Secretarial Audit: Applicability, Scope, and Process

Jun 9, 2025
Private Limited Company vs. Limited Liability Partnerships

India’s corporate ecosystem is governed by an evolving web of laws and compliance requirements. For businesses, especially large or listed ones, staying on top of legal obligations is important to avoid penalties and foster trust and transparency with stakeholders.

One powerful tool for ensuring this is the Secretarial Audit, a mandatory compliance check for certain companies under Indian law. It acts as an early warning system to detect non-compliance and governance gaps that can otherwise harm the business.

In this blog, we’ll explain a Secretarial Audit, its applicability, scope, and process, along with key benefits and penalties for non-compliance.

Table of Contents

What is Secretarial Audit?

A Secretarial Audit is an independent verification of a company’s compliance with corporate laws, rules, and regulations.

It helps companies to:

  • Detect instances of non-compliance early.
  • Promote good governance and transparency.
  • Ensure that legal and procedural requirements are consistently met.

The audit is conducted by an independent professional, usually a Company Secretary (CS) holding a valid Certificate of Practice issued by the Institute of Company Secretaries of India (ICSI).

Secretarial Audit Applicability

Under the Companies Act, 2013, certain classes of companies are required to undergo a Secretarial Audit.

It is mandatory for:

  • All Listed Companies.
  • All Public Companies with:
    • Paid-up Share Capital of ₹50 crore or more, or
    • Turnover of ₹250 crore or more.
  • All types of companies (including Private Companies) having outstanding borrowings of ₹100 crore or more from banks or financial institutions.

Secretarial Audit Report

The Secretarial Audit Report is the formal output of the audit process. It:

  • Certifies whether the company is in compliance with applicable laws.
  • Identifies any governance risks or gaps.
  • Highlights areas of non-compliance and recommends corrective actions.

The report is prepared in Form MR-3, submitted to the Board of Directors, and included in the company’s Annual Report. As per Section 204 of the Companies Act, 2013, the audit can only be conducted and the report issued by a:

  • Practising Company Secretary (PCS).
  • Holding a valid Certificate of Practice from ICSI.

Scope of Secretarial Audit

The scope of a Secretarial Audit is broad and spans multiple laws, including but not limited to:

  • Companies Act, 2013
  • Securities Laws, including:
    • SEBI (LODR) Regulations
    • SEBI Takeover Code
    • SEBI Insider Trading Regulations
    • SEBI Listing Agreement
  • Foreign Exchange Management Act (FEMA)
  • Labour Laws
  • Environmental Laws
  • Industry-specific Regulations
  • Secretarial Standards issued by ICSI

Additionally, the Secretarial Auditor also:

  • Reviews the company’s systems and processes for compliance.
  • Examines the Board structure and its functioning.
  • May rely on reports from other professionals (auditors, legal counsel) for certain compliance areas.

{{comapany-reg-cta}}

Eligibility Criteria for the Appointment of a Secretarial Auditor

To be appointed as a Secretarial Auditor, the individual must:

  • Be a qualified Company Secretary (CS) and a member of ICSI.
  • Hold a valid Certificate of Practice (CoP) issued by ICSI.
  • Have undergone relevant training in corporate governance and compliance.
  • Maintain professional ethics and conduct in line with ICSI guidelines.

Only a Practising Company Secretary (PCS) is authorised to conduct and issue a Secretarial Audit Report.

Process of Secretarial Audit

The typical step-by-step process for conducting a Secretarial Audit is:

  1. Preparation of a Compliance Checklist:
    Based on applicable laws and regulatory frameworks.

  2. Compliance Verification:
    The auditor examines the company’s records, registers, filings, and processes.

  3. Management Interaction:
    Discusses preliminary findings and areas of concern with management.

  4. Recommendations and Corrective Actions:
    Advises management on how to address any gaps or non-compliance issues.

  5. Preparation of the Final Report (MR-3):
    The auditor formally documents observations and recommendations.

  6. Filing and Disclosure:
    The report is submitted to the Board and included in the Annual Report as required.

Features of Company Secretarial Audit

A Secretarial Audit is distinguished by several key features:

  • Independent Audit:
    Conducted by an external Practising Company Secretary.

  • Comprehensive Scope:
    Covers company law, securities law, tax law, labour law, environmental law, and other applicable legal frameworks.

  • Systematic & Evidence-Based:
    Based on a thorough review of records and procedures.

  • Board-Level Reporting:
    Findings and recommendations are directly reported to the Board of Directors.

  • Governance-Focused:
    Designed to strengthen the company’s corporate governance practices.

Punishment for Default Secretarial Audit

Non-compliance with Secretarial Audit provisions carries penalties under:

Section 204(4) of the Companies Act, 2013:

The company, every officer in default, and the PCS (if found guilty) are liable to a fine of up to ₹5 lakh.

Section 448 (False Statements):

  • Imprisonment up to 10 years, and/or
  • Fine up to ₹10 lakh for making false statements in the audit report.

The Company Secretaries Act, 1980:

Disciplinary action against the Company Secretary may include:

  • Suspension or cancellation of the Certificate of Practice.
  • Monetary penalties.
  • Professional misconduct proceedings.

Objectives of Secretarial Audit

The key objectives of Secretarial Audit are:

  • Ensure the company complies with legal and regulatory frameworks.
  • Identify non-compliance issues before they become liabilities.
  • Promote good corporate governance.
  • Protect the interests of stakeholders- investors, employees, customers, and regulators.
  • Help management take corrective actions proactively.
  • Prevent penalties and legal actions for non-compliance.

