India has no entity called an LLC. If you searched “how to start an LLC in India,” the entity you actually need is a Private Limited Company (Pvt Ltd), governed by the Companies Act, 2013. It gives you the same limited liability and separate legal status a US Limited Liability Company (LLC) offers.
This guide covers the entity choice, requirements, SPICe+ registration steps, foreign ownership rules, cost, timeline, taxes, and compliance for a Pvt Ltd in 2026.
Can You Start an LLC in India?
No, not literally. India offers two limited-liability equivalents: the Private Limited Company under the Companies Act, 2013, and the Limited Liability Partnership (LLP) under the LLP Act, 2008. A Pvt Ltd is the default choice for foreign founders and startups raising capital. A Public Limited Company also exists, but it is larger and more heavily regulated.
A Pvt Ltd shields personal assets; shareholders are liable only up to their unpaid share capital. It is a separate legal entity with perpetual succession. Foreign investors can own 100% of it in most sectors under the automatic Foreign Direct Investment (FDI) route. Small domestic companies pay a 25% corporate tax rate on turnover up to ₹400 crore, per the Income Tax Department. Registration runs through one online form, SPICe+.
Private Limited Company vs LLP: Which Should You Choose?
Choose a Pvt Ltd if you will raise equity or set up a foreign subsidiary. Choose an LLP if you run a bootstrapped services firm and want minimal compliance. Both deliver limited liability and separate legal status. They differ most on fundraising and compliance load, as the table shows.
| Dimension | Private Limited Company | LLP | Source |
|---|---|---|---|
| Governing law | Companies Act, 2013 | LLP Act, 2008 | MCA |
| Minimum members | 2 shareholders | 2 partners | Companies Act s.3(1)(b) / LLP Act |
| Minimum directors/partners | 2 directors (≥1 resident) | 2 designated partners (≥1 resident) | Companies Act s.149 |
| Foreign ownership | 100% FDI, automatic route (most sectors) | 100% FDI where automatic route applies | DPIIT FDI policy |
| Fundraising | Can issue equity shares to VCs/angels | Cannot issue equity shares | MCA |
| Compliance load | Higher; statutory audit always | Lower; audit above thresholds | MCA |
| Taxation | Corporate slabs (25%/30%) | ~30% flat plus surcharge/cess | Income Tax Department |
| Investor perception | Strongly preferred | Weak for equity investors | Companies Act framework |
What Are the Requirements to Register an LLC in India?
A Pvt Ltd has no minimum paid-up capital requirement. India removed the earlier ₹1 lakh minimum through the Companies (Amendment) Act, 2015, effective 29 May 2015, per India Code. You still need a minimum of 2 shareholders and 2 directors, at least one director resident in India (182+ days in the financial year, Section 149(3)), and a registered office address in India.
| Document | Who provides it | Purpose | Source |
|---|---|---|---|
| PAN Card | Indian nationals (mandatory) | Identity proof | MCA |
| Passport, notarized/apostilled | Foreign nationals (mandatory) | Identity proof | MCA |
| Aadhaar Card, Voter ID, or Driving License | All directors/shareholders | Additional verification | MCA |
| Bank statement or utility bill under 2 months old | All directors/shareholders | Address proof | MCA |
| Rental agreement, NOC from owner, utility bill under 2 months | Company | Registered office proof | MCA |
| MoA and AoA | Company | Constitution, filed via SPICe+ | Companies Act, 2013 |
MoA is the Memorandum of Association. AoA is the Articles of Association. NOC is a No Objection Certificate from the property owner.
How Do You Register a Company in India? (Step-by-Step via SPICe+)
Registration runs entirely online through the Ministry of Corporate Affairs (MCA) SPICe+ form (Simplified Proforma for Incorporating Company Electronically Plus). It consolidates name reservation, DIN, incorporation, PAN, and TAN into a single filing, mandatory for all new companies since 23 February 2020, per the MCA SPICe+ FAQ.
