It is easy and inexpensive to register with the OPC. In this article, we discuss one person company incorporation, fees associated with one person company incorporation, or OPC government registration fees
Businesses and sole proprietors wanting limited liability and a legal entity of their own can register with the OPC. The board of directors, shareholders, and members are not required to contain more than one person. With OPC, you don’t have to find the right partner to start a business.
What is the cost of OPC registration?
The Company’s Act 2013 introduced the concept of the One Person Company in India. Any individual can set up a Person Company in India. Before the Companies Act 2013, a company could not be created by a single person. Companies and OPCs both have similar advantages and disadvantages. Additionally, a person should choose a sole proprietorship if they need to start a business.
One-Person Companies (OPCs) pay government fees based on their nominal share capital. For example, if the Share Capital of the OPC is 10, 00,000. Registration fees for the OPC would be 2,000/- Rs. When the nominal share capital ranges from Rs. 10, 00,000.00 to Rs. 50, 00,000. The cost is Rs. 2000. A fraction of the nominal share capital of Rs. 200 will be added to each Rs. 10,000 shares.
The OPC incorporation fee in India will also include the fee for stamp duty, DIN application fee, and form filing fee.
After registering your OPC, don’t forget to fill out Form 20A!
Benefits of establishing an OPC in India?
In India, the registration of OPCs is granted the status of a separate legal entity. Furthermore, the liability of the member is limited to the shares, and the member cannot be personally liable for losses.
The process of obtaining funds is straightforward.
- Funds can be obtained easily.
An individual company can raise capital through venture capital, angel investors, incubators, and other means. Ownership firms are less likely to receive loans than one-person companies.
- Low compliance
With the Companies Act 2013, certain exemptions apply to the OPC. Company secretaries are not required to sign books and returns. The director is the only person authorized to sign them.
- It is simple to incorporate.
Incorporating an OPC is simple since only one member and one nominee are needed. Members can also be directors as well. It is much easier to create a One Person Company than other types of entities in India because the minimum capital requirement is Rs.15,000.
Because OPCs can be set up and run by one person, they are easier to manage. Decisions can be made quickly and easily. There will be no delays or conflicts in managing a company.
- Successions will continue indefinitely.
It is necessary that the Nominee be elected. Upon the death or incapacity of a member, the nominee takes over the management of the company.