Startup India Registration Fees (New Detail)

Indian economy and regulations promote the upcoming startups; thus, the registration fees for startup registration are nominal in India. The affordable registration fees encourage young entrepreneurs to establish their startups very smoothly.

DPIIT startup registration fees

DPIIT, also known as the Department of Promotion of Industry and Internal Trade, is the regulation board that promotes and regulates the policies concerned with startups in India.

The decided startup India registration fees for business models are nominal at a fixed rate of Rs. 7,499 (Including all professional charges). The process is a smooth and hassle-free experience consisting of 15 to 20 days of processing time.

What is the start up Cost of a company?

Any company at an early stage of setting up or startup stage requires the funds needed to start a new business in the market. This initial cost, or in other words, investment, consists of incorporation fees, registration and legal incorporation fees, equipment, insurance, taxes, payroll and so on. This cost is known as startup expenses, per-opening or initial costs. 

These initial startup costs are mostly one-time investments and non-recurring expenses for the establishment. However, each startup would be unique in itself. Thus, this startup cost would vary from startup to startup.  

However, from a financial perspective, these costs are either treated as expenses that occur during the first year or paid off costs during the next five to ten years, depending on the scale of the investment. The startup costs are divided into two parts: structural and production expenses. The former is required for setting up the business and its legal structure, while the later is related to the costs needed to produce the products or the services intended for the company.

What is RoC filing fee?

RoC or Registrar of company filing fees are needed for filing ROC returns every year to showcase the changes that occurred in the company during the particular year. ROC filing thus becomes mandatory for an annual interval, even when a company does no business for the whole year. 

The fees are regulated as per the size of the companies. For companies that have annual capital of rs. 1 lac it is rs. 300 for each Form AOC-4 and MGT-7, while for the companies with the authorized capital of Rs. 5 lac or above, it is rs. 400 for each form.

The first annual filing for any startup company is due from the incorporation date on the 30th of December of the upcoming year. While subsequent yearly filing is due on the 30th of September for the ongoing year for which the company’s financial year ends.

In cases of late filing of ROC, penalties are charged, and directors of the companies become liable. The penalties are increased according to the late period starting from 2 times of original fees to as high as 12 times the late period of 180 days or more.

How to setup startup in India?

Register your startup for Startup India Scheme. Follow below guide to set up a startup in India.

Incorporate your Business

First, the business must be incorporated as a limited liability company, limited liability company, or partnership. To obtain registration, follow standard procedures, including completing a form. 

Register for Startup India

Register under the government’s Startup India programme. You have to enter all the information and upload a certain number of documents. Upload the documents in PDF format. 

Self-certification requirements

• You are a partnership, LLP, or limited liability company.
• A company must be registered or incorporated in India for a minimum of five years.
• Your company’s annual turnover must not exceed Rs. 100 crore.
• Your business should be a unique concept, not a split or restructuring of an existing business. 

Get identification number

You will receive a confirmation number as soon as you apply for this registration.

Only after examining all the submitted documents, the authorities will issue a registration or incorporation certificate. Be careful when uploading data. Errors can result in hefty fines of up to 50% of the deposited capital or at least Rs 25,000.

How do I start a startup with no money?

It isn’t easy to start in a world of startups, requiring a certain amount. This amount is, however, based on the business model, while this amount is irrelevant to the company’s success or, in that way potential size of the business. If you are an entrepreneur with zero budget, the following tips may help you kick-start your idea into a running startup.

LLP registration with EMI

The first step for any startup is to incorporate itself as a new business model. This step includes opening a bank account facilitating the business model, acquiring tax registrations and invoicing clients. Limited Liability Partnership or LLP is low-cost registration for business for charges of rs. 8000, and with the EMI option found on IndiaFilings.com, it can go as low as just rs.750 for a 12-month EMI plan.

Selling on eCommerce platforms.

Running a business on an e-commerce platform such as a Flipkart or an Amazon offers convenient access to potential customers with no additional needs of logistics, marketing, technology, or so which are dealt with by the platform itself. These are easy revenue-generating options for a starter. 

Government scheme

The state or central government provides several schemes to bring first-generation business people. These schemes include essential funding for starting a business and a bank loan. Some of the examples include the NEEDS scheme offered by the Tamilnadu government or the SETU program by the central government. One can also ask a nearby MSME office about funding opportunities and government provisions.

Outline an effective business plan

Preparing a well-planned business model will be the first step if you don’t have a penny to execute but have an effective business idea. Today there are enough primary or private equity firms looking for investments in the next big thing. Thus, preparing a well-laid plan to bid presentation and express the business idea with potential investors and friends is essential. Platforms like Tiecon,CII or FICCI conduct regular presentation setups for exposure to potential investors. 

Frequently Asked Questions (FAQs)

What are three common start up costs?

The primary three startup costs include startup insurance fees, legal fees and registration or incorporation charges. 

How much capital is required for a startup?

The authorized capital of any company is usually rs. One lac allowed for share capital which can be increased anytime with shareholders’ approval.

Can I start a startup alone?

Why not? Go ahead. According to the Companies Act 2013, an individual can establish a company with a sole member and one director. They can be the same person.

What is the minimum investment for a startup in India?

It can be as low as a few thousand rupees to a couple of lacs depending upon the size and nature of the business model.

Conclusion

Registering as a startup legally in India is a very smooth and affordable process. The registration fees are reasonable; most of the process can happen without additional costs. However, it is advised to register a startup in a government portal to legalize and procure the benefits provided to startup ventures by the government.

Recommended Articles

Effect Of GST On Gold Price (2023 Effect)

How to Change Address on GST Portal (With Pictures)