Company Incorporation Fees In Different States

Introduction 

Company Incorporation fees in India vary from state to state and depending on the authorised capital of the Company Incorporated. It includes various fees such as SPICe+ Part A, SPICe+ Part B, MoA Registration, AoA Registration, Stamp Duty on MoA & AoA, etc. In this blog you’ll get a complete fee structure for company incorporation in different states. 

What is Company Incorporation?

Company Incorporation is a legal way to register a business entity as a Company. The Company Incorporation Process is governed by The Companies Act, 2013 in India. Incorporating a company in India offers individual multiple benefits such as limited liability for shareholders, enhanced credibility and perpetual succession. In order to Incorporate a company certain documents are required they are as follow: 

• Passport-size photograph of Director/Shareholder

• Identity proof

• Residential Proof

• Email id and Mobile no

• Utility bill with complete address

• Proof of ownership or rent agreement, NOC from the property owner if the premises are rented.

Individuals need to obtain these documents and follow certain steps for the Incorporation of a Company. However, there are multiple forms and fees required to be filed and paid for the completion of the Incorporation Process. 

Company Incorporation Fees 

Following are the various types of fees required for the Incorporation of a Company: 

• SPICe+ Part A: SPICe+ Part A form is one of the crucial forms required in the company registration process. It is commonly used for the name reservation of the company. This form ensures that the name must be unique and available (not used by any other company). The SPICe+ Part A form fee for the Name Reservation is just ₹1000/-.

• MoA Registration: MoA is a crucial document containing the company's constitution and it is considered as the first step towards Company’s Incorporation. MoA mainly includes name clause, registered office clause, object clause, liability clause & capital clause. There is no MoA Registration fee until the authorised capital is ₹50 lakh or more. The MoA Registration fee is ₹1,56,000/- for all states.

• AoA Registration: AoA is another document which helps to manage or control business activities of a company or even its internal affairs. AoA includes all the required bye-laws and all rules & regulations of the company. Also it is important to sync the content of AoA with MoA and Companies Act, 2013. There is no AoA Registration fee if the authorised capital is less than ₹50 lakh. In case of ₹50 lakh authorised capital or more, the AoA Registration fee is ₹500/- for all states.

• PANTAN Fees: The Charges for obtaining a PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) for a company is commonly known as PANTAN Fees. The government charges a minimal fee of ₹143/- only for PANTAN of a company. 

• Stamp Duty: In order to make any document legally valid and enforceable stamp duty is used. In case of Company Incorporation, Stamp Duty is used on MoA & AoA. This stamp duty is mandatory and it can vary from state to state. Also, it can vary depending on the type of a company. In States like Ladakh and Sikkim, there is no Stamp Duty Fee while in states like Karnataka and Punjab, there is ₹5,000/- fee each for MoA and AoA for authorised capital of ₹1 lakh. Also, this stamp duty can vary on the increase of authorised capital. 

• SPICe+ Part B: SPICe+ Part B is a comprehensive, web-based application for company registration in India. It includes the company's capital structure, director’s detail, and shareholding patterns. The fee of SPICe+ Part B varies from state to state. The fee can range between ₹0-₹100/- only, depending on the state in which the company is incorporated. 

Company Incorporation Cost - (Statewise) 

Following is the table for the Company Incorporation Cost Structure in Different States for Authorised Capital of ₹1 lakh: 

Key Consideration 

Before paying any fee for incorporation of your company, keep these points in your mind: 

• Authorised Capital: While paying the fee for incorporating your company, make sure you’re aware about the fee structure. Depending on the authorised capital, fee structure also changes. 

• DIN Fee: Directors don’t need to pay separately for the DIN, if they filed along with SPICe+ Part B. Also, they can get their DIN separately and don’t need to pay twice. 

• Professional Fee: Hiring professionals or legal consultants involves professional fees for drafting documents, advisory, and managing the incorporation process. This Professional fee varies from consultant to consultant. 

• Post Incorporation Fee: Depending on the nature of business, you may incur fees for registering under GST, Professional Tax, Import-Export Code, or other statutory registrations

• Late Fee: Also, in case of any corrections or additional filings needed during or after incorporation, extra charges may be levied based on the type of form and delay.

Conclusion

Company Incorporation in different states includes various fees such as SPICe+ Part A, SPICe+ Part B, PANTAN fees, MoA Registration fees, AoA Registration fee, Stamp Duty Fee for MoA & AoA, etc. Other than this, consultants charge Professional Fees as well, this fee can vary from consultant to consultant. Also there are some major factors which can change the fee structure for your company. These factors include Authorised capital, incorporation state, late fee, etc. Increase in authorised capital can increase the fee for the incorporation and the Company Incorporation Cost can be varied depending on the state in which you are incorporating your company. 

Frequently Asked Questions (FAQs)

• What is the PANTAN fee for Company Incorporation in India? 

The PANTAN fee for Company Incorporation in India is just ₹143/-. 

• What is the fee for Name Approval of a company in MCA? 

The Fee for the Name Approval of a company in MCA is just ₹1000/- and one can file it in SPICe+ Part A. 

• Is there any Professional Fees required for Company Incorporation? 

Yes, there are certain professional fees required to be paid for company incorporation in India. This professional fee varies from consultant to consultant. 

• Does authorised capital impact the fee structure for company incorporation? 

Yes, increase in authorised capital can increase the fee for company incorporation as well.