How Much Does It Actually Cost to Run a Startup in India?
Most founders discover the real cost of running a Private Limited Company only after incorporating. Here are the actual numbers — setup, post-incorporation, and annual recurring.
Setup costs — what you pay to incorporate
Setup costs vary primarily by state (stamp duty varies from ₹1,200 in Maharashtra to ₹12,600 in Gujarat) and number of directors. For a typical 2-director Private Limited Company:
- DSC per director: ₹1,500–₹3,000 — get this before meeting your CA, takes 2–3 days
- Name reservation (RUN): ₹1,000 fixed government fee
- Stamp duty on MOA/AOA: ₹1,200 (Maharashtra) to ₹12,600 (Gujarat)
- Government filing fees (SPICe+): ₹2,000 for capital up to ₹10L
- CA/CS professional fees: ₹6,500–₹12,000
- Total typical range: ₹15,000–₹35,000
Post-incorporation costs (first 30 days)
These are the costs most founders forget to budget for — and discover at the worst moment:
- Company letterhead design: ₹2,000–₹5,000. Must include your CIN number. You can't open a bank account without it.
- Company rubber stamp/seal: ₹500–₹1,500. Required for official documents.
- Bank current account minimum balance: ₹5,000–₹25,000. Varies by bank — HDFC/ICICI require ₹10,000–₹25,000.
- Statutory registers: ₹1,000–₹3,000. Physical registers required by Companies Act.
Annual recurring costs — the ongoing reality
Even with zero revenue, a Private Limited Company has mandatory annual compliance costs. No exemptions for new or small companies:
- Statutory audit (mandatory CA): ₹10,000–₹25,000/year
- ITR-6 (Company Tax Return): ₹5,000–₹15,000/year
- ROC filings (AOC-4 + MGT-7): ₹5,000–₹15,000/year
- TDS returns (4 quarters): ₹4,000–₹12,000/year
- DIR-3 KYC per director: ₹500–₹1,000/year
- DPT-3: ₹1,000–₹3,000/year (mandatory even with zero deposits)
- Total without GST: ₹30,000–₹70,000/year
If you're GST registered, add ₹1,500–₹5,000/month for CA filing of GSTR-1 + GSTR-3B. That's an additional ₹18,000–₹60,000/year.
What's free (and high-value)
- DPIIT recognition: Completely free. Unlocks 3-year income tax exemption.
- GST registration: Free on the GST portal.
- Company PAN + TAN: Auto-issued with SPICe+. Free.
- Trademark with DPIIT: ₹4,500/class vs ₹22,500 — 80% discount.
The most expensive mistakes
Missing compliance deadlines is far more expensive than paying for compliance. The most common costly mistakes:
- Missing AOC-4: ₹1,000/day, no cap
- Missing DIN KYC: ₹5,000 reactivation fee + operational paralysis
- Missing INC-20A: ₹50,000 company fine + ₹1,000/day per director
- Missing DPT-3 (which most founders don't even know about): ₹5,000 + ₹500/day
See costs personalised to your company
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