Benefits of Secretarial Audit

Conducting a Secretarial Audit offers many advantages:

  • Enhances the company’s compliance culture.
  • Reduces legal risks and the likelihood of penalties.
  • Supports better corporate governance and transparency.
  • Increases stakeholder confidence- important for investors and regulators.
  • Helps Directors and Management make more informed decisions.
  • Facilitates continuous improvement in internal processes and systems.

Frequently Asked Questions

rize image

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

Register your business
rize image

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

Register your business
rize image

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 the applicability of Secretarial Audit to companies?

Secretarial Audit is mandatory under Section 204 of the Companies Act, 2013 for the following companies:

  • All Listed Companies
  • Public Companies with:
    • Paid-up share capital of ₹50 crore or more, or
    • Turnover of ₹250 crore or more

  • Private Companies with outstanding borrowings of ₹100 crore or more from banks or financial institutions.

Is Secretarial Audit mandatory for SME-listed companies?

Yes, Secretarial Audit is mandatory for all listed companies, including SME listed companies, irrespective of their size, as per the Companies Act, 2013.

Is a Statutory Audit compulsory for small companies?

Yes, a Statutory Audit is mandatory for all companies, including small companies, under Section 139 of the Companies Act, 2013. Regardless of size or turnover, every company must appoint a statutory auditor to audit its financial statements annually.

What is the limit of a Secretarial Audit?

There is no specific financial limit for conducting a Secretarial Audit. Applicability is based on:

  • Listing status (mandatory for all listed companies), or
  • Financial thresholds for Public and Private companies as mentioned earlier.

However, as per ICSI guidelines, a Practising Company Secretary (PCS) can conduct Secretarial Audits for a maximum of 10 companies per financial year.

Who can conduct the Secretarial Audit?

Only a Practising Company Secretary (PCS) holding a valid Certificate of Practice (CoP) issued by the Institute of Company Secretaries of India (ICSI) can conduct a Secretarial Audit.

Who can sign the Secretarial Audit Report?

The Secretarial Audit Report (in Form MR-3) can only be signed and issued by a Practising Company Secretary (PCS) who has conducted the audit.

How is the Secretarial Auditor appointed?

The Secretarial Auditor is appointed by the company’s Board of Directors through a formal Board Resolution. The appointment should ideally be done at the start of the financial year to ensure adequate audit scope coverage.

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.

Read More

Related Posts

Difference between Private Limited Company, OPC and LLP in India

Difference between Private Limited Company, OPC and LLP in India

Are you an aspiring entrepreneur ready to make your business official? If so, one of the critical decisions you'll need to make is choosing the right business structure. From Private Limited Companies (PLCs) to Limited Liability Partnerships (LLPs) to One Person Companies (OPCs), each structure offers its own set of advantages and considerations.

In this blog, we'll explore the nuances (features & differences) of these three popular business structures - Private Limited, LLP, and OPC—and provide insights to help you make an informed decision that aligns with your entrepreneurial goals.

Table of Contents

Difference between Private Limited, LLPs & OPCs

Private Limited Company Limited Liability Partnership One Person Company
Governing Act Governed by the Companies Act Governed by the Limited Liability Partnerships Act Governed by the Companies Act
Suitable For Financial Services, Tech Startups, Medium Enterprises Consultancy firms, Professional Services Franchises, Retail Stores, Small Businesses
Shareholders/Partners Minimum Shareholders - 2
Maximum Shareholders - 200
Minimum Partners - 2
Maximum Partners - Unlimited
Minimum Shareholders - 1
Maximum Shareholders - 1
(Maximum Directors can be 15)
Nominee Not required Not required One Nominee mandatory
Minimum Capital Requirement No minimum capital requirement, but it is often advised to set the authorized capital at INR 1,00,000 (One Lakh) No minimum capital requirement, but it is often advisable to consider an initial capital of INR 10,000 No minimum paid-up capital requirement exists. However, the minimum authorized capital required is INR 1,00,000 (One Lakh)
Tax Rates The basic tax rate, excluding Surcharge and Cess is 25% The standard fixed rate is 30% on their generated earnings. The applicable Tax rate would be 25%, excluding cess and surcharge
Fundraising Easier to raise funds from Investors Raising funds can be challenging Limited options for Fundraising
DPIIT Recognition Eligible for DPIIT recognition Eligible for DPIIT recognition Ineligible for DPIIT recognition
Transfer of Shares Shares can be easily transferred by amending AOA Transfer of partnership rights may require the consent of other partners and is generally more complex Transfer of shares isn't possible; it can only be done in case of transfer of ownership
ESOPs Can issue ESOPs to the Employees Unable to issue ESOPs to the Employees Unable to issue ESOPs to the Employees
Agreements Duties, Responsibilities, and other basic clauses outlined in MOA and AOA Duties, Responsibilities, and other basic clauses outlined in the LLP Agreement Duties, Responsibilities, and other basic clauses outlined in MOA and AOA
Compliances
  • More compliance costs
  • Mandatory 4 Board Meetings
  • Mandatory Statutory Audits
  • Mandatory filings includes Annual financial statements in form AOC-4 and annual returns in Form MGT-7, etc.
  • Less Compliance Costs
  • No Mandatory Board Meetings
  • Statutory Audits are not required if turnover is less than 40 Lakhs, or capital contribution is less than 25 Lakhs.
  • Mandatory filings include Annual financial statements in Form 8 and annual returns in Form 11.
  • Less Compliance Costs
  • Minimum 2 Board Meetings
  • Mandatory Audits
Foreign Directors/Partners NRIs and Foreign Nationals can be Directors NRIs and Foreign Nationals can be Partners No foreign directors are allowed
Foreign Direct Investment Eligible through Automatic route Eligible through Automatic route Not eligible for FDI
Mandatory Conversion No mandatory conversion No mandatory conversion If annual turnover exceeds Rs. 2 Crores or paid-up capital exceeds Rs. 50 lakhs, then mandatory conversion into a private limited company

Now that we've introduced the differences between these three types, let's explore their features and registration processes more thoroughly. This will help you determine which one is the most suitable for your business needs.

