Frequently
Asked Questions

7–10 working days from the date all documents are received and full fee is paid. The process via MCA's SPICe+ includes name reservation (RUN), DIN allotment, DSC issuance, MOA/AOA drafting, SPICe+ filing, and Certificate of Incorporation. PAN and TAN are allotted simultaneously with the certificate. Delays happen when documents are incomplete or the proposed name is rejected. SPICe+ Filing7–10 Days

For ₹1 lakh authorised capital, total government fees are typically ₹1,500 to ₹3,000 depending on state stamp duty. This includes MCA ROC filing fees and state stamp duty on MOA/AOA. DSC (Digital Signature Certificate) cost is additional — approximately ₹1,200–₹2,500 per director. Validraft's professional fee is quoted separately before you pay anything. Government FeeStamp Duty

For each director (Indian nationals): PAN Card, Aadhaar Card, passport-size photo, personal email ID and mobile number.

For registered office: Utility bill (electricity/water/gas — not older than 2 months) and NOC from property owner. If rented, rent agreement also required.

For foreign nationals: Notarised and apostilled passport copy and address proof. We send a precise checklist with every quote. Documents Required

Private Limited Company — can raise venture capital, issue shares and ESOPs, has higher compliance (AOC-4, MGT-7 annually), best for startups seeking investment.

LLP — flexible management, lower compliance (Form 11 and Form 8), cannot raise equity from investors. Best for professional firms, consultants and small businesses without investment plans.

Key rule: You cannot raise venture capital in an LLP. If funding is in your roadmap, incorporate as a Private Limited Company. LLP vs Pvt Ltd

An OPC is a company with a single member and gives sole founders limited liability without needing a second shareholder. Best for freelancers, solo consultants and individuals wanting corporate credibility for GST invoicing. Limitation: Cannot raise venture capital. Must convert to Pvt Ltd if turnover exceeds ₹2 crore or paid-up capital exceeds ₹50 lakh. OPC Registration

A Section 8 Company is a non-profit company under the Companies Act 2013 for charity, education, social welfare etc. Most regulated and credible for CSR funds and FCRA registration. A Trust is easiest to form but least regulated. A Society is membership-based and governed by the Societies Registration Act 1860. For 12A/80G tax exemptions and international donor credibility, Section 8 Company is the strongest structure. Section 8 CompanyNGO Registration

DPIIT recognition gives startups tax benefits, self-certification under labour laws, faster IP filing and government tender eligibility. Eligibility: Pvt Ltd/LLP/Registered Partnership, less than 10 years old, annual turnover below ₹100 crore, working towards innovation. Key benefit: 50% discount on trademark fee — ₹4,500 per class instead of ₹9,000. Startup IndiaDPIIT Recognition

Udyam is the official MSME registration classifying your business as Micro, Small or Medium. Benefits include priority sector lending, lower interest rates, payment protection under MSMED Act (buyers must pay within 45 days), trademark filing at ₹4,500/class, and government scheme subsidies. Registration is free — only Aadhaar needed. Validraft completes Udyam registration in 1–2 working days. Udyam MSMEFree Registration

Yes. The Companies Act 2013 does not prohibit residential addresses. You need a utility bill and an NOC from the property owner. The address is publicly visible on MCA portal — if privacy is a concern, a virtual office address works. Validraft can recommend trusted virtual office providers in Mumbai, Delhi, Bengaluru, Hyderabad, Chennai and Kolkata. Registered Office

No minimum paid-up capital since the 2015 Companies Act amendment. You can technically incorporate with ₹1. Most founders set authorised capital at ₹1 lakh and paid-up capital at ₹10,000. Government fees are calculated on authorised capital — so there is no benefit to setting it higher than needed at incorporation. Minimum Capital

Authorised Capital — maximum share capital permitted under the MOA. Government fees are charged on this at incorporation. Paid-Up Capital — the portion actually issued to shareholders against full payment. Example: ₹10 lakh authorised, ₹1 lakh paid-up — the remaining ₹9 lakh is available to issue later without amending the MOA. Authorised vs Paid-Up

Yes. At least one director must be a resident of India (182+ days in India in the preceding calendar year). Foreign directors need passport notarised and apostilled. 100% FDI is permitted in most sectors under the automatic route — no prior RBI approval needed. Restrictions apply in defence, multi-brand retail, insurance above 49% and certain media. NRI CompanyFDI India

GST registration is mandatory when: annual turnover exceeds ₹40 lakh for goods suppliers (₹20 lakh for special category states); ₹20 lakh for service providers; any inter-state supply regardless of turnover; selling on e-commerce platforms (Amazon, Flipkart) regardless of turnover. Voluntary registration is also allowed below these limits — useful for ITC claims and B2B credibility. GST Threshold

Zero government fee. The GSTN portal charges nothing for new GST registration. Only Validraft's professional service charge applies. New GSTIN issued in 3–7 working days from document receipt. Zero Govt Fee

Monthly filers: GSTR-1 due 11th of every month. GSTR-3B due 20th of every month.

