A One Person Company (OPC) is a popular legal business structure in India that allows a single individual to start and run a business as a separate legal entity. To register an OPC, there are certain fees that need to be paid to the Ministry of Corporate Affairs (MCA). In this article, we will discuss the registration fees for an OPC in India and the things to know before starting the process.
What is a One Person Company?
A One Person Company is a legal business structure that allows a single individual to start and run a business as a separate legal entity. This means that the business has its own legal identity, separate from the individual who owns and manages it. An OPC offers several benefits, including limited liability protection, ease of compliance, and the ability to raise capital.
Registration Fees for a One Person Company
To register a One Person Company in India, there are certain fees that need to be paid to the Ministry of Corporate Affairs (MCA). The fees vary depending on the authorized capital of the company. Here is a breakdown of the fees:
- Incorporation fee: The incorporation fee is the fee charged by the MCA for processing the application for incorporation of the company. The fee for an OPC with authorized capital up to Rs. 10 lakhs is Rs. 3,760. For authorized capital above Rs. 10 lakhs and up to Rs. 50 lakhs, the fee is Rs. 4,760.
- Stamp Duty: Stamp duty is a tax that is levied on various legal documents, including the Memorandum of Association and the Articles of Association of the company. The stamp duty varies depending on the state in which the company is registered.
- Digital Signature Certificate (DSC): A Digital Signature Certificate is a secure digital key that is used to sign electronic documents. The fee for obtaining a DSC varies depending on the certifying authority.
- Director Identification Number (DIN): A Director Identification Number is a unique identification number that is assigned to each director of a company. The fee for obtaining a DIN is Rs. 500.
Things to Know Before Registering an OPC
- Minimum authorized capital: The minimum authorized capital for an OPC is Rs. 1 lakh.
- Nominee Director: An OPC is required to appoint a nominee director who will take over the management of the company in case the owner becomes incapacitated or dies.
- Annual compliances: Like all companies, an OPC is required to comply with certain annual compliances, such as filing annual returns and maintaining books of accounts.
- Taxation: An OPC is subject to the same taxation rules as any other company in India, including corporate income tax and Goods and Services Tax (GST).
- Conversion to a Private Limited Company: An OPC can be converted into a Private Limited Company after two years of incorporation or when the turnover exceeds Rs. 2 crore.
Registering a One Person Company in India involves paying certain fees to the Ministry of Corporate Affairs (MCA). The fees vary depending on the authorized capital of the company. Before registering an OPC, it is important to be aware of the minimum authorized capital, the requirement to appoint a nominee director, annual compliances, taxation rules, and the possibility of converting to a Private Limited Company in the future. By understanding these requirements, individuals can make informed decisions about whether an OPC is the right legal structure for their business.