Taxation Point India

One-Person Company (OPC) Registration

Registering a One-Person Company (OPC) is favored among entrepreneurs who desire limited liability and a distinct legal identity. OPC is a unique business structure that permits a single person to function as a company, giving them the benefits of limited liability while retaining complete control. In an OPC, the individual serves as both the director and shareholder, merging the advantages of a sole proprietorship with the legal protection of a private limited company.

At Taxation Point India, we specialize in simplifying the OPC registration process, ensuring that entrepreneurs can smoothly navigate the complexities of legal formalities with reasonable One person company registration fees. Our experienced team is dedicated to assisting you at every step, from document preparation to filing, we offer expert guidance to help you make informed decisions regarding your One Person Company Registration.

Introduction to One Person Company (OPC)

One Person Company (OPC) registration in India was introduced as a concept under the Companies Act of 2013, enabling a single individual to establish a company and enjoy the combined benefits of both a sole proprietorship and a traditional company structure. This concept became available with the implementation of the Companies Act in 2013.

The primary objective behind creating one-person companies was to foster entrepreneurship and encourage the formalization of Micro, Small, and Medium Enterprises (MSMEs). According to Section 2(62) of the Companies Act 2013, a company can be formed with just one director and one member, and interestingly, these roles can be held by the same individual. Simply, OPC Company registration allows a single person to set up a limited liability company in India. The following describes the eligibility and procedure to register one person company.

Eligibility Criteria

Before you go ahead and engage in OPC registration process, it's crucial to understand the specific eligibility criteria and limitations that govern its formation. The Companies Act sets out clear requirements that must be met to ensure that the individual promoting the OPC is eligible to do so.

Natural Person and Indian Citizen:

Only a natural person who is an Indian citizen can establish an OPC. Legal entities like companies or LLPs cannot create an OPC.

Resident in India:

he promoter must be a resident in India, meaning they should have lived in India for at least 182 days during the previous calendar year.

Minimum Authorized Capital:

The OPC must have a minimum authorized capital of Rs 1 00,000, the amount stated in the company's capital clause during the OPC Company registration.

Nominee Appointment:

The promoter must appoint a nominee during the OPC's incorporation. This nominee would become a member of the OPC in the event of the promoter's death or incapacity.

Restrictions on Certain Businesses:

Businesses involved in financial activities such as banking, insurance, or investments are not eligible for OPC company registration.

Conversion to Private Limited Company:

If the OPC's paid-up share capital exceeds 50 lakhs or its average annual turnover surpasses 2 Crores, it must be converted into a private limited company to comply with the regulatory requirements for larger companies.

It's worth noting that an individual can establish only one OPC, and an OPC cannot have a minor as its member. In the following section, you'll find advantages and disadvantages one will get as a result of OPC registration online.

Advantages of One Person Company (OPC)

Advantages of One Person Company (OPC) include the following:

Legal Status:

An OPC obtains a separate legal entity status, safeguarding the individual who founded it from personal liability for company losses.

Easy Fundraising:

Being a private company, OPCs find it easier to raise funds through venture capitalists, angel investors, and banks compared to proprietorship firms.

Simple Incorporation:

OPCs can be established with just one member and one nominee, with the member also serving as the director. No minimum paid-up capital requirement simplifies the incorporation process.

Efficient Management:

With a single person managing the OPC, decision-making is swift, leading to efficient company management without conflicts or delays.

Perpetual Succession:

OPCs maintain perpetual succession, ensuring the company's continuity even with only one member.

In conclusion, OPCs offer several advantages, including limited liability, ease of fundraising, reduced compliance, straightforward OPC company registration and management, and perpetual succession.

Disadvantages of OPC

While OPCs offer advantages, there are also limitations:

Suitable for Small Businesses:

OPCs are primarily suitable for small-scale businesses as they can only have one member. This limits their ability to raise additional capital as the business expands.

Restriction on Business Activities:

OPCs are restricted from engaging in certain activities, such as non-banking financial investments and charitable objectives. Hence, the companies with these business activities are not eligible for OPC company registration.

Ownership and Management:

There's a lack of clear distinction between ownership and management in OPCs, as the sole member can also be the director. This can potentially lead to ethical concerns or conflicts of interest.

Required Documents for OPC Registration Online

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

Memorandum of Association (MoA)
Articles of Association (AoA)
The nominee's consent, along with their PAN card and Aadhaar card, must be submitted via Form INC-3.
Proof of Registered Office
The proposed director should furnish a declaration in Form INC-9 and their consent in Form DIR-2.
A declaration by a qualified professional certifying that all necessary legal compliances have been adhered to.

Keep these required documents ready for OPC company registration.

Registration of One Person Company (OPC) in India

In India, OPC company registration is facilitated through the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form, which has replaced the previous application forms for company incorporation.

The OPC Registration process consists of two parts:

Part A:

This initial section of the SPICe+ form is dedicated to securing approval for the desired company name and applying for the Director Identification Number (DIN) or Permanent Account Number (PAN) for the proposed director.

Part B:

The subsequent segment, known as Part B, involves furnishing incorporation-related details. Here, essential information such as the registered office address of the OPC, details about share capital, particulars of the director, and information about the shareholder is provided.

Here are the steps for an OPC registration online.

Step 1: Obtain a Digital Signature Certificate (DSC)

Secure a Digital Signature Certificate (DSC) for the intended director of the OPC. The DSC is utilized for electronically signing crucial documents.

Step 2: Obtain Director Identification Number (DIN)

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

Step 3: Name Reservation

Apply for name reservation through the MCA portal using Form SPICe+ (Part A). Ensure that the chosen name for your company is distinct and does not resemble any existing company or trademark.

Step 4: Prepare MOA and AOA

Draft the Memorandum of Association (MOA) and Articles of Association (AOA) for your company. These documents define the company's objectives and internal rules.

Step 5: File the Forms

File the necessary forms with the MCA to register One Person Company. Attach the relevant documents to the SPICe+ form, including MOA, AOA, declarations, proof of the registered office, nominee appointment, and other documents as required by the MCA.

Step 6: Certificate of Incorporation

Upon approval by the ROC and verification of compliance requirements, the ROC will issue a Certificate of Incorporation, signifying the successful registration of your One Person Company. Notably, the PAN number (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) are generated automatically during the incorporation process, eliminating the need for separate applications.

With this Certificate of Incorporation, your OPC is officially recognized and ready to commence its operations in India.

Why Taxation Point India for OPC Registration Online?

Taxation Point India is the ideal partner for OPC registration online for several compelling reasons. With years of expertise in company registration and a deep understanding of the regulatory landscape, Taxation Point India simplifies the often complex OPC registration process. Our one person company registration fees are designed to be affordable while providing exceptional value, ensuring a seamless experience from start to finish.

We offer expert guidance, from name reservation to document preparation and submission for effortless OPC company registration. Our commitment to accuracy and compliance guarantees that your OPC registration process adheres to all legal requirements, while our dedicated support team is readily available to address any queries or concerns you may have. With our transparent one person company registration fees, you can trust Taxation Point India to deliver reliable and professional service tailored to your needs.

Get started now and embark on your entrepreneurial journey with confidence!

Post-Incorporation Formalities for OPC

EFollowing the successful incorporation of a One Person Company (OPC), specific compliance formalities must be adhered to, akin to those applicable to private limited companies. Our experts are ready to assist you in fulfilling OPC compliance requirements, ensuring that your business remains in full legal compliance.

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