Quarterly filers (QRMP Scheme — turnover below ₹5 crore): GSTR-1 due 13th of month after quarter. GSTR-3B due 22nd/24th of month after quarter.

Annual: GSTR-9 (annual return) due 31 December. GSTR-9C (reconciliation, turnover above ₹5 crore) due 31 December.

Late fee: ₹50/day (₹20/day for nil returns), capped at ₹10,000 per return. GSTR-1GSTR-3BGST Due Dates 2026

Proprietorship: PAN + Aadhaar of proprietor, photo, business address proof, bank statement/cancelled cheque.

Private Limited Company: Company PAN, Certificate of Incorporation, MOA/AOA, PAN+Aadhaar of all directors, board resolution, office proof, bank proof.

Partnership/LLP: Partnership deed or LLP Agreement, firm PAN, partner details, address and bank proof. GST Documents

Composition Scheme allows taxpayers with turnover below ₹1.5 crore to pay GST at a flat lower rate — 1% for manufacturers, 5% for restaurants, 6% for other services. No detailed invoice-by-invoice filing. Restrictions: Cannot issue tax invoices, cannot claim ITC, cannot make inter-state supplies. Filing: quarterly CMP-08 challan + annual GSTR-4 by 30 April. Composition Scheme

ITC lets you deduct GST paid on purchases from GST collected on sales — you only pay on the value you add. Conditions: valid tax invoice, goods/services received, GSTR-3B filed, supplier has filed GSTR-1 and credit appears in your GSTR-2B. ITC must be claimed by the September return of the following year. Not available on: motor vehicles (personal use), food/beverages, beauty services, club memberships. Input Tax Credit

Yes — mandatory. Every state where you have a place of business requires a separate GSTIN. A business in Maharashtra and Karnataka must have two GSTINs. Each has its own returns, ITC, and tax liability. Inter-branch supplies between two GSTINs of the same entity must be invoiced as supply. Multiple GSTIN

E-invoicing requires B2B invoices to be authenticated by the Invoice Registration Portal (IRP) and issued with a unique IRN and QR code. Mandatory for businesses with turnover exceeding ₹5 crore. E-invoices auto-populate GSTR-1. Non-compliance penalty: ₹10,000 per invoice or 100% of tax due — whichever is higher. E-Invoicing 2026

GSTR-1/3B late fee: ₹50/day (₹20/day for nil returns), max ₹10,000/return. Interest at 18% per annum on unpaid tax. GSTR-9 late fee: ₹200/day, max 0.25% of turnover. Repeated non-filing leads to GST registration cancellation — which requires a complex revival process. File nil returns if you have no transactions — avoids all penalties. GST Penalty

File FORM GST REG-16 on the GSTN portal. Before filing: clear all pending returns, pay outstanding tax dues. After cancellation, file a final return GSTR-10 within 3 months. Failure to file GSTR-10 attracts ₹200/day late fee. Validraft handles the full cancellation process. GST CancellationREG-16

Government fee (TM-A): ₹4,500/class for individuals, DPIIT startups and Udyam MSMEs. ₹9,000/class for companies and LLPs not registered as MSME. Most brands need 1–3 classes. Validraft's IP Attorneys file the same day — TM Application Number issued that day, establishing your priority date immediately. Trademark Fee 2026

TM Application Number: same day of filing. Examination report from Trademark Office: 3–6 months. If accepted: published in Trademark Journal for 4-month opposition window. Registration certificate: 6–12 months after publication. Total: 18–36 months for full registration. You can use ™ from day one of filing. ® only after certificate is received. Trademark Timeline

45 classes under Nice Classification — Classes 1–34 for goods, 35–45 for services. Common ones: Class 25 (clothing), Class 30 (food), Class 35 (e-commerce/agencies), Class 36 (fintech), Class 42 (software/SaaS), Class 45 (legal services). Filing in the wrong class provides no protection. Validraft's IP Attorneys recommend correct classes before filing. Trademark Classes India

An objection is NOT a rejection — it is common. You have 30 days to file a reply to the examination report. If the examiner is unsatisfied, a hearing is set. The IP Attorney argues your case. If accepted: published in Journal. Responding to examination reports is a separate charge from the base TM filing fee. Trademark Objection

™ — can be used from the day of filing TM-A application. Signals pending registration. ® — can only be used after receiving the Registration Certificate. Using ® on an unregistered mark is illegal under Section 107 of the Trade Marks Act 1999 and carries a fine. A registered trademark is valid for 10 years, renewable indefinitely. TM vs R Symbol

