One Person Company (OPC) Registration
1.Complete the company registration process with expert support
2.Our packages include DIN, PAN, DSC, MOA, AOA and SPICE+ compliance
3.Start your company as a registered user for just €999 + government fees
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One Person Company
According to the Companies Act, 2013, a One Person Company (OPC) is a separate entity in which an individual can set up a company. It provides a concept of business responsibility and fulfillment that allows an individual to own and conduct business in his own name. The Companies Act, 2013 promotes the establishment of One Person Companies (OPC) in India. It regulates the registration and functioning of private companies in India. In private companies, unlike public companies, there must be at least two directors and two members, but on the contrary, a person who registers the company does not seek to register an entity. Legal records. Registration of a sole trader in India requires a director and a member representing the entire company. Such companies have less regulatory compliance than private companies.
Advantages Of OPC Company in India
Legal Standing
Membership is considered an OPC status as an independent legal entity. The person who creates the OPC is protected by its own special law. A shareholder is not personally liable for the company’s losses; on the contrary, his liability is limited to the value of his property. Thus, creditors can sue the OPC rather than the members or directors.
Easy Access to Funding
A sole proprietorship in India can easily raise money from venture capital, angel investors, incubators and other sources as it is a private company. Make money easily now.
Less Conformity
Under the Companies Act 2013, a registered individual company is exempt from compliance. The company secretary is not required to file annual reports and maintain accounting records.
Easy Integration
A sole trader in India can easily incorporate without any legal requirements. The members who are also the directors have to agree to the incorporation. There is no minimum investment requirement.
Easy to Manage
The management of OPCs is made easy by allowing one person to find and manage OPCs. The decision is simple and fast. Members can easily make joint and private decisions by writing them in a notebook and having other members sign them. The company will be easy to manage because there will be no conflicts or delays.
Constant Repetition
The OPC can be permanent even if there is only one member. When the OPC is established, the candidate must be nominated by one of the members. In the event of the death of a member, the candidate will be entitled to manage the company.
Checklist for One Person Company Registration
- Maximum and minimum membership requirements must be met
- Candidate must be selected before incorporation
- Request for approval of nomination use INC-3
- Companies (Companies Incorporation Rules) 2014 OPC selected to provide its name
- br> Minimum authorized capital for authorised director is Rs.1 Lakh. DSC
- OPC Registered Office Proof.
Compliances for a One Person Company
The 2013 Companies Law specifies specific actions and must be carried out within a certain time frame. These regulations ensure transparency, good governance, and protect the interests of all stakeholders, including the PRC, shareholders, directors, investors, and tax authorities. These compliances can be divided into annual compliance, recurring compliance, one-time compliance after establishment, and event compliance. The first compliance category is fully implemented here.
One Time Compliance
Sole proprietorships must comply with specific requirements under the Companies Act 2013 and, if required, be locally registered under the laws of the state in which the OPC does business. The list of compliance and deadlines are shown below. Please contact our Business Consultants for a detailed discussion.
Steps for Registration of OPC
Step 1: Check eligibility and documents
Step 2: Apply for DSC and DIN for each director
Step 3: Submit Company Registration Form Spice+ Apply
Step 4: Apply for PAN and TAN for your New Business
br> Step 5: Generate RoC, PAN and TAN Certificate of Incorporation
Step 6: Open bank accounts with the bank and start your business. The delay is just 20 days. All you have to do is contact Vakilsearch and complete the process instantly.
Restrictions on One Person Company
Despite having major advantages, one person company registration also comes with a certain set of restrictions.
Not Apt for Scalability
Registering your business as OPC is great for small businesses. However, if you plan to expand it to a higher level, it will not work. If you plan to add members and have more members, you cannot register your business as OPC. Therefore, registering as OPC is not an easy way to earn extra money. This will hinder business expansion and growth.
Higher Restrictions on Business Activities
According to regulations, OPC is not allowed to engage in non-banking activities. Registering yourself as an OPC does not give you the freedom to invest in securities of other companies.
No Clear Distinction Between Ownership and Management
Since the one-person company has a single person to act as both the director of the company and the management there is no clear distinction between both roles. A single person is permitted to take and approve all the decisions. So, there are higher chances of unethical practices.
FAQ's on One Person Company (OPC) Registration
A one person company (OPC) is a type of business entity that allows a single individual to operate and manage the company. It was introduced in India to provide a platform for entrepreneurs who want to start a company with the benefits of limited liability.
- It enjoys the benefits of limited liability, meaning the personal assets of the owner are separate from the company's liabilities.
- OPC does not require appointing a minimum number of directors like other companies.
- It has perpetual succession, meaning the existence of the company is not affected by the death or incapacitation of the owner.
- OPC is not allowed to raise funds from the public through share issuance.
- One Person Company (OPC): It has only one shareholder, limited liability, and no requirement for appointing a minimum number of directors.
- Limited Liability Partnership (LLP): It has two or more partners, each with limited liability for their own actions and the actions of those they supervise.
- Private Limited Company (Pvt Ltd): It requires a minimum of two shareholders and two directors, offering limited liability and the ability to raise funds through share issuance.
To register an OPC company in India, follow these steps:
- Obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the proposed director.
- Choose a suitable name for the company, adhering to the naming guidelines.
- Prepare the necessary documents, including MOA, AOA, and address proofs.
- File the application for OPC registration with the Registrar of Companies (ROC).
- Pay the required registration fees and stamp duty.
- Once approved, the ROC will issue a Certificate of Incorporation, and the company will be officially registered.
The documents required for OPC company registration include:
- Identity and address proofs of the owner/director(s).
- Address proof of the company's registered office.
- Memorandum of Association (MOA) and Articles of Association (AOA) of the company.
- Consent to act as a director from the owner/director(s).
- NOC (No Objection Certificate) from the property owner of the registered office.
The OPC registration fees may vary and depend on factors like authorized capital, professional fees, and government charges. It is recommended to check with a Vakilsearch expert.
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