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Pankaj Tyagi
| Updated: 16 Jan, 2021 | Category: Company Registration

Do you Know the Cost of Registering a Company of Your Choice?

Cost of Registering a Private Limited Company in India

The cost of registering a company in India depends on various factors. One of the primary factors is the authorized share capital with which you want to register your company. If you wish to register your entity with fewer requirements, then the registration cost will be less.

The cost of the company registration tends to escalate with the increase in the authorized share capital. This blog will provide a pinpoint estimation of the cost of company registration for the privately held organization. As we mentioned earlier, the cost of registering a company depends on many factors. Let us shed some light on the same. 

Key Factors Outlining the Cost of Registering a Company

Following are the key factors that outlined the overall cost of registering a company, which are as follows:-

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

The involvement of the Company Secretary or CA is necessary to register a company in India. Wherever you register, the cost for the first three factors is more or less identical with the only difference in stamp duty charges. The major difference to the registration cost in the case of a privately held entity will depend on the fees charged by the Company secretary or CA.

Read our article:Significance and Advantages of Company Registration for SMBs

Cost of Registering a Company from Ministry of Corporate Affairs

Fees liable to be paid with SPICe+ web application may be classified as follows:

  • Filing fee for a web form viz SPICe + form.
  • Registration fee for Memorandum of Association
  • Registration fee for Article of Association
  • Filing fee for URC-1, if applicable.
  • Stamp duty applicable to SPICe + form/AoA/MoA.

Fee applicable to the Integrated Incorporation Form

Following is the tabular representation of the fees applicable to the Integrated Incorporation Form.

In case if the company Posses Share Capital

Nominal Share Capital  Fee to be borne by applicant
Up to 15,00,000 Not applicable
More than 15,00,000 INR 500

Fees borne by the Company without Share Capital

No of Members  Fee to be borne by applicant
Up to 20 members Not applicable
More than 20 members INR 500

Registration fee for Memorandum of Association

The table below comprises of amount payable to the MCA as a registration fee for Memorandum of Association.

In case if the company posses share capital

Nominal Share capital (INR)

Other than One Person Company and Small

Companies

One Person Company and Small Companies

Fixed

For every 10, 000

or part thereof

Fixed

For every 10, 000

or part thereof

Up to 1, 00, 000

Not Applicable

Not Applicable

Not Applicable

Not Applicable

More than 1,00,000 up to

5,00,000

Not Applicable

Not Applicable

Not Applicable

Not Applicable

More than 5,00,000 up to

10,00,000

Not Applicable

Not Applicable

Not Applicable

Not Applicable

More than 10,00,000 up

to 15,00,000

Not Applicable

Not Applicable

Not Applicable

Not Applicable

More than 15,00,000 up

to 50,00,000

INR 51,000 +

INR 300

INR 12,000 +

INR 200

More than 50,00,000 up

to 1,00,00,000

INR 1,56,000 +

INR 100

INR 1,56,000 +

INR 100

More than 1,00,00,000

INR 2,06,000 +

INR 75

INR 2,06,000 +

INR 75

If fee payable on the authorized capital is surpassing INR 2.5 Crore then the fee applicable will be limited to INR 2.5 crore 

Fees borne by the Company without share capital

Number of members Fee applicable
Up to 20 members Not applicable
More than 20 but up to 200 members INR 5,000
More than 200 members (If no of members not cited as unlimited in Article of Association) INR 5,000 + Rupees 10 for every member, after the first 200

The maximum fee applicable to the new company without share capital has been capped at INR 10,000.

Registration fee for Article of Association

The following table exhibits the amount of fees payable to the concerned authority for registering the Article of Association. 

In case if the company posses share capital

Nominal Share Capital Fee applicable
Less than 1,00,000 Not Applicable
1,00,000 to 4,99,999 Not Applicable
5,00,000 to 15,00,000 Not Applicable
15,00,001 to 24,99,999 INR 400
25,00,000 to 99,99,999 INR 500
1,00,00,000 or more INR 600

Fees borne by the Company without share capital

Number of members Fee applicable
Up to 20 members Not applicable
More than 20 members INR 200/ document

Filing fee for URC-1, if applicable

The fees related to URC-1 is chargeable as per the fee cited for URC-1

Stamp duty applicable to SPICe + form/AoA/MoA

Charges associated with the Stamp duty varies from state to state depending on the location of your company registration. Stamp duty is applicable on MOA, AOA, and SPICe+ registration. In some states, the estimation of the registration fees is done based on the company’s authorized capital. 

These registration fees are calculated based on the authorized capital of the company. Feel to visit CorpBiz to get the exact estimation on the Stamp Duty charges for all states. 

After pinpointing the stamp duty charges for your state, you can add other expenses such as fees charged by the CA or company secretary for registering a company. You may have to invest in the range of Rs 10000-20000 to pay fees against the services provided by these professionals. 

Obtaining Digital Signature Certificate

Digital Signature Certificate (DSC) is an imperative part of the company registration process. The absence of DSC would not allow you to fill in mandatory e-forms for obtaining the company registration. It should be noted the use of DSC has been mandated under the new provisions of the Company Act 2013[1].

You do not need to hire a charted accountant or CS to obtain the Digital Signature Certificate (DSC). You can get it from the authority certified by the relevant authorities. In our country, you can obtain a Digital Signature Certificate (DSC) with two years of validity by paying the amount Rs. 1500 to Rs. 2,000 to the certified authority. 

Conclusion 

You have to approach systematically to avail the hassle-free registration for your company. If you run into some issues either on the documentation part or other requirements, it’s advisable to hire an expert without any second thought. At CorpBiz, you can avail end to end support on the company registration process.  Approach our professional if you seek best of the guidance on the cost of registering a company in India.

Read our article:Exciting Benefits of Private Company Registration That You Can’t Ignore!

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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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