Question 1

Why is the government incorporation fee advertised as ₹0 for Private Limited companies?

Accepted Answer

Under the MCA SPICe+ initiative, the Ministry of Corporate Affairs formally abolished statutory incorporation fees on Form INC-32 for companies with authorized capital up to ₹15,00,000. Founders only pay state stamp duties, Digital Signature (DSC) costs, PAN/TAN fees (₹133), and professional drafting & legal documentation fees.

Question 2

Which state has the lowest stamp duty for incorporating a company?

Accepted Answer

States like Delhi, Haryana, and Maharashtra have highly favorable stamp duty structures (ranging from ₹1,000 to ₹2,500 for standard authorized capital). States like Punjab and Kerala levy higher ad valorem stamp duties on share capital.

Question 3

Pvt Ltd vs LLP: Which structure is cheaper to maintain annually?

Accepted Answer

An LLP is significantly cheaper to maintain. LLPs do not require statutory board meetings, mandatory statutory audit (until turnover exceeds ₹40 Lakhs or capital exceeds ₹25 Lakhs), or extensive secretarial registers, saving ₹20,000 to ₹40,000 annually in compliance fees compared to a Pvt Ltd.

Question 4

What are the hidden post-incorporation costs founders should anticipate?

Accepted Answer

Post-incorporation compliances include: (1) Form INC-20A filing within 180 days (~₹1,500), (2) Auditor appointment in Form ADT-1 within 30 days (~₹1,500), (3) Mandatory annual DIR-3 KYC for directors (~₹1,000), (4) Registered office board display, and (5) Corporate current account minimum balance requirements.

Question 5

Can I convert an LLP or Sole Proprietorship into a Private Limited Company later?

Accepted Answer

Yes. An LLP or Partnership firm can be converted into a Private Limited Company under Chapter XXI (Part I) of the Companies Act, 2013 by filing Form URC-1. A Sole Proprietorship can transfer its business as a going concern through a Business Transfer Agreement (BTA).

Question 6

What is an OPC (One Person Company) and is it cost-effective for solo founders?

Accepted Answer

An OPC allows a single individual to incorporate a company with limited liability. However, it requires nominating a second person (Nominee Director), and the incorporation costs and annual secretarial compliance requirements (AOC-4, MGT-7A) are nearly identical to a standard 2-director Private Limited Company.

Business Setup Cost Calculator

Business Setup Cost Calculator

₹14,359

Corporate Entity Structuring & Incorporation Counsel

Understanding Business Setup Cost Calculator

Key Regulatory Rules & Thresholds (FY 2025–27)

Zero MCA Fee up to ₹15 Lakhs

State Stamp Duty Variations

Mandatory Form INC-20A

Abolition of Angel Tax

Frequently Asked Questions

Need official verification or statutory filing?

Numbers look good? Let's get them filed.

Done calculating? Let our specialists handle the filing.