Overview

Introduction

Why You Should Register

• You get a separate legal identity from the owner.
• You enjoy limited liability, protecting your personal assets.
• The company can enter into contracts, own property, and sue or be sued in its own name.
• Banks, clients, and vendors view an OPC as more credible and professional.
• Easy to raise loans or convert to a Private Limited Company later.

Compliance and Taxation

• An OPC must comply with the Companies Act, 2013, including annual filings with the Registrar of Companies (ROC).
• It must maintain proper books of accounts, hold annual audits, and file Income Tax Returns.
• Tax is levied at a flat 25% (for small companies) under the Income Tax Act, plus applicable surcharge and cess.
• GST registration is mandatory if turnover exceeds the prescribed limits or if interstate transactions are conducted.
• Director (the sole shareholder) must also obtain a Digital Signature Certificate (DSC) and Director Identification Number (DIN).

Registration Type

• PAN & TAN (Company)
• GST Registration
• Udyam (MSME) Registration
• Professional Tax Registration
• Current Bank Account

Purpose

• For income tax and TDS compliance
• For tax compliance and invoicing
• For government benefits and subsidies
• As per state laws
• To operate company finances

When You Should Convert

• Your paid-up capital exceeds ₹50 lakh or annual turnover crosses ₹2 crore.
• You plan to add more shareholders or attract investors.
• You want to issue equity shares and expand your business.