OPC Registration Online-An Overview
What is One Person Company (OPC) Registration?
The One Person Company (OPC) in recent times was launched as a good refinement over the sole proprietorship. In OPC, a single promoter gains full authority over the company thereby restricting his/her liability towards their contributions to the enterprise. Therefore, the said person will be the sole shareholder and director (however, a director nominee is present, but has zero power until the real director proves incapable of getting into the contract). Also, there can be no opportunity for contributing to employee stock options or equity funding. Additionally, if an OPC company has an average hat-trick turnover of Rs. 2 crores and over or acquires a paid-up fund of Rs. 50 lakh and over, it has to be converted to a private limited company or public limited company within six months.
Why We need OPC Company?
FGenerally banks prefer to lend their money to companies instead of single owners. So it's a great idea to register a company instead of a sole proprietorship firm.
OPC enjoy more tax benefits instead of the sole proprietorship firm.
Documents Required for Online OPC Registration
The director of the OPC should submit the scanned transcripts/ copies of the following documents mandatory for OPC registration-
- PAN Card of shareholder, nominee, and Directors.
- Aadhar card and Voter ID/ Passport/ Driving License of Shareholder, Nominee, and Directors.
Director’s Address Proof
- Latest Telephone Bill /Electricity Bill/ Bank Account Statement of Shareholder, Nominee, and Directors.
- Latest Passport size photograph of Shareholder, Nominee and Directors
NOC from owner
- No Objection Certificate to be obtained from the owner(s) of registered office
- Rent Agreement of the registered office should be provided, if any
Documents Provided By Us
- DSC (Digital signatures of director)
- DIN (For director)
- Name approval
- Company Pan
- Company Tan
- Memorandum of association
- Article of association
- GST Certificate
- MSME Certificate
Why should I form an OPC?
An OPC is a good alternative to running a sole proprietorship, largely because it gives limited liability to the business owner. This means that your liability is limited to the amount you’ve invested in the business; business debts cannot be recovered from personal possessions. Also, a sole proprietorship ceases to exist on the death of its promoter. In the case of an OPC, the nominee director takes over and the entity continues to exist. Single entrepreneurs who do not have another partner to start a private limited company may also consider it.
Who can register for an OPC?
OPC company registration can be done only by Indian residents, and that, too, only one at a time, as per the specifications of the Ministry of Corporate Affair
What are the mandatory requirements of an OPC?
All such businesses must maintain books of accounts, comply with statutory audit requirements and submit income tax returns and annual filings with the RoC.
How much capital is required to start an OPC?
There is no difference in capital requirement between an OPC and a private limited company. It needs an authorised capital of Rs. 1 lakh to begin with, but none of this actually needs to be paid-up. This means that you don’t really need to invest any money into the business.
What are the tax advantages available to an OPC?
No general advantages; though some industry-specific advantages are available. Tax is to be paid at a flat rate of 30% on profits, Dividend Distribution Tax applies, as does Minimum Alternate Tax.
What is the main drawback of an OPC?
The MCA is skeptical about a single person in charge of a large corporation. Therefore, it requires all OPCs to be converted into private limited or public limited companies on crossing a certain revenue number. Currently, in case of an average turnover of Rs. 2 crore or more for the three consecutive years or a paid-up capital of over Rs. 50 lakh, the OPC must mandatorily be converted into an OPC.
How much does it cost to run an OPC?
The cost of an OPC is only marginally lower than that of a private limited company. You’ll be shelling out around Rs. 12,000 to incorporate, then paying around Rs. 15,000 a year in compliance fees and an auditor to inspect your books.
How many directors can there by in an OPC?
An OPC has certain limitations. The person starting the business is its only director and shareholder. There is also a nominee director, but this person has no power whatsoever for raising equity funds or offer employee stock options. The nominee exists only to take over in case of the death or incapacitation of the director. The nominee is chosen by the director, and can be anyone, such as your spouse, parents or siblings. The nominee will need to provide identity proof during registration.
Can I start more than one OPC at a time?
No, an individual can form only one OPC at a time. This rule applies to the nominee in an OPC, too.