One Person Company Registration
One Person Company Registration is a viable option for individuals
aiming to initiate a business independently. As per the Companies
Act of 2013, an OPC is characterized by having a single
shareholder who is the sole member of the company. This distinct
structure contrasts with Private Limited Companies or Limited
Liability Partnerships, which necessitate a minimum of two
members.
Operating as an OPC affords several advantages akin to traditional
companies, including limited liability protection and business
continuity. It establishes a separate legal entity, thereby
segregating personal and business finances, facilitating more
streamlined financial management. The process of OPC incorporation
is notably straightforward, simplifying the commencement of
entrepreneurial endeavours.
Every OPC is mandated to nominate a nominee Director in its
Memorandum of Association (MOA) or Articles of Association (AOA).
This individual assumes ownership of the OPC in the event of the
incapacitation of the primary Director. Additionally, OPCs are
required to submit audited financial statements to the Ministry of
Corporate Affairs at the close of each fiscal year. Hence,
prospective entrepreneurs must carefully evaluate OPC
characteristics prior to establishment.
Key considerations include:
For aspiring entrepreneurs in India seeking to establish a
business entity combining the benefits of limited liability with
the operational simplicity of solo management, One Person Company
Registration presents an optimal avenue to explore.
Documents Required for One Person Company Registration
The following documents are required for the registration of a One
Person Company (OPC):
For Directors & Shareholders
For Registered Office
Ensuring these documents are in order and accurately submitted
facilitates the smooth processing of the OPC registration,
adhering to regulatory requirements effectively.
One Person Company Registration Process
The registration process for establishing a One Person Company
(OPC) involves several structured steps:
Obtaining Digital Signature Certificate (DSC) and Director Identification Number (DIN)
Before initiating OPC registration, it is essential to procure a
DSC for the proposed Director(s) and obtain DIN. This requires
submission of necessary scanned documents and details. The
application for DIN and DSC can typically be processed and
completed within 1 to 2 days.
Name Approval
The next step while incorporating an OPC is to decide on the name
of the Company. The name of the Company will be in the form of
“ABC (OPC) Private Limited”.
The name can be approved in the Form SPICe+ application. Only one
preferred name along with the significance of keeping that name
can be given in the Form SPICe+ application. If the name gets
rejected, another name can be submitted by applying another Form
SPICe+ application.
Once the name is approved by the MCA we move on to the next step.
Name approval generally takes 2 to 3 working days.
Drafting MOA and AOA Electronically
The Memorandum of Association (MOA) and Articles of Association
(AOA) are electronically drafted using the Spice MOA (INC-33) and
Spice AOA (INC-34) forms. This process typically requires 2 to 3
days to complete.
Company Registration
Once the e-MOA and e-AOA are drafted, they are submitted along
with Form INC-32 (commonly known as Spice Form) to the MCA for
incorporation. Additionally, forms 49A (PAN) and 49B (TAN) must be
filed concurrently with Spice INC-32. The MCA usually processes
the application for incorporation within 5 to 7 days, contingent
upon their procedural timelines. It is critical to ensure forms
49A and 49B are filed within 2 days of submitting Spice INC-32 to
avoid invalidation of the incorporation application.
This structured approach ensures compliance with legal
requirements and facilitates the efficient establishment of an
OPC, enabling entrepreneurs to embark on their business endeavours
promptly and in accordance with regulatory standards.
Choose Lexprosoft for Your One Person Company Registration!
Choose LexproSoft for your One Person Company (OPC) registration!
Our expert team will guide you through the entire process,
ensuring smooth and hassle-free registration while complying with
all legal requirements. With affordable fees and personalized
support, we help you set a strong foundation for your business
success.
Contact our Experts today and take the first step towards your
startup success!
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One Person Company (OPC) Registration FAQ's
What is a One Person Company (OPC)?
A One Person Company (OPC) is a business structure where a single individual can start a company with limited liability, offering the benefits of a company without the requirement for multiple shareholders.
Who can form an OPC?
An individual who is a citizen and resident of India can form an OPC. The individual must not be a nominee in another OPC.
What are the benefits of registering an OPC?
1. Limited liability protection for the sole owner.
2. Separate legal entity.
3. Less compliance compared to private limited companies.
4. Flexibility in management.
2. Separate legal entity.
3. Less compliance compared to private limited companies.
4. Flexibility in management.
What are the key requirements for OPC registration?
One shareholder and one director.
Director and shareholder must be the same person.
Must have a registered office in India.
The shareholder must be a resident of India.
Director and shareholder must be the same person.
Must have a registered office in India.
The shareholder must be a resident of India.
What is the minimum capital required for OPC registration?
There is no minimum capital requirement for OPC registration. However, the capital is decided by the shareholder, and the company must meet the required filing fees.
How long does it take to register an OPC?
OPC registration typically takes 7-10 business days if all the documents are in order and there are no objections in the name approval process.
What is the OPC Memorandum and Articles of Association?
The Memorandum and Articles of Association (MoA and AoA) are legal documents that define the company’s objectives, structure, and governance rules. These documents must be filed during registration.
How is OPC taxed?
OPC is taxed as a separate legal entity. Its income is subject to corporate tax rates, and any profits distributed as dividends are taxed at the shareholder level.
Can OPC be converted into a private limited company?
Yes, OPC can be converted into a private limited company if the paid-up capital exceeds ₹50 lakhs or if the annual turnover exceeds ₹2 crore.
What happens if the sole director of an OPC dies?
In case of the death of the sole director, the OPC must appoint a new director within 6 months. If no director is appointed, the company may be dissolved.
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