Private Company Incorporation Fee and Taxes

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Private Company Incorporation Fee and Taxes

Company Incorporation is a much-needed process for establishment of any business firm. Business should be in regular interaction with a government department to run business uniformly. This is compulsory for many reasons like fundraising, financial performance, taxation information, etc.

Company registration cost is same in almost all the states in India. But, the cost of stamp duty is high in some states. Basically, this amount depends upon authorized capital.

State-wise Stamp duty for Company Registration in India

Need of a Company Registration

The company needs a license to offer certain services. This is a legal norm which is not only followed by a private limited company but by all types of companies.

GST registration is compulsory to charge  tax from customers. When a company's turnover crosses a certain amount then in selling goods they charge sales tax (requires sales tax registration).Deduction of professional tax also needs registration. Licensing is necessary under Shops & Establishment Act and in Import and Export, you need code of Import and Export.

Mandatory Compliance

Mandatory compliance involves a lot of declaration to the Ministry of Corporate affairs. In a new company there are some processes like drafting of the board meeting, filing financial directors, return file and much more. These jobs do not require much effort but summing up these activities need a huge effort.

Mostly it cost Rs. 22,000. Annually, but it costs more with a local Company Secretary.

Accounting & Auditing

Maintaining Books of account is a regular process for every company. There is a variation in charges according to the entries. Most probably it costs Rs.5000 per month. In Proprietorships and Partnerships, this process is not mandatory but, in private limited companies, it is necessary.

Mostly, it costs Rs. 5000 a month for accounting and at least Rs. 20,000 for auditing.

Miscellaneous Compliances

The Ministry of Corporate affairs keeps track of all the aspects of business. Change in business structure for example, adding or replacing the director or investor. Small Companies do not hire Company Secretary but there are some fees which need to be paid like professional fee or government fee.

Mostly professional costs from Rs. 2000 to Rs. 4000 and also the government in addition, which vary.

Conclusion

Need assistance in your company’s incorporation or tax filing? Get in touch with Registrationwala.

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