What is the Cost to register a Private Limited Company in India?
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What is the Cost to register a Private Limited Company in India?

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What is the Cost to register a Private Limited Company in India?

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  Posted on September 17, 2021

What is the Cost to register a Private Limited Company in India?

Planning, Launching and Establishing a new Business is the most crucial stage for any businessman. More of all the person has to be ready with all needed legal requirements to launch the business in the market. 

Private Limited Company is the most dominant and popular type in Indian Market. This type of company is specially held for small business. The financial obligation of the members of a Private Limited Company is fixed and it is completely depend on the amount of shares individually held by them.

The registration process of Private Limited Company is governed by the Companies Act, 2013 and the Companies Incorporation Rules, 2014 in India. You need minimum two directors and two shareholders to register a private limited company.

The Cost to register a Private Limited Company in India/ Registration of Pvt Ltd Company would vary from INR 6,000/- to INR 30,000/- depending upon the No. of Directors, No. of members, authorized share capital and Professional fees. Professional fees may depend upon the complexity of the task. A private limited company requires to have and maintain a minimum paid-up capital of Rs. 1 lakh. It could go higher, as prescribed by MCA from time to time.

Registering a private limited company is not a big task if you have all the needed documents legally.  The process of registration has undergone some major changes and made very simple. The entrepreneurs who are willing to launch and establish business, can make it hassle-free now. Just have a look at this article to clear all your doubts on the registration process, documents required and cost to register a private limited company in India.

How to register Private Limited company in India

Here are four important steps to start your Private Limited Company in India without any perturbation on legal part. 

Procure Digital Signature Certificate:

The first and the most important step in registering Private Limited Company is to procure the Digital Signature Certificate. This has to be done for the Personnel involved in Private Company Incorporation in India. Digital Signature Certificate or DSC are supplied by the Certifying Authority in token form and the validity of this certificate is 1 or 2 years. 

The requirement of DSCs is to fill the e-forms on online portal of MCA for online private company registration procedure. Subscribers and Directors are the personnel involved in the company formation. Subscribers are the proposed shareholders of the company. The said shareholders has to file e-MOA and e-AOA by attaching DSCs and the directors shall get Director Identification Number by filling an online application in the following step.

 

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List of Documents required for Digital Signature Certificate:

  • Passport size photograph of the applicant;
  • Address proof of the applicant (self-attested)
  • PAN card of the applicant(self-attested)

Obtain Director Identification Number or DIN

Director Identification Number (DIN) is a unique number allotted by the Ministry of Corporate Affairs to the individual. It can be obtained by making an application for allotment of DIN online. This unique identification number is permanent number for lifetime unless it is withdrawn or surrendered.

What are the documents required for application of DIN?

  • Passport size photograph of the applicant;
  • Address proof of the applicant (self-attested)
  • PAN card of the applicant (self-attested)

Reservation of Name for the Proposed Company 

This is the step where you have to be ready with the name for the proposed company as it has to be reserved before the registration process. The Reservation of Name of Private Limited Company can be done in e-Form INC – 1 by making required fees. You have the option of providing maximum 6 names in order according to the preference along with the remarks for proposed name(s) in the Application. Depending on the availability of the names, out of the 6 names the Registrar may approve one or may request to give more preferred names with significance.

The application for name is approved considering the provisions established by the Act. Here are some of the general practices followed while choosing and applying the name:

  • Select a name which is easy to spell and remember
  • The name should hold a distinct identity to the business
  • Make it short & simple
  • Avoid prohibited or public policy violating names
  • Avoid selecting a name which is similar or identical to any other company/ LLP which is already there in the market.

Certificate of Incorporation in India

After reserving the name for proposed company by applying in e-Form INC – 1, you can apply for Certificate of Incorporation. The application for online registration for private limited company is made by online submission of Simplified Proforma for Incorporating Company forms or SPICe forms.

