About This Plan
One person company (OPC) as a concept allows an individual to reap benefits of being a company with a limited liability. The individual can take riskier decisions without having to worry about losing personal assets and this has encouraged many startups and young entrepreneurs to register as OPC. Now that you know of the perks, opt for this plan, and get all the registration, legal and compliance formalities in place!
Services Covered
- Filing of E-forms
- Name approval
- DSC Class -3 (1 No.)
- Filing of SPICe+ form
- Issue of Incorporation Certificate
- Includes Govt Fees & Stamp duty for Authorized Capital up to Rs. 1 Lakh
- Excludes foreign national / Body Corporate as director or business needing RBI/SEBI approval
Who Should Buy
- Entrepreneurs who wish to form a company with limited liability
- Proprietorship firm looking to get status of a company
How It’s Done
- Purchase of Plan
- DSC Application
- Company Name Reservation with RUN
- Filing of e-Forms (SPICe+) with ROC
- Receipt of Incorporation Certificate
10-15 days
Documents To Be Submitted
- Passport size photos of directors
- Address proof of directors
- Photo ID proof of directors
- DSC (1 Pics)
- Self-declaration about your directorship in other companies
- Rent agreement of your registered office
- No objection certificate from the owner of the property of the property
- PAN card
- Photo ID and Address proof of nominee
FAQs
Q.1 What is a One Person Company(OPC) and how is it different from an ordinary private limited company?
One Person Company is a new type of business entity. A private limited company can be formed with a minimum of two directors and shareholders. The directors and shareholders can be same individuals. One person company does away with the requirement of minimum of two shareholders. It allows a single entrepreneur to get his business registered as a company and get limited liability protection.
Q.2 What is the minimum capital requirement to start an OPC?
An OPC can be started with a minimum authorized capital of Rs. 1 lakh. There is no mandatory requirement for a minimum paid-up capital. Hence, you can start as an OPC with a capital contribution as low as Rs. 2. However when the paid-up capital exceeds Rs. 50 lakh, OPC must mandatorily convert to a private limited company( pvt. ltd.). Also, when the average turnover for 3 consecutive years becomes Rs. 2 crores or more, there is a need to convert into a pvt. ltd.
Q.3 Is there any tax advantage on forming an OPC?
There is no specific tax advantage to an OPC over any other form. The tax rate is flat 30%, other tax provisions like MAT & Dividend Distribution Tax applies as they apply to any other form of company.
Q.4 What is the mandatory compliance that an OPC needs to observe?
The basic mandatory compliance is:
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- Maintenance of proper books of accounts
- Statutory audit of Financial Statements
- Filing of Business Income tax return every year before 30th Sep
- Filing Annual ROC return which includes form MGT-7 – Statement of Disclosure of ShareHolders and Directors
Q.5 What are the eligibility criteria for a member of OPC?
A natural person who is resident in India and an Indian Citizen who is living in India for a period of 182 Days is eligible to act as a member and nominee of an OPC A person can only be a member of one OPC. If a person becomes a member or nominee of 2 or more than 2 OPC’s then he has to withdraw his membership from the OPC within 182 days.
Q.6 Do I need to be physically present during this process?
The Ministry of Corporate Affairs (MCA) has made the new OPC registration a completely online process. All the document flow happens in electronic form and there is no need for any physical presence.
Q.7 Is stamp duty payable during the incorporation process?
Yes, Stamp duty charges are imposed by the state in which the registered office is proposed to be located. The charges are on MOA, AOA & Form SPICe+. These charges are covered under the plan for all the states except Punjab & Madhya Pradesh. Our experts will guide you on additional charges if any for Punjab & Madhya Pradesh.
Q.8 What is the government fee applicable for an OPC incorporation?
Below are the charges applicable for DIN and other government forms:
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- DIN (1 Nos): Rs. 1800
- RUN Form: Rs.1000
- AoA: Rs.1000 (up to Rs.10 lakh of authorized capital)
- MoA: Rs.1000
Q.9 What is the stamp duty payable for company incorporation?
Below is the stamp duty payable, depends on the state you incorporate and your authorized share capital up to Rs. 10 Lakh: These are the charges in Karnataka:
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- AoA: Rs.1000
- Moa: Rs.1000
Apart from this, notary charges of Rs.340 will apply for two director affidavits and related stamp duty.
Q.10 Our company would like to bring a non-resident Indian as a director in the company. Is this included in the package?
To bring in an additional director, you need to secure two digital signatures (DSC)
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- Click here to purchase digital signature
If the individual is residing outside India at the time of the application, then he or she needs to get the PAN, Aadhaar, current address (in the country of residence), permanent address attested by Indian embassy in that country. Any incidental charges here is not covered in the package.
Q.11 Why is there a delay in getting our incorporation certificate?
Due to the increasing enthusiasm among too many entrepreneurs who wish to incorporate their companies, the MCA has made stringent rules to approve the company name and issue the certificate of incorporation. Further, due to excessive demand, the GST, PAN, and TAN applications are also increasing and thus it is understood that this processing will take time too. So, we could take a range between 20-25 working days to complete the company incorporation process and receive the certificate of incorporation.