One Person Company Registration in India – OPC: Benefits, Procedure, Lowest Price

One Person Company Registration Online in India: Best Price Guarantee

Starting a business as a sole entrepreneur can be a challenging yet rewarding endeavor. For those looking to operate a business with a single owner while enjoying the benefits of limited liability, One Person Company Registration (OPC) in India is an ideal choice. This comprehensive guide will walk you through everything you need to know about OPC registration, including its features, benefits, required documents, procedure, and compliance. We’ll also highlight how MyCAfiling can help you register your OPC at the lowest cost.

What is One Person Company Registration in India?

A One Person Company (OPC) is a unique business structure in India designed for solo entrepreneurs who want to operate a business with the benefits of a limited liability company. Under the Companies Act, 2013, an OPC allows a single individual to form a company and enjoy the advantages of a separate legal entity while limiting personal liability.

Features of One Person Company in India

1. Single Owner: Unlike other business structures, an OPC can be registered with only one individual as the sole shareholder and director.
2. Limited Liability: The owner’s liability is limited to the amount of capital invested in the OPC, protecting personal assets from business liabilities.
3. Separate Legal Entity: An OPC is a separate legal entity, meaning it can own assets, enter into contracts, and sue or be sued in its name.
4. Perpetual Succession: The existence of the OPC is not affected by changes in the owner’s status, ensuring business continuity.
5. No Minimum Capital Requirement: There is no minimum capital requirement for registering an OPC, making it accessible for small businesses and startups.
6. Flexibility in Management: The sole owner has full control over the management and decision-making processes, providing flexibility and autonomy.
7. Simple Compliance: OPCs are subject to fewer compliance requirements compared to private and public companies, reducing administrative burden.

Checklist for One Person Company Registration in India

1. Eligibility: Ensure you meet the eligibility criteria for OPC registration, including being an Indian citizen and resident.
2. Unique Name: Choose a unique name for your OPC that complies with the naming guidelines set by the Ministry of Corporate Affairs (MCA).
3. Registered Office Address: Secure a registered office address within India for the OPC.
4. Digital Signature Certificate (DSC): Obtain a DSC for the sole director to sign electronic documents.
5. Director Identification Number (DIN): Obtain a DIN for the sole director.
6. Drafting of Documents: Prepare and draft the necessary incorporation documents, including the Memorandum of Association (MOA) and Articles of Association (AOA).

Documents Required for OPC Registration in India

1. Identity Proof: PAN card and passport (for foreign nationals) of the sole director.
2. Address Proof: Aadhaar card, voter ID, passport, or driving license of the sole director.
3. Residential Proof: Recent utility bills (electricity bill, telephone bill) or bank statements.
4. Registered Office Address Proof: Rent agreement and no-objection certificate (NOC) from the property owner, along with utility bills.
5. Photographs: Passport-sized photographs of the sole director.
6. Digital Signature Certificate (DSC): DSC for the sole director.
7. Director Identification Number (DIN): DIN for the sole director.

Procedure for One Person Company Registration

The process of One Person Company Registration involves several steps:

1. Obtain Digital Signature Certificate (DSC)

The DSC is required to sign electronic documents. The sole director must obtain this certificate from a certified authority.

2. Obtain Director Identification Number (DIN)

Apply for DIN through the MCA portal. This number is necessary for the sole director of the OPC.

3. Name Reservation

Choose and propose up to two names for your OPC and apply for name reservation through the RUN (Reserve Unique Name) service on the MCA portal. Ensure the name complies with MCA guidelines and is unique.

4. Draft the Memorandum and Articles of Association

Prepare the Memorandum of Association (MOA) and Articles of Association (AOA) that outline the company’s objectives and internal rules. These documents must be submitted along with the incorporation forms.

5. File the Incorporation Forms

Complete and file Form INC-32 (SPICe) for incorporation, along with Form INC-33 (e-MOA) and Form INC-34 (e-AOA) on the MCA portal. Attach all necessary documents and pay the applicable fees.

