One-Person Company (OPC) Registration​

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One-Person Company (OPC) Registration​

₹9899
₹ 7899 One Time Payment ​
  • Certificate of Incorporation
  • Qualification Models​
  • Burdens of OPC​
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One-Person Company (OPC) Registration​

Entrepreneurs who want a distinct legal identity and limited liability favor registering a One-Person Company (OPC). OPC is a one-of-a-kind business structure that gives a single person the ability to run a business and enjoy the advantages of limited liability while still maintaining complete control. Combining the advantages of a sole proprietorship with the legal protection of a private limited company, an OPC has the individual serving as both shareholder and director. IndiaFilings specializes in reducing the complexity of the One Person Company (OPC) registration process so that entrepreneurs can easily navigate the legal complexities with reasonable fees. We offer expert guidance to help you make informed decisions regarding your One Person Company Registration and are committed to assisting you at every step, from document preparation to filing. Get in touch with us right away to begin building the business of your dreams!

An Overview of the One-Person Business

One Individual Organization (OPC) enrollment in India was presented as an idea under the Organizations Demonstration of 2013, empowering a solitary person to lay out an organization and partake in the consolidated advantages of both a sole ownership and a customary organization structure. With the Companies Act’s implementation in 2013, this idea became available. Entrepreneurship and the formalization of Micro, Small, and Medium Enterprises (MSMEs) were the primary motivations behind the creation of one-person businesses. A company can be formed with just one director and one member, according to Section 2(62) of the Companies Act of 2013, and it’s interesting to note that these roles can be held by the same person. The accompanying portrays the qualification and strategy to enlist one individual organization.

Qualification Models

It is essential to have a thorough understanding of the particular eligibility requirements and restrictions that govern the formation of OPC registration before you proceed with it. To ensure that a person can promote the OPC, the Companies Act specifies specific requirements that must be met.

  1. Regular Individual and Indian Resident:An OPC can only be established by a natural person who is a citizen of India. An OPC cannot be created by companies or limited liability partnerships.
  2. Indian citizen:The promoter needs to be a resident of India, which means that they need to have been there for at least 182 days in the previous year.
  3. Authorized Minimum Capital:The OPC must have a minimum authorized capital of Rs. 1,000,000, which is the amount specified in the capital clause of the company when it is registered.
  4. Appointment of Nominee:During the OPC’s incorporation, a nominee must be appointed by the promoter. In the event of the promoter’s death or incapacity, this nominee would join the OPC.
  5. Limitations on a Select Few Businesses:OPCs cannot be established by businesses engaged in financial activities like banking, insurance, or investments.
  6. Change to a Private Limited Liability Company:On the off chance that the OPC’s settled up share capital surpasses 50 lakhs or its typical yearly turnover outperforms 2 Crores, it should be changed over into a confidential restricted organization to follow the administrative necessities for bigger organizations.

Advantages of a Single Person Business

The following are advantages of a one-person company (OPC):

  1. Legal Status: Since an OPC is a separate legal entity, its founder is protected from personal liability for company losses.
  2. Fundraising is easy:Compared to proprietorship firms, OPCs find it easier to raise funds from venture capitalists, angel investors, and banks because they are private businesses.
  3. Reduced adherence:The Companies Act of 2013 grants OPCs certain exemptions from compliance requirements, reducing administrative burdens.
  4. Convenient Incorporation:It is possible to establish OPCs with only one member and one nominee, with the member also serving as the director. The incorporation process is made easier by not requiring a minimum amount of paid-up capital.
  5. Effective Administration:Since the OPC is overseen by a single individual, decisions can be made quickly, resulting in conflict-free and timely company management.
  6. Continuous Succession:OPCs ensure the continuity of the business even when there is only one employee.

Burdens of OPC

OPCs have advantages, but they also have disadvantages:

  1. Appropriate for Small Businesses:OPCs are best suited for small businesses due to their one-member limit. This restricts their capacity to raise extra capital as the business grows.
  2. Limitations on Business Operations:Certain activities, like charitable goals and non-banking financial investments, are prohibited for OPCs.
  3. Management and ownership:OPCs have no clear distinction between management and ownership because the sole member can also serve as the director. This might possibly prompt moral worries or irreconcilable circumstances.

Documents Requirement

As part of the One Person Company registration process, several essential documents must be prepared and submitted to the Registrar of Companies (ROC):

  • Memorandum of Understanding (MoA)
  • Articles of Organization
  • The candidate’s assent, alongside their Container card and Aadhaar card, should be submitted through Structure INC-3.
  • Evidence of a Registered Office
  • Form DIR-2 and a declaration on Form INC-9 should be submitted by the proposed director.
  • A statement by a certified proficient ensuring that all essential legitimate compliances have been stuck to.

Registration of One Person Company (OPC) in India

The SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form, which has replaced the previous application forms for company incorporation, makes it easier to register an OPC in India.

There are two components to the OPC Registration:

  1. Part A: The initial portion of the SPICe+ form is devoted to applying for the proposed director’s Director Identification Number (DIN) or Permanent Account Number (PAN) and obtaining approval for the desired company name.
  2. Part B:The next section, Part B, entails providing information regarding incorporation. The OPC’s registered office address, information about the share capital, details about the director, and information about the shareholder are all included in this section.

Step 1: Obtain a Certificate of Digital Signature (DSC)

Make sure that the intended director of the OPC has a Digital Signature Certificate (DSC). Important documents are signed electronically with the DSC.

Step 2: Acquire a DIN, or director identification number

Get the proposed director a Director Identification Number (DIN) from the Ministry of Corporate Affairs (MCA).

Step 3: Setting up a name

Use Form SPICe+ (Part A) to apply for a name reservation through the MCA portal. Guarantee that the picked name for your organization is unmistakable and looks like no current organization or brand name.

Stage 4: Plan MOA and AOA

For your business, write the Memorandum of Association (MOA) and Articles of Association (AOA). The company’s goals and internal guidelines are outlined in these documents.

Stage 5: Document the Structures

Document the important structures with the MCA to enroll One Individual Organization. Append the significant archives to the SPICe+ structure, including MOA, AOA, announcements, evidence of the enlisted office, candidate arrangement, and different reports as expected by the MCA.

Step 6: Certificate of Incorporation

Upon endorsement by the ROC and confirmation of consistence prerequisites, the ROC will give a Declaration of Fuse, meaning the effective enrollment of your One Individual Organization. Notably, separate applications are not required because the PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) numbers are generated automatically during incorporation.

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