A Founder's Glossary of Company Incorporation Terms (2026 Edition)

A Founder's Glossary of Company Incorporation Terms (2026 Edition)

Company registration in India comes wrapped in acronyms — MOA, AOA, DIN, DSC, SPICe+, CIN, and a dozen more that get thrown around by professionals as if every founder already knows them. Most first-time founders don't, and that gap causes real problems: wrong forms get signed, capital gets structured incorrectly, and simple filings get delayed because nobody explained what the term actually meant.

This glossary is meant to be the one page you keep open while your incorporation is in progress. It groups terms the way you will actually encounter them — people and identity, foundational documents, registration numbers, capital, the registration process itself, and post-incorporation compliance — so you can look things up in the order they come at you.

What This Glossary Covers

This is a practical, plain-English reference for the terms that come up while incorporating a private limited company, One Person Company, or Limited Liability Partnership in India, and in the first few months after. It is not a legal textbook definition list; it is written the way a CA or CS would actually explain these terms to a founder sitting across the table, with enough detail that you can hold your own in a conversation with your registration team or a bank official.

Why Founders Need to Know These Terms

Incorporation forms ask you to make real decisions — how much authorised capital to set, who the subscribers to the memorandum are, whose DSC will sign which form — and getting these wrong is not always a quick fix. Confusing authorised capital with paid-up capital, for instance, can mean paying more stamp duty than necessary or under-capitalising the company from day one. Knowing the vocabulary is not academic; it directly protects your time and money during registration.

People & Identity Terms

• Promoter — the person or persons who conceive the idea for the company, take the steps to incorporate it, and are typically its first controlling shareholders and directors.
• Director — an individual appointed to the Board who is legally responsible for managing the company's affairs and ensuring statutory compliance; every private company needs a minimum number of directors as prescribed by law.
• Subscriber to the Memorandum — the person(s) who sign the Memorandum of Association at incorporation, agreeing to take up a stated number of shares; this is how the company gets its first shareholders.
• Nominee — in an OPC, the individual named to take over membership if the sole member dies or becomes incapacitated; in an LLP, a similar safeguard can apply depending on structure.
• Designated Partner — in an LLP, the partner(s) responsible for regulatory compliance, analogous to a director's role in a company, and required to hold a DIN or DPIN.
• DIN (Director Identification Number) — a unique number allotted by the MCA to any individual intending to become a director; it stays with the person for life across companies.
• DSC (Digital Signature Certificate) — an encrypted digital token used to sign incorporation forms and other filings electronically; without a valid DSC for the proposed director or subscriber, no incorporation form can be filed.

Foundational Constitutional Documents

• MOA (Memorandum of Association) — the charter document that defines the company's name, registered office state, objects (what business it can do), liability of members, and capital structure; think of it as the company's outer boundary.
• AOA (Articles of Association) — the internal rulebook governing how the company actually runs — board meeting procedures, share transfer rules, voting rights, and director powers.
• LLP Agreement — the equivalent governing document for an LLP, setting out partners' rights, profit-sharing ratios, and management responsibilities; unlike MOA/AOA it is a contract between partners rather than a charter filed at incorporation, though it is filed with the Registrar shortly after.
• Certificate of Incorporation (COI) — the official document issued by the Registrar of Companies confirming the company legally exists; it carries the company's CIN and incorporation date and is the single most important proof of a company's existence.

Registration Numbers & Identifiers

• CIN (Corporate Identity Number) — a unique 21-character identifier assigned to every registered company, encoding details like listing status, state, incorporation year and company type; you will quote this on almost every official document going forward.
• LLPIN — the equivalent unique identification number for a Limited Liability Partnership.
• PAN (Permanent Account Number) — the tax identification number for the company itself, distinct from the PAN of its directors, required for opening a bank account and for every tax filing.
• TAN (Tax Deduction and Collection Account Number) — a separate number the company needs once it starts deducting tax at source on salaries, professional fees, or rent payments.
• GSTIN — the Goods and Services Tax registration number, required once the company crosses applicable turnover thresholds or voluntarily registers, structured state-wise under a single PAN.
• UDIN (Unique Document Identification Number) — a number generated by a practising CA, CS or CMA when certifying documents, used to curb forged certifications; you will see this on auditor certificates and various forms filed on your behalf.

Capital & Shareholding Terms

• Authorised Capital — the maximum value of shares a company is permitted to issue, as stated in its MOA; it is a ceiling, not the amount actually invested, and can be increased later through a filing.
• Paid-up Capital — the actual amount shareholders have paid the company in exchange for shares issued to them; this is the real money that has come into the company, always less than or equal to authorised capital.
• Subscribed Capital — the portion of authorised capital that shareholders have formally agreed to take up, which may or may not be fully paid up yet.
• Face Value / Nominal Value — the stated value of a single share as fixed in the MOA, distinct from what an investor might actually pay for it later, which can include a premium.
• Share Certificate — the physical or electronic proof issued to a shareholder confirming ownership of a specific number of shares.

The Registration Process Itself

• SPICe+ (INC-32) — the single integrated web form through which company incorporation, along with PAN, TAN, EPFO, ESIC, and often GSTIN and bank account applications, is filed today, replacing the older multi-form process.
• Part A and Part B of SPICe+ — Part A handles name reservation, while Part B captures incorporation details, subscriber information, and the linked applications; together they replace what used to be several separate filings.
• AGILE-PRO-S — a linked form filed alongside SPICe+ to apply for GSTIN, EPFO, ESIC, a bank account, and Profession Tax registration (where applicable) in one go.
• RUN (Reserve Unique Name) — the earlier standalone name-reservation service, now largely folded into Part A of SPICe+ for fresh incorporations, though it may still surface in specific scenarios such as name changes.
• MCA21 Portal — the Ministry of Corporate Affairs' online filing system through which all company and LLP filings, including incorporation, are submitted.
• ROC (Registrar of Companies) — the state-wise regulatory office under the MCA that actually approves incorporation filings and oversees ongoing compliance for companies registered in that jurisdiction.

