Government Fees for Company Registration in India

Government Fee for Private Limited Company Registration

By Online Legal India Published On 09 Jun 2022 Updated On 04 Jan 2025 Category Private Limited Company

Planning, developing, and creating a new business is the most crucial step for any entrepreneur. More significantly, in order to enter the market, the individual must be prepared to fulfil all legal requirements. A private limited corporation (PLC) is a privately held small business. The members of a Private Limited Company are only responsible for the number of shares they possess. Shares in a private limited company cannot be traded publicly. Any type of business, such as a carpenter, barber, photographer, doctor, dentist, lawyer, or driving instructor, can register a private limited company. A private limited company's proprietors are called shareholders.

Government Fee for a Private Limited Company Registration

The government fee for private company registration in India is determined by a variety of factors. Previously, the authorised share capital with which a private limited company was registered as one of the most important considerations. However, now that there is no minimum share capital requirement and the government has abolished the government charge for company registration in India as of January 26, 2019, the cost of forming a business has been dramatically lowered. However, even once the business is registered, running it is a process that takes a significant amount of time and money.

Registration Fees of a Private Limited Company

A private limited company's registration fees are separated into many pieces, and they might differ from state to state.

The company registration fee structure is broken into the following sections:-

For all of the directors of the company and stockholders, a digital signature certificate is required. The Controller of Certification Agencies issues DSCs for electronic authentication. You may also send a Digital Signature Certificate (Class III) if they already have one.

SPICe+Part A forms are an optional step in the SPICe+Part A process. This form may be used to reserve a unique name for your company. You have two options for names in this form. A fee of INR 1,000 is required for each submission. You can resubmit your application if none of the two options is available.

SPICe+Part B- Information about the company's directors and shareholders may be found on the SPICe+Part B- form. Share capital subscription, PAN, stamp duty, and TAN are also included. National Securities Depository Limited issues PAN and TAN. The price is INR 131. The amount of stamp duty that must be paid varies depending on the state and authorised capital.

The Government fee for company registration is Rs.1600/- (in general but it may vary from state to state)

Mandatory Compliances

From the moment of its establishment, the Private Limited Company is obliged by specific Ministry of Corporate Affairs compliances, such as making certain declarations, informing the appointment of an auditor, minutes of board meetings, yearly director filings, and so on. A Private Limited Company must accomplish a certain number of compliances within a certain amount of time.

Table of the Compliances

Mandatory Compliances	Definitions & Timelines
Filing of Disclosure of interest by directors	Every director at the first meeting in which she/ he participates as a director; or the first meeting of the Board of Directors in each fiscal year; or whenever the disclosures change. Shall report his concern or interest in any business, body corporate, firm, or other association of persons in Form MBP1 (together with a list of relatives and concern of relatives in the Company as defined by RPT) (including shareholding interest). Form MBP1 must be preserved in the company's records.
First Auditor	Within thirty days of incorporation, the BOD shall designate the company's first auditor, who will serve until the end of the first annual general meeting. The submission of ADT-1 is not required in the case of the First Auditor.
Subsequent Auditor	In the first AGM of the company, the BOD shall appoint the auditor, who shall retain office until the end of the sixth AGM, and shall notify the ROC by submitting ADT-1. The corporation, not the auditor, is responsible for filing Form ADT 1 within 15 days after the auditor's appointment.
First Board Meeting	The very first meeting of the Board of Directors must be convened within thirty days of the company's registration. Every director shall get notice of the BM at least seven days before the meeting.
Filing of Annual Return in Form MGT-7	Within thirty days of incorporation, the BOD shall designate the company's first auditor, who will serve until the end of the first annual general meeting. The submission of ADT-1 is not needed in the case of the First Auditor.
Subsequent Board Meeting	Every year, at least four board meetings must be conducted, with no more than four months between meetings.
Filing of Financial Statements in Form AOC-4	Within thirty days of the Annual General Meeting, every Private Limited Company must file its Balance Sheet, Financial statement, and Director Report in this form.
Annual General Meeting	Every year, on or before September 30th, during business hours, on a day that is not a public holiday, and either at the Company's registered office or within the city, town, or village where the registered office is located, every company is expected to hold an Annual General Meeting. It is necessary to offer 21 clear days' notice for the same.
Statutory Audits of Accounts	At the end of the Financial Year, every company must compile its accounts and have them audited by a Chartered Accountant. To file with the Registrar, the Auditor must supply an Audit Report as well as the Audited Financial Statements.

The Government fee structure for a Company Registration is shown in the below table:

One Person Company

Nominal Share Capital	Registration Fees
Rs. 1,00,000	Rs. 5,000
Rs. 1,00,000 to Rs. 5,00,000	Rs. 5,000. For every increase of Rs. 10,000 of nominal share capital, a certain amount of Rs. 400 will be added
Rs. 5,00,000 to Rs. 50,00,000	Rs. 21,000. For every increase of Rs. 10,000 of nominal share capital, a certain sum of Rs. 300 will be added
Rs. 50,00,000 to rupees one crore	Rs. 2,06,000. For every increase of Rs. 10,000 of nominal share capital, a certain amount of Rs. 100 will be added
For more than rupees one crore	Rs. 2,06,000. For every increase of Rs. 10,000 of nominal share capital that is subject to a maximum of Rs.250 crores

Company Registration fees according to the members as stated in Memorandum of Association & Article of Association is

Members	Registration Fees
20 members declared in the Memorandum of Association	Rs. 2,000
20 to 200 members	Rs. 5,000
Crosses 200 members	Rs. 5,000. A certain sum of Rs. 10 will be added for every increase of members after the maximum of 200 to the maximum of Rs. 10,000

Fees for Recording on the ROC

Nominal Share Capital	Recording Fees
Rs. 1,00,000	Rs. 200
Rs. 1,00,000 to Rs. 5,00,000	Rs. 300
Rs. 5,00,000 to Rs. 25,00,000	Rs. 400
Rs. 25,00,000 to Rs. 1,00,00,000	Rs. 500
Rs. 1,00,00,000+	Rs. 600

Fees paid to the Government for Application

Authorised Share Capital	Fees paid to the Government
Rs. 25,00,000	Rs. 1,000 for One Person Companies & small businesses Rs. 2,000 for other companies
Rs. 25,00,000 to Rs. 50,00,000	Rs. 2500 for One Person Companies & small businesses Rs. 5,000 for other companies
Rs. 50,00,000 to Rs. 10,00,00,000	For One Person Companies & small businesses no fee is required For other businesses Rs.5,000 is charged
Rs. 10,00,00,000+	For One Person Companies & small businesses no fee is charged Rs. 20,000 is charged for other businesses

The Government fee that is charged for private limited company registration in India varies from one state to another state. It fully relies on the Government to decide the charge that will be charged as the Government fees for the registration of the company.

The above table gives a brief idea about the structure of Government fees for private Company Registration in India.

Conclusion

You may register your private company with Online Legal India in a few simple steps and for a reasonable charge. Every stage of the registration process is guided by a team of specialists. You may get advice from skilled and experienced accountants and lawyers with years of expertise in this industry. They have worked tirelessly to meet the needs of the people and have succeeded in doing so. Online legal India is always there to assist you in every manner possible so that you may receive the best services possible. The fees paid for the work are quite low and cheap.

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