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One Person Company (OPC) Registration

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  • Overview
  • Regulation
  • Eligibility
  • Benefits
  • Requirement
  • Documents
  • Process
  • Incorporate
  • Compliances
  • Fees
  • FAQs

What is One Person Company (OPC) Registration?

Only two people could start a business before implementing the Companies Act of 2013. In India, the Companies Act of 2013 encourages the formation of One-Person Companies (OPCs). It controls the construction and operation of a one-person corporation in India. Unlike a public corporation, a private business must have at least two directors and two members; however, a one-person company registration doesn’t require a group of people to be incorporated.

 

What is the One Person Company (OPC) Registration Regulation?

According to Section 262 of the Companies Act of 2013, the official registration of OPC in India is legitimate. A single director and member must represent the entire firm for a one-person company formation in India. This corporation type has very few compliance responsibilities compared to a private business.

 

Who are Eligible to form One Person Company (OPC)?

  • A typical person residing in India or an NRI can form an One Person Company (OPC).
  • An One Person Company (OPC) can consist of only one member.
  • There must be no similarity in the name between existing companies and trademarks.
  • Individuals may NOT incorporate more than one One Person Company (OPC) or serve as the nominated from more than one One Person Company (OPC).
  • A minimum of one Director is required.
  • Note: The Director and the shareholder are the same in an One Person Company (OPC).
  • The name of the company must consist One Person Company (OPC) Private Limited.
  • Indicating the other person’s name as the nominee is a prerequisite. A candidate joins the One Person Company (OPC) in the same way that the subscriber would do in the case of their death.

 

What are the Benefits of One Person Company (OPC)?

  • Legal Standing: The member grants the One Person Company (OPC) registration a separate legal entity status. Its distinct legal status protects the sole person who incorporated the One Person Company (OPC). The member is not personally responsible for the Company’s drop; their liability is limited to the value of their shares. Therefore, the creditors may sue the One Person Company (OPC), not the member or Director.
  • Easy Access to Funding: One-person company registration in India can quickly raise money through venture capital, angel investors, incubators, etc. because it is a private company. Getting cash is now simple.
  • Less Conformity: One Person Company (OPC) registration is exempted from compliance requirements under the Companies Act of 2013. The One Person Company (OPC) is optional to prepare the cash flow statement. The certification of Annual Return of the company from Company Secretary is not required. 
  • Easy Integration: One Person Company (OPC) in India can be easily integrated without legal hassles. A member also serving as a director should provide the approval for integration. There is no minimum paid-up capital requirement.
  • Easy to Manage: Administration of the One Person Company (OPC) can be made simple by allowing a single person to find and lead it. Making decisions is straightforward, and it happens quickly. The member can easily pass ordinary and extraordinary resolutions by writing them down in the minute’s book and getting just one member to sign them. Because there won’t be any internal disputes or delays, managing the Company will be easy.
  • Constant Repetition: The One Person Company (OPC) functions as perpetual succession, even with only one member. A nominee must be chosen by a single member when incorporating the One Person Company (OPC). The candidate will take over the operation of the Company if a member passes away.

 

What are the Requirements for One Person Company (OPC) Registration?

  • The minimum and maximum membership is one.
  • Before Incorporation, a candidate should be appointed.
  • Form INC-3 should be used to get the nominee’s consent.
  • According to the Companies (Incorporation Rules) 2014 requirements, the OPC’s name must be chosen.
  • The planned Director’s DSC.
  • Latest Utility Bill as evidence of the OPC’s registered office.

 

What are the Documents Required for One Person Company (OPC) Registration?

  • The Memorandum of a company (MoA) is the object that the Company must follow, or that establishes the business for which the Company will be incorporated.
  • The Articles of Association (AoA) establish the bylaws under which the Company will operate.
  • Since there is only one Director and one member, a nominee must be nominated on behalf of that person because if he becomes disabled or dies and cannot perform his duties, the nominee will act on behalf of the Director and take his place. His assent in the form INC-3 will be taken along with his PAN and Aadhar cards.
  • Latest Utility Bill as Proof of the proposed Company’s registered office, proof of ownership, and a NOC from the owner.

 

What is the Process of Registration of One Person Company (OPC)?

The applicant must follow the One Person Company (OPC) Registration steps enlisted below to register a one-person firm:

  • Step-1: To Get DSC: The applicant must obtain a Digital Signature Certificate (DSC) from the Certification Authority to register.
  • Step-2: To Get DIN: The Director Identification Number (DIN) is being used. The DIN and the Director’s information are applied in the SPICe Form.
  • Step-3: Approval of Name: XYZ (OPC) Private Limited will be the Company’s formal name. One name for the One Person Company (OPC) may be requested for using SPICe, and RUN service will be utilized to confirm the availability of names (INC 32).
  • The name of the company must be applied in form SPICe Part A. 
  • Step-4: Incorporation of One Person Company: Form SPICe must be filed for the Incorporation of One Person Company (OPC) within twenty days of the day of name approval. All necessary paperwork must be included with the SPICe form and uploaded to the MCA portal. 
  • Step-5: Obtaining A Certificate of Incorporation: If the supporting information and documentation are appropriate, the Registrar of Companies will give a Certificate of Incorporation (COI). The PAN and TAN will be generated automatically at the time of registration.

