One Person Company (OPC) Registration - Online Process, Documents Required, Cost

 

 

One Person Company (OPC) is a type of private limited company which can be formed with just one person who will act as director and shareholder of the company. The need for one person company arised due to the limitations of sole proprietorship firm which is the most popular form of business registration for small businesses in India. Unlike private limited company or an LLP  where at least 2 people are required, entrepreneurs can now incorporate their company with one person only.

 

 

 

 

 

 

 

What is a One Person Company?

 

One Person Company or "OPC" is a kind of private limited company which is registered under the Companies Act, 2013. It can be registered with a single person who acts both as the director as well as shareholder of the company. OPC company use "opc private limited" or "opc pvt ltd" at the end of their company name because it is a private company owned by single person.

 

Earlier in a private limited company, a minimum of 2 directors and 2 members were required. A single person could not form a private company. But a new concept of OPC was introduced as per Section 2(62) in the Company’s Act 2013 where a single person can form a private limited company.

 

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Benefits of One Person Company registration

 

 

Limited Liability:

It helps in protecting personal assets of the owners with limited liability protection. So if there are any financial issues with the company, the assets of the director are secured and could not be seized by banks or departments.

Credibility:

 As OPC is a private limited company, it has higher credibility than traditional proprietorship firms. Unlike Sole Proprietorship, the Certificate of Incorporation is issued to One Person Company.

Continuous Existence:

Unlike proprietorship, where the firm comes to an end with any mishappening with the proprietor, One Person Company continues to exist as it is passed on to the nominee director.

Separate Legal Entity:

An OPC is a private legal entity in its own right and hence the business owners aren’t subject to any personal liability. The company can acquire assets and incur debts on its own name.

NRIs can register OPC:

As per the amendment in the Union Budget 2021-22, One Person Companies can be incorporated by non-resident Indians. A person who has stayed in India for a minimum period of 120 days immediately preceding the financial year can register an OPC.

 

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Process of One Person Company Registration

 

 

 

Step 1. Application for Digital Signature Certificate (DSC)

One person company incorporation is a complete digital process and therefore requirement of  Digital Signature Certificate is a mandatory criteria. The person who would act as director and subscriber to the memorandum of the company needs to apply for a DSC from the certified agencies. Obtaining a DSC is a complete online process and it can be done within 24 hours. This process involves 3 simple verifications that are document verification, video verification and phone verification.

Step 2. Application for the name approval

Name application for one person company can be done through SPICe RUN form which is a part of SPICe+ form. While making the name application of the company, industrial activity code as well as object clause of the company has to be defined.

Step 3. Filing of SPICe Form (INC-32)

Post name approval, details with respect to registration of the company has to be drafted in the SPICe+ form. It is a simplified proforma for incorporating a company electronically. The details in the form are as follows:

• Details of the company
• Details of the member and subscriber
• Application for Director Identification Number (DIN)
• Application for PAN and TAN
• Declaration by director and subscriber
• Declaration & certification by professional

Step 4. Filing of e-MoA (INC-33) and e-AoA (INC-34)

SPICe e-MoA and e-AoA are the linked forms which have to be drafted at the time of application for company registration. Memorandum of Association (MOA) is defined under section 2(56) of the Companies Act 2013. It is the foundation on which the company is built. It defines the constitution, powers and objects of the company.

Step 5. Issuance of PAN, TAN & Certificate of Incorporation

Post approval of the above mentioned documents from the Ministry of Corporate Affairs; PAN, TAN & Certificate of Incorporation will be issued from the concerned department. Now, the company is required to open a current bank account by using these documents. You can contact us for assistance with your current bank account opening.

 

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Register your OPC in India with Monitrix

 

The process of registering a One Person Company is complicated and involves various compliances. Our experts at Monitrix can simplify the whole registration process for you. Register your OPC online in 3 easy steps:

 

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Minimum requirements for OPC registration

 

As per the Companies Act 2013, there are minimum requirements that need to be met for one person company incorporation online.

1. Unique business name
2. No minimum capital requirement
3. A nominee must be appointed during incorporation
4. Address proof of office

 

 

 

Documents required for One Person Company registration

 

 

For incorporating your business as a One Person Company, you need to provide proper identity and address proof. The documents are required to be submitted to the Registrar of Companies.

1. Passport size photographs
2. Copy of Aadhar Card or Voter ID
3. Copy of PAN Card
4. Copy of Bank Statement (not older than two months)
5. Valid address proof of office which can be the latest electricity or any other utility bill.
6. If it is a rented office, then No Objection Certificate is required from the owner of the property.

 

 

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Documents you’ll get after OPC registration

 

Post incorporation of one person company, you’ll receive the following documents:

1. Certificate of Incorporation
2. Permanent Account Number (PAN) of the company
3. Tax Deduction or Collection Account Number (TAN) of the company
4. Articles of Association (AoA)
5. Memorandum of Association (MoA)
6. Director Identification Number (DIN)
7. Digital Signature Certificate (DSC)
8. Digital Signature Certificate (DSC)

 

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One Person Company Registration Fees

 

The total cost of One Person Company registration in India, including government and professional fees, starts from 7,499 and takes around 7-10 working days

 

Steps	Cost(Rs.)
Digital Signature Certificate	3,000
Government Fee	1,500
Professional Fee	3,999
Total Cost	8,499*

 

 

 

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Total time required for OPC registration

 

On average, it takes around 7-10 working days to register a one person company or opc company in India subject to document verification by the Ministry of Corporate Affairs (MCA).