Company Registration Fees (Useful Guide)

There are many processes involved in registering a company. Before you register your company, you need to decide on your company structure. Whether the company should be registered as an OPC, LLP, PLC, or a public limited company. After determining the organization, the company name is determined and the company directors must obtain a DIN and DSC before applying for company registration.

In this article, we will learn more about the company registration fees. The cost of registering a company depends on the type of business structure you choose such as an OPC, LLP, or PLC. Let’s read on.

What Is the Cost of Registering a Company in India

Planning, starting, and Establishing a new business is the most important stage for a businessman. Especially, it must have all the legal requirements necessary to bring the company to market. A limited liability company is a privately owned legal entity for small businesses. The liability of the members of a limited liability company is limited to the number of shares held by each of them. Shares of private limited liability companies cannot be publicly traded. 

For companies with share capital

1. Registration fee for companies with nominal share capital is limited to 1,00,000 – Rs 200
2. Registration fee for companies with nominal share capital not less than Rs 1,00,000 and limited to less than Rs 5,00,000 – Rs 300
3. Registration fee for companies with nominal share capital not less than Rs 5,00,000 but limited to less than Rs 25,00,000 – Rs 400
4. Registration fee for companies with nominal share capital not less than Rs 25,00,000 but limited to less than Rs 1 crore – Rs 500
5. Registration fee for companies with a nominal share capital of Rs 1 crore and above – Rs 600

A company without share capital must pay a commission as follows:

1. Registration fee for corporations whose membership is limited to Rs 20-2,000, according to the MOA.
2. However, according to MOA, the registration fee for companies with more than 20 memberships is limited to Rs 200 to Rs 5,000.
3. The registration fee for companies with more than 200 members as stated in the MOA is Rs 5,000 unless the number of members as stated in the AOA is ‘unlimited’.

What Is the Cost of Registering a LLP in India

A limited liability partnership (LLP) is a business structure that combines the liability protection of a corporation with the tax benefits of a partnership. In an LLP, the partners are not personally liable for the debts and obligations of the business. This means that if the LLP becomes insolvent or is sued, the partners’ personal assets (such as their homes, bank accounts, and personal possessions) are generally protected and cannot be seized to pay off the LLP’s debts.

Below are the government fees for form submissions.

1.  DSC (around Rs. 1500-2000 for 2 partners (varies by agency)
2.  DIN (Rs. 1000 for 2 partners)
3. Name Reservation (Around Rs. 200)
4. Incorporation (It depends on the investment amount. investment up to Rs. 1 lakh – Rs. 500, donations between Rs. 1 lakh to 5 lakhs – Rs. 2000).
5. LLP Agreement Depends on your investment. Contribution up to Rs 1 lakhs – Rs 50 for filing Form 3 and stamp duty based on the state in which the LLP is established

What Is the Cost of Registering a OPC in India

A one-person company (also known as a single-member company or a sole proprietorship) is a type of business structure in which a single individual owns and operates the business. The owner is personally responsible for all aspects of the business, including its debts and liabilities. 

Here is the cost list of registering an OPC in India:

1. Registration fee for organizations with nominal share capital limited to between Rs. 10,00,000 – Rs. 2,000.
2. Registration fee for organizations with nominal share capital between Rs 10,00,000 to  Rs 50,00,000 – Rs 2000. Rs.200 will be added for every 10,000 or part of the nominal share capital.
3. Registration fee for organizations with nominal share capital between Rs 50,00,000 to 1 crore – Rs 1,56,000. Rs.100 is added for each Rs. 10,000 or part of the nominal share capital.
4. Registration fee for organizations with nominal capital over Rs 1 crore – Rs 2,06,000. Rs.75 is added for each Rs. 10,000 or part thereof of nominal share capital, maximum up to Rs. 250 crores.

What Is the Cost of GST Registration

GST registration is the process of registering a business for goods and services tax (GST) with the relevant tax authorities. GST is a value-added tax that is levied on the supply of goods and services in India. Businesses that are registered for GST are required to charge GST on the goods and services that they supply and to remit the tax collected to the government.

Taxpayers should note that there is no GST registration fee. Therefore, you do not have to pay anything to register under GST.

However, late payment or underpayment of tax will result in a GST penalty. The penalty under GST is only  10% of the tax amount if the tax amount is above the minimum of Rs. 10,000.

What Is the Minimum Amount to Start a Company in India

A minimum paid-up capital of Rs. 1 lakh is required to start a company in India.

Frequently Asked Questions (FAQs):

Is startup tax-free in India?

No, If you come under the income tax slab then you have to pay tax.

Which registration is best for startup?

For small businesses run by two or more people, a partnership registration is the best option. LLPs and private limited registration entities have much more complex setup and reporting requirements.

Can I register a company for free in India?

Registering a company in India is very easy and currently free.

Conclusion

Now you got to know about company registration fees. There are many processes involved in company registration. Before registering your company, you need to decide on your company structure.there are different company registration fees according the company structure.

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