A Detailed Guide to OPC Registration Govt Fees Structure

  • Setindiabiz Team
  • December 28, 2023
Government Fee for Company Registration as Small Company and OPC

This comprehensive guide provides detailed information on the OPC Registration govt fees and the requirements to set it up in India. Learn the factors on which the cost depends like applying for OPC Registration, Stamp Duty payment on stamping of crucial documents, MOA, and AOA registration. Navigate this cost-effective process with our startup experts. Register your OPC at minimal costs!

BRIEF SUMMARY
The concept of One Person Company is tailored for individual entrepreneurs and business owners to benefit from advantages like limited liability and full control over ownership. In comparison to other single-owner business structures like Sole Proprietorships, One person companies are a safer, more transparent, and more credible option to choose. However, to start a One Person Company, entrepreneurs must get it registered by the Registrar of Companies under the provisions of the Companies Act, 2013.
The process of One Person Company registration is extremely simple and cost-effective. An online application must be filed on the MCA Website. All the details fetched in this application must be correct for it to get approved. Moreover, the registration will only be complete if the requisite OPC registration govt fees are paid timely. Let’s explore the details of this fees structure for a comprehensive and complete understanding of the OPC Registration process.

OPC & Its Key Features

One Person Company (OPC) features the unique combination of single ownership and corporate structure, providing its only owner and investor with the benefit of limited liability protection. It is due to this essential feature that OPC is classified as a Limited Company under the Companies Act. Moreover, section 2 of the Act also considers an OPC to be a Private Company, indicating the restricted nature of its transfer of shares. Essentially, the structure of OPC is designed to combine the characteristics of a sole proprietorship firm with those of a private limited company, offering a clear legal framework for small-scale entrepreneurs.

Legal Framework of One Person Company

The legal foundation for OPC is laid down in the Companies Act of 2013. This legislation outlines the rules and regulations governing the formation, operation, and dissolution of one-person companies in India. OPC is specifically defined in Section 2(62) and Section 3 of the Companies Act, as a private company with a single member as its only owner. This single owner commands full control over the company’s financial decisions, is responsible for bringing in adequate capital, and is entitled to all of the business profits. However, he might appoint directors to control the managerial and day-to-day operations. Let’s discuss a few key features to understand the structure of One Person Company better.

Key Features of One Person Company

  1. Limited Liability: One of the standout features of OPC is limited liability for sole owners. This means that the individual’s assets are safeguarded, and liability is restricted to the extent of the company’s share capital.
  2. Perpetual Existence: OPC enjoys perpetual succession by the nominees of subsequent shareholders, ensuring the continuity of the business even in the event of the owner’s demise. This feature adds a layer of stability and reliability to the company’s operations.
  3. No Minimum Capital Requirement: Unlike other business structures, OPC does not mandate a minimum capital requirement. This flexibility allows entrepreneurs to start their ventures with nominal capital.
  4. Separate Ownership & Management: The shareholder of an OPC does not have to carry the burden of controlling management and day-to-day operations. These activities are overseen by the Board of Directors.
  5. Distinct Legal Identity: An OPC is an incorporated entity and thus is identified as a distinct “legal person” in the eyes of law. The process of Incorporation is extremely convenient and cost-effective. An online application is filed to the ROC after payment of the concerned OPC Registration Govt Fees.
  6. Restricted Transfer of Shares: OPC is a Private Company and cannot list or trade its shares on Stock Exchange Platform. Also, its shares are restricted from being traded or transferred to the general public.

What are the Minimum Requirements for OPC Registration?

