Private Company Incorporation Fee and Taxes

February 13, 2017

Registrationwala

Company Incorporation is a much-needed process for establishment of any business firm. Business should be in regular interaction with a government department to run business uniformly. This is compulsory for many reasons like fundraising, financial performance, taxation information, etc.

Company registration cost is same in almost all the states in India. But, the cost of stamp duty is high in some states. Basically, this amount depends upon authorized capital.

State-wise Stamp duty for Company Registration in India

States/UT	Form(₹)	MOA(₹)	AOA(₹)
Delhi	10	200	0.15% With Max ₹25 Lakhs Of Stamp Duty
Haryana	15	60	₹60: Capital <= ₹1 Lakh ₹120: Capital > ₹1 Lakh
Maharashtra	100	200	₹1000 Per ₹5 Lakhs Of Capital Maximum OF ₹50 Lakhs Of Stamp Duty.
Orissa	10	300	₹300
Andhra Pradesh	20	500	0.15% Of Capital Minimum: ₹1000 & Maximum: ₹5 Lakhs
Telangana	20	500	0.15% Of Capital Minimum: ₹1000 & Maximum: ₹5 Lakhs
Bihar	20	500	0.15% Of Capital Minimum: ₹1000 & Maximum: ₹5 Lakhs
Jharkhand	5	63	105
Jammu & Kashmir	10	150	₹150: Capital <= ₹1 Lakh ₹300: Capital > ₹1 Lakh
Tamil Nadu	20	200	₹300
Puducherry	15	200	₹300
Assam	15	200	₹310
Meghalaya	10	100	₹300
Manipur	10	100	₹150
Nagaland	10	100	₹150
Tripura	10	100	₹150
Arunachal Pradesh	10	200	₹500
Mizoram	10	100	₹150
Kerala	25	1,000	₹2000: Capital <= ₹10 Lakhs ₹5000: Capital > ₹10 Lakhs & <= 25 Lakhs 0.5%: Capital > 25 Lakhs
Lakshadweep	25	500	₹1,000
Madhya Pradesh	50	2,500	0.15% Of Capital Minimum: ₹5000 & Maximum: ₹25 Lakhs
Chhattisgarh	10	500	0.15% Of Capital Or ₹1000, Which Is More Maximum Of ₹5 Lakhs Of Stamp Duty
Rajasthan	10	500	0.5% Of Capital
Punjab	25	5,000	₹5000: Capital <= ₹1 Lakh ₹10,000: Capital > ₹1 Lakh
Himachal Pradesh	3	60	₹60: Capital <= ₹1 Lakh ₹120: Capital > ₹1 Lakh
Chandigarh	3	500	₹1,000
Uttar Pradesh	10	500	₹500
Uttarakhand	10	500	₹500
West Bengal	10	60	₹300
Karnataka	20	1,000	₹500 For Every RS.10 Lakhs Of Capital
Gujarat	20	100	0.5% Of Capital With Maximum Of ₹5 Lakhs
Dadra & Nagar	1	15	₹25
Goa	50	150	₹1000 For Every ₹5 Lakhs Of Capital.
Daman & Diu	20	150	₹1000 For Every ₹5 Lakhs Of Capital.
Andaman & Nicobar	20	200	₹300

Need of a Company Registration

The company needs a license to offer certain services. This is a legal norm which is not only followed by a private limited company but by all types of companies.

GST registration is compulsory to charge tax from customers. When a company's turnover crosses a certain amount then in selling goods they charge sales tax (requires sales tax registration).Deduction of professional tax also needs registration. Licensing is necessary under Shops & Establishment Act and in Import and Export, you need code of Import and Export.

Mandatory Compliance

Mandatory compliance involves a lot of declaration to the Ministry of Corporate affairs. In a new company there are some processes like drafting of the board meeting, filing financial directors, return file and much more. These jobs do not require much effort but summing up these activities need a huge effort.

Mostly it cost Rs. 22,000. Annually, but it costs more with a local Company Secretary.

Accounting & Auditing

Maintaining Books of account is a regular process for every company. There is a variation in charges according to the entries. Most probably it costs Rs.5000 per month. In Proprietorships and Partnerships, this process is not mandatory but, in private limited companies, it is necessary.

Mostly, it costs Rs. 5000 a month for accounting and at least Rs. 20,000 for auditing.

Miscellaneous Compliances

The Ministry of Corporate affairs keeps track of all the aspects of business. Change in business structure for example, adding or replacing the director or investor. Small Companies do not hire Company Secretary but there are some fees which need to be paid like professional fee or government fee.

Mostly professional costs from Rs. 2000 to Rs. 4000 and also the government in addition, which vary.