Is Company Registration Now Free of Cost?

Setting up a business opens new doors of opportunity to the companies. In India, there are different types of companies such as Private Limited, One Person Company, Limited Liability Partnership, Small Finance Company, etc. The companies need to register themselves with the related authorities and have to bear the cost of registration. 

On January 26th, 2018, the government waived the registration fees for the OPC and small companies whose nominal share capital is less than or equal to Rs.10,00,000. But now, there are no rules like this, every company has to pay the required government fees. Check the fee details below:

Inspection of Company / LLP Documents

• Viewing Company Documents on Portal – Rs 100 per Company
• Viewing LLP Documents on Portal – Rs 50 per LLP

Certified Copy of Company / LLP Documents

• Certificate of Incorporation – Rs 100 per copy
• Certificate of Incorporation / Conversion for LLP – Rs 50 per copy
• Any other public document – Rs 25 per page per document
• Any other LLP document – Rs 5 per page per document

Transfer Deeds

• The nominal Face value of shares is up to Rs. 5000 – Rs 50 per deed
• The nominal Face value of shares is more than Rs. 5000 – Rs 100 per deed

What is the Cost of Formation of a Company?

To check the cost of forming a company or LLP follow the below-written procedure:

• Visit the MCA official website.
• Click on MCA Services then Fees And Payment Services and then Enquire Fees.
• A page will appear to calculate the fees, and there two options are given to calculate the fees. The options are company or LLP, choose the option for which you want to calculate the registration fees.
• In the case of LLP, select the LLP form, fill in the contribution, and click on Calculate Fee. The Rates of Stamp Duty will appear on the screen.
• In the case of a Company, choose the form and then the required field. The fields will change as per the Form you choose. For example: if you choose the SPICe+(INC-32) form then fields like authorised capital, number of members, state, and purpose of filing will show. 

Factors Include in Company Registration Fees

In the registration of a company, several factors are included in the fees. These factors are as follows:

DSC and DIN Fees

The Director Identification Number (DIN) is a must to have for all directors and the Director Signature Certificate (DSC) is needed to identify the authenticity of online documents. The pricing of DSC includes the cost of a medium, the cost of issuance of DSC and the renewal cost after the period of validity. 

The company representatives and professionals required to obtain DSCs are free to procure the same from any one of the approved Certification Agencies as per the MCA portal. The issuance costs to each Agency vary and are market-driven.

Stamp Duty for MoA and AoA

This stage involves a stamp duty for the Memorandum of Association (MoA) and Article of Association (AoA). These documents define the company’s objectives, rules and regulations and once this document is drafted. It has to be stamped by the public notary for which stamp duty charges and notary fees must to paid. Companies getting incorporated through SPICe+ with an Authorised Capital of up to INR 15,00,000 would continue to enjoy a ‘Zero Filing Fee’ concession.

Application and Documents Filing Fees

The application must submit to the authority with the required documents in digital format. In this stage, the fees will pay based on the authorised capital. You can pay the fees, no matter what your authorised capital is.

Post-Incorporation Compliance Fees

After the company is registered, certain compliance requirements must fulfil such as obtaining a Permanent Account Number (PAN), Tax Deduction and Collection Account Number (TAN) and Goods and Services Tax (GST). The fee payable for PAN is Rs. 66 and for TAN is Rs. 65. A consolidated challan is generated at the time of filing SPICe+(INC-32) which will contain applicable fees of Form fee, MoA, AoA, PAN and TAN.

Bank Account

Lastly, opening a bank account on the company name is required. However, at this stage, there are no government fees. You have to pay the charges to the bank for maintaining the account. 

Conclusion

To conclude, in the registration process of a company or any other entity, you have to bear the charges based on your company’s authorised capital. However, there are other factors as well that decide the change in the stamp duty such as the city or state, incorporation of a company as OPC or small company, and section-8 company or not. All the fees mentioned in the article are as per the MCA website, for any update check the MCA offical website.

To know all the details of  registering a company in one place, without wasting time in research. Reach out to Registrationwala, we assist you with fees, application, documents and finally obtaining a license.

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.