Overview of OPC Registration
A One Person Company is a company that has only one person as a member. OPC was introduced to encourage individuals who are capable of starting their own business. OPC enables a sole proprietor to convert his firm into a Limited Liability company and avail the benefits of a Company.
An OPC is a business structure that enjoys the benefits of both forms of business i.e. a Sole proprietorship and a company. Thus, it eliminates the hassles of finding the right kind of co-partner/s for starting a business as a registered entity.
As Per Section 2(62) of the Companies Act, 2013, One Person Company means a company that has only one person as a member. One Person Company is bringing the unstructured Proprietorship Business into the structured version of a private company. OPC is opening the path for sole proprietors and start-ups.
What are the Benefits of Registering One Person Company?
OPC is a company that can be formed with 1 Director and a Member as against a private limited company. OPC provides better opportunities with minimal compliance.
One Person can Start the Business
Under OPC, one person can start the business with very little compliance. Due to fewer compliances, a person gets more time to focus on his business and key areas.
Complete Control by the Individual
The control remains in the hand of one person only.
In case of One Person Company, the member of OPC has limited liability.
Separate Legal Entity from its Member
Being a company, OPC has a separate legal existence from its member.
Easy Compliance and Tax flexibility
An individual has to follow easy compliance and avails the benefit of tax availability too.
Benefits for Small Scale Industries
OPC avails the benefits provided to Small scale industries like easy funding, less compliance, loans at a lower interest rate, etc.
What are the Eligibility Criteria for Registering One Person Company?
- A natural person can form OPC who is a resident of India in the preceding calendar year.
- Only 1 member can form an OPC.
- The Name should be unique and should not be similar to any other existing company and trademark.
- An individual cannot incorporate more than 1 OPC or
- An individual cannot be the nominee of more than 1 OPC.
- There must be a least 1 director.
- In the case of OPC, the threshold limit of paid-up capital is Rs 50 lakh and the Average Annual turnover is Rs 2crore in the immediately preceding financial year. However, as per latest budget now there is no restriction on paid up and turnover limit.
- One Person Company must include in its name (OPC) Private Limited.
- Pre-condition to indicate the name of the other individual as a nominee. As in the event of the death of the subscriber, a nominee becomes a member of the One Person Company.
What Documents are Required for One Person Company Registration?
Below-mentioned documents are required for OPC Registration:-
For DSC Application
- Passport size photo of the applicant.
- Copy of Id and Address Proof.
- Email Id and Phone number
- Specimen Signature
Documents Required for SPICe+ form
- Identity proof
- Address proof & Identity proof and of the nominee and the subscriber. Note-For Residential proof, the applicant can provide any of the following documents:-
• Copy of Current Bank Account Statement, Phone Bill, or Electricity Bill)
• Copy of Rent agreement and No-objection Certificate from the property owner.
• If the property is owned-Copy of the sale deed.
- Memorandum of Association and Articles of Association
- Declaration by the Subscribers and Directors
- Proof of Office Address
- Copy of Electricity or Utility Bills. However, it should not be older than 2 months.
- Nominee’s Consent in Form INC-3
- Disclosure of Director’s Interest and any other document (if required).
Documents Required for AGILE-PRO-
- Proof of Principal Place of Business.
- Documents related to the appointment of Authorized Signatory for GST Registration.
- For Bank account opening, a copy of the Resolution passed by the Board of Directors along with their Id and address proof.
- For the opening of ESIC, Id Proof, Address proof, and Signature of Authorized Signatory.
- Other credentials- ITR Returns, annual filings, etc.
What is the Procedure for Registering One Person Company?
For OPC registration, an applicant shall follow the requisite steps-
Step-1- To get a DSC
For registration, it is required for the applicant to get a Digital Signature Certificate (DSC) issued by the Certifying Authority.
Step-2- Reservation of name through SPICe+ FORM (Part A)
For Name reservation, click on the ‘SPICe+’ Form placed under ‘MCA Services’ The name reservation is done through the SPICE+ form that includes all the steps right from the Name Reservation to post-incorporation compliances.
The applicant has to enter the name he/she wants to reserve, for the incorporation of an OPC. After that, submit the ‘Part A’ for reservation of name and incorporate formalities.
