Starting a business in India is an exciting journey, and the first official step is the company registration process. Whether you are planning for a private limited company registration, a one-person company (OPC), or an LLP, understanding the costs involved is crucial. Many entrepreneurs underestimate the expenses and face surprises later.
This article provides a complete breakdown of the cost of company registration in India, including government fees, professional charges, and additional expenses. We will also cover factors that affect the cost and how you can plan effectively.
Why Understanding Company Registration Cost Matters
When planning for company incorporation, knowing the cost upfront helps you:
- Budget correctly for your business launch
- Avoid hidden charges that might arise later
- Choose the right business structure based on affordability
- Ensure compliance without unnecessary financial burden
Company registration is a one-time process, but its cost varies depending on your company type, capital, and location.
Factors Affecting the Cost of Company Registration in India
The cost of pvt ltd company registration or any other business structure depends on multiple factors:
- Type of Company
- Private Limited Company: Most popular for startups, requires minimum 2 directors and 2 shareholders.
- One Person Company (OPC): Suitable for solo entrepreneurs.
- Limited Liability Partnership (LLP): Best for professionals and partnerships.
- Public Limited Company: Requires more compliance and is costlier.
Each structure has different government fees and compliance costs.
- Authorised Share Capital
Government fees are linked to the authorised capital of your company. Higher the authorised capital, higher the fee.
- State of Incorporation
Stamp duty varies from state to state. For example, stamp duty in Maharashtra is different from Delhi.
- Professional Fees
If you take help from a CA, CS, or online service provider, you will incur professional charges in addition to government fees.
- Additional Services
Trademark registration, GST registration, or accounting services are optional but often required for smooth operations.
Mandatory Costs in Company Registration
Regardless of your business type, there are certain mandatory expenses:
- Digital Signature Certificate (DSC)
- Director Identification Number (DIN)
- Required for all directors.
- Fee: Usually included in the SPICe+ form, so no separate cost if applied during incorporation.
- Name Reservation Fee
- Through RUN (Reserve Unique Name) or SPICe+ form.
- Cost: ₹1,000 per application.
- Stamp Duty & MCA Fees
- Depends on authorised capital and state.
- For authorised capital up to ₹1,00,000, MCA fees are minimal.
- Stamp duty varies (₹200 to ₹5,000 approx., depending on state).
- PAN & TAN Application
- Mandatory for company incorporation.
- Usually included in SPICe+ form, no extra cost.
Approximate Cost of Private Limited Company Registration in India
Here’s an estimated cost breakdown for private limited company registration:
|
Expense Head
|
Approximate Cost (₹)
|
|
DSC (2 directors)
|
2,000 – 4,000
|
|
DIN (2 directors)
|
Included in SPICe+
|
|
Name Reservation
|
1,000
|
|
MOA & AOA Filing
|
1,000 – 2,000
|
|
Stamp Duty (varies by state)
|
1,000 – 5,000
|
|
PAN & TAN
|
Included
|
|
Professional Fees (optional)
|
5,000 – 15,000
|
|
Total Estimated Cost
|
₹8,000 – ₹25,000
|
The range depends on the state, authorised capital, and whether you use professional services.
Cost of Other Company Structures in India
- One Person Company (OPC)
- Lower cost compared to Pvt Ltd.
- Estimated Cost: ₹7,000 – ₹18,000
- Limited Liability Partnership (LLP)
- Popular among professionals.
- Estimated Cost: ₹6,000 – ₹15,000
- Public Limited Company
- Requires at least 7 members and 3 directors.
- Estimated Cost: ₹20,000 – ₹50,000
- Section 8 Company (Non-Profit Organisation)
- Government fees are lower but requires extra approvals.
- Estimated Cost: ₹8,000 – ₹20,000
Hidden or Additional Costs to Consider
While the incorporation of company may officially cost around ₹10,000–₹25,000, there are other expenses to budget for:
- Trademark Registration – ₹6,000 – ₹10,000 per class
- GST Registration – Free (if done separately, some professionals charge ₹1,000 – ₹2,500)
- Accounting & Bookkeeping – ₹3,000 – ₹10,000 per month depending on transactions
- Annual Compliance – Filing returns, ROC compliance, and audits may cost ₹10,000 – ₹25,000 yearly
How to Reduce Company Registration Cost
- Choose the Right Structure – If you are starting solo, an OPC might be cheaper than a Pvt Ltd.
- Use Online Platforms – Many legal tech platforms offer bundled packages at lower costs.
- Plan Authorised Capital Carefully – Keep initial authorised capital at a reasonable amount (₹1–5 lakhs) to save fees.
- DIY Documentation – If you are comfortable, prepare some documents yourself to save on professional fees.
Is Private Limited Company Registration Worth the Cost?
Yes. Despite higher costs compared to proprietorship or partnership, pvt ltd company registration offers:
- Limited liability protection
- Credibility with investors and banks
- Ease of raising funds
- Separate legal identity
For startups planning to scale, the benefits outweigh the costs.
Conclusion
The cost of company registration in India depends on the company type, authorised capital, state, and whether you hire professionals. For a private limited company registration, the typical cost ranges between ₹8,000 to ₹25,000.
While costs may seem high initially, a registered company gives your business legal recognition, credibility, and growth opportunities. By planning your budget and structure wisely, you can minimise expenses and complete the company registration process in India smoothly.
At India Company Setup, we simplify the entire company registration process for you—whether it’s a Private Limited Company, LLP, OPC, or any other structure. From name approval to DSC, DIN, and filing with the MCA, our experts ensure a hassle-free and transparent experience without hidden costs. We also guide you on choosing the right business structure, managing compliance, and keeping your overall costs under control. Ready to get started?
Call us today and book your free consultation to kickstart your business journey in India with confidence.
FAQs on Company Registration Cost
- What is the minimum cost of private limited company registration in India?
The minimum cost starts at around ₹8,000, but it can go higher depending on stamp duty and professional fees.
- Is GST registration included in company incorporation cost?
No, GST registration is separate, though some service providers include it in their package.
- Does the cost vary from state to state?
Yes, mainly due to differences in stamp duty.
- Can I register a company myself without professional help?
Yes, but it is advisable to take expert assistance to avoid errors and delays.
- What are the annual compliance costs after registration?
Expect around ₹10,000 – ₹25,000 per year for filings and audits.