Charges for Company Registration in Delhi: A Comprehensive Guide by PayMyTax

Starting a business is an exciting journey, and registering your company is one of the most crucial steps in that process. In Delhi, as in the rest of India, various types of companies can be registered, each with its own set of requirements, benefits, and charges. Understanding the charges for company registration in Delhi is essential for entrepreneurs planning to start their own businesses.

This comprehensive guide aims to provide you with all the necessary information regarding the costs associated with registering a company in Delhi. We will break down the various charges involved, including government fees, professional fees, and any additional expenses you might incur. With PayMyTax, you can get expert assistance to navigate the registration process seamlessly.

Types of Companies in Delhi

Before delving into the charges for company registration in Delhi, it’s important to understand the types of companies that can be registered. The main types of companies in India include:

1. Private Limited Company (Pvt Ltd): A popular choice for startups, it limits the liability of shareholders and requires at least two directors and two shareholders.

2. Public Limited Company (Ltd): This type of company can raise capital by issuing shares to the public. It requires a minimum of three directors and seven shareholders.

3. One Person Company (OPC): A relatively new concept, OPC allows a single individual to operate a company with limited liability.

4. Limited Liability Partnership (LLP): This hybrid structure combines the benefits of a partnership and a company, providing limited liability to partners.

5. Section 8 Company: Non-profit organizations can register as Section 8 companies, which promote social causes while enjoying certain tax benefits.

Each type of company has its own unique characteristics, and the charges for company registration in Delhi may vary accordingly.

Breakdown of Charges for Company Registration in Delhi

1. Government Fees

The government fees for company registration depend on the type of company you choose to register. These fees are mandated by the Ministry of Corporate Affairs (MCA) and can be categorized as follows:

• Digital Signature Certificate (DSC): A DSC is required for all directors and authorized signatories. The cost typically ranges from INR 1,500 to INR 3,000 per certificate.

• Director Identification Number (DIN): Each director must obtain a DIN, which costs around INR 500 per director.

• Name Reservation Fee: To reserve a company name, you must pay a fee of approximately INR 1,000. This fee is applicable for both private and public limited companies.

• Incorporation Fee: The incorporation fee varies based on the authorized capital of the company. Here’s a general breakdown:

  Authorized Capital	Fee (INR)
  Up to INR 1 lakh	3,000
  From INR 1 lakh to INR 5 lakh	4,000
  From INR 5 lakh to INR 10 lakh	5,000
  From INR 10 lakh to INR 50 lakh	6,000
  From INR 50 lakh to INR 1 crore	7,000

• Stamp Duty: Stamp duty varies by state and is based on the company’s authorized capital. In Delhi, the stamp duty can range from INR 1,000 to INR 5,000 depending on the capital.

2. Professional Fees

Apart from government fees, hiring professionals for company registration can incur additional charges. These may include:

• Consultant Fees: If you hire a professional consultant or firm like PayMyTax to assist with the registration process, fees can range from INR 3,000 to INR 15,000, depending on the complexity of your requirements.

• Legal Fees: If legal assistance is needed for drafting the Memorandum of Association (MoA) and Articles of Association (AoA), additional fees may apply, typically ranging from INR 5,000 to INR 10,000.

• Accounting Fees: If you require assistance with bookkeeping or accounting services post-registration, this can add to your costs. Fees typically range from INR 2,000 to INR 5,000 per month.

3. Additional Expenses

• Bank Account Opening: While opening a corporate bank account itself doesn’t incur fees, some banks may charge maintenance fees or require an initial deposit.

• Business Licenses and Permits: Depending on the nature of your business, you may need specific licenses or permits, which can add to your overall costs. The charges for these vary widely based on industry and regulations.

• GST Registration: If your company’s turnover exceeds the prescribed limit, you must obtain GST registration, which may have additional fees depending on the consultant’s charges.

4. Total Estimated Charges

Considering all the fees mentioned above, the total charges for registering a company in Delhi can range from INR 10,000 to INR 50,000 or more, depending on the type of company, authorized capital, and professional services utilized. Here’s a simplified estimate based on a Private Limited Company with an authorized capital of INR 5 lakh:

• Digital Signature Certificate (DSC): INR 3,000
• Director Identification Number (DIN): INR 1,000
• Name Reservation Fee: INR 1,000
• Incorporation Fee: INR 4,000
• Stamp Duty: INR 2,000
• Professional Fees: INR 8,000
• Miscellaneous Expenses: INR 2,000

Total Estimated Charges: INR 21,000

Process of Company Registration in Delhi

To give you a clearer picture, here’s a step-by-step overview of the company registration process in Delhi:

Step 1: Obtain Digital Signature Certificate (DSC)

The first step in the registration process is obtaining a DSC for all directors and authorized signatories. This digital certificate is essential for online filings.

Step 2: Obtain Director Identification Number (DIN)

Each director must apply for a DIN, which can be done through the MCA portal.

Step 3: Name Reservation

Once you have the DSC and DIN, the next step is to reserve the company name through the MCA portal. This ensures that the name is unique and available for your use.

Step 4: Draft the Memorandum of Association (MoA) and Articles of Association (AoA)

Prepare the MoA and AoA, which outline the company’s objectives and internal regulations. This may require legal assistance, especially for complex businesses.

Step 5: File Incorporation Application

Submit the incorporation application along with the required documents and fees through the MCA portal. Ensure all documents are correctly filled out to avoid delays.

Step 6: Certificate of Incorporation

Once your application is approved, you will receive a Certificate of Incorporation, officially registering your company.

Step 7: PAN and TAN Application

After obtaining the Certificate of Incorporation, apply for the company’s Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).

Step 8: Open a Bank Account

With the incorporation certificate and PAN, you can open a corporate bank account for your business.

Benefits of Registering Your Company

Registering your company in Delhi provides numerous advantages:

1. Legal Recognition: Registration grants your business legal status, protecting your rights and interests.

2. Limited Liability: Company registration limits the liability of shareholders, protecting personal assets from business debts.

3. Credibility: A registered company enhances your credibility with clients, suppliers, and potential investors.

4. Access to Funding: Registered companies can access various funding options, including loans and venture capital.

5. Tax Benefits: Registered companies may be eligible for various tax deductions and exemptions.