Search on IP India's official portal (ipindiaonline.gov.in) by wordmark, class, proprietor name or application number. Look for identical marks, phonetically similar marks, conceptually similar marks and well-known marks. Validraft conducts a comprehensive search across all classes and provides a risk assessment before filing. Trademark Search India

After acceptance, your mark is published in the Trademark Journal for a 4-month opposition window. Third parties can file Form TM-O. You must file a Counter-Statement within 2 months — failure causes automatic abandonment. Evidence is exchanged, hearing scheduled, Registrar passes order. Proceedings take 2–5 years. Trademark Opposition

Yes — each requires a separate TM-A application and fee. Wordmark (brand name in plain text) gives the broadest protection. Device mark protects the logo. Combined mark protects name + logo together. Best practice: file wordmark first, device mark once logo is finalised. Taglines can be trademarked if distinctive (not merely descriptive). Logo TrademarkWordmark

Copyright protects original creative works (literary, artistic, music, software) — arises automatically on creation, registration costs ₹500–₹2,000. Valid for life + 60 years. Trademark protects brand identifiers — requires registration, costs ₹4,500–₹9,000/class, valid 10 years renewable. A logo can be registered as both. Validraft handles both. Copyright Registration

File Form TM-R before the 10-year expiry. Renewal fee: ₹10,000/class (individuals/MSME), ₹20,000/class (companies). Late renewal within 6 months after expiry: 25% surcharge. After 1 year of non-renewal, the mark is removed and available for others. Renewing costs far less than re-filing from scratch. Trademark RenewalTM-R

• AOC-4 (Financial Statements) — 30 October 2026
• MGT-7 / MGT-7A (Annual Return) — 29 November 2026
• DIR-3 KYC (Director KYC) — 30 September 2026
• ADT-1 (Auditor Appointment) — within 15 days of first AGM
• INC-20A (Commencement of Business — one time) — within 180 days of incorporation

Penalty for late filing: ₹100 per day per form — no cap. ROC Due Dates 2026AOC-4MGT-7

DIR-3 KYC is annual verification of a director's email and mobile with MCA. Deadline: 30 September 2026. Non-compliance: DIN marked "Deactivated" on 1 October. A deactivated DIN cannot sign any MCA filing. Reactivation requires ₹5,000 additional fee. DIR-3 KYC 2026Director KYC Deadline

₹100 per day per form — no upper limit. AOC-4 filed 120 days late = ₹12,000 penalty. MGT-7 also late = another ₹12,000. Additional consequences: company marked "Defaulter" on MCA, directors can be disqualified under Section 164(2) for 5 years, company can be struck off for 2 consecutive years of non-filing. ROC Penalty

One-time declaration required for all companies incorporated after 2 November 2018 — before commencing business or exercising borrowing powers. Must be filed within 180 days of incorporation. Penalty for non-filing: ₹50,000 on the company + ₹1,000/day on each officer in default. Company cannot legally operate without filing this. INC-20A

AOC-4 — Financial statements (Balance Sheet, P&L, Cash Flow, Auditor's Report). Certified by CA + CS. Due within 30 days of AGM.

MGT-7 — Structural info: shareholding pattern, director details, changes during the year. Certified by CS in Practice. Due within 60 days of AGM. AGM must be held by 30 September. AOC-4 vs MGT-7

• Form 11 (Annual Return) — due 30 May every year
• Form 8 (Statement of Account & Solvency) — due 30 October every year
• Income Tax Return — 31 July (non-audit) or 31 October (audit)

Penalty: ₹100/day per form with no cap. LLP compliance is simpler than a company but the penalties are equally unforgiving. LLP ComplianceForm 11

STK-2 under Section 248(2) allows defunct companies to apply for voluntary strike-off. Eligible if: not commenced business since incorporation, OR inactive for 2+ financial years. Requirements: no pending litigation, no government dues, all bank accounts closed, all pending returns filed. Process takes 3–6 months. Until struck off, compliance obligations and penalties continue. STK-2Company Closure

Filings triggered by specific company events:

• DIR-12 — Director change: within 30 days
• SH-7 — Increase in authorised capital: within 30 days
• PAS-3 — Share allotment: within 30 days
• MGT-14 — Resolutions: within 30 days
• CHG-1 — Charge creation (loan/mortgage): within 30 days

Missing event-based filings attracts ₹100/day penalty and complicates due diligence for fundraising. Event-Based FilingsDIR-12

A dormant company under Section 455 has no significant transactions and has applied to RoC for dormant status. Benefits: only Form MSC-3 annually, no AGM, only 2 board meetings/year needed. Requirements: no outstanding loans, no litigation, current liabilities below ₹1 lakh. Revival via Form MSC-4. If you want full closure, STK-2 is better. Dormant Company

