Introduction
India is one of the most rapidly growing economies and offers a dynamic environment for entrepreneurs. For many startups and small businesses, registering as a Private Limited Company (Pvt Ltd) is the preferred legal structure. It provides credibility, attracts investors, ensures limited liability, and aligns with global business norms.
However, a critical factor for any entrepreneur is understanding the cost involved in starting a private limited company in India. This article breaks down every component—mandatory fees, optional charges, government duties, professional costs, and other hidden or periodic expenses. Whether you’re a first-time founder or a seasoned entrepreneur, this detailed guide will help you budget efficiently for incorporation and beyond.
1. What is a Private Limited Company?
A Private Limited Company is a privately held business entity with limited liability and restricted ownership. It must have:
- A minimum of 2 directors and 2 shareholders
- A maximum of 200 shareholders
- Mandatory regulatory compliance under the Companies Act, 2013
It is the most common business structure for startups due to its legal recognition, scalability, and investor friendliness.
2. Key Requirements for Incorporation
Before diving into costs, here are the primary prerequisites:
- Minimum 2 Directors (at least one Indian resident)
- Registered office address in India
- Digital Signature Certificates (DSC)
- Director Identification Numbers (DIN)
- Company name approval
- Memorandum of Association (MoA)
- Articles of Association (AoA)
Each of these steps incurs specific costs, which we’ll now break down in detail.
3. Total Cost to Start a Private Limited Company
The cost of starting a Private Limited Company in India typically ranges from ₹6,000 to ₹35,000 depending on:
- Professional fees (chartered accountant, company secretary, or legal consultant)
- Authorized capital
- Government and stamp duties
- Number of directors
- State in which the company is registered
Let’s analyze the full cost structure below.
4. Government Fees Breakdown
A. Digital Signature Certificate (DSC)
Each proposed director must have a DSC for e-signing documents on the MCA portal.
| Number of Directors | Fee per DSC | Total Cost |
| 2 (minimum) | ₹1,000 – ₹1,500 | ₹2,000 – ₹3,000 |
Note: DSC is valid for 2 years and can be renewed.
B. Director Identification Number (DIN)
DIN is allotted while filing SPICe+ (Form INC-32). There’s no separate fee, but professional charges may apply.
| Particular | Cost |
| DIN (per director) | Nil (included in SPICe+) |
C. Name Reservation Fee (Optional)
Name reservation is done through Part A of SPICe+. You can directly apply without reservation, but reserving the name first ensures brand protection.
| Action | Fee |
| Name reservation (RUN service) | ₹1,000 per submission |
D. Incorporation Filing Fee
Incorporation is done via SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus), and the fee depends on the Authorized Share Capital and State of Registration.
| Authorized Capital | Government Fee |
| Up to ₹1 lakh | Nil |
| ₹1 lakh to ₹5 lakh | ₹1,000 – ₹2,000 |
| Above ₹5 lakh | ₹3,000 and upwards |
These figures may vary with stamp duty applicable in different states.
E. PAN & TAN Application
Included in SPICe+ filing.
| Action | Fee |
| PAN & TAN (combined) | ₹131 |
F. Stamp Duty (Varies by State)
This is the duty on MoA and AoA, and depends on authorized capital and state:
| State | Approximate Stamp Duty |
| Delhi, Maharashtra | ₹1,000 – ₹5,000 |
| Tamil Nadu, Karnataka | ₹1,000 – ₹3,000 |
| Others | ₹500 – ₹1,500 |
5. Professional Fees
Most entrepreneurs seek assistance from a Chartered Accountant (CA) or Company Secretary (CS) to ensure smooth registration and compliance.
| Service | Cost |
| Company registration package | ₹3,000 – ₹15,000 |
| Package includes: | Name reservation, DSC, DIN, SPICe+, PAN/TAN, MoA/AoA, filing |
Tip: Online platforms like Vakilsearch, LegalRaasta, IndiaFilings, and CA firms offer end-to-end registration packages starting at ₹4,999.
6. Cost Summary Table
| Particular | Estimated Cost (INR) |
| DSC (2 directors) | ₹2,000 – ₹3,000 |
| Name Reservation (optional) | ₹1,000 |
| Government Filing Fee | ₹0 – ₹5,000 |
| PAN & TAN | ₹131 |
| Stamp Duty | ₹500 – ₹5,000 |
| Professional Fee | ₹3,000 – ₹15,000 |
| Total (Approx.) | ₹6,000 – ₹30,000 |
7. Other Post-Incorporation Costs
Once incorporated, a Private Limited Company incurs several other costs for compliance and operations.
