Entering the business world through starting a Private Limited (PVT Ltd) company is indeed a great way to do business. However, one of the first questions that every entrepreneur faces is: How much money is required to start a PVT Ltd company?
These setup costs of a PVT Ltd company are different in India. Some or all of the following fall within: registration fees, legal charges, office expenses, and minimum capital. Understanding each of these will help one avoid unpleasant financial surprises. In this blog, we will explore the costs associated with setting up Private Limited Company registration in Delhi.
Minimum Capital Requirement
It would be a great thing to note that the government of India has taken the capital requisites off for a private limited company to set up. The amount of capital, earlier it had to be in a minimum of Rs. 1 lakh. Today, anybody can start a PVT Ltd company with any amount. For the initial running of the firm, the capital of the company should be enough; the government has not set any strict minimum.
Registration Fees by the Company
For registering a PVT Ltd company, you have to pay a set of government fees, which depends on the authorized capital of the company in which the fees are accredited. Generally, the registration costs may lie between Rs. 5,000 and Rs. 50,000 or more.
Legal and Professional Fees
The average legal and professional fees may run into a range of Rs. 10,000 to Rs. 30,000 depending upon the nature of your business and the professionals whom you hire to service it. You would do well to seek expert advice in this regard, especially in case you do not know the legal requirements.
Office Space and Infrastructure
Even though a PVT Ltd can conduct its business from a rented office or even a home office, some businesses require more formal office space. Such businesses might include businesses that require an actual physical presence or deal with clients and therefore have to spend money on renting an office. The costs would vary very widely based upon the location of the office. Office rents for small space can vary between Rs. 15,000 to Rs. 50,000 in a metro city like Mumbai or Delhi.
If you are starting and require minimal office setup, then consider a co-working space that suits any place between Rs. 5,000 to Rs. 25,000 per month.
Ongoing Maintenance Costs
After you have set up your company, then come costs that are incurred in order to keep the company going. These will include:
This means that a private limited company has the legal obligation to file returns, hold board meetings, and present its financial statements. The cost of maintaining compliance largely depends on the size of your business and varies between Rs. 10,000 and Rs. 50,000.
Every year, you will need to file your taxes, which is a very tedious job that does require professional expertise. Generally, these costs range from about Rs. 5,000 to Rs. 10,000 per annum.
Why You Should Hire a Professional
Starting a PVT Ltd company seems pretty straightforward, but the underlying legal and financial details make this whole task very difficult. However, professional service providers such as Saptax Hub can simplify procedures and see through all the legal compliances in order to go about making and paying taxes for the government authorities. From company registration to maintaining compliance with governing laws, Saptax Hub is the best in helping you get started with ease.
At Saptax Hub, the best CA firm in Delhi, you will find experts who will help you with all the paperwork, tax, and financial responsibilities engaged in the process of opening your business. This minimizes the possibility of errors and long procedural delays and saves you even more time and money in the end.
Conclusion
The overall opening cost of opening a PVT Ltd company in India, though, depends on many different factors such as lawyer services, office space, and governmental fees. However, if you have the initial amount of Rs 25,000 to Rs 1,00,000, you would easily set up your business with all its requirements. It would need planning on budget and hence costs to be attributed for registering and consulting legal services, as well as setting up the office. Working with experts like Saptax Hub will make the process easier and facilitate a successful journey of establishing a PVT Ltd. company.
