What is the procedure to register a startup company in India and how much will it cost?

by Gaurav Bansal Company Registration Consultants in Delhi

Every person desiring to register a start company in India will have to obtain the company registration in India.  There are number of business structures in India that can be chosen by the business owner like the private limited company, public company, limited liability partnership, one person company etc.

The startup is a business structure that is formed by the individual or group of individuals in order to provide certain goods and services and earn profit out of it.  A newly formed business structure is considered as startup for the first five year of its incorporation.  For registering a startup first thing the entrepreneur is required to do is to choose a best suitable business structure for himself. There are multiple kinds of business structure option available like the private limited company, public limited company, one  person company, limited liability Partnership etc.  Before making a choice the benefits and the disadvantages associated with both of these structures must be evaluated.   However, structure that is suitable for every kind of startup is the private limited company. This is because the private company provides the flexibility and multiple other benefits to the owner. Through the course of this article we take a look at the procedure of registering a startup in India and the cost involved in each step.

Documents Required

Before moving forward with the process of startup registration in India there are certain documents that are required to be submitted by the applicant. Here is the list of all the documents required for Private Limited Company registration-

·         Self-attested PAN card copy

·         One (Color) Photograph

·         Self-attested copy of any one of the Identity Proof like Driving License, Passport or Voter ID.

·         Self-attested copy of any one of the Address Proof like Bank Pass Book/Bank Statement, Telephone Landline Bill/ Mobile Bill or Electricity Bill.

·         For the Company Address proof Electricity Bill, Telephone Bill, Mobile Bill or Gas Bill AND Rent Agreement (If Rented) AND NOC for doing Business & for taking Registration.

Process and cost of Private limited company registration

Obtaining DSC-To begin the procedure all the proposed  directors and the subscribers to the memorandum of association are required to obtain the digital signature certificate by making an application to authorized agency. The cost of one DSC is 500 as in private limited company minimum 2 directors are required the cost will come out to be 1000 Rs. However, this cost will increase if the number of directors is more.

Getting the directors identification number- Further, the directors of the company are mandatorily required to obtain the DIN number.  The fee for DIN is also 500 each that again makes is 1000 for two directors.

Filing the reserve unique name form- The approval for the name of the company can be obtained by filing the reserve unique name form with the ministry of corporate affairs. In this form the applicant is empowered to provide any two name choices. The fee for filing this form is INR 1000.

Submitting the incorporation forms- This is the final step for the company registration process in India. In this step the three incorporation form like the SPICE INC-32, MOA INC-33 and the AOA INC-34 are to be submitted with the ministry. The exact cost in this will depend upon the state of registration and the authorized capital thus it varies from case to case.  You can check the exact cost at the ministry of corporate affairs portal. The approximate cost involved in this step will be around 1000 including the PAN, TAN the stamp duty and notary charges.

Getting the certificate of registration- If the ministry is satisfied with the application made it will finally register the startup in India and the certificate of incorporation will be generated.   

One important thing to be noted here is that the mentioned cost is just the government fee for registration of startup in India. But there is also the professional cost for the registration of startup that will depend upon the professional chosen by you. Thus, the exact cost of registration will be around INR 6000 to 7000.

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Created on Oct 30th 2018 02:28. Viewed 291 times.

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