Business Tax Filing
One Person Private Limited Company (OPC) Registration
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 an OPC. Now that you know of the perks, opt for this plan and get all the registration , legal and compliance formalities in place!
Running your own business but need company status? Register as OPC!
It usually takes 3 to 5 working days.
- Name approval in RUN (Reserve your unique Name)
- DSC (1 nos)
- Filing of SPICe+ Form
- Issue of Incorporation Certificate along with PAN and TAN
- Includes Govt Fees & Stamp duty for Authorised Capital upto Rs. 1 Lakh except for the states of Punjab, Madhya Pradesh and Kerala
- Excludes foreign national / Body Corporate as director or business needing RBI/SEBI approval
- Assistance in Opening Bank Account
- Entrepreneurs who wish to form a company with limited liability
- Proprietorship firm looking to get status of a company
Name approval form filing
Preparation of Incorporation Documents
Getting those docs signed by the respective stakeholders
Filing of e-Forms with ROC
Receipt of Incorporation Certificate with PAN, TAN, GST, EPF, ESI & Bank Account.
Name, Contact Number and Email Id of all the Stakeholders (Director & Nominee).
Directors Identification Number, if already.
Self Attested PAN, Aadhar & Passport size photo of all the Stakeholders.
Apostilled Passport, Mobile Bill and other KYC docs in case of NRI Stakeholder.
Latest Month Personal Bank statement of all the Stakeholders.
Specimen Signatures of all Stakeholders.
Few Proposed Business Names along with Objects.
Latest Electricity Bill/Landline Bill of Registered Office.
NOC from owner of registered office. (If Owned)
Rent Agreement from Landlord. (If Rented/Leased)
Brief description of main business activities of the proposed Company.
Shareholding pattern (50:50 or 60:40) between the Stakeholders.
Authorised & Paid Up Share Capital of the 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 authorised 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
- 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)
- MoA: Rs.1000
- 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:
- AoA: Rs.1000
- Moa: Rs.1000
- Form 32: Rs.20
Apart from this, notary charges of Rs.340 will apply for two director affidavits and related stamp duty.
- My details on my documents have a difference. Can I still incorporate my company using them?
- Why is there 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 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.