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OPC Registration Fees

The startup culture in India started in early 2010. Individuals booming with their own ideas and concepts, aiming to work towards it and grow respective industries further. The government of India also ensured to support such entrepreneurs by bringing in varied campaigns and changing taxation rules. 

OPC Registration Fees

One such initiative by the government was the introduction of One Person Company or OPC, which was conceptualized by the Ministry of Corporate Affairs under  The Companies Act 2013. OPC registration fees is manageable and the act states that the company is only a one-person member company. He or she is the only shareholder of the company and has  complete control over it. 

Furthermore, this act encourages the individual to start his/her own business at  low risk  and build a small enterprise. It can further be converted into any other company form, as per the demand of the time. The act entitles the individual to be the director of the company and does not require a set of board members. 

Are you looking at establishing a company of your own? Are you the sole head or sole founder of the company?

Then the OPC Act is for you.

The preceding paragraphs provide a synopsis of the act. You need to understand and learn a lot more information before registering your company.

The article here covers further questions about the OPC Act and also makes a comparison between OPC and Pvt. Ltd. companies. Go through the article to learn more about information such as OPC registration fees, processes, and much more.

How Much Does It Cost to Form OPC?

OPC is an initiative by the government to encourage entrepreneurship. Hence, the compliances required for forming an OPC are very nominal. The government has made the process far easier compared to other corporate structures.

The OPC registration fees have a lot of deciding factors. But the most important factor is the authorised capital and the state of registered office of the Company. 

Furthermore, making the OPC registration fee payment is the last step of the entire registration process. The government has developed a simple process for the registration with certain requirements. Read the article further to learn the process:

  1. Digital Signature Certificate (DSC) 

DSC comprises the mandatory documents when registering for an OPC. To get the dsc, identity proofs such as an  Aadhar Card, PAN card, passport-size photograph, and contact details of the individual are required.

  1. Director of Identification Number (DIN)

The following number is to be obtained by the director of the selected OPC. He or she would get the same by submitting documents of identification and address proof. The same can be applied directly through the SPICE application.

  1. Company Name 

It is requisite for the individual registering the company to have a name decided for the entity that is unique and has not been used by any other existing organization. It has to be further approved by the MCA.

  1. Requirements of the registration 
  • Submit a Memorandum of Association (MoA)
  • Submit an Articles of Association (AoA)
  • Appointment of a nominee who takes over the company due to the bereavement of the current director or becomes incapacitated. 
  • Consent of the nominee and the director
  • Address proof of the registered office
  • Submission of application in SPICE part B.
  1. Form filling 

Individuals need to fill out the form of Simplified Proforma for Incorporating a Company Electronically (SPICe), eMoA and eAoA along with the other proofs mentioned above, and submit it to the MCA website. Post approval, the Certificate of Incorporation, PAN and Tax Deduction Account Number (TAN) will be generated for the company.

  1. Certificate of Incorporation 

The Registrar of Companies (RoC) will check the documents and verify them. Once approved, a certificate of incorporation is issued to the individual.

What Is the Tax Limit for OPC?

OPC is not recognised under the Income Tax Act 1961. Hence, it is indeed a relief for the owners of OPC-registered companies. Though the taxation system is similar to private limited companies, the compliances required for OPC are less compared to PVT. 

Whether an OPC company has any profit or not, or no transaction,  the company has to file an ITR. The Income Tax Rate for an OPC is 25%. Additionally, an income tax surcharge and education tax are applicable over it. 

The table below gives in-depth information about the tax charges for a certain income slab for an OPC. 

Net Income SlabIncome Tax RateSurchargeHealth & Education Cess
Upto 1 Crore25%Nil4%
Above 1 Crore and upto 10 Crore25,00,000 + 25%7%4%
Above 10 Crore25,00,000 + 25%12%4%

Which Is Better OPC or Pvt. Ltd.?

One Person Company, or OPC, is created by the government of India to support single entrepreneurs who aim to start the company only by themselves. There are no restrictions on keeping a set of board members, nor are there any restrictions on conducting board meetings (except for 2 board meetings).  

On the contrary, a Private Limited company cannot be registered by a single person. It is mandatory to have a minimum of two people, and the limit goes up to 200 people. In addition board members are a necessity for the company, and conducting quarterly board meetings is also a requirement. 

Furthermore, an OPC can later be converted to a Pvt Ltd company but vice-versa is not possible. Once an OPC company achieves its threshold limit or has completed two years of its existence in the market, the company can convert itself to a Pvt. Ltd. company. 

Also, transferring of shares is only possible in an OPC by changing the Memorandum of Association, whereas in a Pvt. Ltd. company, it can be easily transferred.

Pro Tip: An OPC can only and only be registered by an Indian citizen. No foreign citizen who does not own Indian citizenship can register for OPC. 

Finally, OPC and Pvt. Ltd. have a lot of similarities in their nature of cost of incorporation, and compliance. However, there are also varied limitations to an OPC; for instance, there is no promotion of foreign participants. 

It entirely depends on the individuals’ requirements and the expenses he or she is willing to bear because a Private Limited Company requires a much bigger budget. 

FAQ – OPC Registration Fees

Is OPC registration mandatory?

Yes, it is required to register your company as OPC if you are looking at establishing the company with a single company owner for the GST. It does not matter irrespective of the annual turnover.

What is the minimum capital required for OPC?

There is no minimum paid-up capital requirement for registering an OPC.

Does OPC need GST?

Goods and Service Tax (GST) is a must for an OPC if their annual turnover crosses the limit of Rs. 20 lakhs.

What is the maximum paid-up capital for OPC?

Rs. 50 lakh is the requirement or maximum paid-up capital for OPC.

Conclusion – 

Establishing a company requires certain registrations to be conducted mandatorily by the owners. One Person Company or OPC is one such registration if you are looking at setting up a company as a single owner. It has been a boon for single entreprenuers.

Details about the cost of the registration, the applicable taxes, and the GST registration are detailed in the blog. What else are the details you require? Tell us, and let our experts at Instafiling help you. It is India’s leading compliance service platform, dedicated to assisting its clients with all tax-related queries.

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