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Cost of new Company Registration India

Find the best Cost of a New Company Registration in India. The world of doing business has changed a lot since the last decade. It has gone from being offline to online but that is a whole different story to be told. The major concern which is all over the face of the entrepreneurs is that what is the process of registering the company and what are the costs that would have to be incurred in order to register an entity and many other questions. Although it would take a huge amount of time in order to define the types of entities and each and every cost associated with each one of them. Here, in this article, we will try to give you a brief synopsis of the different types of entities under which you can register your business and also, we will cover the various cost associated with each one of them.

Cost of new Company Registration India

1. Private Limited Company:

A private limited company or LLC (limited liability company) is a type of business entity under which there is limited liability i.e. liability of the owners is limited up-to-the value of shares purchased by them. Under, this entity owners do not take participation in day to day affairs of the company, instead of representatives are chosen by them take participation in day-to-day affairs of the company. It is one of the most preferred business forms for venture capitalists and other medium-sized start-ups because of the advantages over sole proprietorship and partnership. Moreover, as the process of registration is less tiring than a public limited company, it is also sometimes preferred over it.

Cost of new Company Registration India

The members registering their company should have the following documents at hand:

  1. Identity proof of directors
  2. Address proof of directors
  3. Digital signature
  4. Passport size photograph
  5. Office address proof

The cost of registering a private limited company includes the cost of various forms and documents and also, the compliance cost. Furthermore, there is a whole process of documentation that is required to be done. Moreover, if the business of your company is related to food or the related industries than it is required to get the licensing for the concerned business too, which adds further to the cost of registering the company. No, as far as the compliance cost is concerned, the minimum cost of compliance comes out to be Rs. 30,000 per annum.

2. One-person company:

A one-person company is an enterprise where there is a single person who acts as the director of the company. It gives the concerned person full control over the operations of the company. It is the best form because of business for the people who want full control of the business. Because there is a limited liability and also there on minimum authorized capital requirement. It is registered under the Companies Act 2013 and it is a significant milestone of this Act. Because it strengthens the backbone of the business environment of the Indian peninsular. It is not similar to a sole proprietorship because under a one-person company, there is a limited liability and it is separate from the owner.

Cost of new Company Registration India

Documents required for registration a One-person company:

  1. PAN card of Director
  2. Address Proof of Director
  3. Passport size photograph
  4. Address proof of business premises.
  5. Utility bill of business premises

The annual filing of the OPC or the one-person company requires the company to file the annual return, E-Form MGT-7. It is also required to file its balance sheet, profit and loss account which should be filed with the Form AOC-4 with the registrar of companies. The company also needs to file a director’s report which should be duly signed by the director. Always find the best Cost of new Company Registration India.

3. LLP (Limited Liability partnership):

An LLP (limited liability partnership), is a type of partnership in which all the partners have limited liability. It is different from a general partnership because the members have limited liability. This partnership is registered under the LLP (Limited Liability Partnership) Act of 2008, the Act came into effect on 31 March 2009. LLP (Limited Liability Partnership) offers features of both a partnership firm and a private limited company. LLP offers features of both a partnership firm and a private limited company into a single entity. It is the most preferred form of business organization for small business persons who are not looking for big funding in their business but want the features of a private limited company.

Cost of new Company Registration India

Documents required for the registration of an LLP:

  1. PAN of all the partners.
  2. Photo ID proof of all partners.
  3. Address of all partners.
  4. Address proof of business premises such as utility bill etc.

The documents which need to be prepared include a balance sheet, profit, and loss account. They also need to file the Form-11 for the annual return. Moreover, another form i.e. Form-12 is also needed to be filed with the balance sheet and the profit and loss account. Thus, we see that on the whole, the average compliance cost comes out to be approximately Rs. 15,000 to Rs. 20,000.

4. Sole proprietorship:

As sole proprietorship is the oldest form of business organization. It has been around for ages and it is one of the most preferred forms of business from of organization. In this type of business entity, there is a single owner who owns the entire business and manages it alone. It is a popular form of business entity because of its simplicity in setting up and low cost of investment. One should note that sole proprietor does not have the benefit of a separate legal entity under the eyes of the law. This means that in case of liquidity creditors can bring a lawsuit against the owner of the business.

Cost of new Company Registration India

Documents required for the registration of the Proprietorship:

  1. Identity Proof
  2. Address proof
  3. Passport size photograph
  4. Office address proof

Perhaps, the only entity which has the lowest compliance cost of all the entities that one can register under different heads, the sole proprietor has to comply with the minimum compliance costs. It has to just file the final accounts and several other documents of the sole proprietor deals in business which requires a license to commence.

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