OPC Registration Fees and Timeframe Explained
Starting a business as a One Person Company (OPC) is a popular choice for solo entrepreneurs in India who wish to enjoy the benefits of a private limited company structure without needing a partner. However, before you proceed with OPC registration, it is essential to understand the associated costs and the estimated time it takes for the process. This blog will help you navigate the financial and timeline aspects of OPC registration in India.
What is a One Person Company (OPC)?
A One Person Company is a type of private limited company that allows a single individual to own and operate the business. It was introduced under the Companies Act, 2013, to support solo entrepreneurs who want a separate legal entity for their business with limited liability protection.
Breakdown of OPC Registration Fees in India
The registration fee for an OPC depends on several factors such as authorized capital, professional service charges, and government fees. Here's a breakdown of the costs involved:
Government Fees
The government charges vary based on the authorized share capital of the OPC. For example:
Up to ₹10 lakhs authorized capital: The government fees are relatively minimal.
Stamp duty also applies, which differs from state to state.
Digital Signature Certificate (DSC)
Every director must obtain a DSC, which is used to digitally sign forms. The cost of obtaining one DSC is usually between ₹800 to ₹1,500.
Director Identification Number (DIN)
The DIN application is filed with the SPICe+ form and is generally included in the government processing fee. For a single director, no separate fee is charged for DIN in most cases.
Name Approval Fee
The company name is reserved through the RUN (Reserve Unique Name) service or as part of the SPICe+ form. This may cost around ₹1,000 if filed separately.
Professional Fees
If you hire a CA, CS, or registration service provider, their charges can vary from ₹3,000 to ₹10,000 or more, depending on the services offered, such as consultation, drafting MOA/AOA, and filing support.
Other Miscellaneous Costs
These may include PAN/TAN application fees (usually around ₹100 to ₹150 each), notary charges, and courier/document printing costs.
Estimated Total Cost for OPC Registration
On average, the total cost to register a One Person Company in India ranges between ₹6,000 to ₹15,000. This includes government fees, digital signatures, and professional charges. The final cost depends on the service provider you choose and the state of registration.
Timeframe for OPC Registration in India
OPC registration is largely online and handled by the Ministry of Corporate Affairs (MCA). Here's a typical timeline:
Digital Signature Certificate (DSC): 1–2 working days
Obtaining the DSC is the first step and takes one to two days depending on document verification.Name Reservation: 2–3 working days
You can apply for name approval through the SPICe+ form or separately via the RUN service.Incorporation Filing: 3–5 working days
After name approval, the incorporation documents are filed with the ROC. If all forms are correctly filled, approval is granted quickly.Certificate of Incorporation: 7–10 working days
Once the ROC approves the application, the Certificate of Incorporation is issued along with PAN and TAN.
Total Time: Around 10 to 15 working days
The process may take longer if any corrections or resubmissions are required.
Conclusion
Registering an OPC in India is both cost-effective and time-efficient for individual entrepreneurs. With a clear understanding of the fees involved and the registration timeline, you can plan your business setup more effectively. To ensure smooth registration, it's advisable to take help from a professional service provider who can handle legal compliance and documentation on your behalf.
If you are ready to start your OPC registration, platforms like RegisterKaro can guide you through the process with expert assistance and transparent pricing.
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