Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
What you are actually paying for
Incorporating a Private Limited company involves a name reservation, the SPICe+ incorporation form, DIN for directors, and PAN/TAN. The biggest variable is stamp duty on the memorandum and articles, which is set by each state and rises with your authorised capital — so the same company costs different amounts in different states.
Government charges versus professional fees
Two buckets make up the total: statutory government charges (the filing and stamp-duty amounts above) and professional fees for drafting documents, certifying the forms and filing them. A digital signature for each director is a small added cost. DPIIT recognition afterwards has no government fee at all.
Plan for the running costs too
The bigger picture is that incorporation is a one-time cost, but a company then carries ongoing costs — a mandatory statutory audit from year one, annual ROC filings and accounting. Budgeting for these from the start avoids surprises. A practical tip: keeping authorised capital modest at incorporation keeps the stamp duty down, and you can raise it later when you actually issue more shares — there is rarely a reason to over-capitalise on day one. Because the exact figures turn on your state, authorised capital and scope, ask for a written estimate for your specific case rather than a generic number. Our startup service can share an estimate for your situation.