{"id":16001,"date":"2020-09-08T12:47:24","date_gmt":"2020-09-08T07:17:24","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=16001"},"modified":"2021-04-28T16:32:09","modified_gmt":"2021-04-28T11:02:09","slug":"step-by-step-process-of-one-person-company-registration-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/step-by-step-process-of-one-person-company-registration-india\/","title":{"rendered":"Step By Step Process of One Person Company Registration"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The process of One Person Company&nbsp;registration&nbsp;is a forward-thinking concept which promotes the Incorporation of micro-businesses with persons having entrepreneurial dreams but has limited time, resources or means to execute the business plan. It is the combinaftion of <a href=\"https:\/\/corpbiz.io\/sole-proprietorship-registration\"><strong>Sole proprietorship<\/strong><\/a> and standard company, where the OPC &nbsp;would enjoy the best of two worlds. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/step-by-step-process-of-one-person-company-registration-india\/#What_Is_One_Person_Company\" >What Is One Person Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/step-by-step-process-of-one-person-company-registration-india\/#What_are_the_Advantages_of_a_One_Person_Company_Registration\" >What are the Advantages of a One Person Company Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/step-by-step-process-of-one-person-company-registration-india\/#Single_Owner\" >Single Owner<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/step-by-step-process-of-one-person-company-registration-india\/#Credit_rating\" >Credit rating<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/step-by-step-process-of-one-person-company-registration-india\/#Benefits_under_Income_Tax\" >Benefits under Income Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/step-by-step-process-of-one-person-company-registration-india\/#What_is_the_Eligibility_Criterion\" >What is the Eligibility Criterion?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/step-by-step-process-of-one-person-company-registration-india\/#Documents_Required_for_the_Process_of_One_Person_Company_Registration\" >Documents Required for the Process of One Person Company Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/step-by-step-process-of-one-person-company-registration-india\/#Process_of_One_Person_Company_Registration\" >Process of One Person Company\nRegistration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/step-by-step-process-of-one-person-company-registration-india\/#What_are_the_Post_Compliances_for_One_Person_Company_registration\" >What are the Post Compliances for One Person Company\nregistration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/step-by-step-process-of-one-person-company-registration-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_One_Person_Company\"><\/span>What Is One Person Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Under Section 2(62) of Companies Act,<\/em><\/strong> One Person Company is defined as a company\noperated by an individual who is both a shareholder as well as a director at\nthe same time.<\/p>\n\n\n\n<p>The One Person Company is appropriate for a\nsmall business which has an average turnover of INR 2 Crores. The maximum\namount of capital is limited to INR 50 Lac. An OPC can have more than one\ndirector and must be an Indian Resident. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Who is allowed to go for One Person Company Registration?<\/h3>\n\n\n\n<p>Only Indian residents are allowed to <a href=\"https:\/\/corpbiz.io\/one-person-company\"><strong>One Person Company registration<\/strong><\/a>. Besides, only one entity is allowed to be set up by the Ministry of Corporate Affairs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Advantages_of_a_One_Person_Company_Registration\"><\/span>What are the Advantages of a One Person Company Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"400\" height=\"472\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/09\/image-32.png\" alt=\"One Person Company Registration\" class=\"wp-image-16003\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/09\/image-32.png 400w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/09\/image-32-254x300.png 254w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Limited\nliability<\/h3>\n\n\n\n<p>The\ndirector&#8217;s personal property is always safe, no matter concerning the debts of\nthe business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Continous\nexistence<\/h3>\n\n\n\n<p>OPC\nhas a separate legal identity. In case of death of the owner, the Company would\npass on to the nominee director.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Greater\ncredibility<\/h3>\n\n\n\n<p>OPC is more trusted among vendors and lending institutions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Easy\nfunding<\/h3>\n\n\n\n<p>It\nis easy for OPC to raise funds using venture capital.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Single_Owner\"><\/span>Single Owner<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Only the owner helps in quick decision-making, controlling and managing the business without any long processes and methodologies as approved in other companies. The insight of belonging inspires to grow the business further.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/online-one-person-company-registration-in-india\/\">A Complete Guide on One Person Company Registration in India<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Credit_rating\"><\/span>Credit rating<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nOne Person Company with bad credit evaluation may not even get the loan. The\ncredit rating of OPC will not be material if the OPC rating is based on the\ncompanies&#8217; norms.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_under_Income_Tax\"><\/span>Benefits under Income Tax<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Any\ncompensation paid to the director will be allowed as deduction as per income\ntax, unlike proprietorship.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Eligibility_Criterion\"><\/span>What is the Eligibility Criterion?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The eligibility criteria are as follows:-<\/em><\/strong><\/p>\n\n\n\n<ul><li>Citizen\nof India;<\/li><li>Can\nincorporate one-person Company;<\/li><li>Can\nbe a nominee for the member of the Company<\/li><li>Should\nbe staying in India for at least 182 days from the previous year.<\/li><li>If\nthe turnover exceeds Rs 2 crores, OPC has to be turned into a Private Limited\nCompany within six months<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_Required_for_the_Process_of_One_Person_Company_Registration\"><\/span>Documents Required for the Process of One Person Company Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Documents required for One Person Company are as follows:-<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Documents To Be Given By The Director<\/h3>\n\n\n\n<ul><li>Scanned\ncopy of PAN;<\/li><li>Scanned\ncopy of Voter ID or Driver&#8217;s License;<\/li><li>Scanned\ncopy of Current Bank Account Statement or Mobile Invoice or Electricity bill;<\/li><li>Scanned\npassport-sized photo.