INC-5 Form : Intimation of exceeding threshold limit by One Person Company

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Laxmi Navlani

Compliances
INC-5 Form
Start & Run Business
Last updated on May 6th, 2021

Form INC-5 is required to be filed on the MCA portal pursuant to Rule 6(4) of the Companies (Incorporation) Rules, 2014 by One Person Company.

One Person Company is required to give an intimation to the Registrar in Form No INC-5 informing that it has ceased to be a One Person Company by exceeding the threshold limit by virtue of either increase in its paid-up share capital beyond fifty lakh rupees or increase in its average annual turnover during the relevant period beyond two crore rupees.

Moreover, OPC shall file this intimation within sixty days from the date of exceeding threshold and it will have to take necessary steps to convert itself into a private company or a public company as the case may be.

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Documents to be attached with Form INC-5

Sample of Form INC-5

Form inc-5
Download Form INC-5 from MCA

Steps to file Form INC-5

Time needed: 5 minutes

  1. Enter CIN

    You have to enter a valid CIN of One Person Company (OPC) and click on Pre-fill.

    You can find CIN by entering an existing registration number or
    name of the company by using the ‘Find CIN’ service under
    the menu MCA services on the MCA website.

  2. Enter the amount of paid up share

    Enter the amount of paid-up share capital in case ‘Paid-up share capital’ is selected in field 4(a). OR Enter the amount of average annual turnover in case ‘Average annual turnover ‘ is selected in field 4(a).
    Amount entered should be more than 50 lakh rupees in case of paid-up share capital and 2 crore rupees in case of average annual turnover.

  3. Attach required documents & DSC

    Ensure the e-Form is digitally signed by the same person
    whose designation is reflected in S. No 5 of the e-Form and is
    authorized by board resolution to sign the form.

  4. Check Form

    Click the Check Form button after, filling the e-Form.
    The system performs form level validation like checking if
    all mandatory fields are filled. The system displays the
    errors and provides you an opportunity to correct
    errors

  5. Pre-scrutiny of form

    After checking the e-Form, click the Prescrutiny
    button System performs some checks and displays
    errors, if any.

  6. Submit Form

    If there are no errors, a message is displayed “No errors found”.
    Then you can submit the form.

Fee (in case of company having share capital)

Nominal Share Capital Fee applicable
Less than 1,00,000 200 Rs
1,00,000 to 4,99,999 300 Rs
5,00,000 to 24,99,999 400 Rs
25,00,000 to 99,99,999 500 Rs
1,00,00,000 or more 600 Rs

Additional Fee in case of delay

Period of delays Fee applicable
Up to 30 days 2 times of normal fees
More than 30 days and up to 60 days 4 times of normal fees
More than 60 days and up to 90 days 6 times of normal fees
More than 90 days and up to 180 days 10 times of normal fees
More than 180 days 12 times of normal fees

FAQs

Can OPC be converted into private limited company?

OPC can be converted into Private Limited after two years of setup, or even before that if its turnover is more than Rs 2 crore and paid share capital exceeds Rs 50 lakhs in a financial year.

Is PLC better than OPC?

One of the best advantages of having a Private limited company is that foreign nationals and NRIs can quickly start the PLC in India. Also, 100 percent FDI under the automatic approval route is accessible in the Private Company. But in the OPC, only the citizens of India can commence the company.

Who is eligible to act as a member of an OPC?

Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC.

Got Questions? Ask Away!

  1. Hey @Paritosh_Trivedi

    If the paid up share capital of an OPC exceeds fifty lakh rupees or its average annual turnover during the relevant period exceeds two crore rupees, the OPC shall within sixty days becoming applicable, the One give a notice to the Registrar in Form No.INC-5 informing that it has ceased to be a One Person
    Company and that it is now required to convert itself into a private company or a public company
    by virtue of its paid up share capital or average annual turnover, having exceeded the threshold
    limit.

    You can learn more about INC-5 here:

    Hope this helps!