Company Registration Costs in India: Breaking Down Fees for Startups (2024 Guide)
Starting a business in India? Understanding the company registration costs is crucial for budgeting. This guide breaks down the government fees, professional charges, and hidden costs for different business structures, helping startups make informed decisions.
Types of Business Entities & Their Registration Costs
| Business Type | Government Fees | Professional Fees | Total Estimated Cost |
|---|---|---|---|
| Private Limited | ₹5,000 – ₹15,000 | ₹5,000 – ₹10,000 | ₹10,000 – ₹25,000 |
| One Person Company (OPC) | ₹2,000 – ₹10,000 | ₹5,000 – ₹8,000 | ₹7,000 – ₹18,000 |
| LLP (Limited Liability Partnership) | ₹500 – ₹5,000 | ₹4,000 – ₹7,000 | ₹4,500 – ₹12,000 |
| Section 8 Company (NGO) | ₹2,000 – ₹10,000 | ₹8,000 – ₹15,000 | ₹10,000 – ₹25,000 |
| Sole Proprietorship | Nil (No formal registration) | ₹1,000 – ₹5,000* | ₹1,000 – ₹5,000 |
*Only GST/MSME registration may apply.
Breakdown of Company Registration Costs
1. Government Fees
- Name Approval (RUN): ₹1,000 (for 2 resubmissions).
- SPICe+ Form (Incorporation): Varies based on authorized capital:
- Up to ₹1 lakh: ~₹2,000
- ₹1 lakh to ₹25 lakh: ~₹5,000
- DIN & DSC: ₹1,000 – ₹2,500 (per director).
2. Professional Fees (CA/CS/Legal Experts)
- Documentation (MOA/AOA drafting): ₹3,000 – ₹8,000.
- Compliance Support (GST, PAN, TAN): ₹2,000 – ₹5,000 extra.
3. Hidden Costs to Consider
- Stamp Duty: ₹500 – ₹5,000 (varies by state).
- Registered Office Rent: Virtual office (~₹3,000/month).
- Post-Registration Costs:
- GST Registration (if applicable): ₹0 (govt) + ₹1,000-₹3,000 (professional).
- Bank Account Opening: ₹0 – ₹5,000 (depends on bank).
How to Reduce Registration Costs?
✔ DIY Name Approval – Save ₹1,000-₹2,000 by filing RUN yourself.
✔ Opt for Lower Authorized Capital – Start with ₹1 lakh instead of ₹10 lakh+ to cut fees.
✔ Use Digital Signatures (DSC) Wisely – A Class 3 DSC (~₹1,500) works for most filings.
✔ Compare Service Providers – Some firms offer discounted packages for startups.
Private Limited vs. LLP: Cost Comparison
| Cost Factor | Private Limited | LLP |
|---|---|---|
| Incorporation Cost | ₹10,000 – ₹25,000 | ₹4,500 – ₹12,000 |
| Annual Compliance | ₹15,000 – ₹30,000 (audit, ROC) | ₹5,000 – ₹10,000 (no audit if turnover < ₹40L) |
| Taxation | 25-30% corp. tax + dividend tax | 30% flat (no dividend tax) |
Verdict: LLP is cheaper initially, but Private Limited is better for fundraising.
Why Choose Financial Munshi for Cost-Effective Registration?
Transparent Pricing – No hidden charges (starting at ₹7,999 for Pvt Ltd*).
Startup-Friendly Packages – Includes PAN, TAN, GST, and DIN.
Post-Incorporation Support – Compliance, accounting, and tax filing.
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Frequently Asked Questions
1. What is the cheapest way to register a company?
LLP or Sole Proprietorship (if compliance simplicity is needed).
2. Are there any exemptions for startups?
Yes! Startup India offers fee rebates for Patents/Trademarks but not incorporation.
3. Can I pay registration fees in installments?
No, MCA requires one-time payment during SPICe+ filing.
4. Do foreign nationals pay higher fees?
No, but additional documentation (notarized/ apostilled) may increase professional charges.