Private Limited Company: Features

In India, the Private Limited Company stands as the predominant choice for company registration, governed by the Companies Act of 2013 under the jurisdiction of the Ministry of Corporate Affairs (MCA). This structure is favoured by startups and businesses aspiring for growth and stability, owing to its adaptable ownership model and efficient management practices.

Outlined below are some key characteristics of a Private Limited Company:

1. Limited Liability

  • Shareholders enjoy limited liability, safeguarding personal assets from business debts.

2. Separate Legal Entity

  • Regarded as a distinct legal entity from its shareholders, allowing it to engage in contracts, own assets, and litigate under its name.

3. Ownership

  • Owned by shareholders who possess shares in the company, with ownership transfer facilitated through share transactions.

4. Management

  • Managed by appointed Directors, while day-to-day operations are overseen by management, with significant decisions often requiring shareholder approval.

5. Shareholders

  • Requires a minimum of two shareholders and can accommodate a maximum of 200.

6. Regulation and Compliance

  • Governed by the Companies Act and regulated by the Ministry of Corporate Affairs, mandating compliance with annual financial filings, general meetings, and statutory record maintenance.

7. Investment and Funding

  • Attracts investment and funding relatively easily due to its defined ownership structure and limited liability feature.

Private Limited Company: Registration in India

The Ministry of Corporate Affairs (MCA) has introduced a streamlined and online process for company incorporation known as Simplified Proforma for Incorporating Company Electronically Plus (SPICe+), comprising two parts: Part A and Part B.

The steps are as follows:

1. Step 1: Apply for DSC

  • Obtain a Digital Signature Certificate (DSC) from Certifying Agencies (CAs) with either one or two-year validity.

2. Step 2: Apply for Name Approval

  • Apply for name using SPICe+ Part A which facilitates 'Name Reservation' with the provision for two proposed names and one re-submission (RSUB).

Note: While simultaneous application for name approval (Part A) and Incorporation (Part B) through SPICe+ is feasible, only one name can be reserved.

3. Step 3: Apply for Company Registration & Other Applications

  • Following name approval, apply for Company Registration using SPICe+ Part B, which also includes the application for allotment of Director Identification Number (DIN), Permanent Account Number (PAN), Tax Deduction and Collection Account Number (TAN), etc.

4. Step 4: Apply for a Bank Account

  • Open a current account for your company to facilitate seamless financial transactions and business operations.

5. Step 5: File the Commencement of Business Certificate

  • Within 180 days of incorporation, file the Commencement of Business Certificate through Form INC-20A, which is a declaration submitted by the Director of the Company to the Registrar of Companies.

Upon approval of the SPICe+ Form, the Registrar of Companies (ROC) issues the Certificate of Incorporation, confirming the successful registration of your company.

The Certificate of Incorporation includes vital information such as the Company's name, registration number (CIN), date of incorporation, registered office address, and so on.

Example of CIN: U72200KA2013PTC097389

Read more about what each letter in a CIN signifies here.

{{pvt-cta}}

Limited Liability Partnerships: Features

A Limited Liability Partnership (LLP) is a business structure that combines features from both traditional partnerships and limited companies. And, LLPs are often favoured by professional services firms, small businesses, and ventures seeking the blend of partnership flexibility and limited liability protection.

Key characteristics of an LLP include:

1. Limited Liability

  • Partners in an LLP benefit from limited liability akin to private limited companies.

2. Separate Legal Entity

  • An LLP exists as a distinct legal entity from its partners, capable of owning assets, entering contracts, and engaging in legal proceedings independently.

3. Ownership

  • Partners own the LLP, with the ownership structure outlined in the LLP agreement. Ownership transfer typically requires consent from other partners.

4. Management

  • Managed by partners or a designated management team as specified in the LLP agreement. Decision-making is often collaborative, with each partner having an equal say.

5. Number of Partners

  • Requires a minimum of two partners, with no maximum limit.

6. Regulation and Compliance

  • Governed by the Limited Liability Partnership Act in India, featuring less stringent regulatory requirements compared to private limited companies. Compliance entails filing annual returns and maintaining statutory records.

7. Flexibility

  • Offers enhanced flexibility in internal management and decision-making processes compared to private limited companies.

Limited Liability Partnerships: Registration in India

Establishing a Limited Liability Partnership (LLP) as a legally recognized business structure involves several crucial steps. Here is a brief and comprehensive outline of the LLP registration process.

1. Step 1: Obtain a DSC

  • Obtain a Digital Signature Certificate (DSC) from Certifying agencies. To know more about the process, click here.

2. Step 2: Apply for Name Reservation

  • Reserve an LLP's name via the LLP-RUN form, overseen by the Central Registration Centre. Up to two names can be proposed.

3. Submit the FiLLiP Form

  • Fill out the FiLLiP form and submit it to the Registrar along with the Subscriber sheet and Director's consent (Form DIR-9).

4. Draft & File the LLP Agreement

  • File the LLP Agreement using Form 3 on the MCA portal within 30 days of registration.

Upon approval of the FiLLiP Form by the Registrar of Companies (ROC), you will receive the Certificate of Incorporation, which has important details such as the LLP's name, registration number (LLPIN), date of incorporation, registered office address, and so on.