Step 1: Obtain a Digital Signature Certificate (DSC)
Every director and subscriber needs a Digital Signature Certificate (DSC) to sign forms electronically. Government-recognised Certifying Authorities issue it. Foreign applicants submit apostilled or notarized ID and often complete video verification.
Step 2: Reserve the company name (SPICe+ Part A)
Reserve the company name through SPICe+ Part A. RUN (Reserve Unique Name) is no longer the route for new incorporations. The name must end in “Private Limited” and clear existing company and trademark conflicts. Check availability first with Commenda’s company name checker.
Step 3: File SPICe+ Part B with MoA, AoA, and director declarations
File SPICe+ Part B with the MoA, AoA, and director declarations. The Director Identification Number (DIN) is applied for inside SPICe+ for up to three directors, not as a separate filing. PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) are allotted with incorporation.
Step 4: Complete post-incorporation registrations
Register for GST (Goods and Services Tax) if turnover thresholds apply. Open a business bank account using the Certificate of Incorporation (COI), MoA and AoA, PAN, registered office proof, and KYC (Know Your Customer) documents.
Can Foreigners Own 100% of a Company in India?
Yes. Foreign investors can own 100% of a Pvt Ltd in most sectors under the automatic FDI route, with no prior government approval. A foreign parent company can hold the shares, making the Pvt Ltd a wholly owned subsidiary. A few sectors are restricted or prohibited, per the DPIIT FDI policy.
| Sector | FDI status | Source |
|---|---|---|
| Defense | Automatic to a cap, government approval above it | DPIIT FDI policy |
| Multi-brand retail | Government approval, capped | DPIIT FDI policy |
| Real estate trading | Prohibited (construction-development allowed) | DPIIT FDI policy |
| Lottery and gambling | Prohibited | DPIIT FDI policy |
| Insurance and media | Sector-specific caps | DPIIT FDI policy |
DPIIT is the Department for Promotion of Industry and Internal Trade, which publishes the Consolidated FDI Policy. For a broader walkthrough, see Commenda’s India business setup guide.
Do you need to visit India to incorporate?
No. You can incorporate remotely. Documents signed abroad need notarization plus apostille for Hague Convention countries, or consularization for others. US founders can follow Commenda’s register a company in India from the USA guide; UK founders can use the from the United Kingdom guide.
Do you need an Indian resident director?
Yes, at least one director must be resident in India, meaning 182+ days in the financial year under Section 149(3), Companies Act 2013. This is the biggest practical hurdle for all-foreign founding teams. Formation partners can arrange a nominee resident director to satisfy the rule.
How Much Does It Cost to Register a Private Limited Company in India?
Expect roughly ₹8,000 to ₹35,000 for a clean domestic case, and more for foreign founders once apostille and resident-director costs are added. The single biggest saving is the MCA fee waiver, shown below.
| Cost item | Amount | Source |
|---|---|---|
| MCA incorporation filing fee, authorized capital up to ₹15 lakh | ₹0 | MCA SPICe+ FAQ |
| Name reservation via RUN (standalone, optional) | ₹1,000 per application | MCA RUN FAQ |
| DSC per director | ₹1,000–₹2,000 | Certifying Authorities (varies) |
| Stamp duty | Varies by state and authorized capital | State stamp acts |
| Professional/formation fees | ₹6,000–₹30,000+ | Service providers (varies) |
| Apostille/notarization (foreign founders) | Varies by home country | Home-country authorities |
How Long Does Company Incorporation Take in India?
