incorporation
This query is : Resolved
01 August 2024
The cost of incorporating a company in India, whether it is a Private Limited Company (Pvt Ltd) or a Public Limited Company (Ltd), can vary depending on several factors such as professional fees, government fees, and additional costs. Below is a breakdown of the typical costs involved:
### Government Fees
1. **Digital Signature Certificate (DSC)**:
- Required for all proposed directors and subscribers.
- Cost: ₹1,000 to ₹2,000 per DSC, valid for 2 years.
2. **Director Identification Number (DIN)**:
- Required for all proposed directors.
- Cost: ₹500 per DIN.
3. **Name Reservation** (RUN Application):
- Fee: ₹1,000 for the submission of the RUN form to reserve the company name.
4. **Incorporation Fees**:
- SPICe+ (Simplified Proforma for Incorporating Company Electronically) form.
- Fee: ₹0 for companies with authorized capital up to ₹15 lakhs. For higher capital, fees vary according to the authorized capital.
5. **Stamp Duty**:
- Varies from state to state.
- Approximate Cost: ₹1,000 to ₹5,000.
### Professional Fees
1. **Professional Fees** (CA/CS/Lawyer):
- Fee: ₹5,000 to ₹20,000 depending on the complexity and reputation of the professional.
### Additional Costs
1. **PAN and TAN Application**:
- Included in the SPICe+ form, so no separate cost.
2. **MOA and AOA Drafting**:
- Drafting charges may be included in professional fees or separately billed.
- Approximate Cost: ₹1,000 to ₹5,000.
3. **GST Registration** (if applicable):
- Cost: Professional fees for GST registration, typically ₹1,000 to ₹2,500.
### Example Costs for Incorporation
#### Private Limited Company (Pvt Ltd)
- **Digital Signature Certificates (DSC)**: ₹2,000 (for 2 directors)
- **DIN Application**: ₹1,000 (for 2 directors)
- **Name Reservation (RUN Application)**: ₹1,000
- **Incorporation Fees (SPICe+ Form)**: ₹0 (assuming authorized capital up to ₹15 lakhs)
- **Stamp Duty**: ₹2,000 (average)
- **Professional Fees**: ₹10,000
- **MOA and AOA Drafting**: ₹3,000
**Total Approximate Cost**: ₹19,000
#### Public Limited Company (Ltd)
- **Digital Signature Certificates (DSC)**: ₹2,500 (for 3 directors)
- **DIN Application**: ₹1,500 (for 3 directors)
- **Name Reservation (RUN Application)**: ₹1,000
- **Incorporation Fees (SPICe+ Form)**: ₹0 (assuming authorized capital up to ₹15 lakhs)
- **Stamp Duty**: ₹3,000 (average)
- **Professional Fees**: ₹15,000
- **MOA and AOA Drafting**: ₹4,000
**Total Approximate Cost**: ₹27,000
### Summary
- **Private Limited Company**: ₹15,000 to ₹25,000 (approx.)
- **Public Limited Company**: ₹20,000 to ₹30,000 (approx.)
The costs can vary based on the professional you hire and specific state regulations regarding stamp duty. It’s advisable to consult with a Chartered Accountant or Company Secretary for precise cost estimation and guidance through the incorporation process.
### Government Fees
1. **Digital Signature Certificate (DSC)**:
- Required for all proposed directors and subscribers.
- Cost: ₹1,000 to ₹2,000 per DSC, valid for 2 years.
2. **Director Identification Number (DIN)**:
- Required for all proposed directors.
- Cost: ₹500 per DIN.
3. **Name Reservation** (RUN Application):
- Fee: ₹1,000 for the submission of the RUN form to reserve the company name.
4. **Incorporation Fees**:
- SPICe+ (Simplified Proforma for Incorporating Company Electronically) form.
- Fee: ₹0 for companies with authorized capital up to ₹15 lakhs. For higher capital, fees vary according to the authorized capital.
5. **Stamp Duty**:
- Varies from state to state.
- Approximate Cost: ₹1,000 to ₹5,000.
### Professional Fees
1. **Professional Fees** (CA/CS/Lawyer):
- Fee: ₹5,000 to ₹20,000 depending on the complexity and reputation of the professional.
### Additional Costs
1. **PAN and TAN Application**:
- Included in the SPICe+ form, so no separate cost.
2. **MOA and AOA Drafting**:
- Drafting charges may be included in professional fees or separately billed.
- Approximate Cost: ₹1,000 to ₹5,000.
3. **GST Registration** (if applicable):
- Cost: Professional fees for GST registration, typically ₹1,000 to ₹2,500.
### Example Costs for Incorporation
#### Private Limited Company (Pvt Ltd)
- **Digital Signature Certificates (DSC)**: ₹2,000 (for 2 directors)
- **DIN Application**: ₹1,000 (for 2 directors)
- **Name Reservation (RUN Application)**: ₹1,000
- **Incorporation Fees (SPICe+ Form)**: ₹0 (assuming authorized capital up to ₹15 lakhs)
- **Stamp Duty**: ₹2,000 (average)
- **Professional Fees**: ₹10,000
- **MOA and AOA Drafting**: ₹3,000
**Total Approximate Cost**: ₹19,000
#### Public Limited Company (Ltd)
- **Digital Signature Certificates (DSC)**: ₹2,500 (for 3 directors)
- **DIN Application**: ₹1,500 (for 3 directors)
- **Name Reservation (RUN Application)**: ₹1,000
- **Incorporation Fees (SPICe+ Form)**: ₹0 (assuming authorized capital up to ₹15 lakhs)
- **Stamp Duty**: ₹3,000 (average)
- **Professional Fees**: ₹15,000
- **MOA and AOA Drafting**: ₹4,000
**Total Approximate Cost**: ₹27,000
### Summary
- **Private Limited Company**: ₹15,000 to ₹25,000 (approx.)
- **Public Limited Company**: ₹20,000 to ₹30,000 (approx.)
The costs can vary based on the professional you hire and specific state regulations regarding stamp duty. It’s advisable to consult with a Chartered Accountant or Company Secretary for precise cost estimation and guidance through the incorporation process.
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