Setting up a business in India can surely be an adventure in itself. However, by thrill-seekers, the most admired one is the Private Limited Company. A Pvt Ltd Company is endowed with various advantages such as limited liability on its shareholders, ease of raising funds, and the very fact that it can operate as a separate legal entity. If you are one of those who are planning to establish a Private Limited Company in India this guide will take you through prerequisite steps and procedures along with fees for registration of private limited company based on different states in India.
Overview of Private Limited Company
Private Limited Company is the most common Company Registration in India. It is regulated under the Companies Act 2013 of MCA Ministry of Corporate Affairs. A minimum requirement in a Private Limited Company is to have two directors and two shareholders. The directors and shareholders can be similar or different individuals, with one director must be an Indian Resident.
As per sources, till January 2025, a total of 2,805,354 companies were registered. Out of this figure, 65% or 18,172,222 companies are still active. And a major share of these registrations goes to private limited companies, which makes it a popular choice.
Key Components of Pvt Ltd Company Registration Govt Fees
Formally, every state follows its separate laws and rules. Various components help in defining the cost of registering a company in India. Some of the components of cost include.
- Name Reservation Fee: A unique company name has to be registered before the registration of the company. For this, an owner decided to run or reserve a unique name form ₹1,000 for each RUN/Reserve Unique Name.
- Director Identification Number: Now every proposed director has to be registered formally. They are needed to have a Director Identification Number or DIN registered by filing Form DIR-3, for which they shall have to pay a fee prescribed for the purpose.
- Digital Signature Certificate: A digital signature certificate is a thing you can’t skip. It has to be one of the company registration papers subjected to online documentation. This particular pvt ltd company registration cost varies; it could be around ₹1,000 to ₹2,000 per director, depending on the certificate class, and certifying agency.
- Stamp Duty: It’s a charge state-wise which is levied on the incorporation documents. The overall pvt ltd company registration fees depends on the state of incorporation and the authorized capital.
- Form SPICe+ FIlling Fee: The next pvt ltd company registration cost is associated with the form Simplified Proforma for Incorporating Company Electronically Plus (SPICe+) SPICe+. It has to be filed for registration, requiring details on the authorized capital.
- PAN and TAN Application Fee: PAN and TAN are inevitable for the company for tax compliance. PAN costs ₹66, while TAN costs ₹65. The application fee thus stands at ₹131.
Additional Considerations
Entrepreneurs might have to incur additional fees for registration of private limited company for professional assistance from expert CAs or consultants.
- Professional Fees: The professional fee i.e., chartered accountants, company secretaries, or consultants would be incurred in removing hassles from the company registration process.
- Additional Expenses: Any missing paperwork shall attract some notarization, administrative outlay, and other running pvt ltd company registration fees, etc.
Factors Affecting Registration Fee Variation
- Nature and Structure of Company: The kind of company directly affects the registration charges. For example, when comparing a private and a public organization, the pvt ltd company registration govt fees for setting up a Public Limited Company are usually higher.
- Authorized Capital: Companies will face higher government fees if they have a higher authorized capital. This, however, does not minimize the effect of the total cost of registering a company in India.
- Location of Registration: The fees may be different from state to state or city to city in the registration of your company.
- Professional Services Required: It means that the cost of professional services will depend on how complex the registration process is and on the expertise of the professionals.
- Additional Costs of Compliance: Ongoing costs of compliance should also be considered in your budget, including the annual filing and auditing.
Pvt Ltd Company Registration Govt Fees
The setup of a private limited company might bring new openings to the owner. But, not for free. So, some sum is required to initiate the company. In a general perspective, the registration process might make it seem like the cost of registering a company in India is pretty high and that creating a company is a very tough process.
Formerly, the authorized share capital which the private company used for business was a big factor in the filing charge. The government of India waived the pvt ltd company registration govt fees on the 26th January, 2019. Hence the minimum share capital shall no longer be a determining factor for the filing charge of the company.
Tips and Strategies to Reduce the Overall Fees for Registration of Private Limited Company
- To reduce the net fees for registration of private limited company, it can be achieved by proper planning where in the very initial part a due diligent study and understanding of the process of registration will help avoid excess expenditure.
- Choose a low authorized capital at the start, this can cut stamp duty and pvt ltd company registration cost by the government substantially.
- Choose online filings which normally cost more than the DIY platforms. Moreover, an integration of services like DIN, DSC, and name approval can create package deals at a lower cost through a single platform.
- This, in addition to keeping everything on the right side of the law, can avert penalties and other additional charges. This will go a long way in saving a substantial amount in the registration process.
Additional Pvt Ltd Company Registration Fees Apply for the Delay in Filing Forms
An important update has recently been made in the filing of forms with the Ministry of Corporate Affairs (MCA); companies will now have to file statutory forms such as annual returns, financial statements, or any change in directorship with more fee in case of delay. Now, such filings shall carry more pvt ltd company registration fees for delayed filing, tabulated on a daily basis, escalating costs of adherence significantly.
This update underlines timely filing so as to not run up any unnecessary costs, meaning a business has to keep abreast of when the deadlines for filing are and keep the right proof to stave off any possible lag. In addition, companies should think about setting reminders or giving to outside hands the job of keeping on top of making sure all forms get lodged in time to sidestep these added charges.
Register Your Company through Start an Idea
Start an Idea focuses on Pvt ltd Company Registration services within India, offering all help that is needed toward the process of registration. Our experienced team of professionals working will provide consultative expertise based on the generic requirements of online fees for registration of private limited companies.
Choosing the right name for your company registration is very important, and Start an Idea will help you select a special and suitable name that fits the ROC rules. We will ensure the name is available and help with reserving your name, which shows your business identity. Compiling the necessary paperwork for an online company setup in India can be a little hectic, but don’t worry, our professionals will take care of this task. We will help you in assembling all required documents, making sure it is accurate and in compliance so that you can register your new company properly.
We will guide this process to make sure you have the certifications for seamless registration. Opt for Start an Idea in meeting your company registration needs and we shall professionally and efficiently take care of the rest. We aim to simplify the whole process with reasonable pvt ltd company registration cost, so that you can focus on running your business. Register your company with Start an Idea and start your entrepreneurial journey with a good degree of assurance.
Also Read: What is the Cost of Company Registration in India
