One Person Company

A company that has only one person as to its member. Furthermore, members of a company are nothing but subscribers to its memorandum of association, or its shareholders. So, an OPC is effectively a company that has only one shareholder as its member

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What is OPC Registration

The concept of One Person Company (OPC) Registration was introduced by the Company’s Act 2013. One Person Company (OPC) Registration, as the name signifies, has a single member having 100% control of the business, unlike the private limited company registration where a minimum of 2 members are required to form the company. Sole proprietors are recommended to start their businesses as one Person Company (OPC) Registration, which has a key benefit of limited liability i.e the owner’s assets will not be utilized to pay off the company’s debts of the One Person Company. OPC registration is suited for a new entrepreneur who wants to enjoy the benefit of limited liability, better brand image, keep the compliance cost low, and test the services/ product prototype. Any One Person Company (OPC) Registration has a limit of turnover worth Rs. 2 crores, and paid-up capital of Rs. 50 lakhs. Once One Person Company (OPC) registration has a paid-up capital more than Rs. 50 lakh or average 3 year turn over crosses limits worth Rs. 2 crores, then it will be converted into private limited company registration.

Distinct Legal Entity

The OPC Registration has separate legal entity from its owners which safeguard the owner from being sued in case of any legal controversy. Also, the owner’s assets will not be utilized to pay off the company’s debts. Since in OPC registration, only one person is the sole owner of the company, making the decision is a lot easier and faster. Also, the owner can appoint directors for his help without giving any share to them

Less compliance burden

An OPC registration will be required to confirm to the procurements relevant to private limited company registration, but it will also get the benefit of various exclusions, and therefore there is less compliance burden over the OPC. Only a resolution might be conveyed and entered in the minute book (with date and sign), and such a date should be considered the date of the meeting.

Brand image

Registering a company gives a brand image to business compared to running a business as a sole proprietor. Generally, large business firms prefer to deal with companies instead of sole proprietor firms. There might be a requirement of tender or job work, which can be applied only by the company.

Easy Fund Raising

All financial institutions prefer to lend money to any company registration instead of proprietary firms. The features of transparency and perpetual succession of the company give it benefits over any other business form. The company registration has better governance, which provides more comfort to all the financial institutions.

Process for OPC Registration

Step 1: Application for Name Approval

Name of one person company registration is a crucial step for new company registration. Two proposed names in order of preference, objective/purpose of business activity along with statutory fees are submitted to MCA. The proposed name should be unique and shouldn’t have punctuation marks. In case MCA has any observation then the form comes for resubmission, and in case of more than one resubmission, statutory fees is to be paid again. Once the name is approved, it is valid for 20 days (including weekends or other holidays), and all other formalities must be completed within this period.

Step 2: Digital Signature Certificate Application

Digital Signature is an online signature used for filing documents online. Digital Signature Certificate (DSC) is required for all shareholder and director for One Person company registration. It can be applied in parallel with applying for name approval as there is no DSC requirement in the name application. If the director or shareholder of the One Person Company registration already has DSC, this step can be skipped.

Step 3:Documents preparations and Filling of Forms :

After getting DSC and name approval, the next step is to file forms- Spice + Part, Agile Pro, Spice MOA, Spice AOA, and INC 22 forms with MCA. These forms consist of information regarding registered office, authorised, paid-up capital, shareholding pattern, directors, shareholders details such as an address, education qualification, etc. Some of this information is required to be supported required proof like rent/title deed of registered office, PAN card, indentity proof, resident proof etc.

Step 4: Getting Incorporation Certificate

After submitting all the documents and getting verified by the Registrar of Companies (ROC), you will receive a Certificate of Incorporation within 7-12 days. This certificate of incorporation will act as a birth certificate for your company registration, and the company registration process ends here. The certificate of incorporation consist of company name, registered address, 21 digits alpha-numeric number Corporate Identity Number (CIN) approved by MCA and notified on the registered companies.

Step 5: Opening Bank Account

After getting the Incorporation certificate, a bank account needs to be opened in the name of your company. One needs to submit an incorporation certificate, MOA, AOA and other necessary documents required by the bank. Before the commencement of business, proposed paid-up capital must be deposited with the bank, and INC-20A needs to be filled with MCA to get the certificate of commencement.

Documents Required for OPC Registration

For each Directors and Shareholders

    1. Passport Size Photograph
    2. PAN Card
    3. Aadhar Card
    4. Voter ID/ Passport/ Driving License
    5. Telephone /Electricity Bill/ Bank A/c Statement (Not older than 2 Months)*
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Add For Address Proof of new company

    1. Telephone /Electricity Bill/(Not older than 2 Months) *
    2. Tittle/Sale – Owned Property
    3. Rent Agreement – Rented Property
    4. NOC – Rented Property
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Additional Requirements For Foreign National

    1. Passport
    2. Documents should be notarized or consuralized or apostilled
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