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By Kapil 21 June, 2024 Comments (3)

Opc Registration Govt Fees in india

Starting a One-Person Company (OPC) in India has become a popular choice for solo entrepreneurs looking to establish a formal business structure. But before diving into the registration process, understanding the costs involved is crucial. This blog will provide a comprehensive overview of what an OPC is, its advantages, the registration process, required documents, and the associated costs.

What is a One-Person Company?

A One-Person Company (OPC) is a type of business entity that allows a single individual to own and operate a company with limited liability and a separate legal entity status. Introduced under the Companies Act, 2013, OPCs offer the benefits of both sole proprietorship and corporate frameworks, making it easier for solo entrepreneurs to manage their businesses while enjoying legal protection and operational advantages.

What are the Advantages of a One-Person Company?

One-Person Companies come with several benefits that make them an attractive option for individual entrepreneurs:

Limited Liability: The owner’s liability is limited to the amount invested in the company. Personal assets are protected from business liabilities.
Separate Legal Entity: The OPC is a distinct legal entity separate from its owner. This allows the company to own property, enter contracts, and sue or be sued in its name.
Perpetual Succession: The company continues to exist even if the owner dies or becomes incapacitated. The nominee, appointed during registration, takes over the company's operations.
Simplified Compliance: OPCs have fewer compliance requirements compared to other types of companies. This reduces the administrative burden on the owner.
Improved Credibility: Registering as a company enhances the business’s credibility and trustworthiness, which can attract customers, investors, and business partners.
Tax Benefits: OPCs can avail of various tax deductions and benefits available to private limited companies, potentially reducing the overall tax burden.

What are the Minimum Requirements for OPC Registration?

Before registering an OPC, ensure you meet the following minimum requirements:

Single Shareholder: The company must have only one shareholder, who can also be the sole director.
Nominee: A nominee must be appointed who will take over the company’s affairs in case of the shareholder’s death or incapacity.
Resident Indian: Both the shareholder and the nominee must be natural persons, Indian citizens, and residents of India for at least 182 days during the preceding financial year.
No NBFC Activity: The OPC cannot engage in non-banking financial activities, including investment in securities of any body corporate.

What is the Process of One-Person Company Registration?

The process of registering an OPC in India involves several steps, which can be completed online through the Ministry of Corporate Affairs (MCA) portal:

Obtain Digital Signature Certificate (DSC): The proposed director must obtain a DSC for signing electronic documents. This can be obtained from government-approved certifying authorities.
Apply for Director Identification Number (DIN): Apply for a DIN through the MCA portal if the proposed director does not already have one.
Name Approval: Choose a unique name for the OPC and apply for name approval through the RUN (Reserve Unique Name) service on the MCA portal.
Draft MoA and AoA: Prepare the Memorandum of Association (MoA) and Articles of Association (AoA) outlining the company’s objectives and internal management rules.
File Incorporation Form: Fill out and submit the SPICe+ (Simplified Proforma for Incorporating Company Electronically) form along with the MoA, AoA, and other required documents.
Payment of Fees: Pay the prescribed registration fees online.
Verification and Approval: The Registrar of Companies (RoC) will verify the submitted documents. Upon approval, the Certificate of Incorporation will be issued.
Commencement of Business: Once incorporated, file a declaration within 180 days stating that the company has commenced business activities.

What are the Documents Required for One-Person Company Registration?

To successfully register an OPC, the following documents are required:

Identity Proof: PAN card of the shareholder and nominee.
Address Proof: Aadhar card, passport, voter ID, or driving license of the shareholder and nominee.
Residential Proof: Recent bank statements, electricity bills, or mobile bills of the shareholder and nominee.
Registered Office Address Proof: Rent agreement (if rented), ownership documents (if owned), and a utility bill (not older than two months).
No Objection Certificate (NOC): NOC from the property owner if the registered office is rented.
Digital Signature Certificate (DSC): Obtain a DSC for the proposed director to sign electronic documents.
Director Identification Number (DIN): Apply for a DIN for the proposed director if not already obtained.
Memorandum of Association (MoA) and Articles of Association (AoA): Draft these documents outlining the company’s objectives and rules.
Forms and Declarations: Consent form from the nominee (INC-3), declaration by the director and promoter (INC-9), and consent to act as a director (DIR-2).

One-Person Company Registration Fees

The cost of registering an OPC in India can vary based on several factors, including professional fees, government fees, and other incidental expenses. Here’s a breakdown of the potential costs:

Digital Signature Certificate (DSC): The cost of obtaining a DSC ranges from ₹500 to ₹2,000, depending on the certifying authority and the validity period.
Director Identification Number (DIN): The application fee for a DIN is ₹500.
Name Approval: The fee for name approval through the RUN service is ₹1,000 per application.
Stamp Duty: The stamp duty on MoA and AoA varies from state to state and can range from ₹200 to ₹1,000.
Filing Fees: The filing fee for the SPICe+ form is based on the authorized capital of the company. For authorized capital up to ₹10 lakh, the fee is ₹2,000. For higher authorized capital, the fee increases progressively.
Professional Fees: Fees for professional services like chartered accountants, company secretaries, or legal consultants can vary significantly based on the complexity of the registration and the professional’s experience. Typically, it can range from ₹5,000 to ₹25,000.
Miscellaneous Expenses: Additional expenses may include notary fees, courier charges, and other incidental costs, which can add up to ₹1,000 to ₹2,000.

Conclusion

Registering a One-Person Company (OPC) in India is a cost-effective and efficient way for solo entrepreneurs to establish a formal business structure. The benefits of limited liability, separate legal entity status, and simplified compliance make it an attractive option. By understanding the process, requirements, and costs involved, you can navigate the registration process smoothly and set your business on a path to success.

Frequently Asked Questions

Q1: Can a foreign national register an OPC in India?

A: No, only a natural person who is an Indian citizen and resident in India can register an OPC.

Q2: How long does it take to register an OPC in India?

A: The registration process typically takes 10 to 15 days, depending on the timely submission and verification of documents.

Q3: Can an OPC be converted into a private or public limited company?

A: Yes, an OPC can be converted into a private or public limited company after two years from incorporation or if the paid-up capital exceeds ₹50 lakhs or annual turnover exceeds ₹2 crores.

Q4: What is the validity period of a Digital Signature Certificate (DSC)?

A: A DSC is typically valid for one or two years and can be renewed upon expiration.

Q5: Are there any restrictions on the activities an OPC can undertake?

A: Yes, an OPC cannot engage in non-banking financial activities, including investment in securities of any body corporate.

By understanding the costs and steps involved in registering an OPC, you can make informed decisions and efficiently establish your business entity. Embrace the benefits of an OPC and take your entrepreneurial journey to new heights.

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