India is one of the preferred destinations for business due to its flexible FDI policy. With affordable labor costs, educated employees, and fluency in English, most foreigners find this an adaptable environment for their business. For those looking to register a business, the most favorable option for a business structure is a limited liability partnership or public limited company in India.
Companies find it difficult to register a business in India at first. However, once they start exploring flexible policies and market needs, one can take advantage of the enormous market demands. One will also find that a company setup in India is more affordable than in other countries. This will make it budget-friendly and avoid unnecessary registration expenses.
This article is a gateway to the cost of register a business in India. You can also learn about registration steps and how foreign investors can set up their business. These valuable insights can help companies make informed decisions and empower them to run their business confidently.
Cost to register a business in India.
Different types of company structures are suitable for small and medium-sized businesses. A private limited company is one of the most popular types, and the cost to register a business in India changes with its infrastructure type. The authorized capital, state of incorporation, and professional fees also affect the total cost of company setup in India.
Here are the costs to register a business under different business structures. Let us learn more about the cost to register a business in India in detail:
- Private Limited Company
These are regarded as separate legal entities. It includes shareholders and directors and all other people as company employees.
| Fee Type | Approximate Cost |
| Government Fees | Depending on authorized capital. Between ₹7,000 to ₹15,000 |
| Professional Fees | ₹15,000 to ₹25,000 For Professional services such as Secretaries |
| Additional Costs | The Director Identification Number and Digital Signature Certificate cost about ₹2,500 |
2. Public Limited Company
This is a voluntary association of people that is a separate legal entity. These are established under company law and member’s liability to the shareholders.
| Fee Type | Approximate Cost |
| Government Fees | Depending on authorized capital. Between ₹20,000 to ₹50,000 |
| Professional Fees | ₹30,000 to ₹50,000 |
| Additional Costs | The Director Identification Number and Digital Signature Certificate cost about ₹2,500, and the cost of compliance. |
3. Limited Liability Partnership (LLP)
LLP is a business structure under the Limited Liability Act 2008. With the Registrar of Companies (ROC), members’ contribution is limited to the amount they have agreed to.
| Fee Type | Approximate Cost |
| Government Fees | ₹5,000 to ₹10,000 |
| Professional Fees | ₹10,000 to ₹20,000 |
| Additional Costs | Digital Signature Certificate and LLP Agreement costs. |
4. One Person Company (OPC)
OPC businesses enjoy the benefits of sole proprietorship and have many features of a company. It is a business type with one member as a member/director.
| Fee Type | Approximate Cost |
| Government Fees | ₹7,000 to ₹15,000 |
| Professional Fees | ₹12,000 to ₹20,000 |
| Additional Costs | The Director Identification Number and Digital Signature Certificate cost about ₹2,500 |
5. Section 8 Company (Non-Profit)
These companies promote social welfare, education, and other charitable activities and enjoy certain tax benefits.
| Fee Type | Approximate Cost |
| Government Fees | ₹5,000 to ₹10,000 |
| Professional Fees | ₹20,000 to ₹30,000 |
| Additional Costs | The Director Identification Number and Digital Signature Certificate cost about ₹2,500, and the cost to get a license as a non-profit. |
How do I register a business in India?
Registering a small business in India involves several steps. By registering your company, you can establish a solid legal base for your business and provide compliance. Here are some of the essential steps to register a business in India:
Step 1: Digital Signature Certificate
You need to register and file forms on the MCA portals.
Step 2: Director Identification Number
This number helps identify a company’s director. You need to obtain a DIN for the director when register a business. You can apply for company registration with the DIN and address proof of the proposed directors.
Step 3: Registration on the MCA Portal
You need to submit a form after filing it at the MCA portal. The company’s director has to register the company-related documents on this portal. Only company directors can access e-filing documents and view public docs after registration.
GST Registration
Businesses with business thresholds over Rs. 10 lakh must register as normal taxable persons. Registration under GST is compulsory for some companies. You can hire an attorney or seek advice while outsourcing legal services for your business to learn more about legal complications.
Step 4: Certificate of Incorporation
The registrar will examine your registration form and other documents, verify them, and then issue a certificate of incorporation, which makes your registration official.
Can NRI register a business in India?
Business registration for foreigners and NRIs is possible in India. Company setup in India requires register a business under certain conditions and restrictions per the FDI policy. The business must be registered under legal and regulatory requirements and taxation laws. The consultant of the foreign embassy must attest to the business documents.
All these requirements seem rigid and complex at first glance. But with an outsourcing firm by your side, compliance with the latest regulations is relatively smooth. Various third-party service providers offer accounting and legal services for outsourcing and can serve your needs much more efficiently.
NRI or foreign investors cannot register a company such as a proprietorship firm, partnership firm, or a one-person company. However, they can start a business based on a public limited company, limited partnership, or private limited company. With the Company Act 2003, foreign nationals can act as company directors but must first obtain a DIN or Director Identification Number and DSC or Digital Signature Certificate.
LLC Registration in India
Limited liability company setup in India is a complex procedure. The company requires a PAN card, which makes Indian citizenship essential for the shareholders. Registration for LLC might take over 8-10 business days and longer if there are some documentation issues or changes in documents required. GSt registration might also take more than five business days to complete.
You must also have a registered business office in India and a DIN or Director Identification number. You also need various NOCs from shareholders, tax identification numbers, non-disclosure agreements, and shareholder agreements. All these documents and their verification are pretty essential but time-consuming procedures. With a legal service outsourcing company, your company setup in India can be smooth and quick.
Cost-Effective Tips For Company Setup
Company setup in India is a challenging process. It is more cost-effective than other countries but also requires some tricks to make it more budget-friendly.
Online Registration
Online registration is more affordable and quick. The fees for offline and online registration are the same, but when paperwork, transportation, and other miscellaneous expenses are added to offline visits, online registration becomes a more convenient option.
Choose the Right Professional Service
You must consult and hire an efficient, professional service provider for your accounting and legal needs. Hiring the wrong partner might slow down your registration process and adversely affect your business.
Efficient Planning And Documentation
You must prepare all documents in advance and try to complete registration in one go. This will make registration quick and easy. This will help companies avoid delays and extra costs.
Leverage Government Schemes
Many government schemes provide incentives and subsidies for the new business. You must benefit from all these schemes.
Final Thoughts
Register a business in India can be a stepping stone for your business. It can expand your business goals and explore the world with endless possibilities. India is a country with a variety and expanding economic landscape. Companies can invest and reap benefits by complying with Indian laws. Although adapting to a new country’s legal system is challenging, it is possible with the proper support.
Understanding the steps to register a business in India allows you to begin your journey and achieve your dreams. You can consult and hire expert legal accountants and booking services to streamline your business operations with VJM Global. With outsourcing services, you can fast-track your operations and minimize costs.
VJM Global can assist you with company setup in India and guide you through the steps to take during registration. With a streamlined workforce and efficient, professional services, you can excel in your business and create a brand image for your business. You can contact our services at VJM Global to shine your business and stand out from the crowd.
