Thinking of starting a business in India? A private Limited Company Registration is a smart first step for lots marketers because of its felony identity, limited liability, and organized shape. A common question is: How much does it cost?
On this put up, we’ll provide you with a quick breakdown of the full fee involved — such as authorities costs, expert expenses, and different essential charges — to help you plan better and avoid surprises.
Overview of Privet limited company
A Privet limited company is a form of business entity that is privately held and limited by shares. It calls for at the least administrators and two shareholders. The shareholders’ liability is confined to the extent of their shareholding, and the company is a separate legal entity.
To start the registration system, you have to observe some key steps:
- Obtain DSC (Digital Signature certificate)
- Apply for DIN (Director identity quantity)
- Call Reservation via RUN (Reserve unique name)
- Filing of Incorporation forms with MCA (Ministry of corporate Affairs)
- PAN and TAN application
- GST Registration (optional but recommended)
Breakdown of the costs involved
The fee of registering a Privet confined company can vary depending on several factors along with expert prices, state-specific charges, and the number of directors/shareholders. Beneath is a general breakdown:
- Digital Signature certificates (DSC)
Each director is required to have a DSC to sign the electronic bureaucracy. The cost per DSC typically tiers from ₹800 to ₹1,500.
Total for 2 directors: ₹1,600 to ₹3,000
- Director identity quantity (DIN)
DIN is mandatory for anyone wishing to become a director. it’s far obtained while filing the SPICe+ shape. there may be no separate fee if applied with incorporation.
DIN fee: ₹0 (included in SPICe+ form)
- Name Reservation (RUN form)
Bfore registering a company, the name must be approved by the MCA. The charge for call reservation through RUN is ₹1,000.
Name Reservation: ₹1,000
- Stamp duty and government fees
Stamp duty varies from state to state. for example, stamp duty in Delhi and Maharashtra may differ slightly. but, the common charge is between ₹1,000 to ₹1,500 relying at the authorized capital.
Lgal Capital up to ₹1 Lakh: Approx. ₹1,000 to ₹1,500
For Capital Above ₹1 Lakh: additional stamp duty applicable
- SPICe+ form filing fees
SPICe+ is the integrated form used for Company Registration. For groups with authorized capital up to ₹10 lakhs, there is no authorities fee.
Filing Charges: ₹0(for capital as much as ₹10 lakhs)
- PAN and TAN application
Those are mandatory for opening a bank account and for tax purposes. PAN and TAN are processed during incorporation.
Price for PAN and TAN: ₹131
- Professional costs (Chartered Accountant/company Secretary/representative)
Most organizations pick to rent a professional to handle the registration process. The professional rate can vary relying on the enjoy and reputation of the service provider.
Expected professional fees: ₹3,000 to ₹10,000
Optional expenses
- GST Registration
If your commercial enterprise turnover exceeds the threshold limit (₹20 lakhs for service providers and ₹40 lakhs for goods providers), you need to practice for GST Registration.
GST Registration price: ₹500 to ₹2,000 (if completed via a professional)
- Commercial enterprise cutting-edge Account
Banks may fee charges for opening and maintaining a business account, which is vital for a registered organization.
Value for Account Setup: Varies by bank, usually ₹1,000 to ₹3,000 (may consist of minimum balance requirements)
- Company call search or Trademark
If you wish to defend your emblem name, you could choose trademark registration. though elective, it’s miles incredibly recommended for brand identity.
Trademark Registration cost: ₹4,500 to ₹9,000
Expected Overall Fee
| Component | Price Range (INR) |
|---|---|
| DSC (for 2 administrators) | ₹1,600 – ₹3,000 |
| DIN | Included |
| Call Reservation | ₹1,000 |
| Stamp duty & govt. fees | ₹1,000 – ₹1,500 |
| PAN and TAN | ₹131 |
| professional costs | ₹3,000 – ₹10,000 |
| GST Registration (elective) | ₹500 – ₹2,000 |
| Total Estimated Price | ₹7,231 – ₹17,631 |
Note: The real price may range relying at the expert service company, kingdom stamp duty, and any extra services you select.
Why select Privet limited company Registration?
- Legal identity: A registered employer is treated as a separate felony entity.
- Limited liability: Shareholders are accountable only to the extent of their stocks.
- Easy Fundraising: It’s miles easier to attract investors and raise capital.
- Perpetual Succession: The enterprise continues even after the death or resignation of directors.
- Credibility: A registered company builds more trust amongst customers and vendors.
Tips to Reduce Registration cost
- Use online platforms: A few platforms offer bundled packages at discounted costs.
- Choose DIY Registration: If you’re assured of compliance, you may save on professional prices.
- Pick minimum authorized Capital: Start with ₹1 lakh legal capital to avoid extra stamp duty.
- Test for government Schemes: MSME registration and Startup India programs can offer cost benefits.
End
So, how much it cost to register a Privet Limited company in India? On average, you can expect to spend anywhere among ₹7,000 to ₹18,000 relying at the services and professionals involved. The real value may be slightly more if you opt for trademark registration, felony consultation, or premium service providers.