How much does it cost to register a company?
How much does it cost to register a company?
Company registration in India is governed by the Company’s Act 2013 under the Ministry of Corporate Affairs (MCA). The cost of registering a company in India varies according to the number of stakeholders and size. There are different types of business structures under which an entrepreneur can register a company depending upon the need and nature of their Company. Therefore, the fee for incorporation varies accordingly to the nature of the business structure and state. The present article briefs the cost of registering a private limited company in India.
Cost for Registering a Private Limited Company
Using an integrated Form SPICe+, The one who wants to start a company can now apply for Company Name Registration, Company Incorporation, DIN, PAN, and TAN for the newly registered Company and avail of all five services simultaneously.
The Cost of Incorporation of a private limited Company would vary from Rs.6,000 – to Rs. 30,000/- depending upon the following:
- Number of Directors
- Number of Members
- Authorized share capital
- Professional fees
Note: Professional fees may depend upon the complexity of the task.
Applicable Fees for some Important Registrations Cost for Company
There are distinct kinds of business forms and services in India. Irrespective of the type of business organization, each requires some government registrations.
- GST registration
- IEC registrations are mandatory for Import Export Business
- then Professional Tax registration if you are in some profession,
- EPF registration
- For small and medium Companies, then MSME registration, etc
Different kinds of registration have extra costs, including professional charges including government fees. The registrations may start from Rs.1500 and reach up to Rs.15000, depending on the complexity of tasks, taxes, etc.
Mandatory Compliances for Company
The Company, from the instance of its registration, is bound by certain following compliances:
- First Board Meeting
- Subsequent Board Meetings
- Filing of Disclosure of interest by Directors
- First Auditor
- Subsequent Auditor
- Annual General Meeting
- Filing of Annual Return (Form MGT-7)
- Filing of Financial Statements (Form AOC-4)
- Statutory Audit of Accounts
For each of the above compliances required for company registration, fees would be around INR 2000/- to 20,000/-.
Event-Based Compliances
Event-based compliances are those which get triggered upon happening of certain events.
| Events | Form No. |
| Change in registered office | INC-22 |
| Change in Directors or KMP | DIR-12 |
| Increase in Authorized Share capital | SH-7 |
| Filing of resolution and agreements | MGT-14 |
| Increase in Paid up share capital (Issue of security) | PAS-3 |
| Application for registration of creation, modification (other than those related to debentures | CHG-1 |
| Application for KYC of Directors | DIR-3 KYC |
| ACTIVE (Active Company Tagging Identities and Verification) | INC-22A |
| Declaration of Commencement of Business | INC-20A |
Fees for each of the above compliances for company registration would be around INR 2000/- to 20,000/-.
Important Update – Additional fees apply for the delay in filing forms
The government has made several changes to the additional fees levied for late filing of forms other than those for increases in nominal share capital or forms under Sections 92 & 137 of the Companies Act. This has been implemented since the 1st of July, 2022. Refer to our article to know more about the Additional fees that apply for the delay in filing forms.
