Overview
One Person Company (OPC) is a unique business structure that allows a single person to run a company with limited liability. This business structure provides an individual with the benefits of a sole proprietorship and a company simultaneously, hence offering the person a complete control and ownership over the business with limited liability and less regulatory compliance. An OPC has all the features of a company, like perpetual succession, limited liability and a separate legal entity, etc.
What is OPC company registration in India?
One Person Company in India is a new concept that has been introduced by the Companies Act, 2013. Before the enforcement of the Companies Act 2013, a single person was not able to establish a company. However, with the enactment of the Companies Act 2013, now it has become possible for a single person to register an OPC. OPC company registration in India provides for entrepreneurs to run their business with limited liability while maintaining full control over the business.
Benefits of OPC company registration in India
There are various benefits of OPC registration. Some of them are discussed below
Limited Liability: In this business setup, owner has the liability only regarding their shares of the company. So, in case, if there is any liability arise then the personal asset of the owner will remain intact.
Separate Legal Entity: An OPC company registration in India is regarded as a separate legal entity. It can have assets and incur liabilities independently. It means that if company faces any kind of loss or legal hurdle, then the owner is not responsible in his personal capacity.
Ease of Management: Since it is run by only one person, so quick decision making is possible in this business setup. It is very easy to pass resolutions in the minutes in OPC. There is no room for internal conflicts and delays. All these features make it easy to run this business setup more efficiently.
Lesser Compliance: OPC company registration in India require less regulatory compliances as compared to other types of companies. They are exempted from many compliance requirements mentioned in the Companies Act of 2013. For example, they need not to prepare a cash flow statement, and they are exempted from having a company secretary to make annual reports or maintain account books.
Access to Funding: OPC company registration in India have many opportunities to raise fund for the business. It is very easy for them to get fund from various sources, such as venture capital, angel investors, etc.
Documents Required to register one person company
Here is the list of essential documents needed for OPC registration
- Proof of identity of all the Directors and Shareholders, such as PAN Card, Aadhaar Card, Passport, Driving License, etc., and Passport Size Photographs
- Address Proof of the applicant, such as Electricity bill, telephone bill, or Bank Statement (not older than 2 months)
- Consent of all the directors to perform their duties as Director (Form DIR-2), DIN Details, etc.
- Application for Digital Signature Certificate (DSC), Affidavit by shareholders & Directors (INC-9) is needed for OPC company registration in India
- Nominee Shareholder Details, Consent by Nominee Shareholder (Form INC-3), Company/LLP/Trademark Owner Documents (if applicable)
- Board Resolution/Authorization for Name/Trademark Use, etc.
- No-Objection Letter from office Address Owner, Address Proof of Owner, like Electricity, Telephone, Gas, or Water Bill, If using a leased Office, additional documents, like Lease Agreement and NOC letter need to be produced.
Process Of OPC Company Registration In India
Here is the detailed process for OPC company registration
Name Approval: You need to obtain name approval by reserving a name for company through SPICe+ Part A.
Obtain DSC and DIN: Obtain a Digital Signature Certificate (DSC), which is mandatory for all the Directors of the proposed company. You also need to obtain Director Identification Number (DIN) through SPICe+ form to register one person company.
Filing Application: In order to register an OPC company with the Registrar of Companies, you need to file an application in SPICe+ PART B, along with SPICe+ MOA and SPICe+ AOA.
Other Services: You can also get many other services online needed for OPC company registration in India, such as AGILE-PRO-S linked web form, including PAN, TAN, EPFO registration, ESIC registration, Bank Account opening, and GSTIN.
Get Certificate of Incorporation: After successful completion of the process mentioned above, the Certificate of Incorporation will be issued to you from the Registrar of the Companies.
The process to register OPC involves very complex legal procedure, and it is not possible for every business person to have deep legal knowledge of OPC registration process. So, if you are also facing issues in the incorporation of OPC in India, then you can take help of the best OPC registration agency in India.
Proprietorship Registration