A. Statutory Auditor Appointment
Within 30 days of incorporation, a statutory auditor must be appointed.
| Cost | ₹5,000 – ₹25,000/year (varies with CA and business size) |
B. GST Registration (If applicable)
Mandatory if turnover exceeds ₹40 lakhs (₹20 lakhs for services in some states), or if doing interstate business.
| Cost | Nil (Government fee) + Professional fee (₹1,000 – ₹3,000) |
C. Business Licenses (If applicable)
- FSSAI license for food businesses
- Shop & Establishment license
- Import Export Code (IEC)
- Trade license
| License Type | Cost |
| Shop License | ₹500 – ₹2,000 |
| FSSAI License | ₹100 – ₹7,500 |
| IEC Code | ₹500 |
| MSME Registration | Free |
D. Annual Compliance Costs
A Pvt Ltd company must file several annual returns and hold board/general meetings.
| Compliance | Estimated Cost |
| ROC Filing | ₹1,500 – ₹5,000 |
| Auditor’s Report & ITR | ₹5,000 – ₹15,000 |
| DIR-3 KYC, MGT-7, AOC-4 | ₹2,000 – ₹5,000 |
| Total Annual Compliance | ₹10,000 – ₹30,000/year |
8. Hidden & Miscellaneous Costs
- Notarization of Documents: ₹200 – ₹1,000
- Courier/Postage (for physical filing or communication): ₹300 – ₹500
- Bank Account Opening: Some banks may require minimum deposits or processing fees.
- Website & Branding: Domain (₹500/year), hosting (₹2,000/year), logo (₹1,000 – ₹5,000)
9. Example Scenarios
Scenario A: Budget Startup Registration
| Description | Cost |
| DSC for 2 Directors | ₹2,000 |
| Name Reservation | ₹1,000 |
| Govt. Filing + Stamp Duty | ₹1,500 |
| PAN/TAN | ₹131 |
| Professional Fee | ₹4,000 |
| Total | ₹8,631 |
Scenario B: Moderate Company with Consultant Support
| Description | Cost |
| DSC + DIN | ₹3,000 |
| Name Reservation | ₹1,000 |
| Govt. Filing + Stamp Duty | ₹4,000 |
| Auditor Appointment | ₹10,000 |
| GST Registration | ₹2,000 |
| Professional Fee | ₹7,000 |
| Total | ₹27,000 (Approx.) |
10. Tips to Reduce Costs
- Claim Startup/Small Business Status: Check eligibility under Startup India or MSME schemes.
- Do-It-Yourself Filing: If you’re confident, save on professional fees.
- Compare Registration Platforms: Look for offers or bundled services.
- Avoid name rejection: Conduct proper name availability search to prevent re-filing.
11. Tax Benefits for Startups
Startups recognized by DPIIT can avail:
- 3-year tax holiday under Section 80-IAC
- Angel Tax Exemption under Section 56(2)(viib)
- Fast-tracked patent and IPR filings
Registration on the Startup India Portal is free and adds to the cost-effectiveness of company formation.
12. Frequently Asked Questions (FAQs)
Q1. Can I register a Pvt Ltd company myself without a CA?
Yes, if you understand the process. However, for legal accuracy and compliance, it’s advisable to use a CA or CS.
Q2. Is there a monthly cost after incorporation?
Not mandatory, but you must incur annual compliance costs (~₹10,000+), auditor fees, and tax filing fees.
Q3. Do I need an office space to register the company?
Yes, a valid registered address is mandatory. It can be your home, coworking space, or rented office.
Q4. How long does it take to register a Pvt Ltd company?
Typically 7–15 working days if documentation is in order and name is approved in the first attempt.
Conclusion
Starting a Private Limited Company in India is a significant legal and financial decision. While the basic cost of incorporation can start from around ₹6,000, additional expenses such as professional fees, compliance, licenses, and annual obligations can bring the total startup cost closer to ₹25,000 – ₹35,000 in the first year.
Understanding each cost element empowers entrepreneurs to make informed decisions and avoid penalties or delays. With the support of startup-friendly policies and digital registration platforms, launching a registered business in India has never been more accessible or cost-efficient.
