The ₹999 Company: What Nobody Tells You Before You Register, and What It Really Costs in Year One

A founder came to see me three months after registering her company. She had the certificate, the PAN, and a ₹999 invoice in her phone. She was not angry. She was confused.

"Everything is done, right?" she asked.

It was not. Nobody had told her that the clock on a few important things had already started the day the certificate was issued. That clock, and what it costs when no one is watching it, is what this article is about.

Nothing here is meant to scare you or to knock online platforms. Many are fine for a simple case. The point is to show you what the price does and does not cover, so you can decide with open eyes.

The short version

• A ₹999 offer usually covers the filing work. Government fees, stamp duty, digital signatures and 18% GST on the fee are often extra (BizExpress, 2026).
• A realistic first bill is about ₹3,979 to ₹14,379 before any accountant or audit (my arithmetic, shown below).
• Year one, with the audit and annual filings, is roughly ₹22,800 to ₹78,000 by the ranges in one 2026 cost guide.
• The expensive part is not incorporation. It is the first 180 days afterwards, when a few filings need an owner.
• In 2024-25, about 37.6% of eligible companies did not file annual returns (my calculation from the Lok Sabha reply of 20 July 2026, reported by TaxGuru).
• Cheap is not the problem. Silence is.

Before you pay anyone: a 10-minute self-check

Answer these five. If you cannot, pause before you register.

1. What will you sell, and when will the first invoice go out? That decides whether GST comes first.
2. Will anyone invest, now or in two years? That affects structure and share capital.
3. Who else is in this, and how will you split ownership? Settle this before any paperwork, not after.
4. Do you have a clean address proof? You need it for the company and for GST.
5. Who will own your filings in month 7? Not the person who registered it. Someone with a name and a phone number.

What ₹999 usually buys, and what it does not

Source: BizExpress 2026 cost guide. Prices differ by provider and state. Ask for a written quote that lists each item.

Your first real bill (an illustration)

Take a ₹999 package:

• ₹999 plus 18% GST is ₹1,178.82.
• Government charges: ₹1,200 to ₹8,000, mostly stamp duty (BizExpress).
• Two director digital signatures at ₹800 to ₹2,600 each: ₹1,600 to ₹5,200.
• Total: about ₹3,979 to ₹14,379.

Then comes the first year. A company with no turnover and no staff still needs an audit and annual filings. The same guide puts that at ₹15,000 to ₹40,000. Add it up and a "₹999 company" is a ₹22,800 to ₹78,000 first year, before GST on professional fees.

Neither number is bad if you know it in advance. The trouble is when the first bill is the only one you were shown.

Stamp duty: the line most people never see

State stamp duty is not one number. It depends on your state and on your authorised capital. One 2026 table (CorpLawUpdates) shows the e-MoA and e-AoA duty at ₹10 lakh authorised capital:

A caution from my side: this table does not fully match the ranges in the cost guide above, and the table's own page notes you should verify the final amount on the MCA21 challan. That is exactly what I suggest. Whatever a provider quotes, compare it with the challan at the time of filing.

Authorised capital, in plain terms. Do not pick the lowest number just because it is cheapest, and do not inflate it either. Think about how much share capital you actually expect to issue in the next 12 to 24 months. One guide advises starting between ₹1 lakh and ₹10 lakh, because higher capital adds stamp duty without a benefit. If you expect an investor soon, discuss that before filing.

Two details that decide whether your filing sails through

Your name

• You can propose up to two names. Approval typically takes 2 to 3 working days, and an approved name is reserved for 20 days (BizExpress).
• Names get rejected when they are too similar to an existing company, LLP or a trademark in a related class, so run a search before paying for the application.

Your address

• The usual requirement is a utility bill no older than two months, plus a no-objection letter from the owner. For rented premises, keep the lease too (BizExpress, myHQ).
• Residential addresses in zones that bar commercial use, old utility bills, and co-working addresses without paperwork are common reasons for queries. A query can add 2 to 4 weeks (myHQ).
• The same address is checked again for GST. A weak address can lead to a GST notice with 7 working days to reply (myHQ).

Typical time from complete documents: about 12 to 15 working days (BizExpress).

The first 180 days: what actually has to happen

This is the part that gets skipped. In order:

Two practical notes from the INC-20A guide:

• The 180 days start from the date on the certificate, not from the day you open the bank account (IncorpX). Bank opening can take 5 to 15 working days, so do not wait.
• Proof must be a bank statement in the company's name. Personal account statements are a common reason for trouble.

If any of this feels unfamiliar, that is normal. It is also why this period needs a person, not a package.

Three conversations I wish had happened earlier

These three are composites of situations founders commonly bring to advisors. Details are illustrative.

The freelancer who wanted to look serious. She registered a private limited company because clients said it looked professional. She earned ₹6 lakh in year one. The audit, filings and director KYC took close to a tenth of that. Nobody asked whether a simpler structure would give her the credibility at a fraction of the cost.

The trader who needed GST first. He registered the company on a Saturday, and on Monday a customer asked for a GST invoice. His address proof was not ready. A week of sales waited. One question at the start, "Where will your goods be stored?", would have changed the order of everything.

