MLM Company Registration: A Complete Guide Explained (2025 Updated)

What Does the OPC Registration Fee Include?

The OPC registration fee breakdown generally comprises the following components:

• Government Filing Fees: Charges for submitting incorporation forms and other mandatory filings.
• Professional Service Charges: Fees for hiring professionals like Chartered Accountants or Company Secretaries assist with registration.
• Miscellaneous Costs: Additional expenses such as document preparation, notarisation, and obtaining licenses, if required.

OPC Registration Fees Breakdown

The OPC registration cost can be divided into several components:

Government Fees

• Cost for filing the SPICe+ form and other mandatory forms on the MCA portal.
• Cost of obtaining DSC for the Director.
• Fees for obtaining the DIN
• Depends on the authorised capital of the company; higher authorised capital attracts higher fees.

Professional Service Charges

Fees for professional assistance in preparing documents, filing forms, and ensuring compliance. It varies based on the service provider and location.

Stamp Duty Fees

Stamp duty is state-specific and varies based on the authorised capital and the location of its registered office. On average, stamp duty can range from ₹500 to ₹5,000.

Name Reservation Fees

Reserving a unique name for your OPC costs ₹1000 per application. This step ensures your chosen name complies with MCA guidelines.

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Miscellaneous Expenses

Charges for notarisation and other incidental expenses.

How Much Does OPC Registration Cost?

The overall cost of OPC registration in India typically ranges between INR 5,000 and INR 20,000, depending on various factors like professional service fees, authorised capital, and location. Government fees generally constitute a significant portion of the total cost.

Factors Affecting OPC Registration Fees

There are several factors affecting the OPC fees. Some of the OPC registration cost factors include- 

1. Authorised Capital: Higher authorised capital increases government fees and stamp duty charges.
2. Location: Costs may vary depending on the state due to differences in stamp duty and professional service charges.
3. Choice of Service Provider: The fees charged by professionals or agencies can differ significantly based on their expertise and service offerings.
4. Additional Services: Costs for optional services, such as trademark registration or GST registration, add to the total expense.

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<H2> One Person Company Registration Process

The OPC registration process involves the following key steps:

1. Name Approval:
   
   • Choose a unique name for your OPC and apply for approval through the Ministry of Corporate Affairs (MCA) portal.
2. Obtaining DSC:
   
   • Obtain a Digital Signature Certificate (DSC) for the proposed director.
3. Drafting Memorandum and Articles of Association:
   
   • Prepare the Memorandum of Association (MOA) and Articles of Association (AOA) outlining the company's objectives and rules.
4. Submitting Documents on the MCA Portal:
   
   • Upload the required documents, such as identity proof, address proof, and the nominee's consent, on the MCA portal along with Form SPICe+.
5. Incorporation Certificate:
   
   • Once approved, the MCA issues a Certificate of Incorporation, marking the completion of the registration process.

Frequently Asked Questions

Is CA Required for Company Registration?

Technically, a chartered accountant is not mandatory to register a company in India. The Ministry of Corporate Affairs (MCA) provides an online portal that allows founders to complete the registration process on their own.

However, company registration involves more than just filing forms- it requires compliance with various legal and financial requirements. While you can handle these steps yourself, professional guidance from a CA can ensure accuracy and avoid costly mistakes.

Who is a CA (Chartered Accountant)?

A Chartered Accountant (CA) is a certified finance expert trained in areas such as accounting, taxation, auditing, and corporate laws. They help businesses navigate complex financial landscapes and comply with statutory norms.

Beyond technical know-how, CAs translate rules into business action. They design accounting systems and controls, prepare accurate financial statements, interpret tax laws (income tax, GST, transfer pricing and international tax issues), and conduct statutory and internal audits to reduce risk. They also support compliance tasks such as preparing ROC filings, tax returns, GST returns, and maintaining books in line with applicable standards.

For startups and MSMEs, they often act as a de facto finance team, building financial models for fundraising, advising on the optimal business structure, preparing due diligence packs for investors, or structuring transactions to be tax-efficient and legally sound.

Why Hire a CA While Setting Up a Company?

Hiring a CA during your company’s setup offers end-to-end support, including:

• Selecting the right company type (Private Ltd, LLP, Sole Proprietorship, etc.) based on your goals and tax implications
  
  
• Handling registrations like PAN, TAN, GST, and Certificate of Incorporation (COI)
  
  
• Drafting key documents such as the Memorandum of Association (MOA) and Articles of Association (AOA)
  
  
• Ensuring tax compliance right from the start
  
  
• Setting up your accounting system tailored to your business
  
  
• Preparing financial statements and projections that appeal to investors and lenders

In short, a CA simplifies the entire process and helps lay a solid foundation for your business growth.

The Legal Requirements for Company Registration

Under the Companies Act, 2013, company registration involves the following key legal steps:

• Selecting your business structure
  
  
• Obtaining a Digital Signature Certificate (DSC) for directors
  
  
• Filing the SPICe+ (Simplified Proforma for Incorporating Company electronically Plus) form with the MCA
  
  
• Preparing and submitting the Memorandum of Association (MOA) and Articles of Association (AOA)
  
  
• Applying for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for tax purposes

While none of these steps legally require a CA, professional guidance can help avoid errors, delays, or non-compliance issues that could cost you in penalties or missed opportunities.

Benefits of Hiring a CA for Company Registration

• Expert handling of complex regulatory and tax matters
• Reduced chances of filing errors and rejections
• Better financial and tax planning from day one
• Time savings and peace of mind

That said, if you decide not to hire a CA, you can always use online platforms that provide comprehensive company registration services, guiding you through each step seamlessly and at competitive prices.

When is a CA Essential for Company Registration?

