Starting a business in India often begins with private limited company registration. It is one of the most trusted business structures for startups and growing companies because it offers limited liability, credibility, and easier access to funding.
However, many founders underestimate the actual costs and realistic timelines involved. This guide breaks down everything clearly: what you pay for, how long it takes, and what factors affect both.
A private limited company is a formally registered business structure under the Companies Act, 2013. It exists as a separate legal entity, meaning the company can own assets, enter into contracts, and continue operations independently of its owners. This structure limits shareholders' personal liability to the amount they have invested in the business.
Because of its regulated framework and transparent ownership model, a private limited company is commonly preferred by startups and growing businesses that plan to scale or raise external funding.
Key features include:
- Limited liability protection for shareholders
- Separate legal identity distinct from its owners
- Share-based ownership with defined equity structure
- Higher credibility with investors, lenders, and clients
As of 2026, the private limited company registration cost is split into three main buckets: statutory government fees, state-level stamp duty, and professional service charges.
This includes:
- Incorporation Fee
- Name Reservation (RUN)
- Digital Signature Certificate (DSC)
- PAN & TAN
This is the "hidden" cost because it varies by state. For a company with a capital of ₹1 lakh, stamp duty can range from ₹100 to ₹10,000.
Most founders hire a Chartered Accountant (CA) or Company Secretary (CS) to ensure the legal drafting (MoA and AoA) is error-free, whose standard Service fees range from ₹5,000 to ₹15,000, depending on the complexity and the city.
Thanks to the integrated SPICe+ form, you no longer have to apply for multiple things separately. Here is the realistic 2026 timeline:
- Day 1–2: Digital Signatures: Obtaining the DSC for directors.
- Day 3–4: Name Approval: Reserving your unique company name.
- Day 5–9: Documentation & Filing: Drafting the Memorandum of Association (MoA) and Articles of Association (AoA) and submitting the integrated SPICe+ form.
- Day 10–20: Approval & COI: The Registrar of Companies (RoC) reviews your application. If everything is in order, they issue the Certificate of Incorporation (COI).
Some of the common issues that delay the process are-
- Incorrect or mismatched documents
- Name rejection due to similarity or trademark conflict
- Delays in DSC verification
- Incomplete address proof for the registered office
Incomplete paperwork for a private limited company registration costs you more, and having it ready saves you time and money. So make sure you keep the following documents ready!
- PAN and Aadhaar of directors
- Address proof (not older than 2 months)
- Registered office proof
Incorporation is just the birth of the company; it isn't "active" until you complete a few more steps:
- Opening a Bank Account: Usually takes 1–2 weeks post-incorporation due to physical KYC requirements.
- Commencement of Business (INC-20A): You must file this declaration within 180 days of incorporation before you can actually start business operations or borrow money.
Private limited company registration in India is neither expensive nor time-consuming when appropriately planned. What matters most is understanding where the costs come from and how timelines are affected by documentation, approvals, and compliance requirements. With clear expectations and accurate preparation, founders can complete the registration process smoothly and focus on building and scaling their business with confidence.
Disclaimer: This article is published in association with Razorpay and not created by TNM Editorial.