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Cost of company registration in India – For a private limited company

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Company registration cost in India depends on so many factors. One of the major factor is the authorized share capital with which you want to register your private limited company.

If you want to register your private limited company with the minimum requirements then cost of company registration will be less. Cost of company registration will go up with the increase in authorized share capital.

In this article we will calculate cost of company registration applicable to a private limited company to let you know how costs are derived.

Like we said, cost of company registration depends on various factors let us discuss these factors that affect the cost;

  • Initial authorized share capital
  • Number of directors
  • Stamp duty
  • Professional Fee charged by a Chartered Accountant or Company Secretary

Company registration in India is not possible without the help of a charted accountant or CS.

Where ever you register, for the first three factors, cost will be all most same with the only difference in stamp duty charges (but the difference will be very less).

The major difference to the cost of company registration in case of a private limited company will depend on the professional fee that a chartered accountant or CS will charge you.

Private limited company registration Cost

Cost of company Registration at each stage of registration process

Let us discuss the cost of company registration in India at each stage of registration process;

Getting DSC

Digital Signature Certificate (DSC) is the most important part of your company registration. Without DSC you cannot file a single form online to get your company registered.

As per new provisions of Companies Act 2013, application for DIN (e-Form DIR3) has to be signed digitally by each applicant with DSC.

There is no involvement of a charted accountant or CS in getting you a DSC. You can get your DSC from any Certifying authority providing these services. Generally chartered accountants or company secretaries provide a combo offer which will include DSC charges. So please talk to your Chartered Accountant  or CS on this.

In India you can obtain a DSC with 2 years validity by paying Rs. 1500 to Rs. 2, 000. Better you negotiate this price as it differs from person to person.

Getting DIN

Applying for a DIN is the first step for your company registration. Getting DIN is a very easy process. If you want to obtain DIN immediately then your charted accountant or company secretary need to electronically certify your din application.

Followings are the cost that will be involved in getting DIN;

  • DIN application fee – Rs. 500 per DIN
  • Professional fee for certifying your DIN application by a Chartered Accountant or Company Secretary

Cost of company registration for a private limited companyGeting your Company Name approved

One of the processes for registering your company is getting the proposed name of the company approved from MCA before its registration.

This process does not cost you much. Cost of getting your private limited company name approved from Ministry of corporate affairs will cost you Rs. 1, 000 only.

Registering your private limited company

This is the final step for registration of private limited company. You pay major part of your expenses in this final step. Cost will vary depending on the authorized share capital of the company. Following costs are involved at this stage of company registration process;

  • Fee for MOA
  • Fee for AOA
  • Fee for Form INC7
  • Fee for Form INC22
  • Fee for Form DIR12

You can get cost details for this part from MCA website by entering the authorized share capital amount of your company. If you select form INC7 from the drop down and then enter the share capital amount for registration, it will show you the cost for filing MOA, AOA and Form INC7. After that for your other two forms i.e. from INC22 and DIR12, you have to select it from the drop down separately.

Let us calculate registration fee for a private limited company registering with following specifications;

  • Share capital: Rs. 1, 00,000
  • Minimum Number of Directors: 2
Sr. No Particulars Calculation Amount is Rs.
1 Getting DIN Rs. 500 per DIN 1000
2 Getting DSC (DSC depends on the number of director applying for DIN) Rs. 1500 per DSC 3000
3 Getting company name approved Rs. 1000 per application 1, 000
4 Stamp Papers and notary charges for affidavit depends on number of affidavit, certification and declarations 200 (approx if requirement is for 2 directors)
5 Company Registration
I Filling of form INC7 300
II MOA 2000
III AOA 300
IV Form INC22 300
V Form DIR12 300
Total 3, 200
6 Stamp Duty Charges for MOA, AOA and Form INC7(cost depends on the state of your registration) 700
Total cost of company registration 9, 100

Stamp duty charges differ from state to state depending on the place of your company registration. Stamp duty are charges on your MOA, AOA and Form INC7 registration. In some states these registration fees are calculated based on the authorized capital of the company. Visit this link to know the cost of stamp duty charges for all states.

With this you can add the cost of professional charges that your chartered accountant or company secretary will charge you for company registration. These professional charges many vary from Rs. 10, 000 to Rs. 20, 000. It depends on the chartered accountant or company secretary.

Also Read: How to register a private limited company

Reader Interactions

Comments

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