Select Your Location
Registering a private limited company was complex process prior to 2018. in 2018 after RUN form the MCA has simplified the registration process. In this article, we will discuss the cost to operate Private Limited Company Registration and procedure for company registration.
Table of Contents
Companies Act 2013 has been passed by the parliament in which various amendments related to the corporate affairs are made. Although a private limited company has similar characteristics like that of a Limited liability partnership, it should have a minimum of 2 members which can go up to 200 members. However, the liability of the members is limited. A private limited company should have a minimum of 2 directors and a maximum of 15 directors. For its legal registration, a minimum of 2 shareholders is a must.
You need to register a private limited company, if you are willing to start a business, in going concern, You need to inform to the Ministry of Corporate Affairs for every small change in MOA & AOA. Let’s find the cost attached to start and run and also the requirements of the private limited company.
The cost of Company Registration has reduced in India in 2018. The company registration procedure very complex prior to 2018. The company registration cost in India is the same across all states except Madhya Pradesh, Punjab, and Kerala. Stamp duty rates are much higher in these three states. there are no ROC Fees incorporate a private limited company with a minimum authorized share capital of INR 10 lakh. there is Stamp duty in states mentioned above, on an average Private limited company registration cost in the INR 14,000 to INR 20,000. You need legal help from the chartered accountants or CS, and their charges may vary depending on their experience and expertise. If you get this done in online the charges may be lower, and it can start from INR 7,000.
Cost: For authorized capital, the one- time cost will be around INR 14,000 for INR 10 lakh of authorized capital
The government requires the license number for all the business. GST Registration is necessary, if you sell goods or services to the customer, then you must charge good & service tax to the customers when your turnover Exceed Rs. 20 Lac in a financial year. For selling goods the company must need GST registration. you may need to apply for MSME Registration to avail benefits of startup India initiative.
Every company must make a whole bunch of declaration to the Ministry of Corporate Affairs. If you have a new company, then draft the minutes of the board meeting, hiring an auditor and much else. It is a small job when taken individually, but it is time-consuming when seen as a whole.
Cost: Online legal companies will do this for INR 15,000 per year including government fees, but it will double in case service taken from local CA/CS.
Accounting is not necessary for a private limited company. All companies need to maintain their books, let’s consider anyway. Depending upon the entries the charges may vary, it usually starts from INR 2500.
Auditing is done once in a year, and it is mandatory
Cost: The minimum cost for accounting is INR 2500 for a month, and auditing minimum cost is INR 15,000
The company needs to be informed by the Ministry of Corporate Affairs when you make changes in the structure of the business. If a director is added or replaced and when the company shifts to a new place it has to be informed to MCA. Each of these will cost money.
Cost: The cost of a provisional fee is INR 1500 to INR 2000.
Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.
The main idea of CDS, which was initially to give banks a way to transfer credit exposure, has...
Black money has been the subject of heated political debate in India for a long time. Successiv...
The Apex Court pronounced a judgement in the case titled Tata Motors Vs The Brihan Mumbai Elect...
Since economies are moving towards digitalisation and making it feasible to conduct transaction...
The Alternative Investment Funds (AIFs) Pro-rata and Pari-Passu Rights Proposal Consultation Pa...
The Financial Action Task Force, i.e. FATF (the Force), is the global money laundering and terr...
Advance tax refers to the payment of the tax liability before the end of the relevant financia...
On 11.12.15, the Hon’ble Delhi High Court (HC) pronounced a landmark judgement in the case ti...
Money laundering can be defined as the process of illegal concealment of the origin of money ob...
Every assessee in India is obligated to file an income tax return and make the timely payment o...
Are you human?: 8 + 7 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Private Limited Company, is the best corporate structure to start your own business. Private Limited Company will b...
19 Sep, 2017
Section 184 of the Companies Act, deals with the Disclosure of Interest by Directors. The main purpose of this sect...
31 Aug, 2019
Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten, Salesforce.com, Xiaomi and YouTube would change the way we live and work.
Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.
Stay updated with all the latest legal updates. Just enter your email address and subscribe for free!
Chat on Whatsapp
Hey I'm Suman. Let's Talk!