Starting a Business in India: Every Government Fee, in the Order You Will Actually Pay It

Most guides give you one number. "Company registration, ₹X." Then the second bill arrives, and the third.

This is the opposite. It follows a business from day one to month twelve and shows every government fee in the order it hits you. At Lawgical Station we help founders across India do this, and the first thing we put on the table is the full price list. Starting with the money is what makes the rest of the conversation honest.

One thing to know before you read on. The fees are the easy part. What costs founders money is the decision behind each fee: which state, which name, which class, which moment. I will show you the numbers and point out where the answer changes with your situation. Those are the questions we settle in the first conversation.

The short version

• Government fees to start a typical small business are modest. The expensive mistakes are timing, state and structure.
• A small service company in Uttar Pradesh: roughly ₹7,231 to ₹10,831 in government fees, plus professional fees and audit (my arithmetic, below).
• A small food business in Maharashtra: roughly ₹16,331 to ₹23,331 (same method).
• GST registration, Udyam and DPIIT recognition have no government fee. IEC is ₹500. Trademark starts at ₹4,500 per class.
• State fees (stamp duty, shop licence, professional tax) are why "one price for India" is never honest.

The complete government price list

*I did not find a GST registration fee in the sources I read. As far as I know it is free on the official portal, so confirm on the portal.

Prices are for e-filing where applicable. Trademark fees at the lower rate need your Udyam or DPIIT certificate with the application, or you are charged the higher rate with no later adjustment (Intepat).

Now, in order: your first twelve months

Day 1: the structure and the paperwork

You decide what the business is. The government cost of a private limited company is mainly stamp duty, digital signatures and the small PAN/TAN charges above. The incorporation fee itself is nil up to ₹15 lakh authorised capital (BizExpress).

Where the state matters. One 2026 table (CorpLawUpdates) shows stamp duty on the memorandum and articles at ₹10 lakh authorised capital:

• Uttar Pradesh: ₹500 + ₹500 = ₹1,000
• Gujarat: ₹100 + ₹1,000 = ₹1,100
• Delhi: ₹200 + ₹1,500 = ₹1,700
• Maharashtra: ₹1,000 + ₹2,000 = ₹3,000
• Karnataka: ₹1,000 + ₹5,000 = ₹6,000

(Totals are my arithmetic. The table itself says to verify final amounts on the MCA21 challan.)

The same company costs ₹5,000 more in Karnataka than in Uttar Pradesh, before anything else.

The open question. Where should the registered office sit, and how much authorised capital should you choose? The cheapest answer is not always the right one. If an investor is likely, if a bank will ask for capital proof, or if your customers are in a different state, the answer shifts. This is one of the first things we map with founders, because it decides stamp duty today and amendment costs later.

Week 1: your name, your brand

Search before you pay anything. Names are rejected when they match an existing company, LLP or trademark in a related class (BizExpress). Then protect the brand.

Trademark costs depend on who files and how many classes:

• One class, startup or MSME rate: ₹4,500.
• Two classes, company rate: ₹18,000.
• Two classes at the startup rate with a valid Udyam or DPIIT certificate: ₹9,000.

That is a ₹9,000 difference for the same filing, depending on whether the certificate is in the file (my arithmetic from Intepat's fees).

What founders get wrong (Patron Accounting): descriptive names that draw objections, a wrong or missing class (which cannot be changed after filing), the wrong applicant name, and missing the 30-day objection reply, which can abandon the application.

The open question. Which classes does your brand actually need, in what order, and in whose name? A founder selling a product, a service and an app may need three classes, and the wrong choice means a fresh application and a lost filing date. We decide this by looking at your business plan, not by picking the cheapest class.

Month 1: the first board meeting, auditor and bank account

Both guides I read put the first board meeting and the first auditor's appointment within 30 days of incorporation, and every company needs an audit regardless of turnover (BizExpress). Opening the company bank account early matters, because the commencement filing needs a company bank statement as proof (IncorpX).

Before your first invoice: GST

Government fee: none. But GST is where timing and state matter most.

• Goods ₹40 lakh, services ₹20 lakh in most states, with lower limits in some (BUSY).
• Compulsory regardless of turnover in some cases, such as inter-state supply of goods.
• Apply within 30 days of the liability arising. A late filing can leave a gap period.
• Not registering when you must can cost ₹10,000 or the tax amount, whichever is higher, plus 18% interest (BUSY).

The open question. Should you register now, voluntarily, or wait? It depends on who your customers are (businesses that want input credit, or individuals), whether you sell across states, whether you use marketplaces, and what your first-year turnover will realistically be. We usually work this out with a founder in one conversation, because the right answer changes the first three months of invoicing.

Month 2: Udyam and your state registrations

Udyam: free. The portal is udyamregistration.gov.in. It opens doors to priority lending, collateral-free credit schemes and payment protection. Classification, from 1 April 2025: micro up to ₹2.5 crore investment and ₹10 crore turnover, small up to ₹25 crore and ₹100 crore, medium up to ₹125 crore and ₹500 crore (Deccan Herald).

Shop and establishment registration. This is state law, and the fees vary widely. One table (IncorpX, labelled 2025) shows:

The same page puts the general deadline at about 30 days after starting business in most states, and 60 days in Maharashtra. Fees change, so we confirm each on the state portal before filing.

