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Company registration

Company Registration Cost in India: Where Every Rupee Goes

✓ 4 official and published sources✓ Written for Indian sellers and small businesses

Registering a small private limited company costs little in government fees. With authorised capital up to Rs 15 lakh the MCA filing fee is zero. You pay State stamp duty, Rs 131 for PAN and TAN, Rs 1,000 if you reserve the name separately, the cost of digital signatures, and a professional's fee. The yearly running costs matter more.

Key points
  • SPICe+ filing fee: zero for authorised capital up to Rs 15 lakh.
  • PAN costs Rs 66 and TAN Rs 65, paid in the same challan.
  • Name reservation costs Rs 1,000 only when Part A is filed on its own.
  • Stamp duty depends on the State and on authorised capital. In Delhi it works out to Rs 360 for Rs 1 lakh of capital.
  • GST, EPFO, ESIC and bank account applications made with the incorporation form carry no fee.
In this guide
  1. What does the government charge?
  2. Why does stamp duty change from State to State?
  3. What does a digital signature cost?
  4. What about the professional's fee?
  5. A worked example: two founders, Rs 1 lakh capital
  6. What does it cost to keep the company running?
  7. The mistake people usually make

What does the government charge?

Less than most people expect. The Ministry of Corporate Affairs (MCA) gives a zero filing fee concession to companies incorporated through SPICe+ with authorised capital up to Rs 15 lakh. Authorised capital is the ceiling up to which the company can issue shares. In MCA's words, such companies pay only the stamp duty of their State.

ItemAmountPaid to
SPICe+ filing fee, authorised capital up to Rs 15 lakhRs 0MCA
SPICe+ filing fee, above Rs 15 lakhRises with authorised capitalMCA
Name reservation, if Part A is filed separatelyRs 1,000MCA
Extending a reserved name beyond 20 daysRs 1,000 for 20 more days, Rs 3,000 to reach 60 daysMCA
PANRs 66Through the MCA challan
TANRs 65Through the MCA challan
Stamp duty on the form, MOA and AOAVaries by StateState government, paid on the MCA portal
GSTIN, EPFO, ESIC, bank account requestRs 0No fee

Why does stamp duty change from State to State?

Because stamp duty is a State tax. Each State sets its own duty on the incorporation form, the memorandum (MOA) and the articles (AOA). The MCA portal works out the amount from your registered office State and authorised capital, and collects it online. You do not buy stamp paper.

StateFormMOAAOA
DelhiRs 10Rs 2000.15% of authorised capital, up to a ceiling of Rs 25 lakh
MaharashtraRs 100Rs 200Rs 1,000 for every Rs 5 lakh of authorised capital or part of it, up to a ceiling of Rs 50 lakh

These two rows are from MCA's e-stamp schedule for companies with share capital. Other States differ, and published figures for some of them disagree with each other, so I have not listed them. The number the portal shows at payment is the one that counts.

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What does a digital signature cost?

Every subscriber and director signs with a Digital Signature Certificate (DSC), which sits on a USB token. Licensed agencies sell them, not the government, so prices vary. One seller's guide puts a two-year signing certificate at about Rs 900 to Rs 1,700, and the token at Rs 300 to Rs 900. For two directors, plan for roughly Rs 2,400 to Rs 5,200. If you already hold a valid DSC, reuse it.

What about the professional's fee?

The form must be certified by a practising CA, CS or cost accountant, so some fee is unavoidable. There is no official scale. Quotes differ by city, by how many directors there are and by whether a foreign national is involved. Since the government portion is small and fixed, a quote is mostly the price of someone's time and care. Ask three questions before you agree:

  • Does the quote include stamp duty and DSCs, or are they extra?
  • Does it cover replies if MCA sends the form back? Only two resubmissions are allowed.
  • Does it include INC-20A, the commencement declaration due within 180 days?

A worked example: two founders, Rs 1 lakh capital

Anita and Vikram register a company in Delhi with Rs 1 lakh authorised capital. Neither has a DSC. They reserve the name first.

ItemDelhiSame company in Maharashtra
SPICe+ filing feeRs 0Rs 0
Name reservationRs 1,000Rs 1,000
PAN and TANRs 131Rs 131
Stamp dutyRs 360 (Rs 10 + Rs 200 + Rs 150)Rs 1,300 (Rs 100 + Rs 200 + Rs 1,000)
Two DSCs with tokensRs 2,400 to Rs 5,200Rs 2,400 to Rs 5,200
Total before professional feeRs 3,891 to Rs 6,691Rs 4,831 to Rs 7,631

Filing the name and the incorporation together saves the Rs 1,000. So if a quote runs to five figures, almost all of it is the professional's fee. That is fine, as long as you know what it buys.

