Registering your Pvt Ltd company is important to earn legal recognition and credibility for your business. To do so, you need to understand the government fees involved in registration. You might be thinking that registration is fixed across India. Government fees change from state to state due to differences in stamp duty and filing charges.
In this article, we’ll give you a detailed breakdown of the government fee structure for registering your Pvt Ltd company in Bangalore. Plus, we have covered hidden charges and cost-saving tips to plan your budget accordingly. Let’s get started!
Detailed Pvt Ltd Company Registration Govt Fees in Bangalore
Here's Why You Should Register A Pvt Ltd Company in Bangalore -
- Limited Liability Protection: Your personal wealth (house, car, savings) is protected from business risks and liabilities. If the company faces debt or legal issues, your assets remain safe.
- Credibility & Trust: A registered company seems more professional to clients, investors, and partners compared to a single proprietorship or unregistered business.
- Access to Funding & Loans: Banks, Investors, and venture capitalists prefer funding registered companies. You can raise equity, apply for business loans, or attract investment more easily.
- Continuity: A government-registered Pvt Ltd company continues to exist even if the director changes. The company remains unaffected even by the owner’s resignation or passing.
- Tax Benefits: The company can take advantage of corporate tax benefits, deductions, and exemptions that are not available to individuals or sole proprietors.
- Brand Security: Registering your company ensures legal rights to your brand name, protecting it from unauthorized users or competitors.
- Business Expansion: For a legally registered company, scaling operations, hiring employees, and dealing with high-ticket clients or global markets is easy.
You can check out more solid reasons about why choosing Bangalore to set up new business is the best decision.
Pvt Ltd Company Registration Govt Fees (For Bangalore-Based Companies)
Before registering your private limited company in Bangalore, you must be aware of the government fees involved in making a budget-friendly decision.
Here’s the detailed breakdown of the Legal Registration Expenses for Pvt Ltd in Bengaluru –
1. Digital Signature Certificate (DSC) Fee
- Each proposed director of the company must obtain a Digital Signature Certificate (DSC) to sign e-documents.
- The cost per signature certificate ranges between ₹2000 and ₹3000, depending on the agency that certifies the certificate and its validity period.
2. Director Identification Number (DIN) Fee
- All the directors of your company must obtain a DIN (Mandatory).
- The application fee costs ₹500 per director.
3. Name Reservation Fee (RUN Application)
To reserve your company’s name, you must file the RUN (Reserve Unique Name) application, which costs ₹1000.
4. Stamp Duty Charges
- Stamp duty differs by state and is based on the state’s maximum share limit.
- In Bangalore (Karnataka), the stamp duty for a company with an authorized capital of ₹1 lakh is approximately ₹11,000.
The Stamp duty cost breakdown is as below –- Memorandum of Association (MoA) – ₹5,000/-
- Article of Association (AoA) – ₹5,000/-
- Additional charge of ₹1,000/- for every 5 Lakh of authorized capital.
5. MOA and AOA Filing Fee
- The MOA (Memorandum of Association) and AOA (Articles of Association) documents must be obtained to ensure the authenticity and legality of your company.
- These documents represent your company’s scope of operations and internal regulations.
- For an authorized capital of ₹1 lakh, the filing fee is around ₹1000.
6. SPICe + Form Filling Fee
- Filling the SPICe + form is important for company incorporation with the ROC (Registrar of Companies)
- For companies with an authorized capital of up to ₹1 lakh, the government filing fee is approximately ₹1000.
Side Note:
Through the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form, the government waives the basic company incorporation fee for registering your private limited company. For more deeper insights into Pvt Ltd characteristics, refer our guide linked here.
However, other mandatory costs, such as DSC, DIN, RUN, and stamp duty, are still applicable and must be paid to complete the registration process.
Here’s the table summarizing the total government fee for authorized capital of ₹1 lakh.
