How much does it cost to set up a company in India?
The cost has two parts: one-time setup (government fees, stamp duty, digital signatures, professional fees) and recurring compliance (accounting, audit, GST, tax and ROC filings). Exact figures vary by structure, state and authorised capital, so ask for an itemised quote that separates setup from annual costs.
Key takeaways
- Budget separately for one-time setup and recurring compliance
- Stamp duty and registration fees vary by state and authorised capital
- Office space, payroll and banking are real costs even before revenue
- An itemised quote prevents surprises later
Most foreign founders ask about price before anything else, and they are often given a single headline figure that hides half the story. A realistic budget separates what you pay once to incorporate from what you pay every year to stay compliant. This guide shows the cost heads so you can compare quotes properly.
1. Government fees and stamp duty
Incorporation involves fees payable to the Ministry of Corporate Affairs, which depend on the form and the authorised share capital, and state stamp duty on the incorporation documents. Stamp duty differs between states, which is one reason the same company can cost different amounts in Delhi, Maharashtra or Karnataka. These are the least negotiable costs, so verify them against official sources.
2. Digital signatures, name and document costs
Each proposed director needs a digital signature certificate, and foreign documents usually need notarisation and apostille, sometimes with translation. Courier and verification charges add up when several directors sit in different countries. Prepare documents in the right format early, because rework is the most avoidable expense.
3. Professional fees
Professional fees cover drafting the incorporation documents, filing, registrations and advice on structure and FEMA reporting. Compare scope rather than headline price: does the quote include the PAN, TAN, GST registration, the bank account support and the first RBI filing, or only the certificate of incorporation? A lower quote that excludes these items often ends up higher.
4. Registered office and resident director
Every company needs a registered office in India, which can be owned, leased or a serviced address, and a private limited company needs at least one resident director. If your team is not yet in India, a managed address and a nominee or professional director can bridge the gap. Our infrastructure and office set-up service covers this.
5. Banking and capital
Opening a bank account requires KYC on directors and shareholders and, for foreign owned companies, correct reporting of the remitted capital. Bank charges, remittance fees and exchange differences are small but real. Plan share capital so that it covers the first year of expenses, since the company cannot easily receive loans from its parent without following external commercial borrowing rules.
6. Recurring compliance costs
After incorporation, the company must keep books, file GST and TDS returns, prepare financial statements, appoint an auditor, hold board meetings and file annual returns with the registrar. Foreign owned companies also file RBI returns and may need transfer pricing documentation if they deal with the parent. These are annual obligations, so price them as a package; see how accounting and tax compliance is structured.
7. How to compare quotes and plan
Ask every provider for an itemised quote with three lines: setup, first-year compliance and optional extras. Confirm what happens if filings are late and who bears penalties. You can review our India company setup pricing page and request a tailored estimate for your structure and state, so the number you see is the number you pay.
India company setup pricing
See how India BizSetup can help: scope, timelines, documents and fees for this service.
Learn moreFrequently asked questions
Is there a fixed government fee for incorporation?
Government fees depend on the form, authorised capital and state stamp duty rules, so they differ between companies. Always check the current fee schedule on the official portals.
What recurring costs should I expect?
Expect bookkeeping, GST and TDS returns, income tax return, statutory audit, ROC annual filings and FEMA reporting, plus office and payroll costs if you hire.
Are there hidden costs in company setup?
The usual surprises are notarisation and apostille abroad, translation, bank charges, late fees for missed filings and the cost of a registered office or resident director.
Can I reduce the cost of setting up?
You can phase hiring, start with a serviced office and choose a structure that fits your activity, but cutting compliance to save money usually costs more through penalties.
This guide is for general information only and is not legal, tax or financial advice. Rules and fees change; confirm current requirements with a qualified professional before acting.
Need help with this in India?
India BizSetup (BizSetups Consulting Pvt. Ltd.) handles incorporation, FEMA/RBI filings, tax and compliance for foreign companies.