Running your own business but need company status? Register as OPC!
Note - Price and conditions may change basis discussion with client.
Entrepreneurs who wish to form a company with limited liability
Proprietorship firm looking to get status of a company
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 two shareholders. It allows a single entrepreneur to get his business registered as a company and get limited liability protection.
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 crore or more, there is a need to convert into a pvt. ltd.
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.
What are the mandatory compliance that an OPC needs to observe?
The basic mandatory compliance are:
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 the
What is the eligibility criteria for an member of OPC?
?A natural person who is resident in India and 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 be only being member of one OPC. ?If a person becomes member or nominee of 2 or more than 2 OPC’s then he has to withdraw his membership from the OPC within 182 days.
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 of any physical presence.
Is stamp duty payable during 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 INC 32. 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.
What is the government fee applicable for a OPC incorporation?
Below are the charges applicable for DIN and other government forms:
DIN (1 Nos): Rs.500
RUN Form: Rs.1000
AoA: Rs.1000 (up to Rs.10 lakh of authorized capital)
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:
Form 32: Rs.20
Apart from this, notary charges of Rs.340 will apply for two director affidavits and related stamp duty.
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 additional director, you need to secure two digital signatures (DSC)
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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.