What does it cost to keep the company running?

This is the part that surprises founders. A company has yearly duties even with zero sales.

Yearly itemGovernment feeWhat else you pay
Statutory audit of the accountsNoneThe auditor's fee, every year
Financial statements (AOC-4)Rs 300 for share capital of Rs 1 lakh up to Rs 5 lakh, Rs 400 up to Rs 25 lakhPreparation and filing help
Annual return (MGT-7 or MGT-7A)Same slabs as abovePreparation and filing help
Company income tax returnNoneFiling help
Director KYC (DIR-3 KYC Web)None if on time. Now due once in three financial yearsNothing, if you do it yourself
DSC renewalNoneSeller's price, about every two years

Late filing is where money leaks. The additional fee reported for a late AOC-4 or annual return is Rs 100 a day for each form. Two forms, 30 days late: Rs 6,000 on top of the normal Rs 600. Ninety days late: Rs 18,000.

The mistake people usually make

Picking a large authorised capital to look substantial. It does not impress a bank or a customer, who look at your turnover and paid-up money. It does raise your cost. In Maharashtra, Rs 15 lakh of authorised capital means Rs 3,000 of AOA duty instead of Rs 1,000. Cross Rs 15 lakh anywhere and the zero filing fee is gone. Start small. You can raise authorised capital later, when an investor needs it.

The other mistake is comparing only registration quotes. Ask what the yearly audit and filings will cost before you incorporate. If that number feels heavy for your stage, read our comparison of proprietorship, LLP, OPC and private limited first.

How AprilTax can help

AprilTax registers private limited companies, one person companies and limited companies online. You fill one form with the company details and documents, and a Tax Expert takes it forward. There is no published fixed fee for this service: the fee is shared on a call. See company registration.

Frequently asked questions

What is the government fee for registering a private limited company?
If the authorised capital is up to Rs 15 lakh, the SPICe+ filing fee is zero. You still pay State stamp duty, Rs 66 for PAN and Rs 65 for TAN, and Rs 1,000 for name reservation if SPICe+ Part A is filed separately. Above Rs 15 lakh, the filing fee rises with authorised capital.
How much is stamp duty on company incorporation?
It depends on the State of the registered office and the authorised capital. Under MCA's e-stamp schedule, Delhi charges Rs 10 on the form, Rs 200 on the MOA and 0.15% of authorised capital on the AOA. Maharashtra charges Rs 100, Rs 200 and Rs 1,000 for every Rs 5 lakh of authorised capital or part of it. The MCA portal calculates the exact amount at payment.
Is there a separate fee for PAN and TAN of a new company?
They are not applied for separately. SPICe+ Part B includes the PAN and TAN applications, and the single challan includes Rs 66 for PAN and Rs 65 for TAN along with the form, MOA and AOA fees.
What does a digital signature for a director cost?
Prices are set by the licensed agencies that sell them, not by the government. One seller's published guide puts a two-year signing certificate at about Rs 900 to Rs 1,700 and the USB token at Rs 300 to Rs 900. Each subscriber and director needs one.
Is there a fee for GST registration or a bank account at incorporation?
No. MCA states that no fee is payable for applying for GSTIN, EPFO or ESIC through AGILE-PRO-S, and that opening the bank account through SPICe+ needs no additional fee.
What are the yearly costs of a private limited company?
A statutory audit, filing of financial statements in AOC-4 and the annual return in MGT-7 or MGT-7A, and the company's income tax return. The government filing fee is a few hundred rupees a form for a small company. Most of the cost is the auditor's and the professional's fee, which has no official scale.
What is the late fee for annual filings of a company?
The additional fee reported for delay in filing financial statements or the annual return is Rs 100 a day for each form, with no upper limit mentioned. Two forms filed 30 days late would cost Rs 6,000 extra.
What does AprilTax charge for company registration?
AprilTax does not publish a fixed fee for company registration. You fill one online form with the documents, a Tax Expert takes it forward, and the fee is shared on a call.

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CA Abhijeet

A Chartered Accountant on the AprilTax team who works with online sellers and small businesses every filing season.

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