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.
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.
Introduction
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.
Eligibility Criteria
The Companies Act sets out clear requirements that must be met to ensure that the individual promoting the OPC is eligible to do so.
The promoter must be a resident in India, meaning they should have lived in India for at least 182 days during the previous calendar year.
The promoter must be a resident in India, meaning they should have lived in India for at least 182 days during the previous calendar year.
The OPC must have a minimum authorized capital of Rs 1 00,000, the amount stated in the company's capital clause during the registration.
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.
Businesses involved in financial activities such as banking, insurance, or investments cannot be established as OPCs.
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.
Registration of One Person Company (OPC) in India
Here are the steps to register One Person Company.
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.
Step 5: Obtain the Certificate of Registration
Following verification by the Registrar of Firms, If the Registrar is satisfied with the application, a Certificate of Registration will be issued to confirm the partnership deed registration.
Apply for PAN and TAN
Apply for a Permanent Account Number (PAN) and a Tax Deduction and Collection Account Number (TAN) from the Income Tax Department.
Documents Required
Several essential documents must be prepared and submitted to the Registrar of Companies (ROC) as part of the One Person Company registration process
- SMemorandum 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.
- Legal Status:
- Easy Fundraising:
- Reduced Compliance:
- Suitable for Small Businesses:
- Restriction on Business Activities:
- Ownership and Management:
Advantages
An OPC obtains a separate legal entity status, safeguarding the individual who founded it from personal liability for company losses.
Being a private company, OPCs find it easier to raise funds through venture capitalists, angel investors, and banks compared to proprietorship firms.
OPCs enjoy certain exemptions from compliance requirements under the Companies Act, 2013, simplifying administrative obligations.
Disadvantages
OPCs are primarily suitable for small-scale businesses as they can only have one member.
OPCs are restricted from engaging in certain activities, such as non-banking financial investments and charitable objectives.
There's a lack of clear distinction between ownership and management in OPCs, as the sole member can also be the director.
Streamline OPC Registration with Kritika Gupta and Associates
Kritika Gupta and Associates s the ideal partner for OPC registration for several compelling reasons. With years of expertise in company registration.
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 to register One Person Company.