Draft of MoA & AoA

MoA and AoA are contract documents for a Private Limited Company. MoA is Memorandum of Association of company and AoA is Articles of Association. 

MoA of Company dictates the scope of operations, main object and activities of the company. And AoA provides the complete information on how the operations and administration shall be proceeded. Drafting these two documents should be done very carefully especially after consulting the experts or Professional.

Along with the application for registration of company in India, the Memorandum and Articles of the company has also been filed in SPICe forms. 

Check the needed documents to accompany the Application for registration 

  • Utility Bill and NOC for the Registered Office address 
  • If premises is rented then you have to submit rental agreement with the owner of the registered office
  • DIR – 2 form – consent to act as a Director of the company
  • Duly franked and notarized legal document and declaration by first subscriber(s) and director(s) in form INC – 9
  • Self-attested copy of identity proof of the first subscriber(s) and director(s).

With all these required documents, the application is submitted by making the Government Fees and Stamp Duty as applicable depending on the rules of that particular state. The allotment of PAN and TAN for the proposed Private Limited company are also processed with the same registration process.

Later, the Registrar will review and verify the application made for certificate of incorporation in SPICe forms, and the Certificate of Incorporation under his seal and signature in electronic form will be issued. The Certificate of Incorporation (CoI) issued will have the date of incorporation with the Permanent Account Number (PAN) of the proposed private limited company.

Government Fee for Company Registration Online in India

The registration fees of Private Limited Company differ from one company to another depending on various factors like Share capital, no. of shareholders, and no. of Directors and so on.  

Fee for One Person and Small Companies in India

Let us begin with fee structure for registration of a One Person Company and Small Company:

Authorized Capital Registration Fees Additional Fees
Under Rs.10,00,000 Rs 2,000
Rs 10,00,000 to Rs 50,00,000 Rs 2000 Rs.200 will be charged for every addition of Rs.10,000 of nominal share capital
Rs 50,00,000 to One crore Rupees Rs 1,56,000 Rs.100 will be charged for every addition of Rs. 10,000 of nominal share capital.
Above One crore Rupees Rs 2,06,000.  Rs.75 will be charged for every addition of Rs.10,000 of nominal share capital to a max of Rs. 250 crore.

 

Fee for Companies Other Than One Person and Small Companies

I.e., Private Limited Company Registration Cost in India, Partnership Firm Registration Cost in India, LLP Registration Cost in India, Public Limited Company Registration Cost in India, Nidhi Company Registration Cost in India, Section 8 Company Registrations Cost in India & Proprietorship Registration Cost in India are listed below,

Authorized Capital Registration Fees Additional Fees
Under Rs.10,00,000 Rs 5,000 —-
Rs.1,00,000 to Rs. 5,00,000 Rs. 5,000 Rs. 400 will be charged for every Rs.10,000 or part thereof of authorized capital.
Rs. 5,00,000 to Rs. 50,00,000 Rs 21,000. Rs. 300 will be charged for every Rs. 10,000 or part thereof of authorized capital.
Rs. 50,00,000 to Rs. one crore Rs 2,06,000. Rs. 100 will be charged for every Rs. 10,000 or part thereof of authorized capital.
Above Rs. one crore Rs 2,06,000. . Rs. 75 will be charged for every Rs. 10,000 or part thereof of authorized capital subject to a max of Rs. 2.50 crores

 

Fee for Companies without a Share Capital

No. of members as per MOA Registration Fees Additional Fees
<20 Rs 2,000 ———-
20 – 200 Rs 5,000 ———-
>200 Rs 5,000 Rs.10 will be charged for every member exceeding 200, subject to a maximum of Rs 10,000.

 

For Companies with Share Capital

Authorized Capital Registration Fees
Up to Rs.1,00,000 Rs 200
Rs 1,00,000 – Rs 5,00,000 Rs 300
Rs 5,00,000 – Rs 25,00,000 Rs 400
Rs 25,00,000 – Rs one crore Rs 500
Rs 1 crore and above Rs 600

 

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