Example of LLPIN: AAA-1234

{{llp-cta}}

One Person Companies: Features

One Person Companies (OPCs) present a unique business structure where a single individual can establish and manage a company. Combining aspects of a Private Limited Company and the advantages of Sole Proprietorship, OPCs cater to entrepreneurs and business owners who handle all ownership, operation, and management duties themselves.

1. Sole Ownership

  • An OPC is solely owned and managed by a single individual, referred to as the sole shareholder or member.

2. Limited Liability

  • Like other corporate structures, OPCs offer limited liability protection to the sole owner.

3. Separate Legal Entity

  • OPCs are recognized as separate legal entities independent of the sole owner. This legal distinction enables you to enter contracts, own assets, and participate in legal proceedings under your company’s name.

4. Perpetual Succession

  • Despite having only one member, OPCs feature perpetual succession. A nominee appointed during incorporation typically assumes control in the absence of the sole member.

By combining limited liability, separate legal entity status, and simplified operations, OPCs emerge as an appealing choice for small businesses and startups led by single entrepreneurs.

One Person Company: Registration in India

Due to their similarities with private limited companies, OPCs also employ SPICe+ for their company registration process.

SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) is a comprehensive online form introduced by the Ministry of Corporate Affairs (MCA) in India to streamline and simplify the company registration process.

1. Step 1: Apply for DSC

  • Obtain a Digital Signature Certificate (DSC) from any Certifying Agencies in India.

2. Step 2: Submit Part A of SPICe+ Form (If filled separately)

  • Apply for name approval using Part A of the SPICe+ form, allowing for submission of up to two proposed names and one re-submission.

3. Step 3: Draft the MoA & AoA

  • Draft the Memorandum of Association (MoA) and Articles of Association (AoA) detailing the company's objectives and rules.

4. Step 4: Submit Part B of SPICe+ Form

  • Submit Part B of the SPICe+ form along with necessary documents, including DSC, MoA, AoA, and declarations. Pay the prescribed fee for registration.

5. Step 5: Appoint a Nominee

  • Appoint a nominee director as required by OPC regulations.

6. Step 6: File for the Commencement of Business Certificate

  • Within 180 days of incorporation, file for the Commencement of Business Certificate (Form INC-20A) with the Registrar of Companies.

Upon successful approval of the SPICe+ Form, you’ll receive an email notification from the MCA containing the Certificate of Incorporation (COI) and PAN and TAN details of the Company.

The certificate of Incorporation (COI) includes crucial details such as the Company Name, Registration Number (CIN), Date of Incorporation, Registered Office Address, Company Structure, and more.

{{opc-cta}}

For added clarity, check out our curated collection of sample templates, where you can download and customize most of these above-mentioned templates, as required.

Company Registration with Razorpay Rize

Razorpay Rize provides a wide array of services to facilitate an end-to-end streamlined company registration process, all at the lowest fees and without any hidden charges. Explore the different legal structures below to find the one that’s best for your business.

{{company-cards}}

Our package includes:

  • Company Name Registration
  • 2 Digital Signature Certificates (DSCs)
  • 2 Directors’ Identification Numbers (DINs)
  • Certificate of Incorporation(COI)
  • MoA & AoA [Applicable for Private Limited Companies and OPCs]
  • LLP Agreement [Applicable for LLPs]
  • Company PAN & TAN

*Prices and documents can differ based on the company type.

Find Out Which Company Type to Register

If you operate a small business with limited resources, opting for LLP or OPC registration might be more favourable due to lighter compliance requirements. However, for larger businesses with substantial capital needs, registering as a Private Limited Company provides greater flexibility in raising funds. So, before proceeding with the registration of either a Private Limited Company, LLP, or OPC, it is essential to carefully evaluate the following factors.

  • Business Nature and Size
  • Fundraising Requirements
  • Tax Implications
  • Personal Liability Protection

Ultimately, the choice between a Private Limited Company, LLP, or OPC structure depends on the unique characteristics of your business, including its nature, size, fundraising requirements, tax implications, and personal liability protection.

Still confused about which company type to register with? We’ve got you covered! Introducing our latest tool - "Know Your Company Type."

For the first time in India, answer a quick set of questions about your startup, and this tool will utilize your responses to identify the perfect company registration type for you. Find your ideal fit with just one click!

{{know-your-company}}

In summary, choosing between Private Limited Companies, OPCs, and LLPs depends on your business goals and preferences. Each structure offers unique benefits, whether it's scalability with Private Limited Companies, convenience with OPCs, or simplicity with LLPs. If you have any unanswered questions or want to get started with the company registration process, feel free to get in touch with us!

rize image

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

Register your business
rize image

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

Register your business
rize image

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

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.

Read more
Private Limited Company vs. One Person Company (OPC)

Private Limited Company vs. One Person Company (OPC)

Choosing the right business structure is a crucial decision for any entrepreneur. In India, two popular options are the Private Limited Company (Pvt Ltd) and the One Person Company (OPC). While Pvt Ltd companies suit growth-oriented startups with aspirations to scale, OPCs cater to solo entrepreneurs seeking simplicity with limited liability.

This blog explores the key features, benefits, and differences between these structures to help you decide what’s best for your business.

Table of Contents

Difference between Private Limited and One Person Companies

Although we will explore each legal structure in the upcoming sections, let's currently delve into a comparative analysis between these two entities.

