Minimum Amount for Company Registration in India?

Minimum Amount for Company Registration in India

Cost of Company Registration depends upon a lot of factors. One of the most crucial factor is the authorized share capital with which the company is registered. Cost of Company Registration and Authorized Share Capital both are directly proportionate to each other.

To make the process of Company Registration cost efficient, we are required to register the company with minimum requirement.

Some factors that affect the cost of Company Registration: –

1. Initial Authorized Share Capital
2. Number of Directors
3. Stamp Duty
4. Professional Fee charged by Chartered Accountant (CA & CS)

Fee of the Chartered Accountant is the major deciding factor of the cost of company registration (private limited company).

Stage Wise Cost Distribution of Company Registration Process: –

1. Getting DSC: Digital Signature Certificate (DSC) is the most important part of Company Registration. Without this certificate, one cannot fill a single online form to register his/her company. In India DSC will cost around Rs. 1,500 to Rs. 2,000. The validity of DSC in India is of 2 years.
2. Getting DIN: The first step for Company Registration is to apply for DIN.

Your CA or CS has to electronically certify your DIN application.

DIN Application Fee: – Rs.500 per DIN

Professional Fee of CA or CS for certifying your DIN application

3. Getting Company Name Approved: The cost of approving the Company name from Ministry of Corporate Affairs (MCA) is not that significant. The entire process will cost around Rs. 1,000.
4. Registering the Private Limited Company (Pvt. Ltd.): – Registration of the Company is the final step and it would take major part of your expenses.

Earlier Limited Liability Partnership (LLP) was preferred over Private Limited Company. To start a LLP in India one requires Rs.1 as contribution whereas, to register a Private Limited Company one needs a minimum capital of Rs.1,00,000 as contribution.

Provisions after 2015 Amendment:

No minimum amount of capital is required for company registration unlike previously you need to deposit Rs.1 Lakh rupees in the company bank.

So now both Private Limited Company and One Person Company is at par with Limited Liability Partnership (LLP) when it comes to minimum capital required to register the company.

Author: This blog is written by Mr. Aman Tiwari, a passionate blogger & intern at  Aapka Consultant.

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