The One Person Company (OPC) form has become very popular among Indian businesses in recent years. With this special corporate arrangement, a Single person may run a company under the benefits of limited liability and still have total control. Good financial planning depends on a knowledge of the filing costs connected with starting an OPC. We will look at the many parts of OPC registration prices in India in this blog.
Definition of One Person Company
Owned and controlled by a single person, also referred to as the stakeholder, a One-Person Company (OPC) works as a private limited Company. This structure combines the benefits of company status with the traits of a sole proprietorship. Key characteristics of an OPC include:
- Limited Liability: The shareholder’s personal assets are safe from the company’s bills and obligations.
- Single Ownership: The company can be fully owned and managed by a single person.
- Separate Legal body: An OPC is considered a separate legal body, different from its owner.
The Companies Act of 2013 controls the legal basis for OPCs, providing rules for their formation and operation.
Registration Process for OPC
The licensing process for an OPC includes several key steps:
- Choosing a Name: Select a unique name for the business that meets the naming rules set by the Ministry of Corporate Affairs (MCA).
- The director has to have a DSC in order to sign electronic papers.
- Essential papers include:
- Memorandum of Association (MOA)
- Articles of Association (AOA).
- Identity and address documentation proving the director
- Send the required paperwork and papers via the MCA site to file with the MCA.
- Successful registration will result in a CIN for the firm, which is necessary for doing business.
Breakdown of One Person Company Registration Fees
Government fees and professional fees are the two primary two classifications for OPC registration costs.
Government Fees
The government fees are charged by the MCA for establishing the company, which change based on the approved share capital:
- For authorised share capital limited to ₹1,00,000: ₹5,000
- For approved share capital falling between ₹1,00,000 and ₹10,00,000: ₹7,500.
- For approved share capital of more than ₹10,00,000: ₹15,000
In addition to these fees, there are other costs involved with getting the necessary registrations:
- PAN (Permanent Account Number): Required for tax reasons.
- TAN (Tax reduction and Collection Account Number): Necessary for tax reduction at source.
- Digital Signature Certificate: Costs vary based on the service source.
Professional Fees
Professional fees are paid when hiring qualified accountants, company secretaries, or other professionals to help with the filing process. These fees can change based on:
- Location: Fees may be higher in urban places compared to smaller towns.
- Complexity of Services: More complicated cases may incur higher charges.
- Service Provider: Different professionals may have different fee systems.
Factors Influencing OPC Registration Fees
Several things can affect the general cost of registering an OPC:
- Geographical Location: Companies listed in big cities like Delhi or Mumbai may face higher fees compared to those in smaller places.
- Professional Assistance: Engaging experienced professionals can lead to higher fees but may ensure a better filing process.
- Additional Compliance Costs: Ongoing compliance rules may also add to the total cost of keeping the OPC.
Benefits of OPC Registration
Registering as an OPC offers numerous advantages:
- Limited Liability Protection: Personal assets are protected from business risks.
- Simplified Compliance: OPCs face fewer legal requirements compared to private limited businesses.
- Ease of Management: The sole owner has full power over decision-making.
Conclusion
In conclusion, understanding the filing fees connected with setting up a one-person company is important for prospective businesses in India. By breaking down the various costs involved and considering the factors that can influence the overall expenses, people can make informed choices about their business format. If you are considering forming an OPC, it is recommended that you speak with professionals who can provide accurate fee figures and help you through the registration process. This proactive method will ensure that you are well-prepared to start on your business path.