Private Limited Company One Person Company
Suitable For Financial Services, Tech Startups, Medium Enterprises Franchises, Retail Stores, Small Businesses
Shareholders/ Partners Minimum – 2
Maximum – 200
Minimum – 1
Maximum – 1
Nominee Not required One Nominee mandatory
Minimum Capital Requirement No minimum capital requirement No minimum paid-up capital requirement exists. However, the minimum authorized capital required is Rs. 1,00,000 (One Lakh)
Tax Rates The basic tax rate, excluding Surcharge and Cess, is 25% The applicable Tax rate to the OPC would be 25%, excluding cess and surcharge
Fundraising Multiple options for Fundraising Limited options for Fundraising
ESOPs Can issue ESOPs to the Employees Unable to issue ESOPs to the Employees
DPIIT Recognition Eligible for DPIIT recognition Ineligible for DPIIT recognition
Transfer of Shares Shares can be easily transferred by amending AOA Transfer of shares isn’t possible; it can only be done in case of transfer of ownership
Agreements Duties, Responsibilities, and other basic clauses outlined in MOA and AOA Duties, Responsibilities, and other basic clauses outlined in MOA and AOA
Compliances • More compliance costs
• Mandatory 4 Board Meetings
• No mandatory audits till a specified threshold limit
Less Compliance Costs
Minimum 2 Board Meetings
Mandatory Audits
Foreign Directors NRIs and Foreign Nationals can be Directors No foreign directors are allowed
Foreign Direct Investment Eligible through Automatic route Not eligible for FDI
Mandatory Conversion No mandatory conversion If annual turnover exceeds Rs. 2 Crores or paid-up capital exceeds Rs. 50 lakhs, then mandatory conversion into a private limited company

While we have provided some context on the differences between a private limited company and an OPC, let's break down their features and registration process in detail. This will help you figure out which one suits your business needs best.

What is a Private Limited Company?

A Private Limited Company (Pvt Ltd) is one of the most sought-after business structures in India. It combines the benefits of limited liability, a separate legal identity, and scalability.

It’s a privately held entity governed by the Companies Act of 2013 and is often chosen for its ability to combine the flexibility of partnerships with the advantages of corporate status.

In a Private Limited Company, shareholders' liability is limited to the extent of their shareholding, which means personal assets are protected in case the company incurs losses or debts. This makes it an attractive option for entrepreneurs looking to build a scalable business while minimising financial risks.

In short, a Private Limited Company is ideal for entrepreneurs with big ambitions, as it provides:

  • A formal structure for business operations.
  • Easier access to funding through equity or debt.
  • A professional image that boosts credibility with investors and customers.

Private Limited Company Registration

Registering a Private Limited Company involves a detailed process governed by the Companies Act, 2013.

Step-by-Step Guide to Registration

  1. Document Requirements:
    • PAN and Aadhaar of all directors.
    • Proof of address for both directors and the company (rental agreement, utility bills, etc.).
    • Digital Signature Certificate (DSC) for directors.
  2. Name Reservation:
    • Apply to the Ministry of Corporate Affairs to reserve a unique company name. This is done using the SPICe+ (Simplified Proforma for Incorporating Companies Electronically) Part A.
  3. Drafting MOA and AOA:
    • Memorandum of Association (MOA): Outlines the company’s objectives and scope of operations.
    • Articles of Association (AOA): Governs the company’s internal management.
  4. Filing Incorporation Application:
    • Submit the SPICe+ Part B form along with MOA and AOA to the ROC.
    • Articles of Association (AOA): Governs the company’s internal management.
  5. Certificate of Incorporation:
    • Upon approval, the ROC issues a Certificate of Incorporation, officially recognising the company.

The process usually takes 10–15 working days, provided all documents are in order.

{{pvt-cta}}

Key Features of Private Limited Company

Here are some Private limited company features:

  • Ownership Structure: Owned by shareholders, managed by directors (who can also be shareholders).
  • Liability of Shareholders: Limited to the amount of unpaid shares they hold.
  • Capital Requirements: There is no minimum capital requirement; businesses can start with as little as ₹1 lakh authorised capital.
  • Perpetual Succession: The company exists independently of its owners' or directors' status.
  • Limited Liability: Shareholders’ liability is restricted to the amount invested.
  • Ease of Fundraising: Can raise capital from angel investors, venture capitalists, or private equity.
  • Tax Implications: Subject to corporate tax rates, including additional surcharges and cess, based on annual income.

What is a One Person Company?

Introduced under the Companies Act of 2013, a One Person Company (OPC) is a simplified corporate structure designed for solo entrepreneurs.

As the name suggests, it allows a single individual to own and operate a business while enjoying the benefits of limited liability and corporate status. OPCs are particularly suited for small businesses, consultants, and freelancers who want to step up from a sole proprietorship and gain a formal business identity.

The OPC structure is a bridge between sole proprietorship and private limited companies. It combines the flexibility of running a solo business with the legal and financial protections of a company, making it a popular choice for first-time entrepreneurs.

One Person Company Registration

The process is designed to be straightforward and entrepreneur-friendly, ensuring that individuals can easily transition from a sole proprietorship or informal business setup to a legally recognised company.

Step-by-Step Guide to Registration

  1. Document Requirements:
    • PAN, Aadhaar, and proof of address of the sole shareholder/director.
    • Nominee details.
    • Digital Signature Certificate (DSC).
  2. Name Reservation:
    • Reserve a unique name for the OPC via the MCA portal through SPICe+ Part A.
  3. Filing Application:
    • Submit the incorporation form, i.e. SPICe+ Part B with MOA and AOA, to the ROC.
  4. Certificate of Incorporation:
    • Receive the Certificate of Incorporation after approval.

{{opc-cta}}

Key Features of OPC

Here are some One person company features:

  • Ownership Structure: The ownership is held by one individual, with the provision to nominate another person as a successor in case of the owner’s demise.
  • Liability of the Shareholder: The shareholder’s liability is limited to the unpaid value of their subscribed capital.
  • Capital Requirements: There is no minimum capital requirement, making it easier for individuals to start with minimal resources.
  • Ease of Formation: Streamlined setup and management processes.
  • Lower Compliance Costs: Fewer filings and regulatory requirements.
  • Limited Liability: Protects personal assets.
  • Tax Implications: OPCs are subject to the same corporate tax rates as Private Limited Companies. However, they enjoy lower compliance costs and simplified tax filings.

