Starting a Private Limited Company in India: What Are the Legal Obligations with Low Revenue?

I am planning to register a startup company in India as a private limited company. However, being a startup, I might not have enough revenue-generating activities initially for 1-2 years. In that case, how much is the legal obligation for financial audit, service tax, and any other applicable taxes or paperwork formalities if my annual revenue is below 1 lakh rupees?

It would cost you about $20,000 per year, and you would have to file nil service tax returns if you get service tax registration and file a nil balance sheet. All this could lead to additional costs, so wait until you are certain about doing business before starting a private limited company. When you decide to start the company, websites like indiafilings.com can help you set up your company.

Regards

Hi, nothing is needed. I'll suggest a simple approach. Start with an audit and proceed with basic company registration, which costs 3000/- including the audit fee. Once your company has developed after 2 or 3 years, consider going for Pvt Ltd registration, which costs between 20,000 to 25,000/-. I am following the same steps for my company. It's advisable not to invest a large sum initially. If you face losses, everyone will be affected. Keep this in mind.