OPC Registration Consultant
One Person Company, or OPC, is a company owned by an individual. It came into existence in the market under the Company Act of 2013. The government announced the following activities to support and encourage entrepreneurship across India.
It is now up to you to consider and put your ideas into action in order to bring the change. It is your time to live your dream and support yourself through the benefits provided by the OPC Act. The act is beneficial for an individual who has a limited budget and wants to create an impact or build his or her own empire.
Explore the article further to understand the compliance issues related to OPC registration consultants. The article also further identifies the differences between Sole Proprietorship and OPC. In addition, it will answer all your questions and help you further in the registration process.
Read it and do not worry about the OPC registration.
Mandatory Compliance for OPC Registration
OPC registration requires individuals to follow certain compliances. These compliances are mandatory and are demanded by the Registrars of the Company (RoC). Ensuring proper follow-up on these compliances is a must for the registered OPC company.
Similar to private limited companies, OPC also falls under the Company Act, 2013 and has its own specific rules and regulations. Though the compliances are comparatively fewer than PVT, it is a must to complete all the compliances in the given period of time, as stated by the RoC.
Read below the compliances that need to be fulfilled for the OPC registration consultant,
- Annual returns need to be filed every year by OPC companies. It needs to be done with the Registrar of Companies. It will be filed as an attachment to Form MGT 7.
- The director of the company must sign the return filed. Usually, it is signed by the company secretary, but since OPC has only one individual and does not have a company secretary, the director will add the signature to it.
- The audited financial statements need to be electronically filed in Form AOC 4 with the RoC. It has to be signed by the director of the respective OPC.
- The financial statements must include the profit and loss document, balance sheet, and audit report.
- An individual has to ensure that the statement is filed within 180 days from the last day of the financial year.
- Compliance also requires the company to appoint an auditor within 30 days of its incorporation. The CA must be the first auditor of the OPC registered company.
- Form ADT-1 needs to be filed and submitted for the subsequent or next auditor who audits the company. It is not required for the first auditor.
- The subsequent auditor appointed will govern or hold the office until the conclusion of the 6th AGM.
- The OPC registered must hold two board meetings every year. It should be conducted every six months, although holding an AGM is not required.
- Form DIR-3 KYC for KYC of the director, income tax report, an annual and financial statement must be filed every year by the OPC.
- It is obligatory for every OPC to follow the rules and regulations of TDS, GST, PF, and ESI, as per the requirements of the company.
- Form INC-20A of commencement of business must be filed within 180 days of incorporation of OPC company.
- Ensure to make the payment of stamp duty on the Share Certificate within 30 days of issuing the shares.
- The company must file the E-form MSME-I in a situation when the company has an outstanding payment to be paid to MSMEs for more than 45 days.
- The company must file the E-form DPT-3 (Return of Deposits) every year. The OPC company has to state all the details of the outstanding loan and payments until March 31 of every financial year.
- Form MBP-1 needs to be filed to disclose the interest required to be given in the first board meeting or whenever or wherever there is a change in the company’s Director.
- Form DIR-8 must be filed every financial year to showcase that the director is not disqualified and still has the potential to manage the company.
What Is the Difference between an OPC and a Sole Proprietorship?
Both OPC and Sole Proprietorship have only one person or member leading the company, but Sole Proprietorship does not have the advantages of a company. It does not enjoy the complete benefits of a company. On the contrary, OPC is a full-filled company and enjoys all its benefits.
Below are the differences between OPC and Sole Proprietorship for your reference. Read it and, accordingly, decide on your choice,
- It is a must for an OPC to be registered under the Company Act, 2013 by the Ministry of Corporate Affairs, while a Sole Proprietorship does not need to be registered under any acts.
- A Sole Proprietorship does not have a separate legal status, while OPC has a separate legal status. It is a legal entity.
- The members of the OPC have limited liability while the same does not apply to Sole Proprietorship. They have unlimited liability.
- The nominee is not an important requirement in Sole Proprietorship, while the nominee is a must in the OPC. The company cannot be incorporated without a nominee.
- Similar to the point mentioned above, a director is not important in Sole Proprietorship while one director is a must in an OPC. Incorporation of the OPC will not happen without any director.
- Foreign ownership is not allowed in Sole Proprietorship.
- OPC company in a situation of death or incapability of the director at the current time of establishment can transfer the company to the nominee, while the same is not applicable to a Sole proprietorship.
- Sole Proprietorship comes to an end once the individual passes away or retires. On the contrary, the same is not applicable to OPC. It is independent of the existence of its members, as it can be continued either by the director or nominee.
- The tax rate is flat at 30% with cess and surcharge in the case of OPC, while in the case of Sole Proprietorship, it is divided as per each slab.
- The annual filings of an OPC are with the RoC in accordance with the Company Act, 2013 and Income Tax Act while for a Sole Proprietorship, they are with Income Tax.
FAQ – OPC Registration Consultant
What is the charge of OPC registration?
The charge for registering an OPC for a nominal share capital that does not exceed Rs 10 lakhs is ₹ 2000. An increase of every ₹ 10,000 for the nominal share capital with a limit of Rs 50 lakhs, will cost a fee of ₹ 200.
How many days does it take to register an OPC?
It takes 10 – 15 days for the registration of an OPC. Digital Signature Certificate (DSC) and Director Identification Number (DIN) are given in a day and a certificate of incorporation is provided in 3 – 5 days.
Is it mandatory for a member of an OPC to appoint a nominee?
Yes, it is mandatory to appoint a nominee. The nominee will act as a member who will hold the company together in case of the death or incapacity of the current leader.
Which type of meeting is not applicable for OPC?
Annual General Meeting is not a necessity for a company registered under OPC. General meeting, extraordinary general meeting, and a notice stating about the general meeting are not requirements for an OPC registered company.
Which business activity cannot be undertaken by OPC?
OPC cannot engage in a Non-Banking Financial investment activity under Section 8 of the Companies Act, 2013. The company is not allowed to convert to a firm with charitable investment.
Who is not eligible to incorporate an OPC?
An individual who does not have Indian citizenship or is a foreign national is not eligible to incorporate an OPC.
OPC act under The Company Act, 2013 was created by the government of India to promote the startup sector. It is for individuals like you who have an objective towards a given service or product. OPC act is the cherry on top with a comparatively easy process and low cost.
Being diligent about the compliance process of the OPC is a must and extremely important. It is a requirement to follow the rules compulsorily. The article above gives an in-detail information on the OPC registration consultant and also, provides information on the sole proprietorship.
Do you have more questions? Are you still confused?
Do not worry. We have a solution for you. Connect with Instafilling, one of the best compliance service platforms in India. Experts from the team will speak with you and help in your compliance process. Let them be your OPC registration consultant 🙂
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