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Company Registration Cost in India: Everything You Need to Know

Komal Sharma
November 22, 2024
7 min read

Starting a business in India? One of the first questions every entrepreneur asks is: “How much does it cost to register my company?”
Unfortunately, the answer isn’t always straightforward. Many first-time founders face hidden charges, state-wise variations, and unclear fee structures, which often delay their launch.

The good news? With the right information, you can avoid unnecessary expenses, budget smartly, and start your company without surprises.
In this guide, we break down the complete cost of company registration in India: covering government fees, stamp duty, professional charges, and optional registrations, so you know exactly what to expect before you begin.

Cost of Company Registration in India: Business Entity Wise

The cost of company registration in India varies based on the type of business entity you choose. The primary expenses include government fees, professional charges, and compliance costs.

Below is a clearer presentation showing cost components for three common business structures: Private Limited Company (Pvt Ltd), Limited Liability Partnership (LLP), and One Person Company (OPC).

Private Limited Company Registration Cost

Private Limited Companies are the most popular business structure among startups and medium-sized businesses due to their credibility and limited liability protection. But what exactly does a Pvt Ltd company registration cost

The typical cost breakdown for Private Limited Company registration includes:

Fee CategoryItemCost/Range
Government FeesName reservation feeRs. 1,000
Incorporation fees– Up to Rs. 1 lakh: Rs. 5,000 – Rs. 1 lakh to Rs. 5 lakh: Rs. 5,000 + 0.01% of amount exceeding Rs. 1 lakh – Rs. 5 lakh to Rs. 1 crore: Rs. 5,400 + 0.005% of amount exceeding Rs. 5 lakh – Above Rs. 1 crore: Rs. 10,150 + 0.001% of amount exceeding Rs. 1 crore
Stamp dutyVaries by state and capital (From Rs. 135 to Rs. 15,020 for capital up to Rs. 1 lakh)
Professional FeesDigital Signature Certificate (DSC)Rs. 2,500 per DSC (depending on number of directors)
Professional service charges (MOA, AOA, filing)Rs. 1,999 (for Indian clients) Varies for Foreign/NRI clients
PAN & TAN Application FeeRs. 443
Post-Registration CostsCompany seal and stationeryRs. 500 to Rs. 1,500
Bank account opening chargesVaries by bank
GST registration (if applicable)Government fees: Free + Professional charges (if any)

    LLP Company Registration Cost

    Limited Liability Partnership (LLP) combines the benefits of a partnership with the limited liability protection of a company. Here’s the detailed cost breakdown:

    Fee CategoryItemCost / Range (₹)
    Government FeesAuthorized capital ≤ ₹1 lakh₹500
    ₹1 lakh – ₹5 lakh₹2,000
    ₹5 lakh – ₹10 lakh₹4,000
    Above ₹10 lakh₹5,000
    Digital Signatures (DSC)Per designated partner₹1,000–₹1,500
    DIN (Designated Partner Identification Number)Per partner₹500
    Stamp DutyLLP agreementVaries by state (stamp paper cost variable)
    Professional FeesCA / CS / legal assistance₹5,000–₹15,000 depending on complexity
    Other CostsName reservation, PAN/TAN, bank accountAdditional nominal fees (state-specific)
    Late Filing PenaltyFor delayed LLP agreement (Form 3)₹100 per day after due date

    One Person Company (OPC) Registration Cost

    One Person Company has gained popularity among solo entrepreneurs wanting corporate benefits. The cost structure includes:

    Fee CategoryItemCost / Range (₹)
    Government FeesAuthorized capital ≤ ₹1 lakh₹5,000
    ₹1 lakh – ₹10 lakh₹7,500
    Above ₹10 lakh₹15,000
    DSC (Digital Signature Certificate)Per director / professional agent₹1,000–₹2,000
    DINDirector Identification Number₹500
    Name ReservationROC name approval₹1,000 (approx.)
    Stamp DutyState-specific₹300–₹500 (typical)
    Form Filing FeesIncorporation filings₹500–₹2,000 depending on authorized capital
    Professional FeesCA / CS / legal assistance₹5,000–₹15,000
    Miscellaneous CostsNotary, PAN/TAN, courier, office proof₹1,000–₹2,000
    Total Estimated CostAll-inclusive registration expenses₹9,000–₹23,000 (approx.)

    Total Cost Range: ₹10,500 – ₹20,000 (excluding GST)

    Factors Affecting the Cost of Company Registration

    Several factors influence the cost of company registration in India:

    • Type of Business Structure: Different entities like Private Limited Company, Public Limited Company, One Person Company (OPC), Limited Liability Partnership (LLP), etc., have varying registration costs.
    • Authorized Share Capital: A higher authorized capital can increase the registration fees.
    • Number of Directors and Shareholders: More directors or shareholders may lead to higher costs due to additional documentation.
    • Professional Fees: Charges by consultants, chartered accountants, or company secretaries assisting in the registration.
    • Government Fees: Statutory fees charged by the Ministry of Corporate Affairs (MCA) and other authorities.
    • Stamp Duty: Varies from state to state, affecting the overall cost of company registration.

    Detailed Breakdown of Registration Fees

    Understanding the detailed breakdown of the cost of company registration helps in effective financial planning.

    1. Digital Signature Certificate (DSC)

    Purpose: Required for directors to sign electronic documents.
    Cost: ₹2,500 per DSC (on average). Total depends on the number of directors.

