One Person Company
Benefits
- Fewer legal formalities than LLP.
- Associated with the GST and income tax departments.
- Full control over the business for the sole proprietor.
- No separate business tax filings.
- Easy to disassemble.
Offers and discounts
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One Person Company
Here’s How to Register a One Person Company in India
What is One Person Company (OPC)?
6 Steps to Register One Person Company in India
Step 1: Digital Signature Certificate (DSC)
A Digital Signature Certificate (DSC) is required for the member and the director of the OPC.
Step 2: Director Identification Number (DIN)
The Director Identification Number (DIN) must be obtained from the MCA.
Step 3: OPC Company Name Reservation
Choose a suitable name as per the Companies (Incorporation Rules), 2014, and register it using the SPICe+ form on the MCA portal.
Step 4: MoA and AoA Form Filling
The Memorandum of Association (MoA) defines the objectives of the company. The Articles of Association (AoA) includes internal guidelines for business operations.
Step 5: Filling Other Required Forms
Submit all required forms including PAN and TAN numbers, for OPC registration. The Registrar of Companies (ROC) will oversee the process.
Step 6: Certificate of Incorporation
Once approved, the ROC issues a certificate of incorporation. The One Person Company registration time typically takes about 10 days. Consulting a professional can help avoid legal errors.
Documents for the OPC Registration Process
- Proof of OPC’s registered office address
- No Objection Certificate (NOC) from the office owner
- Declaration of compliance by a professional
- Director’s DIN, MoA, and AoA
- PAN card, Aadhaar card, passport-size photograph, email ID, contact number, and DSC
- Rental agreement (if applicable) and recent utility bills (not older than 2 months)
Forms Required for One Person Company Registration in India
1. Form INC – 3
It is the OPC nominee consent form. Only one person acts as the director of the OPC. Thus, he must appoint a nominee who will handle the business in his absence, during his illness or after his death. So, the director of the OPC should fill out Form INC – 3 and submit an Aadhaar card and PAN card.
2. The INC 9 Form
The director of the OPC must submit a declaration of not being convicted under any law and has not been blamed for an offence.
3. The DIR – 2 Form
The DIR–2 form acts as the consent by the director of the OPC to comply with the rules stated by the Companies Act, 2013.
4. SPICe+ Form
The web-based SPICe+ Form has replaced the traditional SPICe form. It helps the owners incorporate the company electronically and comes in two parts.
Part A helps you apply for the DIN and PAN numbers and most importantly, company name approval. Part B of the form contains important details of the company such as the share capital, shareholder details, details of the director and the registered address of the OPC.
5. Form AOC 4
The member of the OPC should file annual financial statements via Form AOC 4 with the Registrar of Companies (ROC).
6. Form MGT 7A
Annual return details are to be filed with Form MGT-7 which comes under the MCA. MGT 7A is specifically for small companies.
One Person Company Registration Fees and Cost in India
Eligibility Criteria for OPC Registration
- The applicant must be an Indian citizen residing in India for at least 182 days.
- Only a natural person (not a legal entity) can register an OPC.
- The minimum authorised capital is Rs. 1 lakh (USD 1,159).
- If an OPC’s annual turnover exceeds Rs. 2 crores (USD 2,31,874) or the paid-up share capital exceeds Rs. 50 lakhs (USD 57,968), it must convert into a Private Limited Company.
- OPCs cannot be involved in insurance or non-banking financial investment.
| ADVANTAGES | DISADVANTAGES |
|---|---|
|
Limited liability protection
Easy decision-making
|
No additional members allowed
Restricted financial activities
|
|
Better credibility than a sole proprietorship |
No scope for charity work |
|
Can easily raise funds |
Complex dissolution process |
|
No minimum paid-up capital required |
Frequent decision-making by a single member |