While not mandatory, involving a CA becomes essential in specific situations such as:

• Registering complex entities like Limited Liability Partnerships (LLPs) registration, sole proprietorship registration companies with foreign directors
• Preparing detailed financial projections and business plans for funding
• Ensuring strict tax and GST compliance, especially if your business deals with multiple states or international transactions
• Handling annual compliances post-registration, including audits and tax filings

In such cases, a CA’s expertise is crucial to keep your business compliant and financially sound.

Can You Register a Company Without a CA?

Absolutely! Company registration is possible without a CA, especially through the MCA’s online portal designed for entrepreneurs to file their incorporation documents directly. The process has been simplified over the years, making it more accessible than ever.

However, registering without professional help means you need to be very thorough with legal and financial nuances. Using an online platform that manages the end-to-end registration process can be a smart alternative- these platforms often offer packages that include form filing, document drafting, and government liaison, all without the higher fees of a traditional CA.

Frequently Asked Questions (FAQs)

What is a Public Company?

A public company, also known as a publicly traded company, is a corporation whose shares are freely bought and sold by the public on stock exchanges or over-the-counter markets. Key aspects of a public company include:

• Unlimited number of shareholders.
• Shares are publicly traded and easily transferable.
• Must issue a prospectus before offering shares to the public.
• Strict disclosure and reporting requirements.
• Ability to raise substantial capital through public markets.
• Governed by a board of directors responsible to shareholders.

Public companies must comply with stringent regulations set by securities commission like the the Securities and Exchange Board of India (SEBI). These regulations ensure transparency, protect investor interests, and maintain market integrity.

Features of Public Limited Company

1. Free transferability of shares: Shares can be freely bought and sold on stock exchanges, providing liquidity to investors.
2. No limit on number of shareholders: There is no restriction on the maximum number of shareholders a public company can have.
3. Prospectus requirement: Public companies must issue a prospectus before offering shares to the public, disclosing key information about the company.
4. Public disclosure of financials: Public companies are required to publicly disclose their financial statements on a regular basis.
5. Strict compliance norms: Public companies are subject to stringent regulations and disclosure requirements set by governing bodies like SEBI.
6. Access to capital markets: Public companies can raise substantial funds from a large pool of investors through various securities like IPOs, FPOs, rights issues and preferential allotments.
7. Listing on stock exchanges: The shares of public companies are listed and traded on recognised stock exchanges.

What is a Private Company?

A private company, also referred to as a privately held company, is a business entity whose shares are not publicly traded. Ownership is closely held by a limited group of shareholders, such as founders, family members and private investors. Key characteristics of a private company include:

• Limited to a maximum of 200 shareholders
• Shares are privately owned and not freely transferable
• Minimal disclosure requirements and greater privacy
• Raising capital through private means like angel investors or venture capital
• Closely controlled and managed by founders and early investors

Private companies have more flexibility in their operations and decision-making as they are not subject to the same level of public scrutiny and regulatory oversight as public companies.

Features of Private Company

1. Restricted share transfer: Shares of a private company cannot be freely transferred and are subject to restrictions outlined in the company's articles of association.
2. Limited number of shareholders: Private companies can have a maximum of 200 shareholders.
3. No prospectus requirement: Private companies are not required to issue a prospectus to the public for raising funds.
4. Confidentiality of financial information: The financial statements of private companies are not publicly disclosed and remain confidential.
5. Fewer compliance requirements: Private companies have lesser compliance and regulatory filing requirements compared to public companies.
6. Flexibility in management: Private companies have greater flexibility in their management structure and decision-making processes.
7. No requirement for a statutory meeting: Private companies are not required to hold a statutory meeting or file a statutory report.

Public Company Vs Private Company

Following are the key differences between public and private companies:

The choice between operating as a public or private company depends on various factors such as the company's capital requirements, desired level of control and flexibility, willingness to disclose financial information, and long-term objectives.

Can A Public Company Convert into a Private Company and Vice Versa?

Yes, a public company can be converted into a private company and vice versa, subject to certain conditions and procedures outlined in the Companies Act 2013.

To convert a public company into a private company, the following steps need to be taken:

1. Pass a special resolution in a general meeting of the company to approve the conversion.
2. Alter the company's memorandum and articles of association to reflect the changes required for a private company.
3. File an application with the National Company Law Tribunal (NCLT) for approval of the conversion.
4. Obtain approval from the NCLT after considering any objections or suggestions from regulatory authorities or other stakeholders.
5. File the NCLT order approving the conversion with the Registrar of Companies (ROC) within 30 days.
6. The ROC will issue a fresh certificate of incorporation reflecting the company's status as a private company.

Similarly, a private company can be converted into a public company by following these steps:

1. Pass a special resolution in a general meeting of the company to approve the conversion.
2. Alter the company's memorandum and articles of association to comply with the requirements of a public company.
3. Increase the number of directors to the minimum required for a public company (3 directors).
4. File an application with the ROC for approval of the conversion.
5. Obtain approval from the ROC after ensuring compliance with all the necessary provisions.
6. The ROC will issue a fresh certificate of incorporation reflecting the company's status as a public company.

Conclusion

Understanding the differences between private and public companies is crucial for entrepreneurs, investors and other stakeholders. While public companies offer the advantage of access to public capital and liquidity for shareholders, they also face stricter compliance requirements and public scrutiny. On the other hand, private companies provide greater control and flexibility to shareholders but have limitations in raising capital and providing liquidity to investors.

Regardless of the choice, both private and public companies play vital roles in the economy, driving innovation, creating jobs, and contributing to overall economic growth. Understanding their distinct characteristics and the implications of each structure is essential for navigating the complex world of business and making sound decisions.

Frequently Asked Questions