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Documents Necessary For The Registered Office<\/h3>\n\n\n\n<ul><li>Proof\nof registered address;<\/li><li>Copy\nof&nbsp; rent agreement;<\/li><li>No objection\ncertificate from the landowner of concerned property;<\/li><li>Copy\nof sale deed<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Process_of_One_Person_Company_Registration\"><\/span>Process of One Person Company\nRegistration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The process of One Person Company are given below:-<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Apply for DSC<\/h3>\n\n\n\n<p>Digital\nSignature Certificate is used for signing documents on any online platform it\nhas the same value as any physical sign. The director of the company are\nrequired to obtain DSC. It can be obtained from nearby organisation. The fee\nfor getting DSC depends on the organization. The First Step to obtain\nthe&nbsp;Digital Signature Certificate&nbsp;of the&nbsp; Director which requires the following:-<\/p>\n\n\n\n<ul><li>Address Proof<\/li><li>Aadhaar card<\/li><li>PAN <\/li><li>Photo<\/li><li>Email Id<\/li><li>Contact&nbsp; Number<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Required Documents<\/h3>\n\n\n\n<p><strong><em>The documents to be submitted to the Registrar of Company are-<\/em><\/strong><\/p>\n\n\n\n<ul><li>The&nbsp;Memorandum of\nAssociation&nbsp;(MoA) <\/li><li>The&nbsp;Articles of the\nAssociation&nbsp;(AoA) <\/li><li>There is only 1 Director and a\nmember so it is necessary to appoint a nominee because if the owner dies and\ncannot perform his duties, the nominee will act on behalf of the director and\ntake his place. <\/li><li>Registered Office proof along\nwith the evidence of ownership and a NOC from the owner.<\/li><li>A declaration that all\ncompliances have been followed.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Application to Obtain DIN <\/h3>\n\n\n\n<p>The\ndirector of the one person company has to acquire Directors Identification\nNumber. It can be filed along with SPICe+ form. The director has to provide the\nname and residential. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Name Approval of the Company<\/h3>\n\n\n\n<p>After\nobtaining DIN and DSC by the director, they have to decide the name of the\ncompany. The MCA should agree upon the name of the company. The approved format\nfor the name of OPC is &#8220;ABC (OPC) Private Limited.&#8221; <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Filing of Incorporation form<\/h3>\n\n\n\n<p>The\nincorporation form has to be filed along with the documents mentioned above.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Approval of forms by MCA<\/h3>\n\n\n\n<p><strong>Ministry of corporate affairs<\/strong><sup><a href=\"http:\/\/www.mca.gov.in\/\"><strong>[1]<\/strong><\/a><\/sup> will verify the forms submitted and approve the forms after verification.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Issue of&nbsp; Certificate of Incorporation<\/h3>\n\n\n\n<p>After\nthe applicant has uploaded PAN and TAN of the company, the concerned\nestablishment will verify the documents as well the information provided by the\napplicant. <\/p>\n\n\n\n<p>Once\nthe authentication is done by the authorities. The Registrar of Companies is\nsatisfied by the application forms and documents, the certificate of\nincorporation will be issued, that contain CIN number.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Post_Compliances_for_One_Person_Company_registration\"><\/span>What are the Post Compliances for One Person Company\nregistration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Every One Person Company must follow the necessary compliances:-<\/em><\/strong><\/p>\n\n\n\n<ul><li>Board meetings have to be held every six months. The time gap should not be less than 90 days;<\/li><li>Book of accounts has to be adequately maintained;<\/li><\/ul>\n\n\n\n<ul><li>Statutory audit by Charted Accountant<\/li><li><a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\"><strong>Income tax returns<\/strong><\/a> have to be file every 30th September.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A new concept of One Person Company was introduced by the Companies Act,2013. The process of One Person Company Registration offers some distinctive features which make a difference between one person company and a <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>Private Limited company<\/strong><\/a>, <a href=\"https:\/\/corpbiz.io\/llp-registration\"><strong>Limited liability partnership<\/strong><\/a>, and another similar form of business.<\/p>\n\n\n\n<p>Our&nbsp;<a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a>&nbsp;group will be at your disposal if you seek expert advice on any aspect related to One Person Company with complete compliance. We will help you guarantee full compliance concerning all the requirements based on your anticipated activities, ensuring the productive and well-timed completion of your expectation.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/need-to-know-about-one-person-company-in-india\/\">Everything you need to know about One Person Company in India<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The process of One Person Company&nbsp;registration&nbsp;is a forward-thinking concept which promotes the Incorporation of micro-businesses with persons having entrepreneurial dreams but has limited time, resources or means to execute the business plan. It is the combinaftion of Sole proprietorship and standard company, where the OPC &nbsp;would enjoy the best of two worlds. What Is One [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":16004,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[157],"tags":[977],"acf":{"service_id":"4"},"authorName":"Sakshi Srivastava","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/IMG-20180130-WA0007.jpg","authorDescription":"Sakshi has pursued B.B.A.LL.B.(IPR Hons.). She is an avid reader and is keen to gather and share her knowledge on the subjects relating to IPR, Company Law and GST. Priorly she has worked as a legal researcher and vide her articles she aims at improving the core knowledge of the subjects to the masses.","postViews":6958,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/16001"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=16001"}],"version-history":[{"count":16,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/16001\/revisions"}],"predecessor-version":[{"id":29477,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/16001\/revisions\/29477"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/16004"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=16001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=16001"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=16001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}