Most “cost to start a business” articles quote the MCA filing fee and stop. That number is real, and it is a small fraction of what actually leaves your account in the first year. This is the full line-by-line for Bangalore in 2026 — what is a genuine government charge, what is a service fee you can avoid, and the three places first-time founders reliably overspend.

Figures are indicative ranges for a small business, not a quote. Government fees change, state charges are revised, and your CA sets their own rate. Verify current fees on the MCA and Karnataka portals before you budget hard.

The short answer

For a two-director Private Limited company in Bangalore with a modest authorised capital, working from a coworking desk:

  • Incorporation, one-time: Rs 12,000–25,000
  • Brand protection, one-time: Rs 4,500–9,000 per trademark class
  • Year-one compliance: Rs 15,000–50,000
  • Workspace: Rs 0–1,20,000 a year depending entirely on whether you take a desk

So the honest floor to be properly incorporated and compliant for one year, before rent and salaries, is roughly Rs 35,000–80,000. A sole proprietorship collapses that to near zero, with real trade-offs covered below.

1. Incorporation: the government charges

These are unavoidable if you want a company rather than a proprietorship.

  • Name reservation (SPICe+ Part A) — Rs 1,000 per submission, up to two names. If both are rejected you pay again, which is the single most avoidable cost on this page.
  • Digital Signature Certificate (Class 3) — Rs 800–1,500 per director, valid two years. Two directors means Rs 1,600–3,000.
  • MCA incorporation fee (SPICe+ Part B) — scales with authorised capital. At the low capital most startups register with, this lands in the Rs 4,000–6,000 band. There is no separate DIN fee; DIN is allotted inside Part B.
  • Karnataka stamp duty — charged on the MOA, AOA and the incorporation form, and set by the state rather than the MCA. For typical small-capital registrations expect roughly Rs 2,000–3,000. This is why an identical company costs a different amount in Karnataka than in Delhi or Maharashtra.
  • PAN and TAN — issued inside SPICe+ at negligible cost, bundled into the above.

Karnataka stamp duty is the line most national guides get wrong, because they quote a single all-India figure that does not exist. Stamp duty is a state subject.

2. Incorporation: the service fee you can choose

Filing agents and CA firms charge Rs 5,000–15,000 on top of the government fees. Bangalore is at the higher end simply because demand is.

You can file SPICe+ yourself. It is a long form, not a difficult one, and the MCA portal walks through it. What you are buying with a professional is (a) not losing Rs 1,000 to a rejected name, (b) an MOA object clause written wide enough that you do not amend it in year two, and (c) somebody who notices the INC-20A deadline.

For a first company, paying it is usually rational. For a second one, less so.

3. Bangalore-specific registrations

  • BBMP trade licence — needed if you run a commercial premises inside BBMP limits. Fees are set by trade category and area, commonly Rs 2,000–10,000 a year for a small unit, renewed annually. Software and consulting businesses on a coworking desk generally do not hold one; the operator holds it for the building.
  • Karnataka professional tax — both an employer registration and a per-employee deduction, capped by statute at Rs 2,500 per person per year. Small, but it is a registration people forget and then pay penalties on.
  • Shops and Establishments registration — under the Karnataka Shops and Commercial Establishments Act, for premises with employees. Fee scales with headcount and is modest.
  • GST registration — free on the portal. Mandatory above the turnover threshold, and in practice from day one if you sell to businesses that want input credit, or sell across state lines.
  • Udyam (MSME) registration — free, takes minutes, and is worth doing immediately. It is the document that gets you the reduced Rs 4,500 trademark fee and a range of scheme benefits.

4. Protecting the name — where the real risk sits

This is the section that exists because we watch it go wrong.

An MCA-approved company name is not a trademark. A registered domain is not a trademark. A GST certificate is not a trademark. Three separate registries, three separate rights, and clearing one tells you very little about the other two. We wrote a full explainer on why a trademark, an MCA name and a domain are three different things.

  • Trademark filing (TM-A) — Rs 4,500 per class for individuals, startups, MSMEs and DPIIT-recognised entities. Rs 9,000 per class for everyone else. Per class, so a business selling a product and running a retail arm may need two.
  • Attorney drafting and filing — Rs 3,000–10,000 per class if you use one. Optional, often sensible.
  • Domain — Rs 700–1,500 a year for a .in or .com that nobody is holding. A premium resale is a different conversation entirely.

