Indian government schemes play a crucial role for the startups that want to grow fast with minimum investment. Even for the individual entrepreneur, the authority has introduced several offers. If you are an aspiring individual entrepreneur and looking to establish a company, then One Person Company registration can be the best choice. However, if you are a startup, your first focus will be to reduce expenses. During the registration, you will be required to invest money in multiple steps. But this challenge can be solved. 

The government fee waiver can be the best option to establish an OPC company in India at a low cost. The relevant scheme and the right application can help to register your business without paying larger government registration fees. In this comprehensive guide, we will explore how you can register your business as an OPC in India with minimum investment, government fee waiver, and registration steps. 

Understanding the Government Fee Waiver for OPC Registration

For the OPC registration in India, the fee is charged by the Ministry of Corporate Affairs (MCA). If a person is opening a one-person company in India with Indian government waivers, the standard fee will not be charged by the MCA. The government waiver of registration fees is valid for authorized capital up to Rs 15 lakh. This determines that for incorporating an OPC, the standard fee will not be charged if the authorized capital stays within this limit. However, the applicant still needs to pay the cost to obtain a DSC and the charge for professional services. Let’s understand by taking an example:

If an individual seeks to find a person’s company registration in India with an authorized capital of Rs 10 lakh. In this case, the applicant doesn’t need to pay for MCA registration fees, as they would be waived. With the government fee waiver, the aspiring entrepreneurs can simplify the OPC registration procedure. 

Eligibility Criteria for One-Person Company Registration

For OPC registration, the applicant is required to meet the specified eligibility requirements. Here is more detail:

  • During registration, selecting the nominee is essential for the OPC.
  • For the OPC registration, there is a requirement of Rs 1 lakh as minimum authorized capital. 
  • There must be a minimum of 1 shareholder and 1 director. The director and shareholder can be the same. 

Major Government  Schemes for One-Person Company Registration

To grow and encourage individual entrepreneurship in India, the government introduced several schemes that benefit small businesses. These schemes are

  1. Startup India Initiative: This initiative was launched by the Indian government in 2016. The main goal of establishing this scheme is to promote innovation among entrepreneurs in India. This scheme also focuses on the small businesses that want to grow. Under this scheme, a person or company can utilize several advantages.
  1. Make in India Scheme: This scheme was established for domestic manufacturers who operate an OPC at a small level. In the manufacturing and product services sectors, they offer tax exemption benefits. Under this scheme, a small OPC can take support from financial organizations that offer standard loans. 
  1. Mudra Loan Scheme: This scheme comes under the Pradhan Mantri Mudra Yojana (PMMY). For this loan, it has been categorized into three. A startup or an early-stage business that wants to build a one-person company in India can utilize the Mudra loan scheme. Under this scheme, startups receive Rs 50,000. The second is the kishor category, under which the businesses receive an amount between Rs 50,000 to Rs 5 lakh to grow their operation. Tarun is the last category that falls under the Mudra loan scheme. The scheme provides loans to established businesses up to Rs 10 lakh.
  1. Stand-Up India Scheme: The Indian government launched the Stand-Up India scheme in 2019. It was introduced to encourage startups for entrepreneurship, promote innovation, and develop an ecosystem for growth.
  1. Digital India Initiative: Since the company registration online in India step was introduced, the Digital India campaign has been promoted a lot. Due to digital company registration innovation, the process has been simplified and can now be done by ourselves through the MCA portal. Online business registration is helpful for security purposes. IT-based and e-commerce businesses are the top priority supported by the Indian government. 

The Process for One Person Company (OPC) Registration in India

Obtain DSC and DIN

All designated directors of OPCs are required to obtain a Director Identification Number (DIN) and a Digital Signature Certificate (DSC). 

Name Approval

Select a distinct name for your one-person company. Before name approval, it must be ensured that the chosen name meets MCA’s name guidelines.

Documentation

Collect the necessary documents, including the MoA (Memorandum of Association) and AoA (Articles of Association), as well as proof of identity and address, along with any other required documents.

File Application

To apply OPC, use the SPICe+ form. Attach all the documents with this form through the MCA portal.

Pay Fee

Make the payment for DSC approval and also for professional service (if required). 

Certificate of Incorporation

After the complete documentation and registration, the Registrar of Companies will issue the Certificate of Incorporation (CoI). This is the stage where your company registers officially as an OPC. 

Startup India Recognition

To gain the government’s advantages, you can apply for the “Startup India Recognition”. 

Final Thoughts | Company Registration Online in India

In essence, the government fee waiver simplifies the One Person Company (OPC) registration by eliminating the MCA-required fee for OPC incorporation. This means there is no need to pay the standard fee to the MCA. Before starting the process for OPC registration, understand the government schemes and also be aware of other associated costs. To incorporate your one-person company in India, get in touch with a professional who will assist you throughout the process. 

FAQ | OPC Business Registration in India

1. What is the cost of OPC registration in India?

Ans. The cost of one-person company registration depends on the state rules. For individuals registering a company in Karnataka, the registration fee amounts to Rs 19,499.

2. What is the drawback of OPC?

Ans. The common disadvantage of a one-person company is that it is only suitable for small companies. OPC becomes the victim of higher tax liability and is also restricted from certain activities.

3. What is the maximum number of directors required in a company?

Ans. An OPC can have a maximum of 15 directors. However, the shareholder and member must be a single individual.

4. What is the difference between authorized vs. paid-up?

Ans. Authorized capital refers to the total amount invested in shares, while paid-up capital is the amount actually paid by the shareholders in a company.

5. When is a person’s company required to convert into a private limited company?

Ans. When the paid-up capital exceeds Rs 50 lakh and the turnover for three consecutive years surpasses Rs 2 crore, the OPC is required to convert into a private limited company.