Every business starts with an investment. Besides, you cannot earn money without placing your bets first.
In India, incorporating a limited company is a popular move for investors when starting their own businesses. This comes with a limited company registration fee, of course.
Many investors are intimidated sometimes to build their own limited company because of the substantial amount of funding needed.
The fee to be paid to register a limited company in India may vary for different reasons. However, since the Indian government eliminated the incorporation fee for the companies last year, the costs have declined substantially as well.
In addition, no minimum share capital is required now when registering a limited company. Before, the capital requirement was at least INR 100,000.
Paying Incorporation Fee Of Limited Company
You need to set aside INR 6,000 to INR 30,000 for the incorporation of your company. The amount of expenses depends on the number of directors and members, authorized capital stock and professional fees. Remember that professional fees will also be based on the nature and breadth of the transaction.
The limited company registration fee covers the services of applying via Simplified Proforma for Incorporating a Company Electronically or SPICe. This digital platform accepts the application for company name and incorporation. It also provides the director identification number, tax account number and permanent account number of the company.
With the online system in place, doing business in India is deemed easier and more efficient.
Other Registration Fees
The limited company registration fee also includes additional expenses arising from the nature of business of the company in India.
Apart from goods and services tax and value added tax application, you may also need to file the registration for professional tax, importer-exporter code, and employees’ provident fund, among others.
Potential Additional Costs
If the owners will file for changes in the company, the business will need to shell out further money. The following are the usual scenarios:
- Change in official place of business
- Change in directors
- Increase in authorized capital stock
- Increase in paid up capital stock
All these events will require additional professional fees ranging from INR 2,000 to INR 20,000.
Indeed, to be able to calculate the total limited company registration fee, you should be able to factor in the mentioned expenses. By doing so, you can better manage your budget for your business venture.
Contact the team, 3E Accounting India, for your needs in the company registration process. They offer services in India company Incorporation, accounting, audit and assurance, financial advisory and more.