HOW MUCH CAPITAL REQUIRED TO OPEN OPC?
HOW MUCH CAPITAL REQUIRED TO OPEN OPC?
INTRODUCTION
The capital required to open an One Person Company (OPC) in India is very minimal. There is no minimum paid-up capital requirement for an OPC, and the authorized capital can be as low as Rs. 1 lakh. This means that you can start an OPC with as little as Rs. 2, as the authorized capital is the maximum amount that the company can raise through issuing shares.
However, it is important to note that there are some other costs associated with setting up an OPC, such as the cost of registration, the cost of obtaining a PAN and TAN, and the cost of maintaining accounting records. These costs will vary depending on the specific circumstances of the company, but they are likely to be in the range of Rs. 5,000 to Rs. 10,000.
breakdown of the costs associated with setting up an OPC
- Registration fees: The registration fees for an OPC are Rs. 1,500.
- PAN and TAN fees: The fees for obtaining a PAN and TAN are Rs. 100 and Rs. 100, respectively.
- Accounting fees: The cost of maintaining accounting records will vary depending on the size and complexity of the company. However, it is likely to be in the range of Rs. 1,000 to Rs. 2,000 per year.
Overall, the cost of setting up an OPC is very reasonable. If you are looking to start a small business with limited capital, an OPC can be a good option.
some additional information about the capital requirements for OPCs
- The authorized capital of an OPC cannot be more than Rs. 50 lakh.
- The paid-up capital of an OPC cannot be less than Rs. 1 lakh.
- The shares of an OPC cannot be transferred to anyone else.
- An OPC cannot invite the public to subscribe to its securities.
