One Person Company

Registration of One Person Company (OPC) is easy, online and fast. We provide DIN, DSC, Name Approval, MOA, AOA and Company Registration Certificate in all our packages with PAN and TAN Numbers. Start your company today!
 
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What is One Person Company Registration?

To Register a One Person Company in India, you must first understand its meaning. A One Person Company or OPC is a form of Private Limited Company incorporated under the Companies Act of 2013. It is owned by a single shareholder entitled to 100% share of its profits. However, his liability is restricted to the unpaid amount of his subscribed equity capital in the company. Decision-making processes are not very complicated as all decisions are approved by a single shareholder. So, if you do not want to share your ownership, a One Person Company can be your best choice!

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Features of One Person Company in India

Following are some important features of One Person Company in India:

1. Simple Succession:

Despite the fact that the company’s everyday operations are managed by a single person, OPC offers opportunities for eternal succession. Following the death of a company member, the nominee can administer the business.

2. Limitation of Liability:

A one-person company member has limited liability. Because OPC is a registered corporation, it is treated as a separate legal entity, providing its members with greater protection. Members’ liability is restricted to their shares, therefore they are not accountable for any losses incurred by the firm. In the event of bankruptcy, creditors may sue the corporation rather than the director for procuring the company’s debt.

3. Shareholder and sole directorship:

In a One Person Company, a single member serves as a director and is responsible for managing the company’s day-to-day operations. There is no need for an executive director to oversee daily operations in this situation. A single member is more than adequate and serves as a shareholder with full responsibility.

4. Ownership of Real Estate:

Because the OPC is considered a separate legal organisation, the individual has the ability to possess company property and other assets in their name. Other people cannot claim the properties, which include machinery factories, residential property, structures, and other assets. The OPC has the legal authority to acquire land directly in its name.

Benefits of OPC Registration

Limited Liability:

OPCs provide limited liability protection to their sole owner, which means the personal assets of the owner are protected in case of any legal liabilities or debts incurred by the company. This separation of personal and business assets is crucial for mitigating financial risks.

Single Ownership and Control:

Unlike traditional companies that require a minimum of two directors and shareholders, OPCs can be formed with just one person as both the shareholder and director. This structure gives the owner full control over decision-making without the complexities of managing a board or multiple shareholders.

Legal Recognition and Credibility:

OPCs are recognized as separate legal entities, giving them a professional image and enhancing credibility in dealings with customers, vendors, and financial institutions. This legal recognition can also make it easier to attract investment and raise capital for business expansion.

Tax Benefits:

OPCs enjoy certain tax advantages, such as lower corporate tax rates or exemptions available to small businesses or startups in many jurisdictions. Additionally, they can claim deductions for business expenses, reducing the overall tax liability of the company.

List of Documents

  • PAN Card
  • Aadhar Card
  • Colour Photo
  • ID Proofs
  • Address Proofs
  • Registered Premises
  • Latest Address Proof
  • NOC from the owner
  • Single Shareholder
  • One Resident Director
  • Maximum 15 Directors
  • Valid name of the OPC
  • A Registered Office

Documents you'll get after OPC Registration

Post incorporation of One Person Company, you’ll receive the following documents

  • Certificate of incorporation
  • Permanent Account Number (PAN) of the Company
  • Tax Deduction or Collection Account Number (TAN) of the Company
  • Articles of Association (AoA)
  • Memorandum of Association (DIN)
  • Digital Signature Certificate (DSC)
  • EPF and ESIC Registration documents
  • Company Master data

How to Register One Person Company? - Stepwise Process

OPC Registration Process in India can be completed in a series of steps. A form must be filed with necessary OPC documents required for registration. The ROC will examine the filed application and if successfully verified, will issue a Certificate of Incorporation in the OPC’s name. The Certificate of Incorporation becomes a conclusive proof for OPC registration in India.

STEP 01 -Documentation

OPC Registration Process in India can be completed in a series of steps. A form must be filed with necessary OPC documents required for registration. The ROC will examine the filed application and if successfully verified, will issue a Certificate of Incorporation in the OPC’s name. The Certificate of Incorporation becomes a conclusive proof for OPC registration in India.

STEP 02 -Select a name for your One Person Company

The next step in OPC Registration process is selecting a valid name for the OPC as per MCA guidelines. After selecting the name, you must get it approved and reserved by the ROC. For this, an application can be filed in the PART A of SPICE Plus form to the ROC. Once the name is reserved, it is valid for 20 days and the OPC must be incorporated within this time.

STEP 03 -Drafting of MoA and AoA

MOA is the constitution of the one person company, and the AOA is its document of internal rules and regulations. These are important OPC documents required to be submitted during the one person company registration process. So, make sure these are drafted beforehand in the appropriate legal format. They must be signed by all the shareholders, and stamped by a public notary after the payment of applicable stamp duty.

STEP 04- Filing application for OPC Registration Online

Once all the documents and drafts are ready, you can finally file the SPICe+ application for OPC incorporation online. The form must be accompanies by the necessary documents and drafts, uploaded in their digital formats. Finally, the authorised director can sign the form using his class 3 Digital Signature Certificate. The form is further certified by a practicing professional such as a CA, CS, CMA or Advocate of the High Court.

STEP 05 -Issue of Certificate of Incorporation

The SPICE Plus application, after submission, reaches the office of Registrar of Companies. The ROC examines all the details and documents submitted for accuracy and authenticity. If satisfied with the submissions, ROC approves the application and proceeds with the OPC Company Registration process. It registers the OPC and issues a Certificate of Incorporation in its name.

FAQs on OPC Registration

An OPC is a company that is incorporated by a single person.

There are three types of partnerships: general partnerships, joint ventures, and limited partnerships. In a general partnership, general partners share in business operations. They also have personal liability. Joint ventures are the same as general partnerships except that the partnership only exists for a specified period of time. It can also be for a specific project.

The member of an OPC should be a natural person who is a citizen of India. It is also pertinent to note that the member should also be a resident of India who has resided in India for not less than a period of 180 days immediately preceding the financial year.

Yes, the sole member of the OPC has to mandatorily elect a nominee at the time of registration of the company. The consent of the nominee is taken in Form INC-3.

No, a person can be a member of only one OPC at any given time. However, a member of an OPC is not forbidden from becoming a member of any other private company.

The OPC should conduct at least one board meeting every half of the calendar year and the time gap between the two meetings should not be less than 90days . The book of accounts is to be maintained. The financial statements must be subjected to regular audits. The income tax returns must be duly submitted. The financial statements in Form AOC-4 and the ROC Annual returns in Form MGT are to be furnished.

A citizen of a foreign country, a minor, A non-resident of India, any person who does not have the capacity to enter into contractual obligations is not eligible to become a member of an OPC.

An OPC is incorporated with a single member and a single director. Also, there can be a single member who can act both as the member and the director. An OPC can have a minimum of 1 director and a maximum of 15 directors.