The Cost of Registering a One Person Company in India

Starting a business in India in 2024 can feel like navigating a maze, but opting for a one-person company (OPC) can simplify things. OPC registration allows a single entrepreneur to own and run a company with limited liability—without the complexities of partnerships or multiple directors.

Imagine you want to bring your unique idea to life—whether it's an innovative product, service, or solution. In this scenario, OPC becomes a hassle-free way to formalize your dream. With OPC, you get the benefits of being a company owner while reducing risks. According to the Ministry of Corporate Affairs, over 12,000 OPCs were registered in the last financial year 2024 alone, proving it's a growing choice for solopreneurs.

In this guide, we'll break down the cost of OPC registration in India, explain the documents you need, and outline the timeline to help you register an OPC this year.

Documents Required for One Person Company Registration in India 

Before diving into the costs, consider the essential documents you'll need. Having these in place will make the process smoother:

1. PAN Card of the Director: Proof of identity.

2. Aadhaar Card: Necessary for digital signatures and filing forms.

3. Proof of Address: This could be a bank statement, utility bill, or any document with the director's current address.

4. Proof of Registered Office Address: Rent agreement or property documents.

5. No-Objection Certificate: From the property owner if the office space is rented.

6. Photograph of the Director: A passport-size photograph is usually required.

These documents are standard but essential for the government and professional processes involved in OPC registration.

Cost to Register an One Person Company In India

The cost of OPC registration in India 2024 can vary depending on professional fees and your location. Let’s break it down into components for clarity.

1. Government Fees for OPC Registration in India: 

These are some tentative charges regulated by the government.

• Digital Signature Certificate (DSC): ₹1,000 - ₹2,000*

• Director Identification Number (DIN): ₹500

• Name Reservation: ₹1,000

• Stamp Duty: Varies by state (usually ₹300 - ₹500)

• Form Filing Fees: ₹500 - ₹2,000 depending on authorized capital.

  
  

2. Professional Fees: These are the costs that You pay for legal and professional help to get your OPC registered.

• Chartered Accountant or Company Secretary: ₹5,000 - ₹15,000* (depending on the complexity of your business and services provided)

  
  

3. Other Costs: Miscellaneous costs such as notarization fees, office rental for address proof, etc.

• Miscellaneous Expenses: ₹1,000 - ₹2,000*

  
  

4. Total Estimated Cost:

• Government Fees: ₹3,000 - ₹6,000*

• Professional Fees: ₹5,000 - ₹15,000*

• Miscellaneous Expenses: ₹1,000 - ₹2,000*

  
  

5. Total Cost Range: ₹9,000 - ₹23,000 (approximately).

Cost Breakdown Table:

Timeline for OPC Registration in India

The timeline can help you plan better. OPC registration is not instant process but follows a systematic process that ensures everything is set up legally and correctly.

1. Digital Signature Certificate (DSC): 1-2 days

2. Director Identification Number (DIN): 1-2 days

3. Name Approval: 2-4 days (depends on name availability)

4. Document Filing: 3-5 days

5. Incorporation Certificate Issuance: 5-7 days

On average, the process of registering an OPC takes 10-15 days. However, it could take longer if there are errors or issues with document submission. Keeping all documents in order speeds up the process, and many professionals claim that 90% of OPC registrations in India are completed within 15 days.

Conclusion

OPC registration in 2024 can be an ideal way to start your solo business without worrying about personal liability. With a cost of around ₹9,000 to ₹23,000, it's an affordable option for many entrepreneurs, and the benefits of limited liability and corporate status outweigh the expenses. If you want to keep things simple while expanding your business, OPC is a great choice. The process can be completed within 15 days if you prepare beforehand.

Remember to consult with professionals to streamline the process and ensure compliance with the latest laws and regulations.

FAQs on OPC Registration in 2024

1. What is the minimum capital required for OPC registration?

There is no minimum paid-up capital required for OPC registration. You can start with as low as ₹1.

2. Can an OPC be converted into a Private Limited Company?

Yes, an OPC can be converted into a Private Limited Company after meeting certain criteria, like exceeding annual turnover of ₹2 crores.

3. How long does it take to register an OPC in India?

The process typically takes 10-15 days, provided all documents are correctly submitted.

4. Can an OPC have more than one director?

No, an OPC can only have one director, but you can appoint a nominee in case of the director’s death or incapacity.

5. What are the compliance requirements for OPCs?

OPCs must maintain financial records, file annual returns, and comply with other regulations like any other company. However, they have fewer compliances compared to Private Limited Companies.