The failure mode is ordering signage, packaging and a website against a name that has not been cleared, then getting a Section 11 objection because a phonetically similar mark already sits in your class. Redoing brand assets costs multiples of the filing fee. Clearing a shortlist first is the cheapest insurance in this entire list — you can check a name across IP India, MCA, domains and social handles before you spend anything on design.

5. Year-one compliance

The cost founders forget when comparing a Pvt Ltd against a proprietorship.

  • Statutory audit — mandatory for a Pvt Ltd regardless of turnover. Rs 10,000–30,000 for a small company.
  • Annual filings (AOC-4, MGT-7) — typically bundled into a CA retainer.
  • DIR-3 KYC — annual, per director, small fee, brutal penalty if missed.
  • GST returns — monthly or quarterly. Adds to the retainer if you are registered.
  • INC-20A, commencement of business — within 180 days of incorporation. Miss it and the Registrar can strike the company off.

A basic Bangalore compliance retainer runs Rs 15,000–50,000 a year. An LLP is materially cheaper here, with no mandatory audit below the statutory turnover threshold — which is the real argument for an LLP if you are never raising equity.

6. Workspace

  • Registered office at a residence — Rs 0. Entirely legal with an ownership document or a NOC from the owner. Most first-year companies do this.
  • Coworking desk — roughly Rs 6,000–15,000 a month in Bangalore depending on the micro-market and whether you want a dedicated desk. Koramangala and Indiranagar sit above HSR and Whitefield.
  • Private office — a step change, plus a deposit that is commonly six to ten months of rent. That deposit, not the rent, is what breaks early cash flow.

Where founders overspend

  1. A private office in month one. The deposit alone often exceeds the entire incorporation and compliance bill for the year.
  2. Higher authorised capital than needed. MCA fees and stamp duty scale with it. You can raise it later. There is no prize for registering with a large number.
  3. Brand assets before name clearance. Logo, packaging, signage and print against an unchecked name. When the mark is refused, all of it is remade.
  4. Incorporating before there is anything to incorporate. A proprietorship with Udyam and GST is free and legal. Convert when revenue or a term sheet makes the structure necessary.

The lean sequence

  1. Clear the brand name across trademark, MCA, domain and handles.
  2. Register a sole proprietorship with Udyam. Free.
  3. Take GST registration if you need it. Free.
  4. File the trademark once the name survives clearance.
  5. Sell something. Validate that the business exists.
  6. Incorporate the Pvt Ltd or LLP when funding, liability or a client contract requires it.

Steps one to five cost the trademark fee and a domain. Step six is where the Rs 12,000–25,000 lands, and by then you know it is worth spending.

Frequently asked

How much does it cost to register a Pvt Ltd company in Bangalore?

Budget Rs 12,000-25,000 all-in for a Pvt Ltd in Karnataka. That is roughly Rs 1,000 MCA name reservation, Rs 4,000-6,000 MCA incorporation fees on typical authorised capital, Rs 2,000-3,000 Karnataka stamp duty, Rs 1,500-3,000 for two Class 3 DSCs, and Rs 5,000-12,000 in CA or filing-service fees. Filing yourself removes the last line but not the rest.

Is a BBMP trade licence mandatory in Bangalore?

It is required for businesses operating a commercial premises in BBMP limits - shops, restaurants, clinics, manufacturing, and most establishments dealing with the public. Fees vary by trade category and floor area, commonly Rs 2,000-10,000 a year for a small unit. A pure software or consulting business working from a coworking desk or a residence is usually not issued one, and the coworking operator holds the licence for the premises.

What is the cheapest legal way to start a business in Bangalore?

A sole proprietorship with Udyam registration costs nothing at the government counter. You get GST registration free if you need it, and a current account on the strength of Udyam plus GST. The trade-off is unlimited personal liability and no ability to raise equity, so it suits validation and small service businesses rather than anything you intend to raise money into.

Do I need to trademark my brand name before starting?

Not to incorporate. But an MCA-approved company name gives you no trademark rights, and a domain gives you none either. A trademark filing costs Rs 4,500 per class for individuals, startups, MSMEs and DPIIT-recognised entities, Rs 9,000 per class otherwise. The expensive mistake is spending on a logo, signage and packaging first, then discovering the mark is refused under Section 11.

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