The Hidden Fee Problem in Company Registration
If you have ever searched for "company registration" online, you have seen prices ranging from Rs 999 to Rs 25,000. The truth? Most low-price listings are bait-and-switch tactics. Platforms advertise Rs 999 or Rs 1,999 but the final bill ends up being Rs 12,000-18,000 after "mandatory" add-ons.
At Setup India, we believe in complete transparency. This guide breaks down every single cost involved in registering a Private Limited Company so you know exactly what to expect.
Government Fees (Non-Negotiable)
These are fees paid directly to the government. No service provider can waive or reduce these.
1. SPICe+ Filing Fee
The SPICe+ form fee depends on your authorized share capital:
| Authorized Capital | Filing Fee |
|---|---|
| Up to Rs 1,00,000 | Rs 500 |
| Rs 1,00,001 to Rs 5,00,000 | Rs 2,000 |
| Rs 5,00,001 to Rs 10,00,000 | Rs 5,000 |
| Rs 10,00,001 to Rs 50,00,000 | Rs 10,000 |
| Above Rs 50,00,000 | Rs 15,000 |
Recommendation: Most startups begin with Rs 1,00,000 authorized capital (fee: Rs 500). You can increase it later as your business grows.
2. Stamp Duty
Stamp duty is a state government fee and varies significantly across India. This is often where hidden charges creep in - many platforms charge a flat "government fee" that is higher than the actual stamp duty for your state.
| State | Stamp Duty (Rs 1 Lakh Capital) |
|---|---|
| Delhi | Rs 1,000 |
| Maharashtra | Rs 1,300 |
| Gujarat | Rs 1,000 |
| Karnataka | Rs 3,000 |
| Tamil Nadu | Rs 1,500 |
| Uttar Pradesh | Rs 2,500 |
| West Bengal | Rs 2,000 |
| Rajasthan | Rs 500 |
| Kerala | Rs 5,000 |
| Telangana | Rs 2,500 |
At Setup India, we charge stamp duty at actual - you pay exactly what your state government charges, not a rupee more.
3. Name Reservation Fee
The RUN (Reserve Unique Name) application costs Rs 1,000 per application. Each application allows 2 name choices.
Professional Service Fees
This is where service providers make their money. Here is how Setup India's pricing compares:
Setup India Pricing
| Plan | Price | Best For |
|---|---|---|
| Starter Plan | Rs 1,499 | First-time entrepreneurs |
| Growth Plan | Rs 3,999 | Serious startups (Most Popular) |
| Enterprise Plan | Rs 7,999 | Complete business setup |
What is Included in Each Plan
Starter Plan (Rs 1,499):
- •Company Registration (PAN, TAN, DIN)
- •Name Approval (RUN)
- •MOA and AOA Drafting
- •Incorporation Certificate
- •14-Day Delivery
- •Email Support
Growth Plan (Rs 3,999):
- •Everything in Starter Plan
- •2 DSC (Class 3) Included
- •MSME Registration
- •Company PAN Card
- •7-Day Fast-Track Delivery
- •Dedicated CA Support
- •Post-Incorporation Compliance Guide
Enterprise Plan (Rs 7,999):
- •Everything in Growth Plan
- •GST Registration
- •Trademark Search and Application
- •Business Bank Account Assistance
- •6 Months Compliance Support
- •Priority Processing (5-Day Delivery)
- •Free Accounting Software Setup
- •Quarterly Tax Planning Session
Digital Signature Certificate (DSC) Cost
A Class 3 DSC is mandatory for all directors. Here is what the market charges:
| Provider | DSC Cost Per Person |
|---|---|
| Competitor A | Rs 1,500-2,500 (marked up) |
| Competitor B | Rs 1,499-2,000 (marked up) |
| Setup India | Rs 990 (actual cost) |
Most platforms mark up DSC by 50-150%. At Setup India, DSC is included free in our Growth and Enterprise plans, and charged at actual cost (Rs 990) for the Starter Plan.
Total Cost Calculator
Here is a realistic total cost estimate for registering a Pvt Ltd company in Delhi:
| Component | Starter Plan | Growth Plan | Enterprise Plan |
|---|---|---|---|
| Professional Fee | Rs 1,499 | Rs 3,999 | Rs 7,999 |
| DSC (2 directors) | Rs 1,980 | Included | Included |
| Government Fee | Rs 500 | Rs 500 | Rs 500 |
| Stamp Duty (Delhi) | Rs 1,000 | Rs 1,000 | Rs 1,000 |
| Name Reservation | Included | Included | Included |
| Total | Rs 4,979 | Rs 5,499 | Rs 9,499 |
Use our [interactive cost calculator](/services/IncorpCo) to get an exact quote based on your state, number of directors, and authorized capital.
How to Spot Hidden Charges
Watch out for these common tricks:
- "Government fee" lump sum - Always ask for a breakdown. The actual government fee for Rs 1 lakh capital is only Rs 500.
- DSC markup - If they are charging more than Rs 1,200 per DSC, you are overpaying.
- "Processing fee" or "documentation fee" - These are made-up charges.
- Mandatory add-ons - Some platforms force you to buy GST registration or accounting packages.
- "Express processing" surcharge - The government process takes the same time regardless.
Money-Saving Tips
- Start with Rs 1 lakh authorized capital - You can increase it later. This keeps government fees at Rs 500.
- Register in a low stamp duty state - If possible, choose Delhi (Rs 1,000) over Kerala (Rs 5,000).
- Choose our Growth Plan - DSC is included, saving you Rs 1,980 upfront.
- Apply for MSME registration immediately - it is free and gives you access to government subsidies.
- Do not buy unnecessary add-ons - GST registration is free on the government portal.
Conclusion
The total cost of registering a Private Limited Company in India ranges from Rs 4,500 to Rs 15,000 depending on your state, authorized capital, and service provider. With Setup India's Growth Plan at Rs 3,999 (including DSC), you get the best value with zero hidden charges.
Try our free cost calculator or call us at +91 8076332908 for a personalized quote.