One Person Company (OPC) Registration

One Person Company Registration

The Companies Act of 2013 created one-person company registration as a completely new idea to protect the entrepreneurial rights of India’s entrepreneurs. This idea grants OPCs legal standing to function freely in India. OPC is primarily a company founded by a single individual who also manages its commercial operations.

OPCs provide a channel for single proprietors wanting a formal corporate structure. Before the Companies Act of 2013, single entrepreneurs could not incorporate a one-person company. Such people could only set up a sole proprietorship.

Minimum of two directors and two members are required to form a corporation. Such types of companies are not subject to the same simple compliance requirements as companies. An Indian citizen, or even an NRI, is eligible to form an OPC.

Documents Required of One Person Company (OPC) Registration

The following are the features of an LLP in India.

• PAN Card and Aadhar Card for all directors
• Voter ID Card, Driving Licence, or Passport for all directors/nominees
• Passport-size photo of all directors
• Recent bank statement or electricity/water bill for address proof
• Name and activity of OPC
• Provide proof of address, such as a recent electricity or phone bill, a rental agreement, or an ownership document.

Benefits of (OPC) Registration

In India person companies (OPCs) provide incentives to single entrepreneurs. Let's look at the advantages of OPC in depth below

• Simple Incorporation Process: - Incorporating an OPC is easy and hassle-free. It just requires one member and one nomination, and the member can also be the director.
• Separate Legal Entity: - The OPC is a fully functional legal entity. It has the right to conduct business and operations by applicable laws and regulations.
• Limited Liability:- As a separate legal body, the OPC operates independently of its members. It protects its single shareholder by limiting his liability to the shares. The single shareholder is not personally responsible for any losses incurred by the OPC while carrying out its business.
• Easy Fund Raising: - As a legal private company, OPC can raise funding for operations. OPCs look at several fundraising options such as venture capital, angel investors, and incubators.
• Ease of Management - Since an OPC is established by a single stakeholder, decision-making is simple. Ordinary and extraordinary resolutions can be passed simply by inserting them into the minute book. The entry must be signed by one member. Therefore, all business concerns can be handled without any conflicts of interest or opinions.
• Continuous Succession - Even with a single shareholder, an OPC benefits from continuous succession. At the time of incorporation, the single member picks a nominee

Eligibility Criteria for OPC Registration.

In India, one must meet specified eligibility conditions to register a Person Company (OPC). This includes the following:

• Only Indian citizens and residents are eligible to establish an OPC.
• NRIs can now register for an OPC in India.
• OPCs can only be incorporated by normal persons, not legal entities or companies.
• Individuals must be at least 18 years old to incorporate an OPC. The age requirement is a must.
• An OPC is founded by a single person and has only one shareholder and director.
• The person incorporating an OPC must suggest a nominee. The OPC nominee must be an Indian citizen and resident, but cannot be the same as the shareholder. When a shareholder dies or becomes unable to administer the company, the nominee takes over the activities.
• Not all businesses in India can register as OPCs. Nonprofit organizations, banking/financial institutions, and enterprises that invest in securities are ineligible to register as OPCs.
• One shareholder can only incorporate one OPC at a time. If a shareholder already owns an OPC, he cannot register another one.

Procedure for One Person Company (OPC) Registration

ECS India simplifies the one-person company registration process, guiding you through document submission, DIN application, name approval, and incorporation, ensuring your business is legally established with minimal hassle.

• Digital Signature Certificate (DSC) :- The first step is getting a Digital Signature Certificate (DSC) for the proposed director. The OPC's incorporation documents must be signed using DSC.
• Director Identification Number (DIN) :- The next step is to get a Director Identification Number (DIN) for the proposed director. It can be done by submitting the SPICe+ form to the Ministry of Corporate Affairs.
• Name for the OPC :- The next step is to reserve the name for the OPC. This can be accomplished by submitting the SPICe+ form through the Ministry of Corporate Affairs (MCA) webpage. However, one must be careful while selecting an individual name that does not clash with any current corporation or property.
• Research of MOA and AOA :- The next stage is to write the Memorandum of Association (MOA) and Articles of Association (AOA) for the OPC. The MOA and AOA describe the company's aims, structure, policies, and internal regulations.
• Certificate of Incorporation :- Next Registrar of Companies (ROC) should verify the mandatory compliances and issue a Certificate of Incorporation. It specifies the completion of the registration process for the OPC. However, the PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) are generated automatically throughout this process. It saves applicants time and effort as it removes the need to apply for these documents separately.
• Submission of Forms :- The next step is to submit completed forms for OPC registration through the Ministry of Corporate Affairs (MCA) portal. The applicant must include all applicable documents with the SPICe+ form, such as the MOA, AOA, declarations, address evidence for the registered office, nominee appointment, and any other documents required by the MCA.
• Certificate of Incorporation :- Next Registrar of Companies (ROC) should verify the mandatory compliances and issue a Certificate of Incorporation. It specifies the completion of the registration process for the OPC. However, the PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) are generated automatically throughout this process. It saves applicants time and effort as it removes the need to apply for these documents separately.

How can we support with One Person Company Registration?

We have an excellent team of professionals who can provide a hassle-free and error-free Online Company Registration Service in India. Our professionals have been doing Person Company Registration daily while also staying up to date on MCA’s new registration procedures. Hence, we can offer you the best business incorporation service that supports MCA functionality