How Much Does it Cost to Register a Company in Chennai?

Chennai has become one of the fastest growing business hubs in India, with many IT companies, start-up enterprises, automobile companies, and manufacturing facilities based in the city itself. Accordingly, if you are ready to start the process of registering a business in Chennai, one of the first things to decide is selecting and registering the right legal structure or company with the Ministry of Corporate Affairs.

Before you embark on that process, however, it is worth considering the cost of registering a company in Chennai. The cost to register can vary from person to person. This will depend on the type and number of companies you are starting, any applicable government fees, any stamp duties (which can vary based on state), and any applicable professional fees if you decide to use a professional to assist.

To that end, this article will provide a breakdown of the total cost for company registration in Chennai for Private Limited Companies, LLPs, OPCs, Proprietorships, factors that impact pricing and any packages that are part of that pricing.

Types of Companies You Can Register in Chennai

Before checking the costs, you should first consider the different options. The most common company types in Chennai are –

1. Private Limited Company (Pvt Ltd)

• Most preferred structure.
• Requires a minimum of 2 directors and 2 shareholders.
• Intended for startups and businesses that may want to scale or raise funds.

2. One Person Company (OPC)

• Can only start with 1 director and 1 shareholder.
• Designed for independent entrepreneurs looking for limited liability.

3. Limited Liability Partnership (LLP)

• At least 2 partners are required.
• Flexible structure with limited liability.

4. Proprietorship Firm

• Easiest and cheapest to register.
• No separate legal identity from the owner.

All company types have different costs associated with registration.

Cost to Register a Private Limited Company in Chennai

The cost for a Private Limited Company Registration typically consists of –

1. Government Fees (MCA Charges and Stamp Duty)

• Name Reservation (RUN service) – ₹1,000
• Filing the SPICe+ form (incorporating the company): Small companies with share capital of up to ₹15 lakh are not charged local fees specifically for the SPICe+ form
• Stamp duty – varies in each state. In Tamil Nadu, stamp duty will be based on the authorised capitalisation and is approximately ₹1,000 to ₹5,000.

2. Digital signature certificate (DSC)

• A DSC is required for each director.
• The cost for a DSC is typically ₹1,000 – ₹1,500.

3. Director identification number (DIN)

• The DIN is issued as part of the incorporation of the company with the SPICe+ form, and there will be no extra fee if there are three or fewer directors.

4. Professional fee (CA or CS or Lawyer)

• Estimates of professional service charges varied from ₹5,000 to ₹15,000, depending on the firm involved.

Estimated Cost (Private Limited Company in Chennai): ₹10,000 – ₹ 20,000, including government fees and professional fees.

The Cost of Registering a One Person Company (OPC)

• Much like a Pvt Ltd, but requires only 1 director and shareholder.
• DSC in the range of ₹1,000 – ₹1,500.
• Registered stamp duty in Tamil Nadu of ₹1,000 – ₹3,000.
• Professional Fees: ₹5,000 – ₹10,000.

Estimated cost of OPC in Chennai = ₹8,000 – ₹15,000

Cost of Registering a Limited Liability Partnership (LLP)

• DSC for partners is in the range of ₹1,000 – ₹1,500 each.
• Stamp duty for the LLP Agreement is ₹1,000 – ₹2,000 in Tamil Nadu.
• MCA filing fee in the range of ₹500 – ₹2000 (depending on contribution).
• Professional Fees: ₹5,000 – ₹12,000.

Estimated cost of LLP in Chennai = ₹7,000 to ₹15,000.

Proprietorship Firm Registration Cost

No formal registration with the MCA is required.

You only need:

• GST Registration (if turnover > ₹40 lakhs for goods and ₹20 lakhs for services).
• Shops & Establishment License.
• PAN Card in the business name.

Estimated Cost of a Proprietorship in Chennai: ₹2,000 to ₹6,000.

Registration Cost Variables in Chennai

1. Authorised Capital – As authorised capital increases, so does stamp duty.
2. Professional Fees – If you hire a CA/CS/lawyer, the fees will increase, but probably lead to accurate filings.
3. Add-on registrations – registrations like GST, MSME, and trademark registration will also add to the prices.
4. State Charges – Stamp Duty Rates (the state varies). Tamil Nadu’s fees are closer to mid-range, with some states like Maharashtra being on the high side.

Additional Costs Post-Registration

• GST registration and GST return filings – you will need to register if your turnover exceeds the threshold.
• Annual compliance – XFTS Pvt Ltd company need to file an annual return each year with the ROC.
• Accounting / Audit fees – Required for companies; it will likely cost ₹10,000 to ₹50,000 each year, based on turnover.
• Trademark registration (optional) – if you want to protect your brand, it will be about ₹4,500 to ₹9,000 per class.

Conclusion

Forming a company in Chennai is an important integral step toward setting up a credible and expandable business. The cost is surely dependent on the type of company you form. Below are general price ranges for a Private Limited Company: ₹10,000 to ₹20,000, OPC: ₹8,000 to ₹15,000, LLP: ₹7,000 to ₹15,000, and Proprietorship: ₹2,000 to ₹6,000.

At first, it does seem like a cost, but the truth of registering a business is that it gives you the ability to hold the legal capacity, credibility as an investor, limited liability, and, of course, potential future tax savings. If you are starting a business in Chennai with more than modest growth expectations, you will probably want to register either a Private Limited Company or an LLP.

References

The Companies Act, 2013

https://www.mca.gov.in/

https://www.icsi.edu/home/