Professional tax. If you have employees, this depends on where they work, not where your company is registered. One guide lists states that levy it, including Maharashtra, Karnataka, Gujarat, West Bengal, Tamil Nadu and Telangana, and states that do not, including Delhi, Uttar Pradesh, Haryana and Uttarakhand. The state lists in that article are inconsistent with each other, so this needs checking per state. The tax is capped at ₹2,500 per person per year, and registration fees are ₹0 to ₹500 (IncorpX).

The open question. If you have staff in more than one state, each state adds its own registrations, slabs and returns. How you set up the first hire, and where, changes your compliance for years. This is a conversation we have with founders before they hire.

If you sell food: FSSAI

From 1 April 2026 the thresholds are: basic registration up to ₹1.5 crore, state licence ₹1.5 crore to ₹50 crore, central licence above ₹50 crore (Mondaq). Annual fees from one guide: ₹100, ₹2,000 to ₹5,000, and ₹7,500 respectively, with late renewal at ₹100 a day (Tally). That guide still shows the old turnover bands, so confirm the fee for your category on the FoSCoS portal.

If you sell abroad: IEC

₹500, once, valid for life. Needed for goods imports and exports. Services exporters generally need it only for Foreign Trade Policy benefits. The catch: it must be updated every year between 1 April and 30 June, or it can be deactivated, which can block customs clearance and foreign payments (TAXAJ).

Month 3 onwards: DPIIT recognition

Free, through the NSWS portal, typically 2 to 5 working days, and no agent is authorised to apply for you (IncorpX, updated 12 July 2026). It is open to private limited companies, LLPs, partnership firms and cooperative societies, not sole proprietorships. Benefits include patent fee rebates and self-certification under several labour and environmental laws. The 100% profit deduction needs separate approval. That is the part many people miss.

The open question. Is the profit-deduction route realistic for your business, and is your structure eligible? The answer depends on your sector, entity type and growth plans, and it is better settled before you incorporate.

Month 6 and Month 12: the filings that follow

• Commencement filing (INC-20A): within 180 days. ₹200 government fee. Missed, it can cost the company ₹50,000 and each officer up to ₹1 lakh (IncorpX). In a ROC Bangalore order dated 11 June 2026, one private company was penalised ₹3.5 lakh for filing 179 days late (TaxGuru).
• Annual filings: ₹300 per form, and ₹100 a day per form if late, with no cap (BizExpress).
• Director KYC: free on time, ₹5,000 per director if missed (IncorpX).

Two real-world budgets (illustrations)

Government fees only. Professional fees, audit and GST on fees are extra. Trademark at the startup/MSME rate, which requires a valid Udyam or DPIIT certificate.

A small service company in Uttar Pradesh

• Stamp duty ₹1,000 + PAN/TAN ₹131
• Two digital signatures ₹1,600 to ₹5,200
• One trademark class ₹4,500
• GST and Udyam: ₹0
• Total: about ₹7,231 to ₹10,831

A small food business in Maharashtra, exporting

• Stamp duty ₹3,000 + PAN/TAN ₹131
• Two digital signatures ₹1,600 to ₹5,200
• Two trademark classes ₹9,000
• FSSAI state licence ₹2,000 to ₹5,000 for the year
• IEC ₹500
• Shop registration (0 to 9 employees) ₹100 to ₹500
• Total: about ₹16,331 to ₹23,331

Neither includes audit and annual compliance. The same cost guide that gave the ₹800 to ₹2,600 signature fee puts audit and annual filings for a company with no turnover at ₹15,000 to ₹40,000 a year (BizExpress).

What a fee list cannot tell you

You now know every government fee. Notice what the list does not answer:

• Which state should your registered office be in?
• Company, LLP or something simpler, given your customers and your plans?
• Which trademark classes, and who should be the applicant?
• When should GST start, in which states?
• How do you hire the first person without creating compliance in two states?

These are not form-filling questions. They are planning questions, and they change what you pay in year one and year three. This is the part of the work we enjoy at Lawgical Station: sitting with a founder, asking what they are building, and drawing the sequence that fits.

FAQs

1. What is the total government cost to start a small business in India?

It depends on structure, state and licences. My two illustrations above range from about ₹7,231 to ₹23,331 in government fees, before professional fees and audit.

2. Is GST registration free?

There is no government fee on the official portal. Confirm on the GST portal.

3. How much is a trademark?

₹4,500 per class for individuals, startups and MSMEs, ₹9,000 for others (Intepat).

4. Is Udyam registration free?

Yes (IncorpX).

5. Do I need an IEC?

Only for importing or exporting goods. Services exporters generally need it only for Foreign Trade Policy benefits (TAXAJ).

6. What are the FSSAI limits now?

Basic registration up to ₹1.5 crore turnover from 1 April 2026 (Mondaq).

7. Does every state charge professional tax?

No. Some states do not levy it, and the lists differ across sources, so check by state (IncorpX).

8. Is DPIIT recognition a tax exemption?

No. The profit deduction needs separate approval (IncorpX).

9. What is the penalty for missing the commencement filing?

₹50,000 on the company and up to ₹1 lakh per officer (IncorpX).

10. Do I pay different fees in different states?

Yes. Stamp duty, shop registration and professional tax all vary.

If you want the sequence built for your business

Tell us what you plan to sell, where, and to whom, and our team maps the order, the state-wise fees and the timing, then helps you handle the filings. We work with founders and businesses across India. A first call is a good place to start, and it usually clears up the open questions above.

General information only, not tax or legal advice. Government fees and dates change. Figures last verified on 16 October 2026.