Menu

What Does It Cost to Start a Private Limited Company?


You know that feeling when your idea finally starts to feel real?
You’ve been sketching logos, daydreaming about your first customer, and maybe even arguing with friends over the perfect brand name. Then suddenly, reality taps you on the shoulder —
“Wait… how much does it actually cost to make this official?”

That’s where every entrepreneur pauses.
Starting a Private Limited Company sounds fancy, but the truth is, it’s not as expensive or complicated as it looks. Let’s walk through it together, like two friends planning your first big business step over coffee.


1. The Basics, What You’re Paying For

When you register a Private Limited Company (Pvt Ltd), you’re basically paying for two things:

  1. To legally create your company, recognized by the Indian government.
  2. To set up its identity, a name, a structure, and some essential documents.

It’s like setting up your own “official” version of your dream, complete with paperwork instead of doodles.


2. The Must-Have Expenses

Here’s what you’ll actually need to spend money on (and how much it usually costs):

a) Digital Signature Certificate (DSC): ₹1,000–₹2,000 per director

It’s like your digital fingerprint, every director needs one to sign forms online. Usually, there are two directors, so count it as ₹2,000–₹4,000 total.

b) Director Identification Number (DIN): Free (included in SPICe+ form)

Earlier, this used to be a separate step, but now it’s part of the incorporation process. So, no extra cost here!

c) Name Reservation: ₹1,000 (optional but smart)

If you’ve got your dream name — like CoffeeVerse Pvt. Ltd. — you can lock it in before someone else does.

d) Government Fees: ₹0 to ₹7,000

This depends on your company’s authorized capital (usually ₹1 lakh to start).
If you’re registering under Start-up India, you might even get fee exemptions.

e) Professional or Consultant Fees: ₹2,000–₹8,000

This is what you pay a CA, CS, or an online registration platform (like Start Bharat, for instance) to handle all the forms, filings, and government submissions.
Totally worth it — saves hours of confusion.

f) PAN and TAN: Free (automatic during registration)

These come with your incorporation certificate, so nothing extra to pay here.


3. The Smart Extras (Optional but Helpful)

After registration, you’ll need a few essentials to get started:

  • Business Bank Account: Free to open, but keep ₹5,000–₹10,000 as the minimum balance.
  • CA or Accountant: ₹1,000–₹3,000/month for bookkeeping.
  • GST Registration: Free if turnover crosses ₹20 lakh.
  • Domain + Website: ₹1,000–₹5,000 for your brand’s online home.
  • Trademark Registration: ₹4,500–₹9,000 to protect your business name.

4. The Real Cost (Let’s Do the Math)

If you’re starting small and playing it smart, here’s your ballpark:

Expense TypeEstimated Cost (₹)
DSC + DIN2,000–4,000
Name Reservation1,000
Government Fees0–7,000
Professional Fees2,000–8,000
Optional Setup (website, trademark, etc.)3,000–10,000
Total Estimated8,000 – 25,000

That’s right, your dream company can officially start for under ₹25,000.
That’s less than what most of us spend on a weekend trip or a new smartphone.


5. Why It’s Worth Every Rupee

Let’s be real — you’re not just buying registration papers.
You’re buying credibility, trust, and protection.

  • Credibility: Clients and investors trust Pvt Ltd companies more.
  • Protection: Your personal savings stay safe even if the business faces losses.
  • Growth-Ready: You can raise funding, add shareholders, or scale up easily.
  • Brand Value: “Private Limited” after your name signals you mean business.

It’s the difference between “I run a small business” and “I run a registered company.”


6. Pro Tip: Don’t DIY Everything

Sure, you could file forms yourself, but it’s like cutting your own hair before a job interview.
A CA or registration service will handle all the MCA filings, documentation, and compliance while you focus on what really matters, building your brand.


7. Wrapping Up

Starting a Private Limited Company isn’t just a legal formality , it’s your first real step into entrepreneurship.
The process is smoother, faster, and way more affordable than most people think.

So the next time someone says, “Yaar, company banana mushkil hai,” just smile, because now you know better.

You don’t need lakhs. You just need a plan, a name, and the courage to begin.


Leave a Reply

Your email address will not be published. Required fields are marked *