Similarities between OPC and Private Limited Company

  1. Limited Liability Protection: Both structures ensure the owner’s liability is restricted to their investment.
  2. Legal Entity: Both are considered separate legal entities distinct from their owners.
  3. Compliance with ROC: Both require periodic filings with the Registrar of Companies.
  4. Taxation: Both are subject to corporate tax rates.

Register Your Company with Razorpay Rize

Razorpay Rize provides a comprehensive suite of offerings that simplifies the complexities of business registration- exclusively designed to cater to the requirements of both startups and established businesses.

Discover a hassle-free and entirely online business registration process with robust support and seamless document collection. Unlock the perks of being an incorporated company with Razorpay Rize!

{{llp-opc-cards}}

Our package includes:

  • Company Name Registration
  • 2 Digital Signature Certificates (DSCs)
  • 2 Directors’ Identification Numbers (DINs)
  • Certificate of Incorporation(COI)
  • MoA & AoA [Applicable for Private Limited Companies and OPCs]
  • LLP Agreement [Applicable for LLPs]
  • Company PAN & TAN

*Prices and documents can differ based on the company type.

Which company type to register your business with?

Before commencing the registration process for either a OPC or a Private Limited company, it is essential to carefully assess the following factors.

1. Consider the Nature and Size of Your Business

  • Evaluate the nature and size of your business. If your operations are on a smaller scale and you are a single operator, opting for OPC registration may be advantageous. Conversely, for larger businesses with substantial employee numbers and capital needs, registering as a Private Limited Company offers greater flexibility in capital raising.

2. Fundraising Requirements

  • Assess your fundraising requirements. If your objective is to raise funds through equity, opting for a company structure is essential. However, if you can fundraise through debt options, the OPC structure may work.

3. Compliance Requirements

  • Generally, OPCs have fewer compliance requirements compared to Private Limited Companies, making them more suitable for small businesses. Nonetheless, ensure that you are aware of several post-incorporation compliances that come along with each business structure and choose accordingly.

Know Your Ideal Company Type

For the first time in India, answer a brief set of questions about your startup, and our tool "Know Your Company Type" will utilize your responses to pinpoint the ideal company registration type.

Discover your perfect fit with a single click!

{{know-your-company}}

Explore side-by-side comparisons of popular company types with prices to help you give a clear picture of the nuances involved with different legal structures.

Conclusion

Choosing between a Private Limited Company and a One Person Company depends on your business needs.

If you’re a solo entrepreneur who clearly focuses on managing things independently and prefers minimal compliance requirements, an OPC can be a great option. It’s a straightforward structure, perfect for freelancers, consultants, or small-scale businesses who want the advantages of limited liability while keeping things simple.

However, if you’re building a business with big dreams, such as attracting investors, scaling operations, or entering international markets, a Private Limited Company might be a better fit.

When making this decision, it’s essential to consider not only where your business is today but also where you want it to be in the future. Think about:

  • Your business goals: Are you aiming for steady income or scaling into new markets?
  • Your growth plans: Will you need external funding or partners?
  • Your resources and bandwidth: Can you manage the compliance requirements of a Private Limited Company, or is a simpler structure better suited for now?

Explore side-by-side comparisons of popular company types with prices to help you give a clear picture of the nuances involved with different legal structures.

Frequently Asked Questions

rize image

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

Register your business
rize image

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

Register your business
rize image

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 are the documents required for Private Limited Company Registration

To register a Private Limited Company (PVT Ltd) in India, the following documents are typically required:

  1. For Directors and Shareholders:
    • PAN Card: Mandatory for all Indian citizens involved in the company.
    • Identity Proof: Passport, Aadhaar card, voter ID, or driving license.
    • Address Proof: Bank statement, electricity bill, or any government-issued document not older than two months.
  2. For Registered Office Address:
    • Rent/Lease Agreement: If the office is rented.
    • NOC (No Objection Certificate): From the property owner.
    • Utility Bills: Electricity or water bill (not older than two months).
  3. Photographs:
    • Passport-sized photos of directors and shareholders.
  4. Digital Signature Certificate (DSC):
    • Required for all directors to file forms online.

Can an Indian citizen living abroad from a One Person Company (OPC)?

Yes, an Indian citizen living abroad can form a One Person Company (OPC) in India, but with certain conditions:

  • The person must be an Indian citizen and a Resident of India, as per the Companies Act, 2013.
  • Resident of India means the individual has stayed in India for at least 120 days in the preceding financial year.

If an Indian citizen living abroad doesn’t meet this residency requirement, they cannot form an OPC but may explore alternative structures like a Private Limited Company, which allows for non-resident directors and shareholders.

Is Foreign Direct Investment (FDI) allowed for a One Person Company?

No, Foreign Direct Investment (FDI) is not allowed in a One Person Company (OPC) under the automatic route. OPCs are restricted to Indian citizens and residents, and allowing FDI would contradict this principle.

For businesses looking to attract foreign investment, registering as a Private Limited Company is the better option.

What is the process of converting a Private Limited Company to an OPC?

Currently, the Companies Act of 2013 does not allow the conversion of a Private Limited Company into a One Person Company (OPC). However, if the business scale reduces and fewer directors/shareholders are required, the owners may dissolve the Private Limited Company and incorporate an OPC.

When to convert an OPC to a Private Limited Company?