The two friends building a product. They kept authorised capital at ₹1 lakh because it was cheapest. Six months later an investor wanted an allotment far above that. They had to amend the capital, pay again and re-sign documents. They saved a couple of thousand rupees and lost weeks in a funding conversation.

None of them were careless. Nobody had sat down and asked.

The penalty clock, in plain language

Figures from BizExpress, IncorpX and myHQ unless noted.

• Annual forms (AOC-4 and MGT-7A): ₹100 a day per form, with no cap. A 180-day delay on both is ₹36,000 and a year is ₹73,000 (2 × days × ₹100).
• Director KYC: ₹5,000 per director if missed. The director's identity number is deactivated, and any filing needing that signature is blocked (IncorpX).
• Commencement filing (INC-20A): ₹50,000 on the company and ₹1,000 a day per officer, up to ₹1 lakh each. In a ROC Bangalore order dated 11 June 2026, a private company that filed 179 days late was penalised ₹3.5 lakh in total: ₹50,000 on the company and ₹1,00,000 each on three directors, payable from personal funds (TaxGuru).
• Late GST returns: ₹50 a day with tax due, ₹20 for nil returns. Registration can be cancelled after six continuous months without filing (Tally Solutions).
• Director disqualification: Not filing for two consecutive financial years can disqualify a director for five years under Section 164 (myHQ).
• Strike-off: More than two years of continuous non-compliance makes a company liable under Section 248(1). The Registrar struck off 55,458 companies in 2021-22 and 68,893 in 2022-23 (Lok Sabha reply, 20 July 2026, via TaxGuru).

If you file correctly and on time, none of this touches you. These are not traps. They are what it costs when nobody owns your calendar.

A note on fees you may see quoted

Sources differ on small government fees. One guide lists ₹300 for some post-incorporation forms, while another puts the INC-20A government fee at ₹200. Amounts also change. Treat any fee as "check on MCA21 on the day".

How to choose a CA or CS: 12 questions to ask

Ask any provider, including us.

1. What exactly is included in this price? What is not?
2. Are government fees, stamp duty and DSCs in the quote? Is GST shown?
3. Will you ask about my business before choosing a structure?
4. Who is my contact after incorporation, and will they know my name?
5. Who files the first-year forms and the commencement declaration?
6. What happens in month 7 and month 13?
7. Who appoints the auditor and what will the audit cost?
8. How will you help me open the company bank account?
9. If I do not need a company yet, will you tell me?
10. What happens if a filing is missed, and who pays?
11. Can you show me one anonymised example of your first-year plan?
12. Do I own my DSCs, login details and documents?

A good advisor is comfortable with every one of these.

What a premium service actually looks like

It is not a longer price list. It is a different kind of attention:

• A first conversation before any form is filed, with the questions above.
• A written scope with every government fee and every professional fee, GST included.
• A plan for the first 180 days, with names and dates.
• One person who owns your compliance calendar.
• Honest advice, including "you do not need this yet."

Already registered and unsure? A 30-minute check

1. Check your company's status and filing history on the MCA portal.
2. Confirm every director's KYC is current.
3. Confirm the first board meeting happened and the first auditor was appointed.
4. Confirm the share capital reached the company account, and share certificates were issued.
5. Confirm INC-20A was filed.
6. Confirm your GST registration is active and returns are filed.
7. Check you hold your own DSCs and logins.

If any line fails, fix it now. The penalty clock is per day.

The honest take

• Online platforms are a reasonable choice if you already know exactly what you need.
• The risk is not the low price. It is that the price buys speed and a certificate, and nothing after.
• A low-cost start can be a good start, if someone is responsible for month 2, month 7 and month 13.
• Some figures here come from advisory firms that also sell these services. Verify fees, deadlines and penalties on mca.gov.in before you decide.

FAQs

1. Is ₹999 company registration real?

The fee for the filing work can be. Government fees, stamp duty and signatures are usually extra.

2. What is the real cost to register a private limited company?

Government charges of about ₹1,200 to ₹8,000, plus signatures and professional fees. Year one with audit is roughly ₹22,800 to ₹78,000 by one 2026 guide's ranges.

3. How long does registration take?

About 12 to 15 working days from complete documents (BizExpress).

4. What documents prove my registered office?

A utility bill no older than two months and a no-objection letter from the owner, with a lease if rented.

5. What is INC-20A?

A declaration that the company has started business, due within 180 days of the certificate. Missing it can cost ₹50,000 for the company and up to ₹1 lakh per officer.

6. Do I need an audit if I have no income?

Yes. Every company is audited regardless of turnover (BizExpress).

7. What happens if I miss director KYC?

₹5,000 per director and the identity number is deactivated until paid.

8. Can a company with zero turnover be penalised?

Yes. Filing duties apply even without income.

9. What authorised capital should I choose?

Match it to the shares you expect to issue in the next 12 to 24 months. Higher capital adds stamp duty.

10. How do I choose a CA or CS for company registration?

Use the 12 questions above.

If you have already registered and want a second pair of eyes

An hour with the 30-minute check above, plus a look at your filings and registrations, usually shows what is overdue and what fixing it would cost. That kind of post-incorporation check-up is work we do at Lawgical Station, and we start by listening.

General information only, not tax or legal advice. Verify fees and penalties on mca.gov.in.

Figures were last verified on 16 October 2026.