Understanding Private Limited Company Registration Fees in India

28 March 2025

Do you want to register your private limited company but don’t have any idea about its overall cost?

After reading this blog, you will get the answer to all burning questions relating to registering this company. Let’s share every detail that can introduce you to challenges and the exact cost of registering it. 

However, registering a Private Limited Company in India is a strategic decision. Entrepreneurs deeply think of certain aspects like limited liability, a structured corporate framework, associated fees, and the process to register it. These are crucial aspects for compliance and financial planning. Let’s get started to introduce you to them one by one.

Overview of Private Limited Company Registration

A private limited company is one of the most recognized business types in India. Entrepreneurs choose it for leveraging its benefits, covering limited liability protection, ease of raising capital, and ongoing succession. According to a reliable source, a total of 2,805,354 companies were legally registered in the country as of 31st January, 2025. Out of this figure, 65 percent, or 18,172,222 companies, are still active. And a major share of these registrations goes to private limited companies, which makes it a popular choice.

Key Components of Registration Fees

Formally, every state follows its own laws and regulations. Considering the cost of its registration in India, multiple components help in defining it. However, many consulting companies add on their consultancy charges. Their cost includes the following:

• Name Reservation Fee: Before registration, the name of the company must be secured. So, the owner decides on a unique company name to register it through the RUN or Reserve Unique Name form. This service costs ₹1,000 per submission.
• Director Identification Number (DIN): Now that the name is secured, each proposed director must be formally registered. So, they must have a DIN, or Director Identification Number, which can be obtained by filing Form DIR-3. However, its fee may vary. Generally, it’s ₹500 per director.
• Digital Signature Certificate (DSC): A DSC is something you cannot skip. It is mandatory to get it for online documentation of company registration. The cost is variable, which can be between ₹1,000 and ₹2,000 per director. The variation can be seen because of the class of the certificate and certifying agency.
• Stamp Duty: It’s a state-specific charge, which is imposed on the incorporation documents. The state of incorporation and the authorized capital impact its overall fee. Let’s say the stamp duty cost in Maharashtra is ₹1,000 for authorized capital up to ₹100,000.
   
• Form SPICe+ Filing Fee: The next cost is associated with the form SPICe+. The Simplified Proforma for Incorporating Company Electronically Plus (SPICe+) is a must to file for its registration, which requires details on the authorized capital:
  • If it’s up to ₹15,00,000, the fee will be ₹500.
  • If it’s above ₹15,00,000, the related fee will cost ₹500 plus ₹300 for every additional ₹10,00,000 of authorized capital.
     
• PAN and TAN Application Fee: The Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) are must-have documents for a company to ensure tax compliance. To get these cards, you have to pay a combined application fee of ₹131 (₹66 for PAN and ₹65 for TAN).

Additional Considerations

The entrepreneur may have to pay out additional charges for professional assistance from expert CAs or consultants. 

• Professional Fees:

Here, the professional fee is associated with chartered accountants or company secretaries. They provide ongoing support to remove hassles in the company registration process, which costs extra. Typically, their support fee ranges from ₹5,000 to ₹15,000, which again depends on the complexity involved in the registration process.
 

• Miscellaneous Expenses: In case of missing authentic documents, some fees related to notarization, office expenses, and other incidental costs can be added, which may vary.
   

Step-by-Step Registration Process

Now that you have an estimate of cost, let’s explain the registration process of a private limited company below:

1. Obtain Digital Signature Certificates (DSC): To begin with, the proposed directors must obtain a DSC to carry on the process of electronic document submission.
2. Apply for Director Identification Number (DIN): For DIN procurement, you need to fill out the FORM DIR-3. This is necessary for all proposed directors.
3. Name Reservation: Reserve the name of the company by submitting the RUN form on the MCA portal.
4. Prepare Incorporation Documents: In order to define the scope and internal workflow, the Memorandum of Association (MOA) and Articles of Association (AOA) are fundamentally required for a company. They help in ensuring legal compliance and seamless business operations. 
5. File SPICe+ Form: Duly fill and submit the SPICe+ form along with the outlined MOA, AOA, and other required documents.
6. Obtain PAN and TAN: Finally, apply for the company’s PAN and TAN by filling the SPICe+ form. 
7. Certificate of Incorporation: Once everything goes fine, the Registrar of Companies finally issues the Certificate of Incorporation. Its issuance signifies the company’s legal existence. 

Conclusion

Registering a Private Limited Company in India involves various fees and adherence to procedural requirements. Entrepreneurs should be aware of these costs and the registration process to ensure compliance and effective financial planning. Consulting official resources and engaging professionals can facilitate a smooth incorporation process, paving the way for successful business operations.