The short version
- Search trademarks before you propose a company name.
- Keep authorised capital modest. Stamp duty is charged on it.
- File INC-20A within 180 days of incorporation.
- Sign a co-founders' agreement before you incorporate.
1. A name that conflicts
The MCA rejects names that are too close to existing companies or registered trademarks. Search the trademark register, including class 35 and the classes for your industry, before you propose a name.
2. Capital set too high
Authorised capital is the most the company can issue in shares. Paid-up capital is what shareholders actually put in. Stamp duty is charged on authorised capital, so most founders start at ₹1 lakh and increase it when they need to.
3. A missed INC-20A
A company must file its declaration of commencement of business (INC-20A) within 180 days of incorporation. Missing it means penalties for the company and its directors, and the government can close the company down.
This guide is general information, not legal or tax advice. Rules and fees change often, so check with an advisor before you file anything.