Each and every one in India has a dream to start a business, there raises a question how much will it cost to incorporate a private limited company? To move forward with this dream and make it reality everyone wants to start up with a new business; there exist a company registration in India. Every single penny depends on how much professionals you make involve into it during the time of incorporation process. Through the incorporation of a company everyone can go head to start a new business in a legal way, where you are not only provided an infrastructure of the growth but also the assistance from the government side which helps you to go furtherance.

The Cost of registration of a new company relies on the nature, private or public limited company and one of the major factor which lies on is the authorized capital. For a private limited company with minimum authorized capital of Rs 1 L it may be between Rs. 10 K to Rs 20 K relying upon the location, area and the service provider. Now a days a company can be incorporated through e filing also by the adding the digital signatures of the subscribers by including the computerized marks of the endorsers of the Memorandum and Articles of Association. 

More than the simplicity of incorporation, the cost of compliance with the statutory customs will be at least about Rs 10K consistently every year, regardless of whether the exchanges are inconsequential. The delay in compliance may build the cost up to multiple times as extra charges. So remember the exact need for incorporating a company and ensure that you can consent to the statutory customs regardless of whether the business ends up being awful. Further, you can in any case do the business as a restrictive concern or as an association with negligible consistence necessities. Further, you can still do the business as a proprietary concern or as a partnership with minimal compliance requirements. Many times people who have come to me for incorporating a company have decided not to do so after understanding the complexities involved in the statutory compliance, particularly for small businesses.

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

Cost of company registration depends upon the some basic factors that affect the cost which as follows:-

  • Initial authorized share capital
  • Number of directors 
  • Stamp duty 
  • Professional fee which is been charged by the Chartered accountant/ Company Secretary 

Registration of the company is not possible without the help of the CA/CS. Where ever you register your company, for the first three factors, cost will be the same with the only difference in the stamp duty charges (here 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 which is chargeable by a Chartered accountant or CS.

Let us now look into the incorporation process in India stage wise and the cost which involved in to it. 

Basically, Incorporation process of the company is done through which the business is given a proper legal infrastructure and when it is incorporated within the MCA according to the companies’ act 2013. All the process is done through online which involves the upcoming procedures:-

  • Collecting of all the necessary documents for the company registration which includes, 
  • Photo ID of the directors and shareholder of the company ,
  • Personal ID of the directors and shareholder of the company ,
  • Address proof of the directors of the company,
  • Address proof of the registered office of the company,
  • PAN CARD of  the directors/shareholders of the company ,

All the documents mentioned should be verified and attested by the CS/CA

In furtherance, the cost of registration process which would be followed step by step:-

Obtaining the DSC and DIN of the Company- Getting a DSC is the most important part of your company registration; you cannot file a single form online without the DSC to get your company registered. According to new provisions of Companies Act 2013, application for DIN (e-Form DIR3) must be signed digitally by every candidate 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 CA or CS gives you the combo offer which will include the DSC charges. So talk to them in the way you can get it done in the best price. In India you can obtain a DSC with 2 years of the validity by paying Rs. 1500 to Rs. 2, 000.

Getting a DIN is the first step of your company registration, which is the easy process. In case if you want to obtain you’re DIN immediately then your CA or CS need to electronically certify your DIN application. The cost for the same would Rs.500/- per DIN which excludes the professional charges by your CA or CS.

Name approval:- one of the processes for registering your company is getting the proposed name approved from the MCA before its registration. This process does not cost you much. Cost for getting the name approval from MCA will cost you Rs. 1000/-.

Final step for the registration of the private limited company, the major part of your expense will be spent here. Cost will depend upon the authorized share capital of the company which involves:- 

  • Drafting AOA of the Company,
  • Drafting MOA of the Company,
  • Fee for Form INC7, 
  • Fee for Form INC22,
  • Fee for Form DIR12

You can get the cost details for this part from MCA Website by entering the authorisation 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.

Stamp duty charges will be differed from state to state depending on the place of your company registration. MCA website clearly guides you on the stamp duty charges in the state to state basis and how it is been calculated in different states. 

To know about the calculation for cost of the stamp duty charges of all the state visit this link 

At Clidel, a company with 10,000+ happy customers, we provide you with the company incorporation and a complete package of secretarial services thereby ensuring your company adheres to each and every compliance and faces no hassles.

