In this article i am sharing my experience about the process and price/cost of registering a private limited company in India. As far as i know this is the cheapest option available for registering your Pvt Ltd company, If you are looking to incorporate your startup as a Pvt Ltd company in India, you should go for this option.
What i do?
I am a freelance Embedded systems designer, I design electronics products and provide end to end service to my clients, starting from Schematic/PCB design to Firmware development.
What led me to register the company?
I had always wanted to own a company, it was like my dream since long time. But never ventured into doing it because of the negative things i heard about company formalities to be maintained and compliance's to be met.
In December 2009, me and my three friends left our jobs and jumped into starting a company, But never knew that there exist multiple forms of a business, We just told people we are starting a company and came to Dharwad from Bangalore, put a board on my friends house and named it MARS Innovations (Mahesh, Adarsh, Ravi, Raghu, Sachin .. Yeah, am not lying, we did name it like that :P). Journey of MARS Innovations is another story.
The thing is, i wanted to register MARS Innovations as a private limited company, i searched a lot for fees/cost for registration of private limited company in India and procedure for registering a private limited company in India. I did understand the procedure of registering but never got clarity about the cost. Most of the websites/consultants mentioned only their fees to be Rs.8,000/-, Rs.15,000/- etc, but no one gave clear information about filing fees and total inclusive cost.
While searching i came across a advertisement of saying register your private limited company for Rs.13,750/- only on this website. They had mentioned everything in detail, with price breaks saying clearly, how much will be government fees and how much are their charges as below, and some freebies with the package.
The advertisement was by Smart Business Solutions, a Kolkata based consultant firm. I was instantly impressed by their pricing clarity and the way they had mentioned about No Hidden Charges, and on top of that they had mentioned that they have a postpaid plan available where in i can pay in installments. Now i couldn't stop myself and gave a call to the number mentioned in the advertisement. They took my call, noted my email id and sent me a quotation as shown below,
It was really nice to know your requirements and as per talk had with you , we are enclosing herewith our lowest quotation for your consideration.
We further draw yours kind attention towards the following:
1. Description of Service & Features
Formation of Minimum Capital Private Limited Company within 5-7 weeks, subject to ROC approval.
Anywhere in India
100% Advance Plan
Post Paid Plan
No Advance.To be paid in 5 Installment. Free : Rs 2000 worth of Extra Services & 3 years of Free Consultancy ( ROC )
To be paid after Digital Signature enrollment
To be paid after you get your DIN.
To be paid after your Name has been approved
To be paid after you get a Draft copy of AOA & MOA
Balance to be paid after your Company has been registered
No Hidden Charges. For Punjab & Kerala, Rs 10,000 shall be extra.Pay either via Bank Transfer or Cheque. Cash Deposit attracts Rs 250 extra per transaction.
Our Offer is Valid for 150 Hours.
4. Inclusive of
Stamp Duty Charges
Digital Signature for 2 Directors with 2 years of Validity ( with Plug & Play USB Token Drive for both directors )
DIN for 2 Directors
MOA & AOA
6 months of TDS Return Filing
Minutes Preparation ( For Post Paid Plan )
Consultancy for 3 years worth Rs 15000 totally FREE ( For Post Paid Plan )
5. Procedure for Company Registration
Step 1A: Submit the following Documents: For every Director for preparation of DIN & DSC
Self Attested copy of PAN
Self Attested copy of Address Proof (Voter Id / Electricity Bill / Telephone Bill / Mobile Bill)
Digital Signature Application
Step 1B: You are also requested to prepare the following documents
Colour Passport Size Photograph
Mobile Number, Email Address, Occupation. ( of each director )
Step 2 : For Name Approval: Submit the following Details
Maximum of 6 Alternate Name with Significance of Keyword
Nature of Business
State in which you want to Register your Company
Name is subject to ROC approval.
If a Name is not approved, the same may be asked for resubmission for a maximum of 2 times, and we shall resubmit fresh names for Free till the Maximum time ( i.e. Till the Files get Rejected )
Step 3 : We shall require Second Set of Documents ( After Name Approval )
Registered Office Address Proof (Electricity Bill/Sale Deed/Tax Receipt/Water Bill)
No Objection from Landlord (Format to be provided by us )
Address proof of Promoter (Bank Statement / Electricity Bill / Telephone Bill / Mobile Bill)
ID proof of Promoter (Voter ID / Aadhaar / Driving License / Passport )
Subscriber Sheet ( to be provided by us )
Nearest Police Station Address with Pin code.
Affidavit for Non- Acceptance of Public Deposit (Format to be provided by us)
Any such document which the ROC might enquire.
Step 4: We shall file all Incorporation Forms and Register your Company.
Subject to ROC Approval
All the above documents are to be Emailed.
We have tried to incorporate every possible details in this mail for your information, however we urge you to put forth all your queries of yours and lets give us a chance to serve you better. We are sure that the quality of our Service with its reasonable price, will bring us closer to establish good business relation in the near future.
Hope we will be favoured with yours valuable Business Service.
For Further Assistance Call : 08647933626
For Expert Consultancy Call : 09831013711 Ext : 1-0
I opted in for the Postpaid plan because i was afraid of making all the payment at once to unknown entity and i chose 1 lac share capital for company,
I made the 1st installment payment of Rs.3,500/- on 15th October 2014,
Received my two Directors Digital signature and Director Identification Number's (DIN) on 27th October 2014.
I made the 2nd installment payment of Rs.3,500/- on 28th October 2014,
They applied for the name approval of the company, but MARS Innovations was already taken by someone. I somehow deduced the name Valetron Systems Pvt Ltd and gave it for approval, and got the name approved on 17th November 2014, (ROC does take time for name approval)
I made the 3rd installment payment of Rs.3,500/- on 17th November 2014,
They sent me the drafted copy of Memorandum of Association(MOA) and Articles of Association(AOA).
I made the 4th installment payment of Rs.3,500/- on 31st December 2014,
I sent them all the documents they had asked for after a delay on my side because of registered office address selection, then they applied for incorporation.
My company Valetron Systems Pvt Ltd was incorporated on 30th January 2015, with two Directors and 1 lac share capital, with registered office in Dharwad district of Karnataka, India.
I made the 5th and last installment payment of Rs.999/- on 3rd February 2015,
They sent me the company kit as promised and i received it on 27th March 2015
Apart from these i have spent around Rs.1,000/- for buying Stamp papers and getting the affidavits and forms notarized.
My experience with SBS people have been smooth and i recommend them for their very clear quotes and smooth transactions and defined flow of the process. They have made the process very easy for people like me, who don't know anything about the legal formalities. The whole process was very smooth and didn't feel any discomfort being the fact that i was based in Karnataka and the SBS was located in West Bengal, It all happened on phone calls and emails.Thank you Smart Business Solutions :)