Before Incorporating a One one-person company, certain requirements must be met by its promoters. These include having the minimum number of shareholders and directors, a unique and valid name, a registered address, adequate capital, and requisite OPC registration govt fees. Having met all these requirements, the concerned applicant can apply for OPC registration online on the MCA portal. So, to lay the foundation, let’s dig deeper into OPC registration requirements.
Minimum Requirements for OPC Registration
  1. Shareholders and Directors: The foundational requirement for OPC is to have a minimum of one shareholder and one director. Remarkably, the same individual can take on both roles, re-establishing the “one person” requirement to set it up. The sole shareholder must be an Indian citizen. However, directors can be Indian as well as foreign nationals, with at least one being a resident in India.
  2. Name of the OPC: Selecting an appropriate and unique name is a crucial step in the OPC registration process. The name must comply with the guidelines of the Ministry of Corporate Affairs (MCA) and should not infringe on any existing trademark rights. It is advisable to conduct a thorough name search to avoid potential conflicts and expedite the registration process. Besides being legally compliant, the name should reflect your brand and nature of business activity.
  3. Registered Address: An OPC must have a registered office address to establish its legal presence. This address serves as the official communication point for all legal correspondences. During registration, documentary proof of the registered office, such as utility bills or property tax receipts, is required. It’s noteworthy that the registered office can be a residential or commercial address, promoting flexibility for small business owners.
  4. Nominee Consent: To comply with the OPC structure, the sole owner must designate a nominee who will assume control in the event of the owner’s incapacitation. The nominee’s consent is a prerequisite for registration, and the individual must fulfill the eligibility criteria for this position, as outlined in the Companies Act.
  5. Adequate Capital: While there is no mandatory minimum capital requirement for OPCs, it’s essential to ensure adequate capital to meet the business’s operational needs. Determining an appropriate capital base is crucial for sustaining and growing a one person company, and entrepreneurs should carefully assess their financial requirements before investing into it.
  6. OPC Registration Govt Fees: OPC registration is not possible without the payment of requisite application fees. This includes the OPC Registration govt fees, and the fees to register the documents required for OPC registration. We’ve discussed the detailed fees structure further in this blog. Understanding the breakdown of this fees structure is vital for budgeting and planning the financial aspects of your entrepreneurial venture.

OPC Registration Govt Fees Structure

The revised government fees structure for OPC registration, designed by the Ministry of Corporate Affairs (MCA), holds immense significance, serving as the backbone of the registration process and profoundly impacting the overall costs associated with establishing a One Person Company. As entrepreneurs begin their startup journey, a clear understanding of these fees is not just advisable but essential. It forms the bedrock for accurate budgeting and sound financial management, ensuring transparent and informed decision-making throughout the OPC registration process.

Factors Affecting OPC Registration Govt Fees

OPC registration govt fees have been revised by the MCA for simplification and convenience of applicants. It depends on multiple factors, a few of which have been discussed below. Understanding these factors is paramount for entrepreneurs planning to register their OPC, as it enables accurate budgeting and financial management. You can determine the exact fees charged by analysing these factors in depth. Let’s see what these factors are:
  1. SPICE Plus Fees: SPICE Plus is the form filed for OPC registration in India. The cost of filing this form is not fixed to a specific amount but varies on the basis of the company’s share capital. Since OPC registration is authorised by the Registrar of Companies, the OPC registration govt fees for the SPICE Plus application is directly submitted to the Central Government.
  2. MOA Registration Fee: The Memorandum of Association (MOA) outlines the company’s objectives, scope of operations, and fundamental structure. It is required to be submitted as one of the constitutional documents during company incorporation. For this, the ROC charges registration fees, separate from the application fees for SPICE Plus. The registration fees for MOA also depend on the company’s share capital.
  3. AOA Registration Fee: Similar to MOA, the Articles of Association (AOA) is also one of the company’s constitutional documents and is required to be submitted during incorporation. It contains the internal regulations and operational guidelines of the company. The registration fee for AOA depends on share capital as well.
  4. Stamp Duty for MOA and AOA Stamping: Stamp duty is applicable for the stamping of MOA and AOA. The amount varies based on the specific state in which the company is being registered. It’s imperative to be cognizant of the state-wise stamp duty charges to ensure compliance with local regulations. Since stamp duty is state-specific, the amount paid is submitted to the state Government.

