incorporation

This query is : Resolved

Share Report Follow Query Ask a Query

jobin jj

jobin jj (Querist)
Follow

03 March 2017 How much cost for incorporation of a company ?

Ruchi

Ruchi (Expert)
Follow

03 March 2017 Private limited or public limited company?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now