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Cost of Company Registration in India

Startups established as companies in India are required to get a mandatory registration under the Companies Act. However, most startup-owners lack the legal know-how of the complete procedure and cost of company registration, and are thus compelled to seek professional guidance and services for the same. The additional charges for availing professional services, over and above the government fees, leads to an overall increase in the cost of Company registration for startups. To reduce the burden of this cost, the Ministry of Corporate Affairs has introduced a zero filing fee for companies having an authorised capital below Rs.15 lakhs. This has resulted in a drastic decline of the overall government fees, thereby reducing the overall cost of company registration in India. 
Cost Of Company Registration In India

Table of Contents

Procedure for Company Registration

Private Limited companies are profit-earning businesses, the ownership of which is held by at least 2 shareholders. The maximum number of shareholders in a private limited company is also limited to 200. The liability of the owners is limited to their capital contribution to the business.
A private limited company can be registered and incorporated by applying through the SPICe+ form. Part A of the form is filled to reserve and register a name for the company. The name of the company should not be visually or phonetically the same or similar to an existing company. It should also not be in violation of the Names and Emblems Act. This means that the name of the company should not show patronage of the government.
Part B of the form should be filled out and submitted within 20 days from the date of approval of the company’s name, along with the following supporting documents:
  • e-MOA and e-AOA
  • Utility bills as proof of residence at the office address not older than 2 months
  • Proof of ID and address of subscribers
  • Proof of ID and address of the applicant
  • All the documents and the application form needs to be signed by the DSC of the applicant.
  • Stamped and notarised rent agreement and NOC from the landlord if the property is rented
The linked forms required to be filled are AGILE PRO for opening a bank account ESIC, EPF, GST, and Professional tax registration, and INC-9 as a declaration from the first director of the company. After the documents are successfully verified, the Registrar of Companies issues the Certificate of Incorporation within a week from the date of submission.
The cost of company registration application, filing MOA, and AOA is the same as that for a public limited company.

Cost Of Company Registration In India

The SPICe+ application is to be filled out and digitally signed by any one of the directors of the company. For this purpose, the applicant director must possess a digital signature certificate (DSC). The application for a DSC is submitted to certain agencies licensed by the Ministry of Corporate Affairs to issue DSCs to applicants. Such agencies are called Certifying agencies. Since different Certifying Agencies are situated in different states, the application fee charged for the same is also different for different states.
It usually ranges between Rs.8,000 to Rs.13,000. Besides the state in which the application is filed, the application fee also depends on the class and validity of the DSC applied for. Out of the three classes of DSC (Class I, II, and III), the SPICe+ application can only be signed using the Class III DSC. As far as the validity of the DSC is concerned, you can apply for a DSC with validity periods of 1 year, 2 years, or 3 years. The higher the period of validity, the higher will be its application fee.
Apart from a DSC, the applicant director must also possess a Director Identification Number allotted to him by the Ministry of Corporate Affairs. Since he is required to possess a DIN before filing the SPICe+ application, he shall have to apply for it using form DIR-3, available on the official website of the Ministry of Corporate Affairs. The application fee for filing DIR 3 is Rs.500.
After the applicant director possesses both the prerequisites i.e. a DSC and a DIN, he may begin filling out the SPICe+ application. If the name of the company has already been reserved using the RUN application, there is no need to file PART A of the SPICe+ application. However, if the name has not been reserved using RUN, the applicant will have to do so using Part A of the SPICe+ application. The application fee for both RUN and PART A of the SPICe+ application, is Rs 1000.
PART B of the SPICe+ application contains the application forms for 10 different services, including the application for company registration. The application cost of company registration form SPICe+ depends on the authorised capital of the company. If the authorised capital is Rs15 lakhs or less, no application fee shall be charged, whereas if the authorised capital is beyond Rs.15 lakhs, an application cost of company registration form will be Rs.500.
If you’re looking forward to avail of professional services for company registration, we recommend you to check out the quality services and package cost of company registration at Setindiabiz. Our package provides end-to-end services for company registration at the most competitive and affordable prices. Besides, we also provide a few complimentary services free of cost, with our all inclusive package for company registration.
S.No. Documents Cost of Company Registration In India
1.
Digital Signature Certificate
  • Depends on the state in which the application has been filed.
  • Depends on the Class of DSC applied for.
  • Depends on the validity of DSC applied for.
  • Usually ranges between Rs.8,000 to Rs.13,000.
  • 2.
    Director Identification Number
    Rs. 500
    3.
    SPICe+
    PART A
  • Rs.1000

  • PART B
  • The application fee depends on the authorised capital of the company. If the authorised capital of a company is Rs15 lakhs or less, no application fee shall be charged, whereas if it is beyond Rs.15 lakhs, an application fee of Rs.500 shall be charged.
  • Conclusion

    The overall cost of company registration in India depends on the company registration fee for application and documentation. The application for registration is divided into two parts, PART A and PART B. PART A has a fixed application fee for Rs.1000, while the application fees for PART B depends on the authorised capital of the company. In an attempt to encourage startups, the government has permitted a zero filing fees, upto the authorised capital of Rs.15 lakhs. Other necessary documents that affect the overall cost of company registration includes the DSC, DIN, stamp duty, and the charges of filing the MoA and the AoA of the company.

    About Setindiabiz

    Setindiabiz is an organized team of experienced CA, CS, & Lawyers, duly supported by a pool of trained accountants & paralegal staff that provides quality & affordable compliance services to startups & small businesses in India. The views, statements and recommendations expressed in this article or post are only for the sole objective of providing information, and it does not constitute professional advice or recommendation of the company. Neither the author nor the company or its affiliates accepts any liability for any loss or damage arising from any information in this article or any actions taken in reliance thereon.
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