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.

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Frequently Asked Questions

Common questions about Private Limited Company Registration Cost in India.

The cost of registering a private limited company in India can range from Rs. 6,000 to Rs. 30,000, depending on factors such as the number of directors, number of members, authorized share capital, and professional fees charged by the service provider.

Apart from the initial registration cost, there are additional fees for mandatory compliances such as holding board meetings, filing annual returns, statutory audits, and event-based compliances like changes in registered office, directors, or share capital. These fees can range from INR 2,000 to INR 20,000 per compliance.

The SPICe+ form is an integrated form that allows you to apply for Company Name Registration, Company Incorporation, DIN, PAN, and TAN for the newly registered company simultaneously. This streamlined process simplifies the registration process and reduces the overall cost.

Yes, the government has implemented additional fees for the delay in filing forms other than those for increases in nominal share capital or forms under Sections 92 & 137 of the Companies Act, effective from July 1, 2022. These additional fees can vary based on the nature of the form and the delay in filing.

Common registrations required for businesses in India include GST registration, IEC registration (for import-export businesses), Professional Tax registration (for certain professions), EPF registration, and MSME registration (for small and medium enterprises). The cost of these registrations can range from Rs. 1,500 to Rs. 15,000, depending on the complexity and taxes involved.

The cost of registering a company in India varies according to the type of business structure chosen, such as a private limited company, public limited company, partnership firm, or proprietorship. The article focuses specifically on the cost of registering a private limited company.

Yes, after company registration, there are mandatory compliances such as holding the first board meeting, subsequent board meetings, filing disclosures of interest by directors, appointing auditors, holding annual general meetings, filing annual returns, and filing financial statements. These compliances involve additional fees.

The professional fees charged for company registration can depend on the complexity of the task and the specific requirements of the business. Factors like the number of directors, members, authorized share capital, and the need for additional services or consultations can affect the professional fees.

No, GST registration is not mandatory for all businesses in India. It is required for businesses whose annual turnover exceeds the specified threshold limit (currently Rs. 40 lakhs for most states and Rs. 20 lakhs for some special category states).

The registration fees and compliance costs for companies in India are subject to periodic updates and revisions by the Ministry of Corporate Affairs (MCA) and other regulatory bodies. It is essential to check for the latest fee structures and compliance requirements before proceeding with company registration or filing compliance forms.