The Finance Minister announces Zero Fees for registration of Companies having Authorised Capital up to Rs 10 Lakh. The Ministry of Corporate Affairs has published notification in Official Gazette of India to amend Companies (Registration Offices and Fees) Rules, 2014. The amended rule will come in force since 69th Republic day of India on 26th of January, 2018.

Following are key features of the notification published here:

Launch of web form facility RUN (Reserve Unique Name) in replacement of earlier e-form INC – 1 for name reservation by companies.

Key Elements:

  • Form will be launched on 26th January, 2018.
  • On approval of form, name will be approved for a period of 20 days for further processes by the companies.
  • No re-submissions will be allowed for the application.

Zero Fees for incorporation forms of companies having Authorised Capital up to Rs 10 Lakh.

Key Elements:

  • The Ministry has amended the fees payable to the Registrar to incorporate the companies under stated Rules.
  • Refer the fees schedule below
  • The Companies claiming the benefit of Zero Fees for incorporation shall maintain the status of small companies till one year. Therefore, the companies cannot increase its Authorised Capital above 10 lakh within span of 1 year form its incorporation.
  • The fees payable to States are not reduced or eliminated i.e. the Stamp Duty on MoA and AoA of the companies will stay intact.
  • Thus notification only covers the fees structure for incorporation of Companies.

Fees payable to Registrar for registration of Companies:

  1. For OPC and small Companies:

Authorised CapitalFeesAdditional fees
Up to Rs 10 Lakh
Exceeding Rs 10 Lakh up to Rs 50 Lakh2,000Rs 200 for capital of Rs 10,000 or part thereof.
  1. For registration of companies other than OPC and small Companies:

Authorised CapitalFeesAdditional fees
Up to Rs 10 Lakh
Exceeding Rs 10 Lakh up to Rs 50 Lakh36,000Up to 50 lakh:

Rs 300 for capital of Rs 10,000 or part thereof.

Up to Rs 1 Crore:

Rs 100 for capital of Rs 10,000 or part thereof for capital exceeding Rs 50 Lakh

After 1 Crore:

Rs 75 for every Rs 10,000 or part thereof for capital exceeding Rs 1 Crore

The total amount of additional fees shall not exceed amount of Rs Two Crore and Fifty Lakh

Fees payable for increase of Authorised Capital: 

  1. For OPC and small Companies:

The difference between the fees payable on the increasedshare capital on the date of filing the notice for the registration of acompany and the fees payable on existing authorized capital, at the rates prevailing on the date of filing the notice:

Authorised CapitalFeesAdditional Fees
Up to Rs 10 Lakh2,000
Exceeding Rs 10 Lakh up to Rs 50 Lakh2,000Rs 200 for capital of Rs 10,000 or part thereof.
  1. For registration of companies other than OPC and small Companies:

Authorised CapitalFeesAdditional fees
Up to Rs 1 Lakh5,000
Exceeding Rs 1 Lakh up to Rs 50 Lakh5,000Up to 5 lakh:

Rs 400 for capital of Rs 10,000 or part thereoffor capital exceeding Rs 1 Lakh.

Up to 50 lakh:

Rs 300 for capital of Rs 10,000 or part thereoffor capital exceeding Rs 5 Lakh.

Up to Rs 1 Crore:

Rs 100 for capital of Rs 10,000 or part thereof for capital exceeding Rs 50 Lakh

After 1 Crore:

Rs 75 for every Rs 10,000 or part thereof for capital exceeding Rs 1 Crore

The total amount of additional fees shall not exceed amount of Rs Two Crore and Fifty Lakh

Read fees structure applicable to other filing and registration services here!

Conclusion:

Be king of your business by paying no fees for registration to Government! These small steps of Government will help to promote entrepreneurship and encourage youth to come forward with their brilliant ideas to make India more progressive towards untouchable heights.  We congratulate Government and citizen who have given their support to build One Nation, One Vision, One Identity.

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