- Step-by-Step Guide to One Person Company Registration
Step-by-Step Guide to One Person Company Registration
One Person Company is a private limited company with just one member or only one shareholder. Section 3 of the Companies Act 2013, supports One Person Company, before the Companies Act there was no provision for OPC. After the implementation of the Companies Act 2013, permission was provided to OPC to establish a company. In India, the OPC concept is new and is incorporated by a single person. Before the Company Act, there was no provision for OPC establishment.
Businessmen or Entrepreneurs choose OPC because of its features and benefits. OPC provides multiple benefits so investors or other interested candidates choose this form of business. In this type of company, the business is completely controlled by a single person. This person acts as both the director and the shareholder, so there are lesser compliance requirements. This single-person authority company system helps in limiting the liabilities and responsibilities of the owner.
With just one single director and one member, a One person Company Registration can be obtained in India under the Companies Act 2013. It’s not necessary that the member and the director will be two separate persons, only one same person can be both the director and member. A person of Indian nationality can register an OPC in India.
The first process in registering a one-person company is to obtain the name for the company, and this can be done when the name will be approved by the Ministry of Corporate Affairs or MCA. This process usually takes 1-2 days or 24-48 hours. The name of the One Person Company should end with OPC private limited.
The name of the company can’t be obtained in case it would be identical to an already existing company. The proposed name of a company should not be registered if in case it will be similar to any existing company. A company has to include a word that will denote the activity of the company, so it’s important that the company name must add a word that will show their activities.
Why One Person Company
One Person Company is the best choice because it can have more than one director yet the number of investors can’t be more than one. Many investors and entrepreneurs have questioned what will happen to the company in case the member will die. OPC is not influenced in case of the death of a member as there will be a shift in the ownership. Setting up a one-person company is easy and can be maintained approximately. OPC restricted the legal responsibility of its members. In OPC format much paperwork is not needed, in this type of company, less paperwork is needed. It can also work as a Stockbroker or Sub-broker, also there is no impedance from third parties.
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Understanding OPC Eligibility Criteria: Who Can Register
- An Indian national or we can say a natural person who is a citizen of India and is residing in India is eligible for OPC registration. Such a person is eligible to be the nomination of an OPC. Furthermore, residence in India is assigned to a person who has stayed in India for at least one hundred and eight two days in the previous year.
- One person company can’t be joined by companies like Legal entities or LLP.
- Only a selected candidate by the promoter.
- Recognized capital must be at least Rs 1 lakh.
- An OPC remains careful in terms of a minor as its member, they don’t allow a minor in operating its company.
- If in case the turnover of an OPC is over Rs 2 crores or has settled above Rs 50 lakhs capital, then the OPC company needs to be transformed into a private limited company or public within 6 months.
- OPC should have at least 1 Shareholder or Director of Nominee.
Minimum Requirements for One Person Company registration
- Shareholder: in OPC there is the requirement of one Shareholder.
- Director: in OPC there is the requirement of one director.
- Nominee: in OPC there is the requirement of one nominee.
- Person: in OPC there is a requirement of one nominee.
Essential Documents Required for OPC Registration
Following are the documents required to begin the registration process of a one-person company online in India:
- PAN Card: Valid PAN Card copy of the company’s proposed Director. This unique number is issued by the Department of income tax, so submission of a PAN card copy is necessary for the incorporation process.
- Address Proof: An address proof copy of the director must be submitted, Indian Nationals can submit address proof in the form of a Passport, Voter Identity Card, Driving License, Electricity or Telephone Bill, Ration, or Aadhar card.
- Residential Proof: apart from PAN card and Address proof, Residential proof is also important and needs to be submitted during incorporation of the Company. Documents that are accepted for residential Proof are Electricity, Telephone, Mobile Bills, or Bank Statements.
- MOA and AOA subscriber sheet Documents are also required for a One Person Company Registration in India.
- A sales deed copy is also necessary for the process of registering OPC.
- A lease or Rental agreement needs to be put forward during the registration process.
- Passport and passport-size photo of the owner.
- Landlord NOC and Copy of the property papers of the owner (if the property is owned).
- Copy of the Rent property agreement of the owner (if rented property).
Steps to Register One Person Company
Following are the steps that will help to Register a one-person company online in India:
- In the first step, of the registration checkout the eligibility criteria and documentation.
- Once it’s done, in the next step, the focus is on the DSCs and DINs for each director.
- In the third step, a name reservation Form Spice+ request is submitted for the company that is going to be incorporated.
- In the fourth step, once the request is submitted now for the new business apply for PAN and TAN.
- Now in the fifth step, an incorporation certificate will be issued by the RoC with a PAN and TAN.
- In the last step, Start your business after opening a bank account.
This whole process of registering a One Person Company in India will take a time span of 10-15 days. Once you are done with the registration process you can start your One Person Company business.
Realizing the Benefits of One Person Company
One Person Company comes with many different benefits like Limited Liability, Expansion, Credibility, less paperwork, Easy selling, Full owner control, Easy fundraising, and loans.
- Limited Liability: OPC is safe, and the property of the directors is always secure, no matter if the business has debts. In OPC personal assets are safe and secure, only the loss of interest in the organization can take place.
- Existence: An OPC enjoys continuous existence, its owner need not worry about the existence of the company because this type of business has the character of continuous existence.
- Credibility: another benefit that a One Person Company enjoys the greater credibility. In this type of business, its books need to be audited annually. It enjoys maximum credibility between leading institutions and vendors.
- Easy to Sell Procedure: if the owner wants to sell its OPC company he/she can easily sell it because it has the benefit of limited documentation work. This limited documentation feature of One Person Company can help in the easy selling of the company.
- Easy Control: OPC has the best advantage in terms of Control, a single owner has full control over the whole company. This full control helps in taking the company’s decisions easily and quickly. This feature helps in the easy execution of the company. For the purpose of authentic function, OPC can choose 15 directors without giving them an offer.
It’s important to register OPC online in India, this whole process takes approximately two weeks to complete. Once the process is done the owner can start the business and can enjoy full control ownership over the business with limited liabilities.
What are the minimum requirements for a One Person Company?
The minimum requirements for a One Person Company are one Shareholder, one Director, one Nominee, and one Person.
How much time does it take to register a One Person Company online in India?
This whole process of registering a One Person Company in India will take a time span of 10-15 days.
What are the documents required for One Person Company Registration?
The documents required for One Person Company Registration are PAN/TAN, Address proof, Residential proof, Address proof, MOA and AOA subscriber sheet, Passport and passport size photo, and sales deed copy.
Why do investors or other interested candidates choose OPC?
OPC provides multiple benefits so investors or other interested candidates choose this form of business.
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