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Pankaj Tyagi
| Updated: 08 Aug, 2021 | Category: Private Limited Company

Cost of Registering a Pvt ltd company in India: A Complete Overview

Cost of Registering a Pvt ltd company in India

Wondering how much it would cost to legalize a firm in India? Learn about the cost of registering a Pvt ltd company in India. Private limited company registration cost varies from Rs 6,000/- to Rs30,000/- in accordance with the number of directors, members, authorized share capital & Professional fees.

An Overview on Pvt ltd Company 

A private limited company is a popular business structure in India, and start-ups mainly prefer it with higher growth aspirations. Pvt ltd company is a business structure under the Companies Act, 2013, and the Ministry of Corporate Affairs administers it.

On the surface, a Pvt Ltd Company registration fee seems high considering the leverage it offers on the liability part. Pvt ltd company registration fees in India depend on many factors. In the erstwhile law, the authorized share capital was deemed as one of the significant parameters for registering the private limited company. However, things have changed now ever since the government has got rid of minimum share capital requirements. Now, the overall fees of registering a Pvt ltd company is much lower than what start-ups was supposed to pay in earlier days.

The advent of e-filing has helped the government to overcome irrelevant expenses related to company incorporation, thereby allowing more start-ups to get registered under this business structure. 

An overview on Pvt ltd company registration fees

Five procedures for commencing a business are now clubbed together and can be executed simultaneously in one step via SPICe+ form. 

The applicant seeking to start a Pvt ltd company can now apply for the company name, incorporation, DIN, PAN, TAN and avail of all required services simultaneously. Thus, changes deployed by MCA have helped shorten the procedure for company incorporation and facilitate Ease of Doing Business.

The cost of registering a Pvt ltd company varies from INR 6,000/- to INR 30,000/- and its based on the following parameters: 

Pvt ltd company registration fees

Authorized share capital*: 

It is the max amount of the capital for which shares can be granted by the organization to its shareholders. The Authorized capital is cited in the MOA of the organization under the heading of “Capital Clause”. The member usually underpins such a clause prior to the incorporation of the entity.

Read our article:Private Limited Company Registration Procedure in India

Mandatory Documentation Required for the Incorporation of Pvt ltd company

  • PAN card
  • Aadhar card
  • Digital photos of the proposed directors

Identification proof of proposed Directors & members (anyone):

  • Passport[1]
  • Driving License
  • Voter’s ID

Resident proof related to the proposed members & directors (anyone):

  • Telephone bill
  • Bank statement
  • Phone Bill
  • Electricity bill

Address proof for the business premises of the proposed company (anyone)

  • Utility bill such as telephone bill, gas bill, electricity bill, & water bill
  • Rent agreement along with rent slip
  • Ownership’s proof (registry documents)

Incorporation Process of Pvt ltd Company

Step 1. Apply for name reservation

Name reservation is the first step in the incorporation process, and part 1 of the SPICe+ form permits the applicant to reserve the name. 

While filing this form, the applicant can opt for two proposed names. After submitting these details, the ROC will probe the same for possible contradiction. If the proposed name doesn’t come to be unique or legal, then ROC will cancel the same, and the applicant has to file new names within a specific timeline from the rejection date. 

Step 2. Apply for DSC

The next step is to obtain Digital Signature Certificate from MCA’s recommended agencies. DSC will be required for the proposed directors and members to sign the form 

Step 3. Fill the SPICe plus Form (SPICe+)

After a successful name reservation, you need to upload a fully-filed SPICe+ form within 20 days from the approval’s date. SPICe+ clubs eight different forms, which ensure easy and seamless filing. The said form allows the applicant to apply for the following options in one go. 

  • Name reservation
  • Incorporation
  • Apply for DIN
  • TAN
  • PAN
  • EPFO
  • ESIC
  • GSTIN

Moving to the next part, i.e. Part-B, which entails the detailed info of the company as given below: 

  • Total number of directors and members
  • Authorized share capital
  • Paid-up capital
  • Numbers of the share holds by the shareholders
  • Address of the company, directors and member

Next, draft the MOA and AOA of the proposed company, fill the form required for ESIC & EPFO registration with detail, and fill the AGILE form to secure GSTIN.

After fulfilling the above requirements, attach the signature and submit it on the MCA’s portal.

Step 4. Grant of Incorporation Certification

After submission, the form will find its way to the concerned authority for mandatory legal checks. The incorporation certification shall be delivered to the concerned applicant once the concerned department seals their approval on the form.

Likewise, in case of any objection, the authority will react accordingly and intimate the applicant to take relevant action in the given timeframe. 

Conclusion 

Limited liability, perpetual succession, seamless funding, etc., are the few benefits that an entity can avail of by operating as a Pvt ltd company. Further, the ease of entry and exit make this business structure a viable alternative for start-ups seeking solidity on the compliances front. 

Read our article:What is Cost of Company Registration in India?

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Pankaj Tyagi

Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.

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