One Person Company (OPC) Registration in India
One-Person Company (OPC) registration is a popular choice for entrepreneurs seeking the dual benefits of limited liability and a separate legal identity while maintaining complete control over their business. Introduced under the Companies Act, 2013, OPC allows a single individual to operate as a company, merging the simplicity of a sole proprietorship with the advantages of a private limited company.
At Avian Filings, we simplify the OPC registration process with affordable fees and expert guidance. From document preparation to filing, our experienced team ensures a hassle-free experience, empowering you to focus on building your entrepreneurial dream.
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One Person Company (OPC) Registration in India
What is a One-Person Company (OPC)?
A One-Person Company is a unique business structure under the Companies Act, 2013, designed for single entrepreneurs. It combines the limited liability protection of a company with the operational ease of a sole proprietorship.
OPCs are particularly beneficial for Micro, Small, and Medium Enterprises (MSMEs), offering simplified compliance and legal protection. Per Section 2(62) of the Act, OPCs can have a single director and shareholder, often the same individual.
Eligibility for OPC Registration
To register an OPC, ensure you meet the following criteria:
- Natural Person & Indian Citizenship:
- Only Indian citizens can register an OPC; entities like companies or LLPs are ineligible.
- Residency Requirement:
- The applicant must have resided in India for at least 182 days in the previous year.
- Minimum Capital Contribution:
- A minimum authorized capital of ₹1,00,000 is required.
- Nominee Appointment:
- A nominee must be appointed during incorporation to take over the OPC in case of the promoter’s incapacity or death.
- Business Restrictions:
- OPCs cannot operate in financial sectors like banking, insurance, or investments.
- Conversion Clause:
- If the OPC’s paid-up capital exceeds ₹50 lakh or its average annual turnover crosses ₹2 crore, it must be converted into a private limited company.
- Single OPC Ownership:
- An individual can incorporate only one OPC. Minors are not allowed to be members or nominees.
Advantages of One-Person Company Registration
- Separate Legal Entity:
- OPCs enjoy distinct legal status, protecting the promoter from personal liability.
- Limited Liability:
- The promoter’s liability is limited to their capital contribution.
- Simplified Compliance:
- OPCs benefit from relaxed compliance norms under the Companies Act, 2013.
- Easy Fundraising:
- OPCs can attract funding from venture capitalists, angel investors, and banks more easily than sole proprietorships.
- Efficient Management:
- Decision-making is streamlined as there is only one member managing the company.
- Perpetual Succession:
- The company continues to exist regardless of the promoter’s status, ensuring business continuity.
- No Minimum Paid-Up Capital:
- OPCs have no minimum paid-up capital requirement, reducing entry barriers.
Disadvantages of OPC
- Limited Scope for Expansion:
- OPCs are restricted to one member, making them less suitable for larger businesses or rapid growth.
- Business Restrictions:
- OPCs cannot engage in financial or investment activities.
- Higher Costs than Sole Proprietorships:
- Registration and maintenance costs are higher than sole proprietorships.
- Mandatory Conversion:
- Exceeding certain financial thresholds mandates conversion into a private limited company, increasing compliance obligations.
Documents Required for OPC Registration
Prepare the following documents for smooth OPC company registration:
For the Promoter:
- PAN card
- Aadhaar card
- Passport (for identity proof)
- Address proof (utility bill or bank statement)
For the Nominee:
- Consent form (Form INC-3)
- PAN card
- Aadhaar card
For the Registered Office:
- Proof of address (rent agreement or ownership document)
- NOC from the property owner
Other Documents:
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- Declaration in Form INC-9
Step-by-Step Process for OPC Registration
Step 1: Obtain Digital Signature Certificate (DSC)
Secure a DSC for the proposed director to sign documents electronically.
Step 2: Acquire Director Identification Number (DIN)
Apply for DIN for the director via the MCA portal.
Step 3: Name Approval
Submit Form SPICe+ (Part A) to reserve a unique company name.
Step 4: Prepare MoA and AoA
Draft the company’s Memorandum of Association (MoA) and Articles of Association (AoA).
Step 5: File Incorporation Forms
Complete and file the SPICe+ form with required documents.
Step 6: Certificate of Incorporation
After verification, the Registrar of Companies (RoC) issues a Certificate of Incorporation, officially registering the OPC.
Post-Incorporation Compliance
Post-registration, the OPC must comply with the following:
- Annual Filing:
- File annual returns and financial statements with the RoC.
- Tax Registrations:
- Register for GST if applicable and comply with tax regulations.
- Maintenance of Records:
- Maintain statutory registers and records as required.
- Compliance Filings:
- Regular filings, including income tax and TDS returns.
Start Your One-Person Company Today!
Take the first step towards your entrepreneurial journey. Contact Avian Filings to simplify your OPC registration process and enjoy the benefits of this innovative business structure.
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