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Is free Company Registration really free? What 'zero fee' offers include and exclude

In short

Company Registration is never fully free. The MCA waives its SPICe+ fee up to ₹15 lakh capital, but stamp duty, name fee, PAN/TAN and DSCs remain; free offers usually waive only the professional fee.

Company Registration in India is never completely free. The government does waive its own SPICe+ filing fee when a company's authorised capital is up to ₹15 lakh, but state stamp duty, the name reservation fee, PAN and TAN charges and Digital Signature Certificates still have to be paid by someone. A "free" or "zero fee" offer usually means only that the provider is not charging a professional fee for the filing itself; what it includes and excludes is what decides the real cost.

Searches such as "company Registration free" and "register a company online free" are common, and so are advertisements built around them. This post is consumer awareness: it explains what the law actually makes free, what can never be free, and how to read any zero-fee offer before you share your documents. It does not review or name any provider. For the full cost picture, read How much does Company Registration cost in India?

What part of Company Registration is actually free?

The Ministry of Corporate Affairs (MCA) gives a genuine concession. Companies incorporated through SPICe+ (the single online incorporation form on the MCA portal) with authorised capital up to ₹15 lakh pay a "Zero Filing Fee", in the MCA's own words. Authorised capital is the maximum share capital the company may issue under its Memorandum; most new small companies keep it at ₹1 lakh to ₹10 lakh, well inside the limit.

Two more items cost nothing at the government level: a Director Identification Number (DIN) allotted through SPICe+, and the linked applications for EPFO and ESIC Registration and a bank account made through the AGILE-PRO-S form. Optional GST Registration applied for through the same set of forms also carries no government fee.

What can never be free in Company Registration?

Cost Paid to Can a provider make it disappear?
Stamp duty on the MoA and AoA The state government, through SPICe+ No. A provider can only absorb it out of its own pocket.
Name reservation in SPICe+ Part A MCA — ₹1,000 per name No
PAN and TAN of the company Income tax department, collected through SPICe+ No
MCA fee when authorised capital is above ₹15 lakh MCA No
Class 3 Digital Signature Certificate for each signatory A licensed certifying authority No; it can only be bundled into another price

So when an advertisement says "₹0", the honest reading is "₹0 professional fee, government and third-party costs extra", unless the offer clearly says those costs are included. Stamp duty alone varies widely between states; the city guides, such as Company Registration in Mumbai, show how it works locally.

What do zero-fee Company Registration offers usually include?

  • Preparing and filing the SPICe+ form and its linked forms (e-MoA, e-AoA, AGILE-PRO-S).
  • Standard objects in the Memorandum of Association and model Articles of Association.
  • The professional declaration and certification that SPICe+ requires.
  • The Certificate of Incorporation with the company's PAN and TAN, sent by the Registrar by email.

None of that is fake. Some providers genuinely recover their cost elsewhere, and a founder who reads the terms can get a good result.

What do "free" offers often exclude?

  • Government fees and stamp duty, charged "at actuals".
  • DSCs, priced per director.
  • Capital or state limits, for example "valid for ₹1 lakh capital" or "only in certain states".
  • Name rejections: a second or third name attempt may be extra.
  • Post-incorporation work: share certificates, Form INC-20A (due within 180 days), first auditor appointment and the first board meeting.
  • Trademark, GST or other Registrations beyond the bare minimum.

How do free Company Registration offers make money?

A free service still has to pay its staff and the professional who certifies the form. Common ways the cost is recovered are:

  1. Annual compliance contracts. Registration is free if you sign up for a year or more of accounting, audit and ROC filings at a fixed fee. This can be fair value, but compare it with what the compliance would cost elsewhere.
  2. Bundled extras. Trademark filing, GST, website or bank-related services sold alongside.
  3. Referral income. Some offers are tied to opening an account or using a payment product.
  4. Lead generation. Your contact details may be passed to partners; read the privacy terms.

A free Registration followed by an expensive, hard-to-exit annual contract is not free. Neither is a cheap Registration that leaves you to discover the yearly obligations yourself — every company needs a statutory audit and annual MCA filings from its first year, whatever its turnover.

How do you check a zero-fee Company Registration offer?

