For single entrepreneurs, the One Person Company (OPC) has become a familiar business form in the ever-changing environment of Indian entrepreneurship. This special company lets one person run a business and earn from a reduced formal structure and limited responsibilities. But first of all, you have to know the related costs and fees before starting the application process. This blog will provide a full overview of the Indian OPC registration prices.
What is a One-Person Company?
A one-person company is a private limited company incorporated with a single member and director. This structure offers various benefits, including limited responsibility, permanent succession, and the possibility of raising money by selling shares. The Companies Act of 2013 controls OPCs and sets certain rules and standards.
OPC Registration Procedure
An OPC’s filing process consists of many important stages that may be finished online using the Ministry of Corporate Affairs (MCA) webpage. The method is quickly broken down here:
- The first step is picking a unique name for the group and booking it via the MCA page.
- Signing electronic papers requires a DSC or digital signature certificate.
- The only member needed to be a company director is to have a DIN.
- Drafting the Memorandum of Association (MOA) and Articles of Association (AOA) files helps outline the company’s internal policies and objectives.
- Last, the crucial forms and the MOA and AOA must be submitted with the ROC for clearance.
Breakdown of OPC Registration Fees
Effective financial planning relies on knowledge of the costs of starting an OPC. Government fees and expert fees are the two main sections of filing fees.
Government Fees:
- Name Reservation Fee: 1,000
- Authorized capital up to ₹ 10 lakhs will cost ₹10,000 registration fee. Additional charges based on the capital slab follow from an allowed capital topping ₹10 lakhs.
- Stamp Duty: Depending on state rules, it changes by state and may be anything from ₹1,000 to ₹5,000.
Professional Costs:
- If you hire a qualified accountant or company secretary, their rates might range from ₹2,000 to ₹10,000, depending on their experience and the complexity of your needs.
- A Digital Signature Certificate (DSC) may cost between ₹1,000 and ₹2,500.
- The Director Identification Number (DIN) is usually included in the professional costs, but it may be paid separately, usually for ₹500.
- Additional fees for filing forms with the ROC might apply based on the needed forms and services.
Factors Affecting OPC Registration Costs
The whole cost of OPC registration may be affected by many elements:
- Position: Geographic position greatly affects the rates pros pay. Professionals’ costs in big areas might be more than in smaller areas.
- As stated before, government fees rise in line with the allowed capital. Thus, planning the capital structure ahead of time helps control costs.
- These may involve other fees if you need particular licenses, GST, or trademark registration.
- Complexity of Business: Professional costs could rise based on the specific needs of your business or the approval of many governmental entities.
Conclusion
Although registering an OPC in India might be easy, one should know the many fees and expenses involved. Entrepreneurs may better budget and prepare for their OPC registration by splitting the registration costs into government and expert fees and analyzing the factors affecting the total cost.
To get exact charge figures and guarantee a smooth registration process, it’s always best to speak with pros like professional accountants or company secretaries. From name reserve to formation, these professionals can help you overcome any particular criteria or hurdles and lead you through the procedure.
