One Person Company

One Person Company may be a separate legal entity that holds a perpetual succession. As per the abidance and regulatory rules and guidelines of the Ministry of Corporate Affairs (MCA), it is required to apply for OPC Company registration online under the Companies Act, 2013. One Person Company (OPC) is an entity that can be organized with only 1 owner, who can act as both the shareholder as well as a director of the company.

What is OPC or One Person Company?

OPC or One Person Company is a type of company formed by a single person who is the director and owner of the company. According to the Company’s Act, 2013, One Person Company Registration in India is a type of sole proprietorship business structure in the form of a company that provides complete authority to the owner to run the business as limiting his duties and financial liabilities for the business.

What are the advantages of Registering One Person Company?

OPC is a company that can be formed with 1 Director and a Member as against a private limited company. OPC provides better opportunities with minimal compliance.

One Person Can Start The Business

Under OPC, one person can start the business with little or no compliance. Due to fewer compliances, an individual gets longer to specialize in his business and key areas.

Complete Control By The Individual

The control remains in the hand of one person only.

Limited Liability

In the case of One Person Company, the member of OPC has limited liability.

Separate Legal Entity From Its Member

Being a company, OPC has a separate legal existence from its member.

Easy Compliance And Tax Flexibility

An individual has to follow easy compliance and avails the benefit of tax availability too.

Benefits For Small Scale Industries

OPC avails the advantages provided to Small scale industries like easy funding, less compliance, loans at a lower rate of interest, etc.

What are the Eligibility Criteria for Registering One Person Company?

• A natural person can form OPC who is a resident of India in the preceding calendar year.
• Only 1 member can form an OPC.
• The Name should be unique and should not be similar to any other existing company and trademark.
• An individual cannot incorporate more than 1 OPC or
• An individual can't be the nominee of quite 1 OPC.
• There must be a least 1 director.
• In the case of OPC, the edge limit of paid-up capital is Rs 50 lakh and therefore the Average Annual turnover is Rs 2crore within the immediately preceding fiscal year. However, as per the latest budget now there is no restriction on paid up and turnover limit.
• One Person Company must include in its name (OPC) Private Limited.
• Pre-condition to indicate the name of the other individual as a nominee. As within the event of the death of the subscriber, a nominee becomes a member of the One Person Company.

What Documents are Required for One Person Company Registration?

Below-mentioned documents are required for OPC Registration:-

For DSC Application

• Passport size photo of the applicant.
• Copy of Id and Address Proof.
• Email Id and Phone number
• Specimen Signature

Documents Required For SPICe+ Form

• Identity proof

Address proof & Identity proof and of the nominee and the subscriber. Note-For Residential proof, the applicant can provide any of the subsequent documents:-

• Copy of Current Bank Account Statement, Phone Bill, or Electricity Bill)
• Copy of Rent agreement and No-objection Certificate from the property owner.
• If the property is owned-Copy of the sale deed.

Memorandum of Association and Articles of Association

Declaration by the Subscribers and Directors

Proof of Office Address

Copy of Electricity or Utility Bills. However, it should not be older than 2 months.

Nominee’s Consent in Form INC-3

Disclosure of Director’s Interest and the other document (if required).

Registration Procedure of One Person Company in India

• Register One Person Company in online process and done according to the provisions of the Companies Act, 2013.
• Following are the stepwise procedure for OPC registration online:
• Applying for DSC or Digital Signature Certificate
• Applying for DIN or Directors Identification Number can be filed with the SPICe+ form.
• Selecting a unique name for the company and getting the company’s name approval
• Re-checking all the documents and proofs before submission like address proof, ID proof, etc.
• Submitting of the form alongside all needed documents
• Obtaining PAN and TAN for the company using Form 49A and Form 49B.
• Opening a new bank account for the company.
• After all the documents and forms are verified by the authorities, the Registrar of Companies would grant a certificate of Incorporation which contains the CIN number.