Fee Category | Fee in Rupees |
Digital Signature Certificate | 2,000 – 3,000 |
Director Identification Number | 500 |
Name Reservation (RUN) | 1,000 |
Stamp Duty (Karnataka) | 11,000 |
MOA & AOA Filing | 1,000 |
SPICe + Form Filling | 1,000 |
Total | 16,500 – 17,500 |
Note:
- The total cost may vary depending on the number of directors and the chosen certifying agency for DSC.
- Plus, you don’t have to get a notary to verify the documents or provide a sworn declaration – This is eliminated in Karnataka.
Additional Charges for Pvt Ltd Registration
Professional Fee: Hiring a professional for assistance can cost you based on company size, location, and their expertise. You can hire Chartered Accountants, Consultants, or Company Secretaries.
Their approximate charges are:
- Chartered Accountants: ₹5,000 and ₹20,000.
- Consultants: ₹5,000 and ₹15,000.
- Company Secretaries: ₹10,000 and ₹30,000.
We suggest our readers opt for consultants, as it’s an economical option. Hire Actax India consultants for business registration.
Hidden Cost Apart From Government Charged You Might Face While Registering Your Pvt Ltd Company
Apart from the standard government fee, here is the list of hidden charges you might not have expected:
- Annual Filing Fee: The Additional annual filing fee costs between ₹500 and ₹5,000.
- GST Registration: GST registration usually costs between ₹1,000 and ₹2,500.
- PAN & TAN Application: Applying for PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) is essential for tax purposes. The cost ranges from ₹100 to ₹300 per registration.
In the long run, these registrations are also important to keep your business functional and compliant.
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Comparison of Pvt Ltd Company Registration Govt Fees: Bangalore Vs Mumbai
Due to the higher stamp duty of ₹20,000 in Mumbai (Maharashtra), private limited company registration in Mumbai can cost around ₹25,500 to ₹26,500.
In Bangalore, the cost ranges between ₹16,500 and ₹17,500 with a stamp duty of ₹11,000. Due to lower stamp duty, Bangalore tends to be the cost-effective option for registering your private limited company.
Not to mention that Bangalore offers a startup-friendly ecosystem, the best consultants, and networking opportunities to register your private limited company in Silicon City.
Explore this extended guide on why Bangalore is the best city for company registration to get deeper insights on the Bangalore startup dynamics!
Cost Saving Tips to Minimize Your Pvt Ltd Company Registration Govt Fees
Some of the practical tips to save money when registering your private limited company are:
- Choose Online Registration: Complete all the registration processes online. This reduces paperwork costs and courier charges. Even the MCA encourages online company registration in India.
- Seek Consultant Guidance: Hire an expert consultant who’ll handle all the bookkeeping and compliance processes.
Note: Opt for a single consultant who can handle everything from DSC, DIN, to company incorporation. This eliminates the need to hire different professionals and pay more for each - Use Free Name Registration Tool: Before filing RUN, use the MCA’s free company name search tool. This reduces the risk of name rejection and saves you ₹1,000 for reapplying. You can learn more about how to apply for name registration in India to accelerate the process.
- Apply for PAN, TAN, & GST Simultaneously: While registering for SPICe + Form, register PAN, TAN, and GST at no extra fee. This saves an additional processing fee, which you must pay if you apply later. You can opt for the Company Registration Packages offered by Actax India.
- Stay Updated on Government Fee Revisions: MCA occasionally revises the fee structure involved in company registration, so always stay updated and check the website before proceeding to pay.
Next Steps: Consult Experts To Legally Incorporate Pvt Ltd Company in Bangalore
Registration costs of your Pvt Ltd company might overwhelm you at first, but they are essential for ensuring legal compliance and smooth business operations.
Get your Pvt Ltd Company Registered with Actax today. We handle the entire process, right from document signing by the client to document approval by the government authority. Plus, we offer company registration packages that can be customized based on your business model and needs.