Any food business in India. Three levels:

• Basic Registration — turnover below ₹12 lakh, ₹100/year fee, issued in 7 days
• State Licence — turnover ₹12 lakh to ₹20 crore, ₹2,000–₹5,000/year fee, 30–60 days
• Central Licence — turnover above ₹20 crore, importers/exporters, ₹7,500/year fee

Operating without FSSAI: penalty up to ₹5 lakh. FSSAI Licence

Mandatory for any business importing or exporting goods. 10-digit code issued by DGFT. Government fee: ₹500 one-time, no renewal. Issued in 1–3 working days. Required for customs clearance, receiving foreign payments via banks, and EXIM benefits. Linked to PAN — one IEC per PAN. Annual updation on DGFT portal is free but required to keep IEC active. IEC Registration India

State-level licence required for any establishment employing workers — shops, offices, restaurants. Must be obtained within 30 days of business commencement. Required for opening a current bank account in some states and as address proof for GST registration. Must be renewed annually. Penalty varies from ₹200 to ₹2,000/day by state. Shop Establishment

State-level tax on income from employment or profession. Applicable in 20+ states — Maharashtra, Karnataka, Tamil Nadu, West Bengal etc. Not applicable in Delhi, UP, Bihar, Rajasthan. Employers must deduct and remit. Maximum ₹2,500/year per employee in most states. Separate registration required per state. Professional Tax

PF — mandatory when 20+ employees. Rate: 12% employee + 12% employer.
ESI — mandatory when 10+ employees with salary ≤ ₹21,000/month. Rate: 0.75% employee + 3.25% employer.

Monthly contribution filings mandatory. Non-compliance: 12–25% per annum interest + prosecution. ESI RegistrationPF Registration

Issued by local municipal corporations (BBMP, BMC, GHMC etc.) for running a business from specific premises. Different from Shop & Establishment registration. Requirements vary by business type, municipality and zone classification. Must be renewed annually. Operating without it: fines and business closure notices. Validraft facilitates this through local professionals. Trade Licence India

No. Validraft is a legal-tech facilitation platform — not a CA firm under the CA Act 1949, not a CS firm under the CS Act 1980, not a law firm under the Advocates Act 1961. All statutory filings are performed by independent empanelled Chartered Accountants, Company Secretaries and IP Attorneys under their own Certificate of Practice. Validraft provides coordination, documentation and workflow management.

• Step 1 — You reach out via WhatsApp, email or contact form
• Step 2 — We send a clear quote within 2 working hours: govt fee, professional fee, timeline, document checklist
• Step 3 — You upload documents. We verify completeness before requesting payment
• Step 4 — Assigned CA/CS/IP Attorney files on govt portal. Certificate, GSTIN or TM number delivered to your email

100% online. No office visit from anywhere in India.

Yes — 100% online, Pan-India. We actively focus on Tier 2 and Tier 3 cities: Patna, Siliguri, Guwahati, Ranchi, Raipur, Lucknow, Chandigarh, Indore, Coimbatore, Kochi, Visakhapatnam, Nashik, Amritsar, Agra and hundreds more. All government portals (MCA, GSTN, IP India) are accessible remotely. Your location has zero impact on quality or timeline. Pan-India

Government fees — never refundable once paid to MCA, IP India, FSSAI etc.

Professional fees:

• Full refund — no work started, claim within 7 days of payment
• 50% refund — work started but nothing filed, claim within 3 days of document submission
• No refund — application already filed on any govt portal

See full Refund Policy. Refund Policy

• Private Limited Company: 7–10 working days
• LLP registration: 10–15 working days
• GST registration: 3–7 working days
• Trademark filing (TM number): Same day
• FSSAI Basic Registration: 7–10 working days
• IEC — Import Export Code: 1–3 working days
• Udyam MSME: 1–2 working days
• ROC annual filing: Before your deadline

Government processing times at MCA/GSTN/IP India are outside our control. We track and follow up on all portal statuses on your behalf.

Due to Validraft/professional error: We re-file at no additional professional fee.

Due to client-provided incorrect information: Re-filing charged at a reduced rate. Government fee paid is non-refundable.

Trademark objections are not rejections — they are standard. Responding to examination reports is a separate engagement charged separately. Application Rejection

Three ways — all free, no obligation:

• WhatsApp: +91 70618 60313 — describe what you need, get a quote in 2 hours
• Contact Form: Contact Us page — same 2-hour response
• Email: validraft@gmail.com — for detailed multi-service requirements

No preparation needed. Just describe your requirement in plain language — company type, state, brand name, current compliance status. We take it from there. Get Started