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ONE PERSON COMPANY REGISTRATION IN HATHRAS @ 6000

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ONE PERSON COMPANY REGISTRATION IN HATHRAS @ 6000

A One Person Company (OPC) is a business structure introduced under the Companies Act, 2013, allowing a single individual to establish a company with limited liability protection. It combines the benefits of a sole proprietorship with the legal advantages of a private limited company.

How to Register a One Person Company (OPC) in Hathras

The registration process involves several steps:

  1. Obtain a Digital Signature Certificate (DSC) – Required for online filing.
  2. Apply for Director Identification Number (DIN) – Needed for the sole director.
  3. Reserve the Company Name – Using the RUN (Reserve Unique Name) application.
  4. Draft the Memorandum and Articles of Association (MOA & AOA) – Defines company objectives and internal rules.
  5. File the Incorporation Application (SPICe+ Form) – Submit required documents and pay registration fees.
  6. Verification & Approval – The Registrar of Companies (ROC) reviews and approves the application.

Documents Required for One Person Company Registration in Hathras

To register an OPC, you need:

  • Personal Documents (for the director and nominee):
    • PAN Card
    • Aadhaar Card/Passport/Driving License
    • Bank Statement/Mobile Bill/Utility Bill (as address proof)
  • Registered Office Documents:
    • Electricity Bill/Utility Bill of the proposed office
    • No Objection Certificate (NOC) or Rent Agreement from the property owner

Time Taken for Registration

The registration process typically takes 5-7 working days, depending on document verification and approval.

FAQs

  • Can an OPC be converted into a Private Limited Company? Yes, but only after two years of incorporation.
  • Can an OPC raise funds? No, OPCs cannot issue shares to investors.
  • What is the minimum capital requirement? The minimum authorized capital is ₹1 lakh, but there is no minimum paid-up capital.
  • Who can register an OPC? Any Indian citizen, including NRIs, can register an OPC.

Benefits of One Person Company

A One Person Company (OPC) offers several advantages, making it an attractive option for solo entrepreneurs in India. Here are some key benefits:

  1. Limited Liability Protection – Unlike a sole proprietorship, the owner’s personal assets are protected from business liabilities.
  2. Separate Legal Entity – An OPC is legally distinct from its owner, allowing it to enter contracts, own assets, and sue or be sued.
  3. Easy Credit Facilities – Banks and financial institutions often prefer lending to OPCs over sole proprietorships due to their structured legal framework.
  4. Perpetual Existence – The company continues to exist even if the owner passes away, ensuring business continuity.
  5. Minimal Compliance Requirements – OPCs have fewer regulatory requirements compared to private limited companies.
  6. Tax Benefits – OPCs enjoy tax advantages, including lower tax rates compared to sole proprietorships.
  7. MSME Benefits – OPCs can register as Micro, Small, or Medium Enterprises (MSMEs) and avail government incentives.

Tax Benefits of Registering One Person Company in Hathras

  1. Lower Tax Rates Compared to Sole Proprietorships – OPCs are taxed as private limited companies, benefiting from corporate tax rates rather than individual tax slabs.
  2. No Dividend Distribution Tax (DDT) – Unlike larger corporations, OPCs are exempt from DDT, reducing tax liabilities when distributing profits.
  3. Deductions on Business Expenses – OPCs can claim deductions on expenses like rent, salaries, and operational costs, lowering taxable income.
  4. Eligibility for Startup Tax Benefits – If registered under the Startup India scheme, OPCs can avail tax exemptions for three years under Section 80-IAC.
  5. Carry Forward of Losses – OPCs can carry forward business losses and depreciation to offset future taxable income.
  6. GST Benefits – OPCs can register under GST and claim input tax credits on purchases, reducing overall tax burden.

OPC vs Sole Proprietorship

  • Tax Rate: OPCs are taxed at a flat 22% under Section 115BAA, while sole proprietorships follow individual tax slabs, which can go up to 30%.
  • Deductions: OPCs can claim business-related deductions similar to private limited companies, whereas sole proprietors have limited deductions.
  • Dividend Distribution Tax (DDT): OPCs do not pay DDT, whereas sole proprietors are taxed on their total income.

OPC vs Private Limited Company

  • Tax Rate: Both OPCs and private limited companies can opt for the 22% concessional tax rate.
  • Compliance: OPCs have lower compliance costs compared to private limited companies.
  • Fundraising: Private limited companies can raise funds through equity, while OPCs cannot issue shares.

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