Post-Incorporation & Ongoing Compliance Terms

• Certificate of Commencement of Business (Form INC-20A) — a declaration companies with share capital must file confirming subscribers have paid up their share money, generally required before the company can start operations or borrow.
• Statutory Auditor — the chartered accountant or firm formally appointed to audit the company's books each year, a mandatory appointment within a set window after incorporation.
• Board Resolution — a formal decision recorded in board meeting minutes, required for actions ranging from opening a bank account to approving related-party transactions.
• Registered Office — the official address of the company on record with the Registrar, to which all statutory correspondence is addressed; it must be verified with proof shortly after incorporation.
• Annual Return (Form MGT-7 / MGT-7A) — the yearly filing summarising shareholding pattern, directors, and other company particulars, distinct from the financial statements.
• Financial Statements / Form AOC-4 — the filing through which a company submits its audited balance sheet and profit and loss account to the Registrar each year.
• DIN KYC (Form DIR-3 KYC) — an annual filing every DIN holder must complete to keep their Director Identification Number active; missing it deactivates the DIN.

Documents That Bring These Terms Together

• PAN and Aadhaar of all proposed directors/subscribers
• Proof of registered office (utility bill and NOC or rent agreement)
• Passport-size photographs and specimen signatures
• DSC of proposed directors/subscribers
• Drafted MOA and AOA (or LLP Agreement)
• SPICe+ Part A and Part B forms with linked AGILE-PRO-S
• Certificate of Incorporation once issued

Typical Fees Involved in 2026 (Indicative Only)

Government fees for name reservation and incorporation are generally linked to the authorised capital slab chosen and can be quite low for small capital amounts, while stamp duty varies by the state of the registered office. Professional fees for guiding you through drafting, filing, and the linked registrations typically range from a modest package for a straightforward single-founder company to a higher figure for multi-founder structures with customised AOA clauses or investor-ready documentation. Since both government fee schedules and professional pricing shift periodically, always ask for a current, itemised quote rather than relying on a number you saw in an old article.

Timeline

Name reservation approval typically comes through within a few working days if there are no objections, and the full SPICe+ incorporation, once documents are in order and DSCs are ready, is often completed within roughly one to three weeks. PAN and TAN are usually issued alongside the Certificate of Incorporation, while GSTIN, EPFO and ESIC registrations linked through AGILE-PRO-S may take a little longer to activate. Treat these as planning ranges, not guarantees, since Registrar workload and query resolution time can extend any of these steps.

Common Pitfalls Founders Run Into With This Terminology

• Confusing authorised capital with the amount actually invested, leading to unrealistic expectations about available funds
• Assuming DIN and DSC are the same thing, then getting stuck at the signing stage of a form
• Treating the Certificate of Incorporation as the finish line and forgetting INC-20A is a separate, mandatory next step
• Not realising PAN and TAN belong to the company, not the director, and mixing up which ID goes on which filing
• Ignoring annual DIR-3 KYC until the DIN gets deactivated, causing delays in signing future filings
• Drafting AOA clauses without understanding what they actually govern, then needing costly amendments later

What is the difference between MOA and AOA?

The MOA defines what the company is and what it is allowed to do — its name, objects, and capital structure — while the AOA sets out how the company is internally run, covering board procedures, share transfers, and similar operational rules.

Is DIN the same as DSC?

No. DIN is a unique identity number a director holds for life across all companies, while DSC is a digital certificate used to electronically sign forms; you typically need both, but they serve entirely different purposes.

What is the difference between authorised and paid-up capital?

Authorised capital is the maximum value of shares a company is permitted to issue as stated in its MOA, while paid-up capital is the actual amount shareholders have invested so far; paid-up capital can never exceed authorised capital.

What is a CIN and where do I find mine?

CIN, or Corporate Identity Number, is the unique identifier assigned to your company at incorporation. It appears on your Certificate of Incorporation and should be quoted on company letterheads, invoices, and most official filings.

Do I need a TAN if I already have a company PAN?

Yes. PAN is the company's tax identity, while TAN is required separately once the company starts deducting tax at source, for example on employee salaries or professional fees paid to consultants.

What is SPICe+ and do I still need to file RUN separately?

SPICe+ is the integrated form used for most incorporations today, and its Part A already covers name reservation for fresh companies, so a separate RUN filing is generally unnecessary except in specific edge cases like name changes for existing companies.

What is Form INC-20A and why does it matter?

INC-20A is the commencement-of-business declaration companies with share capital must file after subscribers pay up their share money. Many companies cannot legally start operating or open certain facilities until this is filed.

What happens if I don't file DIR-3 KYC every year?

Your DIN gets deactivated, which can stop you from signing statutory forms for any company you are a director of until the KYC is filed, usually with an additional late fee.

Why Founders Choose Legal Suvidha

For 14 years we have taken founders end-to-end — from choosing the right structure and incorporating, to first-year compliance, funding readiness, and ongoing ROC/GST/tax filings — so you never have to switch providers as you grow.

• One team for the whole journey — start, launch, post-launch and every annual filing after.
• Fixed, all-inclusive pricing — professional plus government fees itemised, no hidden charges.
• A dedicated CA/CS who owns your case and does not disappear after payment.
• 6,000+ founders served, 4.9/5 rating, DPIIT-recognised, 100% online.

Talk to a Legal Suvidha expert today for a free consultation and an exact, transparent quote on WhatsApp (8130645164).