Detailed OPC Registration Govt Fees Structure

Fee Applicable Amount
SPICE Plus
  • Authorised Capital up to Rs.15 Lakhs - Nil. 
  • Authorised Capital Exceeding Rs.15 Lakhs - Rs.500
Registering AOA
  • Up to Rs.15 Lakhs - Nil. 
  • Rs.15 lakhs to Rs.50 lakhs - Rs.12,000 + Rs.200 for every Rs.10,000 or part thereof
  • Rs.50 lakhs to Rs.1 crore lakhs - Rs.1,56,000 + Rs.100 for every Rs.10,000 or part thereof
  • More than Rs.1 crore - Rs.2,06,000 + Rs.75 for every Rs.10,000 or part thereof
Note: If fee payable on the authorized capital is exceeding Rupees two crore and fifty lakhs then the fee applicable shall be limited to two crore and fifty lakhs only.
Registering MOA
  • Up to Rs.15 Lakhs - Nil. 
  • Rs.15,00,001 to Rs.24,99,999 - Rs.400
  • Rs.25,00,000 to Rs.99,99,999 - Rs.500
  • More than Rs,1,00,00,000 - Rs.600
Stamp Duty
  • State-Specific

By understanding the intricacies of OPC Registration Govt fees and adhering to the simplified procedures, applicants can not only navigate its legal landscape with ease but also benefit from advantages like limited liability and full ownership control. This cost-effective avenue ensures compliance and also opens doors to a safer, more transparent, and credible business structure. As you venture into OPC registration, seize the opportunity to establish a resilient business foundation with minimized financial barriers.

Conclusion

FAQs

Q1: What is the significance of OPC Registration Govt Fees?

OPC Registration Govt Fees are crucial as they form the financial backbone of the registration process. These fees, set by the Ministry of Corporate Affairs, impact the overall costs of establishing a One Person Company. Timely payment of these fees ensures compliance and paves the way for a transparent and seamless completion of the process.

Q2: How can I determine the exact OPC Registration Govt Fees?

The exact OPC Registration Govt Fees can be determined by analyzing various factors such as SPICE Plus fees, MOA registration fees, AOA registration fees, and state-wise stamp duty charges. Understanding these factors in depth is essential for accurate budgeting and financial management during the OPC registration process.

Q3: Is the OPC registration process cost-effective?

Yes, the OPC registration process is known for its cost-effectiveness. With no mandatory minimum capital requirement and a simplified online application process, entrepreneurs can establish a credible business structure without hefty financial burdens. The OPC Registration Govt Fees contribute to this cost-effectiveness, making it an attractive option for individual entrepreneurs.

Q4: Can you elaborate on the factors affecting OPC Registration Govt Fees structure?

Several factors contribute to the OPC Registration Govt Fees structure, including SPICE Plus fees, MOA registration fees, AOA registration fees, and state-wise stamp duty charges. These factors are intricately linked to the characteristics of the company, such as its share capital and specific structure, impacting the overall cost of OPC registration.

Q5: Are there any exemptions or limitations on OPC Registration Govt Fees?

There are specific exemptions and limitations on OPC Registration Govt Fees. For instance, the filing fee for SPICe+ form and registration fees for MOA and AOA vary based on the authorized capital of the company. If the authorized capital is below Rs.15 lakhs, there is no govt fees charged on these registrations.
Related Articles:

Leave a Reply

Your email address will not be published. Required fields are marked *

Talk To An Expert

*Your Information is safe with us | Privacy Policy

  • SETINDIABIZ
  • PARTNER PROGRAM
BECOME OUR PARTNER
Exclusive Offer For CA, CS, CMA, Advocate & Tax Practitioners

Apply for Professional Tax Registration

The Professional Tax is mandatory for every company, LLP, GST-registered business, and other applicable professionals. Registration must be obtained within 30 days of incorporation or registration date. Comply now to Avoid Penalty.

Professional Tax Applicable States

Free consultation and calculator of dues, interest & penalty, if any.

Shops & Establishment Act Registration

(Mandatory to all commercial establishments in every state)
All new establishments must register with the office of the Labour Commissioner (Under the applicable state Shops & Establishment Act) within 30 days of their incorporation for companies or LLPs or the start of business for proprietorships or other businesses.
Free consultation and help to calculate dues, interest & penalty, if any.

Protect Your Trademark Now!

(We help you file trademarks in India and abroad)
Don’t let copycats steal your Trademark or Brand. Register your trademarks now in India to protect your brand, logo, slogan, etc. We have helped over 15K Brands secure their IP.

You Can Protect the Following

Free consultation and Trademark Search in Governemt Database