  • Ask for a written list of inclusions and exclusions, with the total you will actually pay.
  • Ask whether stamp duty, PAN/TAN, name fee and DSCs are included, and for which state and capital.
  • Ask whether any annual contract is a condition, for how long, and how you can exit.
  • Ask who will certify your SPICe+ form, and check their membership on the ICSI or ICAI website.
  • Make sure the company's MCA login, DSCs and documents will be handed over to you.
  • Remember that the Registration itself is granted only by the Registrar of Companies; no private provider is "government approved" to register companies.

The post on Company Registration services and packages lists more questions to ask.

Is LLP or OPC Registration free too?

A One Person Company (OPC) uses the same SPICe+ form as a Private Limited Company, so the same rule applies: no MCA filing fee up to ₹15 lakh authorised capital, but stamp duty, name fee, PAN/TAN and DSC costs remain. The details are in OPC Registration cost in India. A Limited Liability Partnership (LLP) is registered through a different form, FiLLiP, with government fees based on the partners' total contribution and stamp duty on the LLP agreement, so it is not fee-free either. See LLP Registration process and cost.

Is "free" Registration the same as "government" Registration?

No. Some advertisements suggest that a free service is official or run by the government. Company Registration is granted only by the Registrar of Companies through the MCA portal, and the government does not offer a free filing service on a founder's behalf. Any website that collects your documents is a private business, whatever its name or design. The official portal is mca.gov.in; payments to the government are made only through the challan generated by the SPICe+ form.

Can you keep the cost close to the government minimum?

Yes, within limits. Keep authorised capital at or below ₹15 lakh, prepare clean documents, check your name against the MCA and trademark records before paying for reservation, and file correctly the first time. You can do much of the preparation yourself on the MCA portal, but the law still requires a professional declaration and certification on SPICe+ — see Can you register a company yourself without a CA or CS? If your goal is simply to start trading at the lowest cost, a sole proprietorship has no incorporation fee at all; the benefits of Company Registration post explains when a company is worth it.

Key takeaways

  • The MCA charges no SPICe+ filing fee when authorised capital is up to ₹15 lakh; that is the only "free" part set by law.
  • Stamp duty, ₹1,000 per name reserved, PAN/TAN charges and DSCs are always payable by someone.
  • "Zero fee" usually means zero professional fee; the cost may be recovered through annual contracts or add-ons.
  • Get inclusions, exclusions and any lock-in in writing before sharing documents.
  • Budget for the yearly audit and MCA filings, which are compulsory from the first year.

Frequently asked questions

Can I register a company in India for free?

Not completely. The MCA charges no SPICe+ filing fee when authorised capital is up to ₹15 lakh, but state stamp duty on the MoA and AoA, ₹1,000 per name reserved, PAN and TAN charges and Digital Signature Certificates must still be paid. An offer advertised as free usually means the provider waives its own professional fee; government and third-party costs are paid by the founder or absorbed by the provider.

What is the zero fee rule for Company Registration?

Companies incorporated through the SPICe+ form with authorised capital up to ₹15 lakh pay no MCA filing fee, which the Ministry of Corporate Affairs describes as a zero filing fee concession. It covers the MCA's own fee only. Stamp duty, which belongs to the state, the name reservation fee and PAN and TAN charges are not waived, and companies with capital above ₹15 lakh pay MCA fees on the normal schedule.

Why do some providers offer Company Registration for free?

A free Registration is usually recovered in another way: a condition to sign a yearly accounting and compliance contract, add-on services such as trademark or GST filing, referral income from banks or payment products, or using customer details for marketing. None of these is necessarily wrong, but founders should ask for the inclusions, exclusions and any lock-in in writing before sharing documents.

Is stamp duty included in free Company Registration offers?

Often it is not. Stamp duty on the Memorandum and Articles of Association is set by the state and is paid through the SPICe+ challan, so many offers list it as charged at actuals. The amount depends on the state of the registered office and, in many states, on authorised capital. Founders should ask whether stamp duty is included and for which state and capital the quoted price applies.

Is a free Company Registration website government approved?

No private website is government approved to register companies. Company Registration is granted only by the Registrar of Companies through the Ministry of Corporate Affairs portal at mca.gov.in. Any service that collects documents and files on a founder's behalf is a private business, even if it advertises free Registration. Government fees are paid only through the challan generated by the SPICe+ form.

CS. Bhavik Hariyani

Who writes these lessons

CS. Bhavik Hariyani

Working with startups since 2009.
1,100+ PVT. LTD., LLP & OPC companies registered across sectors.

Contact: bhavik@hgcorporates.com