Step 3-Downloading SPICE+ Part B for Incorporation purpose
The very next step is to download the Part B in PDF format for filling the related forms, which are as follows:-
• INC-9 and URC-1) and for affixing the “DSC,”
SPICe+ Part B includes the services like: -
• DIN allotment
• Issue of PAN and TAN
• Issue of EPFO registration and ESIC registration.
• Issue of Profession Tax registration (Maharashtra)
• Particulars of Opening the Bank Account for the Company,
• Allotment of GSTIN.
Step 4- Uploading Part B on the MCA Portal
After filing all the requisite details along with the documents, the next step is to submit SPICE+B on the MCA portal. Once SPICe+ Part B is submitted, other forms (AGILE-PRO, SPICe+ AOA, and SPICe+ MOA) will also become available.
Also, INC-9 will be auto-generated based on the information filled in SPICe+ Part B. After successful submission of these forms, these can be downloaded, and DSC can be affixed in the respective form. Lastly, the above forms can be uploaded in the below-mentioned sequence- SPICe+ Part B , SPICe+ MOA, SPICe+ AOA, AGILE-PRO, INC-9.
Step 6-Pre-Scrutiny Check
After uploading the form, the next step is to go for a ‘Pre-scrutiny’ check. After pre-scrutiny, the applicant must click on the Confirmation button for the successful submission of the Application form.
Step 7-Payment of the Requisite Fees
After a successful pre-scrutiny check, a Service Request Number will be generated for making a payment of a requisite fee for “OPC incorporation.”
Step-8-Obtaining COI from the Registrar
The registrar will issue a Certificate of Incorporation if the registrar finds the information along with the documents is appropriate.
What are the Restrictions on One person Company?
- No minor shall become a member or nominee of the One Person Company.
- No minor can hold a share with beneficial interest.
- OPC cannot perform voluntary conversion before the completion of 2 years from the date of incorporation of OPC.
- It cannot be incorporated or converted into a company under section 8 of the Act.
- It cannot perform Non-Banking Financial Investment activities.
CorpBiz Procedure for OPC Registration
Kindly utilize the steps given above to integrate legally and securely an OPC Registration and get the benefits in the form of better-quality sales and satisfied clients. Our CorpBiz experts will be at your disposal for assisting you with guidance concerning OPC Registration and its compliance for the smooth functioning of your business in India. CorpBiz professionals will assist you in planning seamlessly at the least cost, confirming the successful conclusion of the process.
It is advisable that an attorney with “Company Incorporation experience” must be appointed to overwhelm many of the potential pitfalls that creep around within OPC Registration and to understand the requirement in detail. The elementary information would be mandatory from your end to start the process. The Attorney will begin working on your request once all the information is provided, and the payment is received.
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Our clients can also track at all times the progress on our platform. If you have any questions about the OPC Registration process, our experienced representatives are just a phone call away. CorpBiz will ensure that your communication with professionals is charming and seamless.
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- Add Queries Regarding OPC Registration
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Frequently Asked Questions
As per the MCA (Ministry of Corporate Affairs) guidelines, only citizens of India can register for OPCs.
OPC businesses have to maintain the books of accounts complying with statutory audit requirements and details of Income tax returns and annual filings with the ROC (Registrar of Companies).
It usually takes 7-15 business days for the OPC Registration in India.
The validity is lifetime until the Company survives.
The greatest advantage of OPC is that the person and the entity are separate and it only needs one member to form the entity. However there are a lot of benefits associated with OPC, thereby please refer the above text to understand the whole concept in detail.
No. Only a person who is the resident of India/ Indian citizen is allowed to register an OPC, it’s only allowed for an Indian Resident
No, FDI is not allowed into an OPC in India.
When the paid up capital of your OPC exceeds Rs. 50 lakhs at any point in time or in case the turnover of your company is more than Rs. 2 crore for three consecutive financial years you need to mandatorily convert your OPC into a Pvt. Ltd. Company.
No, one person is allowed to be a member of only one OPC.
In the case of OPC, previously the threshold limit of paid-up capital is Rs 50 lakh and the Average Annual turnover is Rs 2crore in the immediately preceding financial year. However, as per latest budget now there is no restriction on paid up and turnover limit.