The Companies Act has granted it various concessions regarding compliance requirements. Indian OPC is one of the most straightforward corporate entities. OPC is a mix of sole-proprietorship as well as corporate forms of business. This form is a type of company with fewer compliance requirements than private companies.
Register OPC in India – Introduction
Registering an OPC can be done quickly and inexpensively. This article deals with the fee for registering an opcand other government fees. If you register OPC in India, it offers new business opportunities to sole proprietors or entrepreneurs who want limited liability and an independent legal entity. Further, only one person is required to act as director, shareholder, or member. OPC eliminates the need to find the right partner to start a business.
What Is All About Registering an OPC and Related Fees?
In India, OPC is a new concept, was introduced by the Company’s Act 2013. One person can in India form a Person Company. A company could not be established by a single person before the Companies Act 2013. OPCs have the advantages of sole proprietorship but the same features as a company. Additionally, if a person needs to start a business, they should choose a sole proprietorship.
The nominal share capital determines the government fees required to register OPC in India. For example, if the Share Capital of the OPC is 10, 00,000. The Government fees for registering an opc would be 2,000/- Rs. If the nominal share capital is between Rs. 10, 00,000.00 to Rs. 50, 00,000. – Rs. 2,000. Rs. 200 will be added to each Rs. 10,000 shares or a fraction of the nominal share capital.
HOWEVER, additional fees would apply for OPC company formation in India, such as stamp duties, DIN application fees, and form filing fees.
Once register OPC in India, don’t forget to file Form 20A!
What Are the Benefits of Incorporating an OPC in India?
Status of a separate legal person: To register OPC in India are granted the status of separate legal person. Moreover, the member’s liability is limited only to the shares, and the member is not personally responsible for any losses.
It’s Easy to Get Funds. It Is Simple to Get Funds
One Person Companies is a separate legal entity that can raise funds via venture capital, angel investors, incubators, and other sources. OPC are more likely to get loans than proprietorship firms.
Less Compliance
The OPC has certain exemptions regarding compliance under the Companies Act 2013. The Company Secretary is not required to sign the books and returns. Further, they are to be signed by the director only.
Easy Incorporation
OPCs are easy to incorporate as only one member and one Nominee are required. A member may also be the director. The minimum capital requirement to incorporate an OPC in India is Rs.15,000 It is much easier to register one person company than other types of entities.
It is easier to manage the OPCs because they can be set up and run by one person. It is quick and easy to make decisions. Managing a company will be easy because there won’t be any conflicts or delays.
Perpetual Succession
The Nominee must be elected as the Nominee. The Nominee will take over the company’s management upon the death or incapacity of the member.
Visit Vakilsearch to get more information to register OPC in India.