 

What is the One Person Company (OPC) Registration Incorporate?

Incorporation through SPICe (Without filling SPICe Part A):

Stakeholders can assist with five various services (Name Reservation, Incorporation of New Company, Allotment of TAN, Allotment of Director Identification Number (DIN), and Allotment of PAN) in one arrangement by adopting for Incorporation of an advanced company by SPICe form (INC-32), Simplified Proforma for Incorporating Company electronically (SPICe), with eAOA (INC-34), eMoA (INC-33). There is no need to reserve a name separately before filing SPICe. One word for the proposed Company can be applied through SPICe (INC-32).

Incorporation through SPICe (With SPICe Part A):

  • Name reservation: Form SPICe Part A shall be filed with Two Unique names for name availability.
  • Incorporate OPC: After getting name approval, SPICe Forms shall be filed for Incorporation of the One Person Company (OPC) within 20 days from SPICe Part A’s approval date.

 

What is the Compliance of a One Person Company (OPC)?

Specific requirements are outlined in the Companies Act of 2013 and must be satisfied by the deadlines specified. These requirements ensure transparency and good governance while securing the interests of all parties concerned, including the ROC, shareholders, directors, investors, and tax authorities. These compliances are yearly, recurrent, one-time post-incorporation, and event-based. The first type of past compliance has been widely discussed.

One Time Compliance

A One Person Company (OPC) must immediately comply with specific legal requirements outlined by the Companies Act of 2013 and, if necessary, secure local registrations following the state laws of the location where the One Person Company (OPC) is conducting business. The complete list of compliances and their deadlines are shown below. For in-depth discussions, contact one of our startup advisors.

 

Compliance Requirement

Due Date

Appointment of First Auditor

Within 30 Days of Incorporation

Issue of Share Certificate

Within 60 Days of Incorporation

Stamp Duty Payment on Share Certificate

Within 30 Days of the Certificate Issue

Filing of INC-20A (Declaration for Business Commencement)

o   Registered Address maintenance

o   Registered office details filing

o   Current Bank Account opening

o   Entire Subscribed Capital received

Within 180 Days of Incorporation, but before commencing business

Note: The due date for Compliance Requirement 4 is a bit more complex, so we have broken it down into its parts to provide clarity.

 

What is One Person Company Registration (OPC) Assist?

End-to-End Assistance

Expert Legal Guidance

Best in Class Client Support

We provide thorough assistance and comprehensive service for getting your OPC Registration.

ApkaTax offers comprehensive support for the OPC Registration application process, including legal assistance based on the specific priorities of our clients.

Our dedicated support team ensures that our clients stay informed about the latest guidelines and updates regarding OPC registration requirements and periodic inspections.

 

What is the One Person Company (OPC) Registration Fees?

Are you looking for One Person Company (OPC) Registration Fees then here the details for you. The One Person Company (OPC) Registration cost start from ₹3000 to ₹10000 along with Government Fee ₹2000 and Professional Fee ₹1000.

Steps Fees
One Person Company Registration Fee ₹3000 To ₹10000
Government Fee ₹2000
Professional Fee ₹1000

 

FAQs

 

It is a type of corporation with fewer compliance obligations than a private corporation. Therefore, a one-person company is a business with the characteristics of a corporation and the advantages of a sole proprietorship and can be incorporated by a single person, who may be a resident or an NRI.

The main advantage of starting a one-person company (OPC) is that the owner is exclusively in charge of all operations. The firm's affairs are subject to less liability and get advantages comparable to those of a private limited company. For a one-person business, the owner is the only most powerful authority.

One Person Company (OPC) is the perfect Private Limited Company and Limited Liability Partnership (LLP) hybrid. It offers the limited liability benefits of a Pvt Ltd as well as the flexibility of an LLP.

While submitting the document online, the DSC electronically confirms the sender's or signee's identity. Per the MCA, some of the application documents must be signed by the Directors using their digital signatures.

All current and potential Company directors got the Unique Identification Number. Director Identification Numbers are required for all prospective directors. There is just one DIN allowed per individual, and it never expires.

An OPCA statutory audit is required. A firm must choose a CA to serve as its auditor. The auditor must examine the financial records and publish a Statutory Audit report.

Regardless of annual sales, a Person or Company must register for GST if they provide goods or services in another state.

An One Person Company (OPC) can lift funds through venture capital and financial organizations. An One Person Company (OPC) can also raise funds by changing into a Private Limited Company.

An One Person Company (OPC) is forbidden from making individual investments in securities made by other businesses. However, doing so is not banned for an One Person Company (OPC) member. Unlike public companies, An One Person Company (OPC) prohibits issuing or allocating shares to anyone other than its member.

As per the Companies Act of 2013, you can establish five types of OPC. They are: • OPC Limited by Shares • OPC Limited by Guarantee with Share Capital • OPC Limited by Guarantee without Share Capital • Unlimited OPC with Share Capital • Unlimited OPC without Share Capital

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