One Person Company Registration Online in India
The concept of One Person Company (OPC) was introduced in India under the Companies Act, 2013, to encourage entrepreneurship by providing a simplified structure for single entrepreneurs to operate their business. It offers the benefits of a private limited company with fewer compliance requirements, making it a popular choice for sole proprietors looking to expand their business while maintaining complete control.
This article provides an in-depth guide to OPC registration in India, its benefits, and the step-by-step process.
What is a One Person Company (OPC)?
A One Person Company (OPC) is a type of company that can be incorporated with a single person as the sole shareholder and director. It blends the advantages of a sole proprietorship with the limited liability feature of a company, making it ideal for individuals who want to operate a business without the complexity of partnerships or multiple shareholders.
In an OPC, the liability of the owner is limited to the extent of their investment in the company. This structure helps the owner safeguard their personal assets while managing their business with minimal compliance requirements compared to a traditional private limited company.
Key Benefits of OPC Registration
Limited Liability: The primary benefit of an OPC is limited liability. The personal assets of the owner are protected in case of any business debts or losses. The owner’s liability is limited to the capital invested in the company.
Separate Legal Entity: An OPC enjoys the status of a separate legal entity from its owner. This allows the company to own property, incur debts, and enter into contracts independently of the owner.
Ease of Compliance: Compared to private limited companies, OPCs have fewer regulatory and compliance requirements. There is no need for annual general meetings, and other corporate formalities are simplified.
Tax Benefits: OPCs can avail of the same tax benefits as other registered companies, including deductions and exemptions under various sections of the Income Tax Act.
Complete Control: Since an OPC has only one shareholder and director, the sole owner has full control over business decisions, without the need for consensus or approvals from other shareholders.
Perpetual Succession: Unlike sole proprietorships, which dissolve upon the death of the owner, an OPC can continue its existence. The owner must nominate a person who will take over in the event of death or incapacity.
Eligibility Criteria for OPC Registration
To register an OPC, the following eligibility criteria must be met:
One Shareholder: Only one person can be the shareholder of the OPC, and they must be an Indian citizen and resident.
One Director: The shareholder can also be the sole director, or they can appoint another person as a director.
Nominee: A nominee must be appointed at the time of registration. The nominee will take over the company in the event of the sole owner’s death or incapacity.
Capital Requirements: There is no minimum paid-up capital required for OPC registration, but the company’s authorized capital cannot exceed ₹50 lakhs, and its annual turnover should not exceed ₹2 crores.
Step-by-Step Process for OPC Registration
Obtain Digital Signature Certificate (DSC): The first step is to obtain a Digital Signature Certificate for the sole shareholder and director.
Apply for Director Identification Number (DIN): The director must apply for a DIN, which can be done along with the incorporation application through Form SPICe+.
Name Approval: Apply for name approval for the OPC through the RUN (Reserve Unique Name) service. The name should be unique and comply with the naming guidelines.
Drafting of Documents: Prepare the necessary documents such as the Memorandum of Association (MOA), Articles of Association (AOA), and nominee consent form.
Filing Incorporation Form (SPICe+): Submit the incorporation form along with the required documents, including the shareholder’s ID proof, address proof, and the nominee’s details.
Certificate of Incorporation: After verification by the Registrar of Companies (ROC), the Certificate of Incorporation is issued, and the OPC is officially registered.For more information visit https://www.registerkaro.in/