Introduction
One Person Company Registration (OPC) in India is one of the simplest forms of corporate entities to manage, if you are a sole proprietor to run the business. OPC is a hybrid of sole-proprietorship and corporate forms of business. It has been equipped with various relaxations in compliance requirements under the Companies Act. It is a form of a company where the compliance requirements are less than that of a private limited company. One Person Company (OPC) registration is a very quick, simple and affordable registration.
In the year 2013, the One Person Company (OPC) structure was introduced for the first time as a refinement of the sole proprietorship’s firm structure. In OPC, a sole promoter gets complete control of the business, limiting his/her liability for the company’s contribution.
What is a One Person Company?
A One Person Company (OPC) is formed when only one person acts as both the director and shareholder of the business. Under the provisions of the Companies Act of 2013, the concept of OPC was introduced for the first time. Furthermore, an OPC is a sole proprietorship firm in the form of a corporation that gives an individual the ultimate authority over a business, limiting its liabilities and responsibilities.
Further, a company having only one person as its director and member shall be classified as a One Person Company (OPC) under section 2 (62) of the Companies Act, 2013.
As per Section 2(62) of the Companies Act 2013, a company can be formed with only one director and one member. In India, one person company registration is a type of entity with less compliance requirements than a private limited company.
How to register for One Person Company (OPC)?
One person company (OPC) registration is simple and economical. Unlike private limited companies, you are not required to arrange for two or more people to hold the position of director of the company. You can incorporate the company of one person alone without shaking hands with another person.
One Person Company (OPC) registration is quick, simple, and can be done online with few easy steps which are as follows:
Step 1: Consult our experts or advisors who will guide you through checking eligibility and documents requirement.
Step 2: Our team will assist you in finding the unique company name available on MCA records.
Step 3: We assist you to apply for Director’s DSC and DIN.
Step 4: Our expert professionals will prepare all the required ROC forms like MOA, AOA, SPICE, DIR, COB, etc; and will file with the Ministry of Corporate Affairs [MCA].
Step 5: And finally it will deliver you the certificate of incorporation, PAN, TAN and all other required documents.
Why Choose One Person Company Registration?
One person company registration offers various benefits beyond that of a sole proprietor firm. Being a registered company under MCA increases the legitimacy of your business firm. It helps and supports your business in the following ways:
- A sole proprietor can incorporate the company
- Unlike a sole proprietor firm, your company name is protected and cannot be copied by others.
- Less compliances and Limited liabilities of its director
- Suitable for Banking loans, credits; etc.
- Less Income Tax Rate as compare to sole proprietors
- No interference of any third person can be involved
- Ownership can easily be transferred to the nominee in case of death of the owner
Eligibility for One Person Company Registration
Indian Citizenship
The director/shareholder of the company must be an Indian citizen and resident of India. NRIs or foreign nationals cannot do OPC registration in India.
Attend Majority Age
Before One Person Company Registration, the owner must be present at the age of 21 years. Minor cannot act as its member.
Appoint Nominee
During OPC incorporation, the promoter has to select and provide the KYC details of the nominee.
Minimum Capital
OPC does not require any minimum capital. You can incorporate an OPC by any capital of your choice. However, One Person Company must be registered with a minimum authorized capital of Rs. 1 Lac.
Unique Company Name
Your company’s name must be distinct and unique. The suggested company name should not be similar to any existing registered Indian companies name or trademarks.
Advantages of One Person Company (OPC) Registration
There are various reasons to register your business as One Person Company which are as follows:
- Director’s personal assets have limited liability protection
- Easy to increase loan and overdraft limits with better image and reputation in the market
- No outside third-party involvement
- Comparatively low-income tax rate as compared to sole proprietor firm
- Compared to other corporate forms of business, compliance is low.
Documents Required for OPC Registration
- Company director’s document
- Photo
- PAN
- Address Proof such as Bank Statement, Electricity Bill, Telephone Bill, Mobile Bill. (Anyone, not older than 2 months).
- Proof of Identity such as Driving License, Voter ID card, Passport (Anyone).
- Proof of address of the registered office of the company
- Latest Electricity Bill, Gas Bill, Water Bill or Property Tax Receipt or any other utility bill in the name of the owner.
- Rent agreement between owner & company promoter OR NOC from Owner (if owner is the company’s promoter).
Steps for Online One Person Company [OPC] Registration
The whole process including approval of DIN, company name and incorporation takes around 7-10 working days. However, creating an OPC company is now a quick and easy process, which allows all the paperwork to be loaded into a single online platform. Team of professionals can guide you through the entire process of OPC Registration.
DAY 1
- The first process is to verify the eligibility and documents.
- Apply for Director’s DSC and DIN.
DAY 2 - 3
- Apply for company name reservation
- Draft Business Objectives
- Prepare company incorporation documents like MOA, AOA, DIR and others.
- At this step, it will be shared with you for approval.
DAY 4 - 5
- File Spice+ forms for company incorporation
- File for Company registration form
- Apply for PAN (Permanent Account Number) and TAN (Tax Deduction Account Number) of OPC
DAY 6 - 10
- Wait for the application processing at the Government [MCA] level.
- MCA allots Certificate of Incorporation along with PAN and TAN.
- The company assists you in opening a current bank account.
How Compliance Calendar can help in One Person Company (OPC) Registration?
Compliance Calendar have a premier team of professionals who are able to provide a hassle free and error free online company registration service in India.
Our professionals are doing daily one person company registration and are up to date with new registration procedures of MCA. As a result, we are able to provide you the best company incorporation service along with MCA functionality.
Compliance Calendar will provide you with the complete Company Incorporation Document Kit at the end of delivery of One Person Company Registration Services which includes:
- Certificate of Incorporation
- start of business certificate
- Director’s identification number for 1 director
- Company’s PAN and TAN
- Digital Signature for 1 Director
- MOA/AOA of the company
- ROC Registration Fees Challan
