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Cost of Registering a Pvt Ltd Company in Delhi: A Complete Overview

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Beginning a company in India, and especially in the crowded city of Delhi, offers great opportunities. However, successfully navigating the difficult world of business rules and processes is important. Among the key steps of setting up your business, registering it as a Private Limited Company stands out. This is highly recommended for those looking to start companies. The following post fully reviews the filing process and related prices for registering a Private Limited Company in Delhi.

The perks of a private limited company

  • Eternal Existence: The company can continue to exist even if owners change, giving stability to operations.
  • Ease of Collecting Capital: Private limited companies can raise funds by selling shares, making it easier to draw investments compared to other business setups.
  • Tax Rewards: Eligibility for certain tax benefits, lower business tax rates, and deductions add to financial advantages.
  • Ownership Control: Owners have better control over management and direction, as shares are not widely sold, ensuring full ownership by shareholders.
  • Loan freedom: Private companies can give to directors without needing central government approval, giving more freedom in financial operations.
  • Remuneration freedom: More freedom in remunerating directors and staff, with fewer legal limits compared to public companies.
  • No Restriction on Managing Directors: Private limited companies do not face limitations on the number of companies a managing director can serve or term length.

Checklist for Delhi Company Registration

We have to ensure that the conditions on the checklist are met as per the rules of the Companies Act of 2013:

1) Two Directors: A private limited company may have up to fifteen directors, although at least two are needed. The corporation requires that at least one of its directors live in India.

2) Distinctive Name: Your company name has to be unique. No names or companies that are already in use in India should be close to the suggested name.

3) Minimum Investment Requirement: A company does not need a starting cash amount. A minimum of ₹1 lakh should be the allowed share capital of a firm.

4) Registrant Office: The listed office should not have to be a place of business. If a landlord’s NOC is gained, any home may serve as the listed office.

Procedures for Registering a Private Limited Company in Delhi

1) Get a digital signature certificate: Since the Delhi Private Limited Company Registration process is fully online, a digital signature is needed to start a private limited company. Directors and members must hold a valid DSC (Class II or III).

2) Submit a name approval request: At the time of formation, names may be submitted for approval using the Name Approval form or in combination with SPICe (INC-32). You may send the SPICe form again or request a resubmission if the Name is not accepted on the first try. The whole process takes two to three days.

3) Form SPICe (INC-32): Once digital certification is obtained from a professional accountant, company secretary, or working attorney, finish the paperwork in INC-32.

4) E-AoA and E-MoA (INC-33) (INC-34): These forms were formerly necessary to be finished physically before SPICe was launched. However, they may now be filed online via the MCA page with SPICe. Subscribers of MOA and AOA must digitally sign these papers.

5) Application for PAN and TAN: Once you have received your CIN, you may ask for the company’s TAN and PAN, which are needed to start a bank account.

Registration Fees for Companies Based on its Structure

  • Registration Fee for registering Private Limited Company is Rs. 10,000
  • Registration Fee for registering Public Limited Company is Rs. 18,000
  • Registration Fee for registering Individual Company is Rs. 10,000
  • The full cost of Section 8 Company Formation is Rs. 20,000.
  • The registration fee for foreign-owned companies is Rs. 30,000.
  • The cost of LLP registration is Rs. 10,000.

What Fees Are Included in the Pvt Ltd Company Registration?

The list of costs for starting a private limited company in Delhi

Delhi Private Limited Company filing involves a number of costs. Understanding these costs is important if you want to handle your expenditures. Below is a breakdown of the expected costs:

  • Government Fees: The major spending is made up of registration-related government fees. Government costs for a Private Limited Company in Delhi with two members, and an allowed capital of one lakh usually come to around Rs. 7,000. The handling and acceptance of your registration application are covered by this charge.
  • Professional Fees: A lot of companies choose to hire experts, such as financial or legal advice or services, to establish a company. Professional prices are not always required, although they might change based on the service provider and the amount of help needed.
  • Stamp Duty: You will pay stamp duty on the articles of association and statement of association, which depends on the state in which you are going to register your office. For information on stamp tax rates in Delhi, check with the local government, as related prices may vary.
  • Notary and Documentation Fees: If you need to notarize specific papers, including the lease agreement for your registered office, you may be charged notary and documentation fees.

Government Fee for Registration of Private Limited Companies

The creation of a private limited business may provide its owner with fresh possibilities. However, nothing good ever comes free. As a result, a certain amount is needed to start a business. From a general viewpoint, the registration procedure may give the idea that private limited company registration costs are quite high and that business formation is a very difficult process.

Formerly, the approved share capital that the private limited company used to do business was a big factor in the filing charge. The government of India waived the government charge for private company formation on January 26th, 2019. As a result, the minimum share capital is no longer a determining factor for the company’s filing charge.

The Pvt Ltd Company’s costs alone will come to around ₹30,000. This again depends on a variety of factors, including the number of officers and members of the company, the allowed capital of the business, the state’s stamp tax, and the professional fees involved with filing the business.

Fees for Company Registration at Every Stage

1. Certificate of Digital Signature Cost:

You must first apply for the DSC or license for digital signatures. You may apply straight to Emudhra, Sify, and several more TCS and Infosys-owned businesses. These companies provide digital signatures at very cheap prices.

2. The Price of DIN Registration to Register a Business:

Applying for a DIN number is the second stage. The Director Identification Number is given out by the Ministry of Corporate Affairs. The following costs are related to the DIN application:

  1. 500 Rupees is the DIN registration fee;
  2. 20 Rupees is the stamp paper cost for the declaration.
  3. Notary fees: 50 Rupees per DIN;
  4. Professional fees: A Chartered Accountant will charge you to verify your application.

3. Name Approval Fee for Private Limited Company:

The filing fees for a Private Limited Company are as follows: After your DIN and DSC are ready, you must send a form asking for name approval to create your business. You have to pay around 1000 Rupees to get your business registration accepted. Once the name is approved, only one business in India may register under the same name, which is beneficial for LLPs and private limited companies.

4. The Filing Fee or the Cost of the Company Incorporation Registration Form:

Submission of Private Limited Company Registration Forms: This is the final step in the registration process. Throughout this round, you will need to spend a significant amount of money to register your business in Delhi. The cost of this stage changes greatly based on the company’s approved share capital. As a result, you must present the company’s MOA and AOA.

Sachin Jaiswal

Sachin Jaiswal B.A.(Hons)! Sachin Jaiswal has been writing material on his own for more than five years. He got his B.A.(Hons) in English from the well-known University of Delhi. His success in this job is due to the fact that he loves writing and making material that is interesting. He has worked with a lot of different clients in many different fields, always giving them high-quality content that their target audience will enjoy. Through his education and work experience, he is able to produce high-quality content that meets his clients' needs.