Dear Entrepreneur, 

Are you looking for private limited company registration incorporation here are the 5 easy ways to go ahead with your registration. 

According to the MCA annual data Reports, there are more than 10,000+ Private limited companies are formed per month.

A private limited company is the most common as well as a popular corporate business entity among small, medium and large companies in India. Private limited company registration is governed by the Companies act 2013 and the Companies incorporation Rules 2014. 

Many wants to start with the private limited company but they doesn’t know the required procedures, documents which is needed while forming a private limited company. Forming a company is not just a enough process which further needs to be followed with the 30 days of mandatory compliances after the incorporation of the company where many companies fails to follow and ends up with the huge penalties.

Let’s begin by understanding the meaning for the word Private limited company:-

Splitting the word “Private” means it restricts the public to buy the company shares whereas in case of a public limited company it allows the public to buy the company shares. Further the word “Limited” denotes company’s shareholders which can be minimum 2 and maximum 200 are liable for its debt. It must have minimum of 2 directors and maximum limits of 15 directors. The shareholders can either be a person or a company which includes the foreign companies. The shareholders cannot offer their shares to the general public over stock exchange. The minimum capital for the private limited company according to Section 2, clause 68, Companies act 2013 is 1 Lakh. In the private limited company the liability of member is limited up to the capital they contribute, which will be the maximum benefit for the shareholder of the company. Private limited company can raise equity fund from its shareholder.

Registration procedure for the private limited company is a little bit complex but it can be done by following these simple 5 ways which as follows:-

The first and the foremost step would be to obtain the DSC i.e the Digital Signature Certificate for the directors involved in the private limited company. The main purpose of the DSC is to sign the e-forms. According to the Information Technology act, 2000 has provisions for use of Digital Signatures on the documents submitted in electronic form in order to ensure the security and authenticity of the documents filed electronically. This is a secure and authentic way to submit a document electronically. DSC is mandatory for all the directors in the company. Here raises a question that how to obtain the DSC: – You can obtain the DSC by directly approaching the certifying authorises (CA) with the original documents and self-attested copies will be sufficient to do so. DSCs can also be obtained, wherever offered by CA, using Aadhar eKYC based authentication, and supporting documents are not required in this case. A letter/certificate issued by a Bank containing the DSC applicant’s information as retained in the Bank database can be accepted. Such letter/certificate should be certified by the Bank Manager.

Once after the DSC is obtained the next step to be followed would be filling of MOA & AOA, SPICe INC-32

After registering DSC, You need to verify your company name on MCA Portal -> MCA Services -> Check Company Name which is to notify that whether your Company name should not be registered and should not be taken. If taken, ensure that your company name should not be same as brand name. The Next step for the name approval would be:- 

  1. RUN approval: With RUN (Reserve Unique Name) approval you can ensure whether the name is available or not. But this method doesn’t allow you to resubmit once it is submitted. In case name gets rejected you can resubmit by paying Rs.1000 for each submission.
  2. File through SPICE INC-32 Form: – incorporating a company through Simplified proforma for incorporating company electronically (SPICe- INC-32), with eMOA (INC-33), eAOA (INC-34), is the default option and most companies are required to be incorporated through SPICe only. With SPICe INC-32 you have a resubmission for 2 times. 

As per the Companies Act 2013, a subscriber must sign their names and must be subscribed to the shares of the company incorporated. It means each subscriber must have at least one share of the company. Each subscriber should sign the memorandum in presence of at least one witness and must clearly state the following:

  • Address
  • Personal Description
  • Occupation
  • No of shares subscribed
  • Nature of shares etc.

Likewise both (Article and Memorandum of association) must be duly signed and stamped.

Once after the MOA and AOA are approved and payment of necessary fees is done the certificate of Company incorporation would be issued by the Registrar of Companies. Upon Incorporation, the company becomes a legal person separate from its members, you will get incorporation certificate which will include the date of incorporation and PAN number of the company.

Once you get incorporation certificate, you will get PAN & TAN application by MCA.

At Clidel, a company with happy customer, we provide you with the complete package of secretarial services thereby ensuring your company adheres to every compliance and faces no hassles.