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One Person Company (OPC) Registration in India: Online Process and Benefits

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What is One Person Company ?

A One Person Company (OPC) is a type of company that allows a single individual to incorporate and operate a business with a corporate structure. Introduced under the Companies Act, 2013, this concept was designed to support solo entrepreneurs and small business owners who want the advantages of a private limited company—without needing a partner or co-founder.

Before OPCs, solo business owners could only start as sole proprietors, which offered no distinction between the individual and the business. OPCs solved this by offering limited liability, legal separation, and structured governance, similar to multi-member companies.

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Key Features of a One Person Company:

    1. Regarding the sole shareholder, it is understood that only one individual may hold this position.
    2. Concerning the director, a minimum of one director is required, with a maximum limit of fifteen directors permitted.
    3. It is necessary to appoint a nominee during incorporation to assume responsibilities in the event of the sole member’s death or incapacitation.
    4. There is no specified minimum paid-up capital requirement.
    5. Annual compliance necessitates the filing of annual returns, specifically AOC-4 and MGT-7A, although the compliance process is less complex compared to private or public companies.

Benefits of a One Person Company (OPC)

  1. Limited Liability: The owner’s personal assets are safeguarded.

  2. Separate Legal Entity: This allows for contracts, assets, and liabilities to be managed in the company’s name.

  3. Single Owner Control: The owner has complete decision-making authority, avoiding conflicts with a board.

  4. Reduced Compliance Burden: Compared to private or public companies, such as the absence of an Annual General Meeting.

  5. Ease of Management and Operation: The structure is straightforward for sole entrepreneurs or professionals.

  6. Enhanced Credibility: It aids in branding and fundraising compared to proprietorships.

  7. Perpetual Succession: A designated nominee ensures the company’s continuity in the event of death or incapacity.

Documents required for One Person Company (OPC) registration in India:

1.Registering a company for the first time

  • Passport-size photograph of Director & Nominee.
  • Name Approval Letter with 2 proposed names
  • Object of the company
  • Address proof of the Director & Nominee. (Bank statement/Electricity bill/) (not more than 2 months)
  • PAN card and Aadhar card of Director & Nominee.
  • Identity proof of the Director & Nominee. (Driving license/ Voter ID card/passport)
  • Email id and mobile number of the Director & Nominee.
  • Registered office address proof. (Electricity bill/ Telephone bill/Gas Bill) (not more than 2 months)
  • Rent Agreement (Company name should be mentioned with complete address) (on ₹ 100 stamp paper with Notary)
  • NOC (Company name should be mentioned) (on ₹ 100 stamp paper)
  • Board resolution authorising investment in the company

 

2. Already a director of an existing company.

 

  • Passport Size Photograph of Director & Nominee 
  • Name Approval Letter with 2 proposed names
  • Object of the company
  • Address proof of the Director & Nominee. (Bank statement/Electricity bill/) (not more than 2 months)
  • PAN card and Aadhar card of Director & Nominee.
  • Identity proof of the Director & Nominee. (Driving license/ Voter ID card/passport)
  • Email ID and mobile number of the Director & Nominee.
  • Registered office address proof. (Electricity bill/ Telephone bill/Gas Bill) (not more than 2 months)
  • Rent Agreement (Company name should be mentioned with complete address) (on ₹ 100 stamp paper with Notary)
  • Digital signature certificate of the Director & Nominee.
  • DIR-2 of the Director.
  • NOC (Company name should be mentioned) (on ₹ 100 stamp paper)
  • Board resolution authorising investment in the company

 

Please note that any additional documents may be requested as needed.

The eligibility requirements for registering an One Person Company (OPC) under the Companies Act, 2013 are as follows:

  1. Citizenship: Only an individual who is both a citizen of India and a resident of India is eligible to establish an OPC.
  2. Company Limit: An individual is restricted from incorporating more than one OPC or serving as a nominee for more than one OPC concurrently.
  3. Business Limitations: An OPC is not permitted to be incorporated or converted into a company under section 8 of the Companies Act, 2013. Furthermore, it is prohibited from engaging in Non-Banking Financial Investment activities, including investments in securities of any Body Corporate.
  4. Nominee Appointment: It is mandatory to designate a nominee during the incorporation process, along with their consent.

What are the outcomes associated with a One-Person Company?

  1. Unique Name Approval
  2. Company PAN & TAN
  3. Digital Signature Certificate – 2
  4. Memorandum of Association
  5. Articles of Association
  6. Director Identification Number – 1

6 Step Process for Registering a One-Person Company in India.

Registering a One Person Company (OPC) is a simple process when done with the right guidance. The entire process can usually be complete online within 6 to 10 working days. Below is the step by step process of OPC registration online in India.

Step 1: Obtain DSC (Digital Signature Certificate) & DIN (Director Identification Number)

OPC director must have a valid DSC to sign electronic documents and a DIN for identification. These are mandatory for filing forms with the Ministry of Corporate Affairs (MCA).

Step 2: Reserve your unique company name.

An application is filed with the MCA to reserve a unique company name. The name must comply with government naming guidelines and should include the words “(OPC) Private Limited.”

Step 3: Prepare Memorandum of Association (MoA) and Articles of Association (AoA).

MoA defines the objectives and scope of your company, while AoA sets out rules for internal management. Both documents must be carefully drafted as they act as the legal foundation of your OPC.

Step 4: File Incorporation Application (Form SPICe+)

Once the name is approved, the incorporation application is filed online using Form SPICe+. This includes all details such as registered office address, nominee details, and director information. The form must be submitted within 20 days of reserving the company name.

Step 5: Get Certificate of Incorporation

After verification by the Registrar of Companies (RoC), a Certificate of Incorporation is issued. This serves as legal proof that your OPC has been successfully registered.

Step 6: Apply for PAN and TAN

Once incorporated, the company must obtain a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department. These are essential for taxation and compliance.

FAQs related to (OPC) One Person Company

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