions

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  • 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

When was the Startup India Scheme launched?

The Startup India Scheme was launched on January 16, 2016, by the Government of India to promote entrepreneurship, innovation, and economic growth.

Who is eligible for the Startup India Scheme?

To be eligible for the Startup India Scheme, a business must:

  • Be registered as a Private Limited Company, Limited Liability Partnership (LLP), or a Registered Partnership Firm.
  • Be less than 10 years old from the date of incorporation.
  • Have an annual turnover not exceeding INR 100 crore in any financial year.
  • Be working towards innovation, improvement, or development of a scalable business model.
  • Obtain recognition from the Department for Promotion of Industry and Internal Trade (DPIIT).

Is Startup India Tax-Free?

Startups registered under the Startup India Scheme and recognised by DPIIT are eligible for a three-year income tax exemption under Section 80-IAC of the Income Tax Act. Additionally, they benefit from exemptions on capital gains tax and angel tax under certain conditions.

What are the Startup India benefits?

The key benefits of the Startup India Scheme include:

  • Tax exemptions: Three-year income tax holiday and angel tax exemption.
  • Financial support: Access to a ₹10,000 crore Fund of Funds for investment.
  • Simplified compliance: Self-certification for labour and environmental laws.
  • Faster patent registration: 80% rebate on patent filing fees with expedited processing.
  • Networking and mentorship: Opportunities through startup hubs, incubators, and accelerator programs.

How does the Startup India Scheme support new businesses?

The Startup India Scheme supports new businesses by:

  • Providing financial assistance through government-backed funds and venture capital access.
  • Offering tax benefits to reduce financial burdens in the early years.
  • Simplifying regulatory processes, making compliance easier.
  • Fast-tracking intellectual property rights (IPR) registrations for startups.
  • Creating networking opportunities through startup events, incubators, and accelerator programs.
  • Facilitating ease of doing business with relaxed norms and exemptions from various government regulations.

Nipun Jain

Nipun Jain is a seasoned startup leader with 13+ years of experience across zero-to-one journeys, leading enterprise sales, partnerships, and strategy at high-growth startups. He currently heads Razorpay Rize, where he's building India's most loved startup enablement program and launched Rize Incorporation to simplify company registration for founders.

Previously, he founded Natty Niños and scaled it before exiting in 2021, then led enterprise growth at Pickrr Technologies, contributing to its $200M acquisition by Shiprocket. A builder at heart, Nipun loves numbers, stories and simplifying complex processes.

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