As per the Companies Act of 2013, a One Person Company (OPC) must be converted into a Private Limited Company (PVT Ltd) in the following scenarios:

  1. When the Paid-Up Capital Exceeds ₹50 Lakhs:
    • If the capital crosses ₹50 lakhs, the OPC must be converted into a PVT Ltd company within six months.
  2. When the Annual Turnover Exceeds ₹2 Crores:
    • If the turnover of the OPC exceeds ₹2 crores in the previous three consecutive financial years, conversion is mandatory.

Steps for Conversion:

  • Pass a special resolution in the OPC for conversion.
  • File necessary forms with the Ministry of Corporate Affairs (MCA), such as INC-5 and INC-6.
  • Update the Memorandum of Association (MoA) and Articles of Association (AoA) to align with the requirements of a Private Limited Company.

Voluntary Conversion:

If the OPC owner wishes to scale the business, raise funds, or bring in multiple shareholders, they can also opt for voluntary conversion without waiting for mandatory thresholds.

How to Start a Travel Agency in India: A Proven Guide for 2025

How to Start a Travel Agency in India: A Proven Guide for 2025

The Indian travel industry is set to grow significantly in 2025, making it a great time to start a travel agency. Here’s why:

  1. More Indians are traveling domestically and internationally.
  2. There’s high demand for specialized travel services.
  3. Travel management technology is now more affordable and accessible.
  4. The government has made it easier to start a travel business.
  5. Banks are offering special loans for tourism businesses.
  6. There are opportunities for niche travel agencies.
  7. Digital marketing has become more effective and affordable.
  8. India’s growing middle class is spending more on travel.

These factors create a strong foundation for new travel businesses in 2025.

Table of Contents

What are The Requirements to Start a Travel Agency in India?

Requirements to start a travel agency in India:

  • Business registration (proprietorship, partnership, LLP, or private limited company)
  • Capital: ₹3-5 lakhs (small) to ₹10-20 lakhs (large)
  • Office space, computers, internet, travel software, website
  • Professional credentials (IATA, TAAI, IATO)
  • Skilled staff
  • Insurance coverage
  • GST registration and compliance

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.

Steps to Start a Travel Agency in India

Launching a travel business in India involves a systematic approach covering legal, operational, and marketing aspects. Here’s a detailed roadmap to establish your agency successfully.

Step 1: Decide the Type of Travel Agency

Launching a travel business in India involves a systematic approach covering legal, operational, and marketing aspects. Here’s a detailed roadmap to establish your agency successfully.

Step 2: Create a Business Plan and Company Name

Develop a comprehensive business plan outlining your vision, mission, target market, services, pricing strategy, and competitor analysis. Choose a memorable name that reflects your brand identity and confirms availability as a domain name for your website.

Step 3: Make a Budget

Prepare a detailed financial plan covering startup costs (₹3-20 lakhs depending on scale), operational expenses, and revenue projections. Include funds for office space, equipment, software, licensing, staff salaries, marketing, and a contingency reserve for unexpected expenses.

Step 4: Register Your Company

Select a business structure—sole proprietorship, partnership, LLP, or private limited company—and register accordingly. Private limited companies offer better credibility and liability protection but involve more paperwork and higher fees.

{{company-reg=cta}}

Step 5: Obtain all Necessary Registration and License

Secure basic business registrations including Shop and Establishment License from your local municipal corporation, Professional Tax registration, and Udyog Aadhaar for small businesses.

Step 6: Get GST Registration Number

Register for GST as travel services fall under taxable categories. This registration is mandatory for interstate transactions and when your turnover exceeds ₹20 lakhs annually.

Step 7: Register with Govt of India

Apply for recognition from the Ministry of Tourism, which enhances credibility and allows participation in government tourism initiatives.

Step 8: Register with IATA

Obtain IATA accreditation to issue international air tickets directly. Although optional, this prestigious credential requires meeting strict financial and professional standards.

Step 9: Establish Partnerships in The Tourism Industry

Form strategic alliances with hotels, airlines, car rental companies, tour operators, and payment gateways to offer comprehensive services and earn commissions.

Step 10: Business and Tool Set Up

Invest in essential travel technology including booking software, CRM systems, and accounting tools. Create a professional website with booking capabilities and maintain active social media profiles.

Step 11: Marketing Your Travel Agency

Implement a multi-channel marketing strategy encompassing SEO, content marketing, social media campaigns, email newsletters, and networking at industry events to build your client base.

How to Become a Govt of India Approved Travel Agent

Securing government recognition represents a significant milestone for travel agencies in India, elevating your business status and establishing greater credibility in the market. The Ministry of Tourism, Government of India, offers official recognition to travel agencies that meet specific quality standards and operational requirements.

To qualify for government approval, your travel agency must first complete at least one year of business operations. This prerequisite ensures that only established businesses with demonstrated experience receive this credential. During this initial period, focus on building a track record of successful tours and satisfied clients.

The application process involves submitting several essential documents:

  1. Properly filled application form from the Ministry of Tourism
  2. Certificate of incorporation or business registration proof
  3. Income Tax registration documents and returns for the previous fiscal year
  4. GST registration certificate
  5. Office photographs and proof of office premises ownership/rental agreement
  6. Details of staff and their tourism qualifications
  7. Documentation of tours organized previously

In addition, your office space must meet minimum size requirements (typically 150-200 sq. ft. for smaller cities and 200-250 sq. ft. for metropolitan areas). The premises should be easily accessible to tourists and maintained in professional condition.

After submission, a tourism department official will likely inspect your office physically to verify the information provided. Following approval, you’ll receive a certificate valid for five years, after which renewal is necessary.

The benefits of government approval extend beyond prestige. Approved agencies gain access to various government tourism initiatives, inclusion in official tourism directories, participation in government-sponsored travel fairs, and eligibility for certain incentive schemes.

