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

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What is the Cost of Private Limited Company Registration in India?

The Cost of Pvt Ltd Company Registration 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. 

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 the needed legal requirements to launch the business in the market. A private limited company is a company that is privately held for small businesses. The liability of the members of a Private Limited Company is limited to the number of shares respectively held by them. Shares of Private Limited Company cannot be publicly traded. Any type of business can be set up as a private limited company – for example, a plumber, hairdresser, photographer, lawyer, dentist, accountant, or driving instructor. The owners of a private limited company are known as shareholders.

 

Private Limited Company Registration Fees

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

The registration process of a Private Limited Company is governed by the Companies Act, 2013, and the Companies Incorporation Rules, 2014 in India. You need a minimum of 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. Entrepreneurs who are willing to launch and establish businesses can make it hassle-free now. Just have a look at this article to clear all your doubts about the registration process, the documents required, and the cost to register a private limited company in India.

Private Limited Company Registration Fees

In India, the vast majority of new businesses need to think about the pvt ltd company registration enrollment costs since they visit parcel of the site however the greater part of the site and Local CA’s gives them diverse valuing about the pvt ltd company registration incorporation Fees in India. Essentially Costing and Fees of the Private Limited Company rely upon a parcel of the components from Authorized Capital to the Number of accomplices and Stamp Duty so assuming we summed up, Company Registration Fees in India rely upon the following variables:-

  • Offer Capital
  • Number of Directors
  • Stamp Duty of the State where you need to enroll the organization
  • Proficient Charges are taken by CA’s or CS or Lawyers.

Without aiding a Professional like Chartered Accountant, Company Secretary, or lawyer you can’t Register a Private Limited Company in India since it needs their approval marks as DSC. Major Costing is rely upon the stamp obligation and Professional Charges.

Fees For Filing Form For Incorporation Of The Private Limited Company In Chennai, Tamil Nadu With RoC

The fees for registration of a private limited company depend upon the Authorised capital of the company.

S. No Particulars Calculation The amount is Rs.
1 DIN for 2 Directors Rs. 500 per DIN 1000.00
2 DSC considering 2 directors Rs. 1500 per DSC 3000.00
3 Company name approval Rs. 1000 per application 1,000.00
4 Stamp Papers and notary charges depends on the number of affidavits, certifications, and declarations 500 (approx if the requirement is for 2 directors)
5 Company Registration
I Filling out form INC 7 300.00
II MOA 2000.00
III AOA 300.00
IV Form INC 22 300.00
V Form DIR 12 300.00
Total  3,200.00
6 Stamp Duty Charges for MOA, AOA, and Form INC 7 (cost varies from state to state) 700 Avg.
Total Government Cost of Company Registration 9,400.00

Digital Signature Certificate Cost for Pvt Ltd Company

As a matter of first importance, we need to apply for the DSC i.e advanced mark certificate. Essentially for the got DSC, you needn’t bother with any contracted bookkeeper. You can apply your own self from a lot of organizations. These organizations give you Digital Signature at truly sensible estimating. For the most part, it’s Cost Nearby 1500/ – to 2000/ – Rupees for the 2 Years Validity.

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DIN Registration Cost to Register a Company

The second step is applied to the DIN Number. Noise Number i.e Director Identification Number which is assigned by the Ministry of Corporate undertakings.
For the DIN Application following costs included
a) DIN Application Fee i.e. is 500 Rupees for each DIN
b) Stamp Paper for Affidavit charges 20 Rupees for every DIN
c) Notary Charges – 50 Rupees for each DIN
d) Professional Fee which is charged by Chartered Accountant for Certifying your Application.

Name Approval Fee for Private Limited Company

Name Approval for Pvt Ltd Company Registration Fees: – Once your DIN and DSC are arranged then you need to document a structure for the name endorsement for organization enrollment. Its costs you around 1000/ – Rupees for Approval for organization enrollment. When the Name is endorsed then one organization can enlist with the same name in India so it’s additionally helpful in the LLP/Private restricted Company.

Documenting Fee of Registration Form for the Company Incorporation

Filings of Registration Forms for the Private Limited Company: – This is the last and Final Step for the Registration. During the Company Registration in this progression, you have cost a lot of sum for registering your organization in India. In this progression, the cost is depending and exceptionally agrees on the Authorized Share capital of the organization. so you need to record a few structures, MOA, and AOA of the Company.

How to register a Private Limited company in India

 

Private Limited Company Registration in India

 

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

Procure Digital Signature Certificate:

The first and 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 Certificates 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 out the e-forms on the online portal of MCA for the 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 have to file e-MOA and e-AOA by attaching DSCs and the directors shall get Director Identification Number by filling out an online application in the following step.

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 the permanent number for a lifetime unless it is withdrawn or surrendered.

What are the documents required for the 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 of the proposed company as it has to be reserved before the company registration process. The Reservation of Name of Private Limited Company can be done in e-Form INC – 1 by making the required fees. You have the option of providing a maximum of 6 names in order according to your preference along with the remarks for the 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 the 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 that is easy to spell and remember
  • The name should hold a distinct identity for the business
  • Make it short & simple
  • Avoid prohibited or public policy-violating names
  • Avoid selecting a name that 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 the proposed company by applying in e-Form INC – 1, you can apply for a Certificate of Incorporation. The application for online registration for private limited companies 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 the Memorandum of Association of a company and AoA is Articles of Association. 
MoA of the Company dictates the scope of operations, main object, and activities of the company. And AoA provides complete information on how the operations and administration shall proceed. Drafting these two documents should be done very carefully, especially after consulting the experts or professionals.
Along with the application for registration of a company in India, the Memorandum and Articles of the company have 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 the premises is rented then you have to submit a 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 a 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 applicable depending on the rules of that particular state. The allotment of PAN and TAN for the proposed Private Limited company is also processed with the same registration process.
Later, the Registrar will review and verify the application made for a 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 PAN of the proposed private limited company.

Government Fee for Company Registration Online in India

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

Fee for One Person and Small Companies in India

Let us begin with the 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.

 

Fees 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

FAQ on Private Limited Company

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