Incorporation typically takes 2 to 4 weeks end to end, depending on document readiness and MCA processing. Foreign-founder apostille adds lead time. PAN and TAN arrive with incorporation, so no separate wait applies, per the MCA SPICe+ FAQ.
| Stage | Typical duration | Source / note |
|---|---|---|
| DSC issuance | 1–3 working days | Certifying Authorities |
| Name approval (SPICe+ Part A) | 1–3 working days; reservation valid 20 days | MCA RUN FAQ |
| SPICe+ Part B processing | A few working days | MCA |
| PAN and TAN allotment | Issued with incorporation | MCA SPICe+ FAQ |
| Bank account opening | A few working days | Bank KYC |
What Taxes Does a Private Limited Company Pay in India?
Domestic companies pay 25% corporate tax on turnover up to ₹400 crore and 30% above it, per the Income Tax Department. Two concessional regimes exist: 22% under Section 115BAA and 15% under Section 115BAB for new manufacturers. Surcharge and a 4% cess apply on top of these rates.
| Tax or charge | Rate / threshold | Source |
|---|---|---|
| Corporate tax, turnover ≤ ₹400 crore | 25% | Income Tax Department |
| Corporate tax, turnover > ₹400 crore | 30% | Income Tax Department |
| Section 115BAA (exemptions forgone) | 22% | Income Tax Department |
| Section 115BAB (new manufacturers, incorporated after 1 Oct 2019) | 15% | Income Tax Department |
| Surcharge, income ₹1–10 crore | 7% | Income Tax Department |
| Surcharge, income above ₹10 crore | 12% | Income Tax Department |
| Surcharge, concessional regimes | 10% flat | Income Tax Department |
| Health and Education Cess | 4% | Income Tax Department |
| Minimum Alternate Tax (MAT) | 15% of book profits (exempt under 115BAA/115BAB) | Income Tax Department |
| GST registration threshold | ₹40 lakh goods / ₹20 lakh services (special-category states lower) | Income Tax Department / GST |
| GST rate slabs | 0 / 5 / 12 / 18 / 28% | CBIC |
Companies with a tax liability above ₹10,000 must pay advance tax in four installments, per the Income Tax Department tax calendar.
| Installment due date | Cumulative advance tax payable | Source |
|---|---|---|
| By 15 June | 15% | Income Tax Department tax calendar |
| By 15 September | 45% | Income Tax Department tax calendar |
| By 15 December | 75% | Income Tax Department tax calendar |
| By 15 March | 100% | Income Tax Department tax calendar |
MAT is the Minimum Alternate Tax. CBIC is the Central Board of Indirect Taxes and Customs.
Can Startups Get Tax Exemptions Under Startup India?
Yes. DPIIT-recognised startups can claim a three-year income tax holiday under Section 80-IAC, available within the first ten years since incorporation, subject to eligibility, per Startup India. Eligibility depends on the incorporation-date window, a turnover cap, and innovation criteria.
DPIIT recognition is a separate online application. Once recognised, the startup applies for the 80-IAC exemption and can also seek relief from angel-tax scrutiny on share premium. Recognition is the gate to most Startup India benefits.
What Compliance Is Required After Incorporation?
A Pvt Ltd must hold board meetings, file annual returns and financial statements with the MCA, undergo a statutory audit regardless of turnover, and file income tax and GST returns. An LLP faces a statutory audit only above prescribed turnover or contribution thresholds. Track filing deadlines with Commenda’s compliance calendar.
Incorporation is the start, not the finish line. Missed board resolutions, late annual filings, and skipped audits carry penalties, so most companies put a recurring compliance system in place from day one.
How Commenda Helps You Start Your Company in India
Searching for an LLC in India means registering a Private Limited Company through SPICe+, typically in 2 to 4 weeks. Commenda’s incorporation service handles the DSC, SPICe+ filing, the resident director requirement, and post-incorporation registrations end to end, so foreign founders never touch the MCA portal alone.
After launch, Commenda’s entity management platform keeps annual MCA and tax filings tracked, so incorporation does not become the last time your compliance is under control. Start with the India business setup guide, or the from the USA and from the United Kingdom guides. Book a demo to get a step-by-step India incorporation plan for your ownership structure.