Furthermore, government recognition serves as a stepping stone toward international accreditations like IATA, as many global partners view this credential as a testament to your agency’s legitimacy and service quality. This approval also builds trust with potential clients who seek assurance of professional standards before booking their travel experiences.

How to Apply for a Travel Agency License in India?

Navigating the licensing process forms a critical part when you start a travel agency in India. Unlike many businesses, travel agencies require specific permits and registrations to operate legally and build trust with clients and industry partners.

The application process for a travel agency license typically begins with obtaining the basic business registration. First of all, you need to register your business entity—whether sole proprietorship, partnership, or private limited company—with the Registrar of Companies. This fundamental step establishes your legal identity as a business.

Once your business entity is registered, you must apply for a Shop and Establishment License from your local municipal corporation. This document legally authorizes you to conduct business from your commercial premises and is typically valid for one year, requiring annual renewal.

For those planning to conduct foreign exchange transactions, getting approval from the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA) becomes essential. This permit allows your agency to deal with foreign currency—a necessity when handling international bookings.

In fact, regional licensing requirements vary across different states in India. States like Kerala, Goa, and Himachal Pradesh have their own tourism regulatory bodies that issue state-specific travel agency licenses. Therefore, checking with your state tourism department about local requirements is advisable.

In contrast to general business licenses, specialized travel licenses require additional documentation. Prepare copies of:

  1. Business registration certificate
  2. PAN card of the business
  3. GST registration
  4. Office ownership/lease agreement
  5. Identity and address proof of proprietors/directors
  6. Passport-size photographs of key personnel
  7. Bank account details of the business

After this, anticipate a verification process that may include physical inspection of your office premises by licensing authorities. Processing times vary from 2-8 weeks depending on your location and the specific licenses applied for.

Remember that certain license applications require fees ranging from ₹5,000 to ₹25,000 based on the license type and your business category. Budget accordingly and maintain proper records of all applications and payments.

Conclusion

Starting a travel agency in India is a good business idea, especially with expected growth in 2025. This guide covers key steps to set up a successful travel business in India.

To start, choose your agency type, make a solid business plan, and budget carefully. Follow all legal rules, from basic licenses to GST registration. Getting industry certifications like IATA and government approval will boost your credibility.

You’ll need ₹3-5 lakhs for a small agency or ₹10-20 lakhs for a bigger one. This money covers essentials like office space, licenses, and initial costs.

Getting government recognition and licenses may seem tough, but these credentials show you’re a professional agency. Building partnerships with hotels and airlines is crucial for offering good services.

The market is good for agencies that focus on specific types of travel and use digital tools effectively. While starting an agency requires careful planning and following rules, the potential rewards in India’s growing tourism sector make it worthwhile. With good planning and following the steps in this guide, your travel agency can succeed in India’s changing tourism market.

Frequently Asked Questions

Common questions arise for entrepreneurs planning to establish travel businesses in India. Below are answers to the most frequently asked queries about starting your travel agency journey.

rize image

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

Register your business
rize image

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

Register your business
rize image

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 are the minimum requirements to start a travel agency in India?

At minimum, you need a registered business entity (proprietorship, partnership, or company), GST registration, a functional office space, and basic infrastructure including computers and internet connectivity. For credibility, industry certifications like IATA accreditation or Ministry of Tourism recognition are highly beneficial, albeit not mandatory for initial operations.

How much does it cost to start a travel agency business?

The capital requirements vary based on your business scale. Small agencies typically need ₹3-5 lakhs to begin operations, covering office setup, basic software, and initial marketing. Mid-sized ventures generally require ₹10-15 lakhs, while larger operations with premium office locations and comprehensive technology solutions may need upwards of ₹20 lakhs for a strong market entry.

Is it mandatory to have a physical office for a travel agency?

Legally, yes. Most business registrations and industry certifications require a physical address. However, small startups can begin with home offices or shared workspaces to reduce initial costs, provided they meet the minimum area requirements for government recognition (typically 150-250 sq. ft. depending on city category).

How do I start a small travel agency?

First, identify your niche market segment. Then register your business, obtain GST registration, set up basic infrastructure, create partnerships with suppliers, develop a simple website, and implement targeted local marketing strategies. Small agencies succeed by focusing on specialized services or local markets rather than competing directly with established players.

Is GST Registration mandatory for travel agents?

Indeed, GST registration is mandatory for all travel agencies regardless of turnover. Travel services fall under taxable categories under GST regulations, making registration essential for legal operation and credibility with partners and customers.

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.

Read more

Rize.Start

Hassle free company registration through Razorpay Rize

in just 1,499 + Govt. Fee
With ₹0 hidden charges

Make your business ready to scale. Become an incorporated company through Razorpay Rize.

Made with ❤️ for founders

View our wall of love

Smooth onboarding, seamless incorporation and a wonderful community. Thanks to the #razorpayrize team! #rizeincorporation
Dhaval Trivedi
Basanth Verma
shopeg.in
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
Dhaval Trivedi
Prakhar Shrivastava
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.
CHEERS 🥂
#entrepreneur #tbsmagazine #rize #razorpay #feedback
Dhaval Trivedi
Nayan Mishra
https://zillout.com/
Smooth onboarding, seamless incorporation and a wonderful community. Thanks to the #razorpayrize team! #rizeincorporation
Dhaval Trivedi
Basanth Verma
shopeg.in
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
Dhaval Trivedi
Prakhar Shrivastava
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.
CHEERS 🥂
#entrepreneur #tbsmagazine #rize #razorpay #feedback
Dhaval Trivedi
Nayan Mishra
https://zillout.com/