One Person Company registration is simple, online, and quick. DIN, DSC, Name Approval, MOA, AOA, and Company Registration Certificate are included in all of our packages with PAN and TAN numbers. Begin your business today!
To register a One Person Company in India, first grasp what it means. A One Person Company, often known as an OPC, is a type of Private Limited Company established under the Companies Act of 2013. It is owned by a single shareholder who is entitled to a 100% profit share. His liability, however, is limited to the unpaid amount of his subscribed stock capital in the company. Because all decisions are approved by a single shareholder, decision-making processes are simple. So, if you do not wish to share ownership, a One Person Company may be the ideal option for you!
OPC Registration Process in India can be completed in a series of steps. A form must be filed with necessary OPC documents required for registration. The ROC will examine the filed application and if successfully verified, will issue a Certificate of Incorporation in the OPC’s name. The Certificate of Incorporation becomes a conclusive proof for OPC registration in India.
A Digital Signature Certificate (DSC) is required to begin the registration procedure. This certificate is required for filing the required paperwork online. DSCs can be obtained from authorized agencies.
The next stage in the OPC Registration process is to choose a valid name for the OPC in accordance with MCA requirements. After you’ve decided on a name, you must have it approved and reserved by the ROC. An application in the PART A of the SPICE Plus form can be submitted to the ROC for this purpose. Once a name is reserved, it is valid for 20 days, during which time the OPC must be incorporated.
The MOA is the one-person company’s constitution, while the AOA is its set of internal rules and regulations. These are important OPC documents that must be presented as part of the one-person company registration process. As a result, be certain that these are written in the proper legal format ahead of time. They must be signed by all shareholders and stamped by a public notary after the necessary stamp duty has been paid.
Once you have completed all of the documentation and drafts, you can finally file the SPICe+ application for OPC incorporation online. The form must be accompanied by the appropriate papers and drafts, which must be uploaded in digital format. Finally, using his class 3 Digital Signature Certificate, the authorized director can sign the form. A practicing professional, such as a CA, CS, CMA, or Advocate of the High Court, further certifies the form.
Following submission, the SPICE Plus application is routed to the Registrar of Companies’ office. The ROC verifies the accuracy and authenticity of the facts and documents supplied. If ROC is happy with the materials, the application is approved and the OPC Company Registration process begins. It registers the OPC and issues a Certificate of Incorporation in its name, as well as the company’s PAN and TAN.
If you are going for single person company registration, a One Person Company should be your clear choice! Wondering Why? Go through the table below explaining all OPC benefits in detail and you will get your answer. From Sole Ownership Control to Limited Liability, OPC benefits are huge and numerous. They not only extend to its owner, but all other stakeholders like directors, creditors, and customers.
Features | Private Limited Company | OPC | LLP | Partnership | Sole Proprietorship |
|---|---|---|---|---|---|
Applicable Law | Company Act 2013 | Company Act 2013 | LLP Act 2009 | Partnership Act 1932 | No Law |
Number of members | 2 - 200 | 1 | 2 - Unlimited | 2 - 20 | 1 |
Number of Directors /DP | 2 - 15 | 1-15 | 2 - Unlimited | 1-20 | 1 |
Formation | Through ROC | Through ROC | Through ROC | Through Agreement | Easy |
Tax Benefits | The income tax rate for companies vary from 15 % to 22% | The income tax rate for companies vary from 15 % to 22% | LLP Income Tax Rate is 30% on its profits | Partnership firms are taxed at 30% on its profits | For a small business with low turnover, there is the benefit of individual tax slabs. |
Statutory Compliance | High | High | Low | Low | Minimum |
Foreign Investment (FDI) | FDI in case of a Private Limited Company is available under the automatic route. | FDI is not allowed in One Person Company | FDI in LLP Is permitted at par with the companies | FDI not Allowed | FDI not Allowed |
Separate Legal Entity | A Company is a separate legal entity separate from its promoters | An OPC is a separate legal entity separate from its promoters | An LLP is a separate legal entity separate from its promoters | A Partnership is a legal entity but not different from partners | The proprietor and the proprietorship business is the same thing |
Limited Liability | Liability Limited - Shareholders of a Company are bound to pay only up to the capital they have subscribed to the company. | Liability Limited - In OPC, unlike a proprietorship, the shareholder cannot be asked to pay beyond his subscribed capital | Liability Limited - The partners of an LLP can be called upon to pay only up to the amount of capital they subscribed to. | Liability Not Limited - There is no protection of limited liability, even the personal properties of partners are at risk for losses of business | Liability Not Limited - The proprietor is the whole sole of the business, and his liability to the debts or losses of proprietorship is unlimited. |
Ownership Transferability | The shareholding of a Pvt Ltd Company is easily transferable | OPC Shares can be transferred to new shareholder along with the nominee | In LLP contribution/share of a partner can be transferred with the consent of all other partners. | Not Possible, every admission or removal of a partner amounts to the new firm. | Not Applicable |
Perpetual Existence | A Company exists beyond the life of its owners /shareholders. After the death, the shares transmits to legal heirs | OPC Continues to exist even after the death of its only shareholder, as it passes to the nominee. | The LLP also have perpetual existence and exists beyond the life of the designated partner | No perpetual existence, with the death of a partner, the partnership ends. | No perpetual existence, with the death of the proprietor, it ends. |
OPC company registration can be done only by Indian residents, and that too only one at a time, as per the specifications of the Ministry of Corporate Affairs.
All such businesses must maintain books of accounts, comply with statutory audit requirements and submit income tax returns and annual filings with the RoC.
There is no difference in capital requirement between an OPC and a private limited company. It needs an authorised capital of ₹1 lakh to begin with, but none of this actually needs to be paid-up. This means that you don’t really need to invest any money into the business.
An OPC has certain limitations. The person starting the business is its only director and shareholder. There is also a nominee director, but this person has no power whatsoever for raising equity funds or offering employee stock options. The nominee exists only to take over in case of the death or incapacitation of the director. The nominee is chosen by the director, and can be anyone, such as your spouse, parents or siblings. The nominee will need to provide identity proof during registration.
For incorporation of a One Person Company under the companies act, 2013, anyone from below list of the document is acceptable as Identity Proof of the director or shareholder or the proposed One Person Company.
For OPC Incorporation, any one document from below list of address proof of the director or shareholder is acceptable. The document in support of address proof should not be older than two months.
Since only one person is the shareholder of the OPC hence, hence at the time of incorporation of a one-person company, any other person is nominated as the nominee with their Consent.
A One Person Company is incorporated with a physical address to be declared as the registered office of the newly registered OPC. Following are the list of the documents which is acceptable as proof of premises where the registered office of the company is situated. The premises proof should not be older than two months.
Before a One Person Company occupies any premises as its registered address, a no objection certificate must be obtained from the owner of the premises. Similarly, at the time of filing for company registration, we need a NOC from the current owner of the premises along with proof of ownership as explained above.
