What company registration actually costs in India
Quotes for company registration vary from ₹1,500 to ₹25,000 because they are quoting different things. Here is what each component actually is.
Reviewed by Vijay Dhawan, Managing Partner, LexVerge LLP · Updated 16 August 2026
The cost has three separate parts
Almost every disagreement about incorporation cost comes from mixing these together:
Government filing fee. Payable to the Ministry of Corporate Affairs. For companies with authorised capital up to ₹15 lakh, the incorporation filing fee itself is nil under the zero-fee scheme. You still pay for PAN, TAN and the digital signatures.
Stamp duty. A state levy on the memorandum, articles and incorporation form. This is the component that varies most — it differs by state and by authorised capital, and can range from a few hundred rupees to several thousand.
Professional fees. What the CA, CS or platform charges for doing the work. This is the only part anyone competes on, which is why quotes look so different.
What you should expect to pay
| Component | Typical range | Notes |
|---|---|---|
| Digital signatures (2 directors) | ₹400 – ₹2,000 | Class 3 DSC; token extra if you do not have one |
| MCA incorporation fee | Nil | For authorised capital up to ₹15 lakh |
| Stamp duty | ₹200 – ₹12,000+ | State-dependent; the largest variable |
| PAN and TAN | ₹200 approx. | Issued with incorporation through SPICe+ |
| Professional fees | ₹1,499 – ₹15,000 | Where providers actually differ |
For a straightforward two-director private limited company with ₹1 lakh authorised capital, an all-in figure in the region of ₹3,000 to ₹8,000 is realistic in most states, with the spread driven almost entirely by stamp duty and professional fees.
The cost nobody quotes: year one compliance
Incorporation is the cheap part. A private limited company then owes, every year: a statutory audit by a chartered accountant, AOC-4 and MGT-7A filings with the Registrar, an income-tax return, DIR-3 KYC for each director, and board and general meeting documentation.
Realistically that is ₹10,000 to ₹30,000 a year for a small company, depending on transaction volume. Founders who budget only for incorporation are frequently caught out in the second year, and the penalties for skipping it — ₹100 per day per form, with director disqualification after three years — are considerably worse than the fees.
There is also Form INC-20A, the declaration of commencement of business, due within 180 days. A company cannot legally borrow or commence business until it is filed, and it is missed surprisingly often.
Where the cheap quotes come from
A ₹999 incorporation quote is usually excluding stamp duty and government charges, quoting for one digital signature rather than two, or treating year-one compliance as a separate upsell. None of that is dishonest, but it is not comparable to an all-in figure.
When comparing, ask three questions: does this include stamp duty for my state, how many digital signatures are included, and what does the first year of compliance cost. The answers make most quotes comparable within a few hundred rupees.
Is a private limited company the right structure at all?
An LLP costs less to run — no statutory audit below ₹40 lakh turnover, two annual forms instead of a full ROC cycle. A proprietorship costs almost nothing. Neither can raise equity investment.
If you are bootstrapping a services business, the compliance saving of an LLP is real money every year. If you intend to raise from investors or issue ESOPs, a private limited company is the only sensible answer and the extra cost is irrelevant against what it enables.
Frequently asked questions
How much does it cost to register a private limited company in India?
For a two-director company with ₹1 lakh authorised capital, typically ₹3,000 to ₹8,000 all-in, depending mostly on state stamp duty and professional fees. The MCA incorporation filing fee itself is nil for authorised capital up to ₹15 lakh.
Why do quotes vary so much?
Because they include different things. Some exclude stamp duty and government charges, some quote for one digital signature rather than two, and some treat first-year compliance as a separate charge.
What are the annual costs after incorporation?
Realistically ₹10,000 to ₹30,000 a year for a small private limited company, covering statutory audit, ROC filings, the income-tax return and director KYC.
Is there a minimum capital requirement?
No. The minimum paid-up capital requirement was removed in 2015. Companies are commonly incorporated with ₹1 lakh authorised capital because stamp duty scales with it.
Is an LLP cheaper than a private limited company?
To run, yes — no statutory audit below ₹40 lakh turnover and only two annual filings. But an LLP cannot issue equity to investors or grant ESOPs, so it is unsuitable if you plan to raise funding.
Register your company
Private limited incorporation from ₹1,499 + government fees.
Official references
The statutory sources behind this page. We keep our guidance aligned to them — verify anything time-sensitive directly.
- Ministry of Corporate AffairsCompanies Act filings, forms and fee schedules
- Income Tax DepartmentReturns, forms, rates and e-filing utilities
- GST PortalRegistration, returns and rate notifications
Content on this page is reviewed by a chartered accountant or advocate at LexVerge LLP. It is general guidance, not advice on your specific facts.