There cannot be a better time to act on your startup idea! If you are bitten by the entrepreneurship bug, but were being discouraged by the high cost of setting up a private limited company, there is good news for you! In its endeavour to encourage entrepreneurship and facilitate starting up in India, the Government of India has decided to waive the filing fees required to be paid for incorporating a private limited company in India.
The Ministry of Corporate Affairs (MCA), on the occasion of Republic Day, introduced several amendments to the existing rules for incorporation of a private limited company, which will definitely ease doing business in India. Some of the significant amendments being the following:
- Waiver of Filing Fees for Incorporation of a Private Limited Company: Till now, any entrepreneur planning to incorporate a private limited company with a share capital of upto INR 5 lakhs, had to pay a filing fees amounting to approx. INR 2,900 to the Government of India/ Ministry of Corporate Affairs (MCA). The filing fees for incorporating a private limited company with a share capital between INR 5 lakhs and INR 10 lakhs was INR 4,300 approx.This filing fee has now been waived by the Ministry of Corporate Affairs (MCA). Therefore, for all private limited companies being set up with share capital of up to INR 10 lakhs, the only cost they need to be worried about is the cost of hiring a consultant to incorporate the company and stamp duty that is dependant on the Indian state in which you plan to incorporate the private limited company. For example, the stamp duty for incorporating a private limited company in Maharashtra, with a share capital of upto INR 5 lakhs is INR 1,300 approx. and for incorporating a private limited company with share capital between INR 5 lakhs and INR 10 lakhs is INR 2,300 approx. with To clarify, incorporation of a private limited company with share capital exceeding INR 10 lakhs will continue to attract filing fees.
- Process of reserving a name for private limited company simplified: Before you start the process of incorporating a private limited company, you need to check if the name you have chosen for your company is available. Given the technicality of the procedure involved, an entrepreneur always required help of consultants (such as us) to check for availability of name and reserve their preferred name. This process of checking availability and reserving the name has now been simplified by the Ministry of Corporate Affairs (MCA), and any person can without the help of consultants, now reserve a name for the private limited company that they propose to start.
So what are you waiting for…Get Started Now!