Company Incorporation Cost Calculator

When this applies

• You are budgeting to incorporate and want the full picture.
• You are comparing quotes from different firms.
• You are deciding on the authorised capital and its effect on cost.
• You are explaining the cost breakdown to a co-founder.

INR 20,00,000 capital, 2 DSCs, INR 7,000 professional fee

1. 1MCA registration fee on INR 20,00,000 = INR 2,500.
2. 2Stamp duty at 0.2% = 20,00,000 x 0.2 / 100 = INR 4,000.
3. 3Digital signatures = 2 x INR 1,500 = INR 3,000.
4. 4PAN and TAN = INR 200.
5. 5Professional fee = INR 7,000.
6. 6Total = 2,500 + 4,000 + 3,000 + 200 + 7,000 = INR 16,700.

An estimated total incorporation cost of INR 16,700.

What this calculator does

Add up the main components of incorporating a private company: the MCA registration fee, state stamp duty, digital signatures, PAN and TAN, and the professional fee - and see the total.

How this is calculated

Incorporation has several cost lines. The MCA registration fee is banded on nominal capital; stamp duty is a state charge on the authorised capital; digital signature certificates are needed for the directors and subscribers; PAN and TAN are obtained with the incorporation form; and the professional fee is what a firm charges to handle the filing. This calculator adds each line to a total so you can see where the money goes.

The formula

Total = MCA fee + stamp duty + DSC + PAN/TAN + professional fee + other

Common mistakes to avoid

• Inflating the authorised capital

  Both the MCA fee and the stamp duty rise with authorised capital. A figure you will not use costs money for nothing.

• Using one state's stamp duty rate everywhere

  Stamp duty is a state charge and varies widely. Set the rate for the state of the registered office.

• Forgetting the recurring costs

  Incorporation is a one-off, but the annual filings and the accounting that follow are recurring. Budget for those too.

Frequently asked

What are the main costs of incorporating a company?

The MCA registration fee, state stamp duty on the authorised capital, digital signature certificates, the PAN and TAN application, and the professional fee for handling the incorporation.

Why is stamp duty the largest variable?

Stamp duty is a state charge on the authorised capital, and the rate and the minimum differ from state to state. It can be the biggest single line for a high capital.

How many digital signatures do I need?

One for each director and each subscriber to the memorandum. Set the number for your proposed board and subscribers.

Is PAN and TAN a separate fee?

PAN and TAN are applied for with the incorporation form, and the government fee is small. Some service providers charge their own handling fee on top.

Can I reduce the cost?

The authorised capital drives the MCA fee and the stamp duty. Setting a realistic authorised capital rather than an inflated one lowers both.