    2. Director Identification Number (DIN)

    Purpose: A unique identification number allotted to company directors.
    Cost: No separate fee if applied through the SPICe+ form during registration.

    3. Name Reservation Fee

    Purpose: To reserve your company’s name with the Registrar of Companies (ROC).
    Cost: ₹1,000 per name submission.

    4. Stamp Duty

    Purpose: Mandatory fee for processing incorporation documents.
    Cost: Varies by state and authorised capital (approx. ₹135 to ₹10,000).

    5. MOA and AOA Fee

    Purpose: Drafting the Memorandum of Association and Articles of Association.
    Cost: Professional fees range from ₹1,000 to ₹5,000.

    6. Government Registration Fee

    Purpose: Filing and registration on the Ministry of Corporate Affairs (MCA) portal.
    Cost: Depends on the authorised capital of the company.

    7. PAN and TAN Application Fee

    Purpose: For obtaining tax identification numbers needed for business operations.
    Cost: ₹443 total.

    8. Professional Fees

    Purpose: For professional assistance from CAs or consultants during registration.
    Cost: ₹5,000 to ₹15,000 based on the service provider and complexity.

    Additional Costs to Consider

    Beyond the primary cost of company registration, consider these additional expenses:

    • Registered Office Rental: Costs for leasing an office space, if required.
    • Notary and Apostille Fees: For certifying documents.
    • Company Seal and Stationery: May cost around INR 1,000 to INR 2,000.
    • Trademark Registration: If you wish to protect your brand name/logo, it costs INR 4,500 to INR 9,000 per class.
    • GST Registration: No government fee, but professional charges may apply.
    Additional Cost to Consider

    Step-by-Step Guide to Estimating Registration Costs

    To estimate the cost of company registration, follow these steps:

    1. Select Business Structure:
      • Choose the type of company based on your business needs.
    2. Determine Authorized Share Capital:
      • Decide on the initial capital; higher capital means higher fees.
    3. Calculate Government Fees:
      • Refer to the fee schedule based on authorized capital.
    4. Add Professional Fees:
      • Include estimated charges for consultants or legal advisors.
    5. Include Additional Expenses:
      • Account for DSCs, stamp duty, PAN/TAN fees, etc.
    6. Sum Up Total Costs:
      • Combine all expenses for the final estimate.

    Example: For a Private Limited Company with an authorized capital of INR 5,00,000 and two directors:

    • DSCs: 2 x INR 2,500 = INR 5,000
    • Government Fee: INR 2,000
    • Stamp Duty: Approx. INR 1,000 (varies by state)
    • PAN/TAN Fees: INR 443
    • Professional Fees: INR 10,000
    • Total Estimated Cost: INR 18,443

    Cost-Saving Tips for Registering Your Company

    To minimize the cost of company registration, consider these tips:

    • Start with Minimum Authorized Capital: This reduces government fees.
    • Use SPICe+ Form: The integrated web form simplifies registration and reduces costs.
    • DIY Documentation: If confident, prepare documents yourself to save on professional fees.
    • Shop Around for Professional Services: Compare fees from different providers.
    • Avoid Unnecessary Registrations: Only apply for what’s essential at the initial stage.

    Conclusion

    Understanding the cost of company registration in India is essential for entrepreneurs aiming to establish a legal business entity efficiently. By considering all factors, from government fees to professional charges, you can budget effectively and explore ways to minimize expenses.

    Careful planning, choosing the right business structure, and being aware of potential pitfalls will help you navigate the registration process smoothly, setting a solid foundation for your company’s success.

    Frequently Asked Questions (FAQs)

    Q.1. Does the cost vary based on the type of company structure?

    Yes, costs differ for Private Limited, LLP, OPC, and other structures due to varying compliance and documentation needs.

    Q.2. Can I register a company in India without professional help?

    Yes, but navigating the MCA portal and preparing accurate documents is challenging without expert guidance, which may affect approval.

    Q.3. Are there any recurring costs after company registration?

    Yes, companies must pay for annual compliance, ROC filings, audits, and tax filings, which are not part of the initial registration cost.

    Q.4. Does the government charge a fixed registration fee?

    The government fee depends on your company’s authorised capital; it increases as the capital amount goes up.

    Q.5. How do professional fees affect the total cost?

    Professional charges for company registration services typically range between ₹5,000 and ₹15,000 and add to your total cost.

    Q.6. Can I reduce registration costs by using online platforms?

    Yes, several platforms offer discounted packages, but be cautious of hidden charges and limited support.

    Q.7. Is the GST registration cost included in the company registration fee?

    No, GST registration is a separate process and usually involves an additional fee if done through professionals.

    Q.8. Does the MCA provide any concessions or subsidies?

    Currently, there are no major concessions for startups during registration, but schemes like Startup India may offer post-registration benefits.

    Q.9. Why do company registration costs vary from state to state?

    The main reason is stamp duty, which is charged on the company’s Memorandum of Association (MOA) and Articles of Association (AOA).

    For example, Maharashtra may charge up to ₹15,000 for certain capital amounts, while Delhi may only charge ₹500–₹1,000 for the same. Each state government sets its own stamp duty rates.

    Q.10. Which is cheaper: Private Limited Company or LLP?

    Generally, LLP registration is cheaper because:

    • LLP has fewer compliance requirements (no mandatory audits unless turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh)
    • However, Pvt Ltd companies are better if you want to raise funds from investors.
    • Stamp duty is lower for LLP agreements in many states

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