6. Obtain a Certificate of Incorporation

Upon verification of the submitted documents, the Registrar of Companies (ROC) will issue the Certificate of Incorporation, marking the official formation of the OPC.

Restrictions on One Person Company

1. No More Than One Member: An OPC can only have one member. If the sole member becomes two, it will need to convert into a private limited company.
2. Prohibition on Investment Companies: OPCs cannot be engaged in investment activities, including trading in securities or financial instruments.
3. Not Eligible for Certain Benefits: OPCs may not be eligible for certain benefits and schemes reserved for small companies or private limited companies.
4. Restrictions on Conversion: OPCs are required to convert into a private or public company if the paid-up capital exceeds the prescribed limit.

One Person Company Compliance

OPCs must adhere to specific compliance requirements. The following table summarizes the key compliance obligations:

Why MyCAfiling?

Choosing MyCAfiling for your One Person Company Registration offers several advantages:

1. Expert Guidance: Get professional advice on the OPC registration process and compliance requirements.
2. Efficient Document Handling: Assistance with preparing and verifying all necessary documents for a smooth registration process.
3. Name Reservation: Help with choosing and reserving a unique name for your OPC.
4. Filing Assistance: Support with filling out and submitting incorporation forms and documents to the MCA portal.
5. Compliance Management: Ongoing support for meeting regulatory compliance requirements post-registration.
6. Cost-Effective Solutions: Register your OPC at the lowest cost with MyCAfiling, ensuring you get value for your money.

FAQs

1. What is a One Person Company (OPC)?

An OPC is a business structure where a single individual forms a company and enjoys limited liability protection while operating as a separate legal entity.

2. How many members are required to form an OPC?

An OPC can be formed with just one member, who must be an Indian citizen and resident.

3. What are the advantages of OPC registration?

The advantages include limited liability protection, a separate legal entity, no minimum capital requirement, and flexible management.

4. Can a foreign national be the sole member of an OPC?

No, the sole member of an OPC must be an Indian citizen and resident.

5. What is the minimum capital requirement for OPC registration?

There is no minimum capital requirement for OPC registration.

6. How long does it take to register an OPC?

The registration process typically takes 10-15 days, depending on document verification and regulatory approvals.

7. Can an OPC be converted into a private or public company?

Yes, if the OPC exceeds the paid-up capital limit or if the sole member desires, it can be converted into a private or public company.

8. What documents are required for OPC registration?

Documents include identity and address proof of the sole director, registered office address proof, photographs, DSC, and DIN.

9. Is it necessary to have a registered office for an OPC?

Yes, a registered office address within India is mandatory for OPC registration.

10. What are the annual compliance requirements for an OPC?

Annual compliance includes filing Form MGT-7 (Annual Return), Form AOC-4 (Financial Statements), income tax returns, and any applicable GST or TDS returns.

11. Can an OPC have more than one director?

No, an OPC must have only one director, although it can have more than one nominee.

12. How is an OPC different from a private limited company?

An OPC has only one member and is simpler to manage, while a private limited company requires at least two members and has more regulatory requirements.

13. What is the role of the nominee in an OPC?

The nominee is appointed to take over the OPC in case of the sole member’s death or incapacity, ensuring the company’s continuity.

14. Can an OPC engage in investment activities?

No, OPCs are not permitted to engage in investment activities, including trading in securities.

15. Why should I choose MyCAfiling for OPC registration?

MyCAfiling offers expert guidance, efficient document handling, cost-effective solutions, and ongoing compliance support for OPC registration.

In conclusion, One Person Company Registration is an excellent option for solo entrepreneurs who want to enjoy the benefits of limited liability and a separate legal entity. With MyCAfiling, you can streamline the registration process and ensure compliance while keeping costs low. Visit MyCAfiling to get started with your OPC registration today.