Cost of Company Registration - Start your Business
by Paras Mehra 2.57K
Every good thing comes with a cost and hence, if you are planning to register a Company in India, you can do it by comparing the cost and benefits of the different types of entity. Here is the Cost and benefit of each of the type:
|
|
Private Limited Company |
One Person Company |
Limited Liability Partnership |
|
Govt Fees |
Rs.8,378 |
Rs.6,879 |
Rs.4,378 |
|
Prof Fees |
Rs.4,621 |
Rs.4,121 |
Rs.3,121 |
|
Total Cost |
Rs.12,999 |
Rs.11,000 |
Rs.7,499 |
Let us discuss the merits and demerits of each of the form mentioned.
Private Limited Company
Recommended for
- Two or more persons willing to start a business in India
- For startups, as it is the only form which can help you raising funding.
Merits
- Helps you raise funding like flipkart, ola, PayTM etc.
- Solid foundation, as it provides more trust to customers.
- Corporate environment, helps you hire employee easily.
- The best business form available in India
Demerits
- It adds to yearly compliance cost which will be around 10 to 12k (yearly) with Hubco.in.
- It is not free form of business, as one needs to follow the basic rules laid by the Companies Act, 2013.
One Person Company (OPC)
Recommended for
- Single person willing to start a business in India
- The best substitute for Sole proprietorship in India
Merits
- Solid foundation, as it provides more trust to customers.
- Corporate environment, helps you hire employee easily.
- The best business form for single persons in India
- Can be converted into Private Limited Company in India later on.
Demerits
- It adds to yearly compliance cost which will be around 8 to 12000 (yearly) with Hubco.in.
- It is not free form of business, as one needs to follow the basic rules laid by the Companies Act, 2013.
Limited Liability Partnership (LLP)
Recommended for
- Two persons who wants to start business the conventional way.
- For traditional partnerships, who wants to convert themselves into a more organized form of business.
- Not recommended for Startup who are planning to raise funds, as LLP does not allow you to.
Merits
- It is cheaper to form and cheaper to maintain.
- Less compliances compared to Private Limited Company.
- Secure your personal assets, limited liability.
Demerits
- It is meant for traditional business and not for modern day startups.
- Cannot raise funding.
- Compliance cost becomes equal to private Company, once turnover crosses 40 Lakh as Audit becomes mandatory.
Conclusion
You can decide the form of business based on the information above. In case you require more information, you can call us at 9540618336 or email at agam@hubco.in.
For more information on the type of companies, click on the following links: