OPC registration, introduced under the Companies Act 2013 in India, allows for the establishment of a company with a single person. Prior to this provision, a single individual couldn't form a company and had to opt for a sole proprietorship. With OPC, one can enjoy the benefits of a company structure along with the advantages of sole proprietorship.
As per Section 2 (62) of the Companies Act 2013, an OPC can be formed with only one director and one member. This means that a single individual can act as both the director and member of the company. The incorporation process for an OPC involves lesser compliance requirements compared to a Private Limited Company.
To register an OPC in India, one needs just one member and one director, who can be the same person. The individual may be a resident or a non-resident Indian. This offers flexibility and convenience for entrepreneurs looking for a simplified business structure.
OPC registration provides limited liability protection to the sole owner, separating personal assets from the company's liabilities. It also grants the OPC a separate legal identity, allowing it to enter into contracts, own assets, and operate as a distinct entity.
If you are an individual seeking to establish your business as a sole owner, OPC registration offers an appealing option. Ensure compliance with the Companies Act 2013 and consult with professionals or experts to guide you through the OPC registration process in India.
The One Person Company is required to do minimum compliances with the Registrar of Companies (ROC). No need to conduct Annual General Meeting (AGM) and other regular compliances.
One Person Company is a Private limited company which is popular & well known business structure. Banks, Angel Investors, Vendors prefer to deal with it over others.
The company’s obligation or debts does not create a charge over the director’s personal assets. The liability stays limited only to the capital subscribed and unpaid by the director.
One Person Company is easy to wind up or sell in case of loss. Along with Fast track exit route, very less documentation and cost is involved
One Person company enjoys wide options to raise funds through bank loans, Angel Investors, Venture Capitalists, in comparison to LLPs and OPCs.
One Person Company can avail Startup India benefits like Income tax exemption for 3 Years, Self certification facility, Seed Funding support & many other benefits
Startups in India can gain a competitive advantage over non-registered competitors by registering their company. Although the registration process may seem complicated and involve various compliance requirements, MYFINTAX is here to provide comprehensive assistance at every step. Our team of professionals specializes in One Person company registration and can guide you through the process smoothly.
Here are the steps involved in registering a One Person Company (OPC) in India:
Step 1: Obtain Digital Signature Certificate (DSC)
Before starting the registration process, the sole owner must obtain a Digital Signature Certificate (DSC). This is required for filing online forms and documents. The DSC can be obtained from government-approved certifying agencies.
Step 2: Director Identification Number (DIN) Application
The sole owner needs to apply for a Director Identification Number (DIN) by filing Form DIR-3. This unique identification number is mandatory for all directors of the company. Attach the necessary documents, such as identity proof and address proof, to the application.
Step 3: Name Reservation
Submit Form SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) with the Registrar of Companies (ROC) to reserve a suitable name for the OPC. The name should be unique and adhere to the naming guidelines specified by the Ministry of Corporate Affairs (MCA).
Step 4: Drafting the Memorandum of Association (MOA) and Articles of Association (AOA)
Prepare the MOA and AOA, which outline the company's objectives and rules for its operations. These documents need to be drafted carefully, ensuring compliance with the Companies Act and other applicable laws.
Step 5: Incorporation Application
File the incorporation application using Form SPICe+ along with the required documents, including the MOA and AOA, identity proof, address proof, and address of the registered office. The application must be digitally signed by the sole owner or an authorized signatory.
Step 6: PAN and TAN Application
Apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the OPC. These are essential for tax-related transactions and compliance.
Step 7: Certificate of Incorporation Upon successful verification and approval of the documents, the ROC will issue a Certificate of Incorporation (COI). This signifies the official registration of the OPC, along with its unique Corporate Identification Number (CIN).
Step 8: Compliance Requirements After incorporation, ensure compliance with ongoing requirements such as maintaining proper books of accounts, conducting annual general meetings, filing annual financial statements, and complying with tax and regulatory obligations.
A One Person Company is a type of business structure where a single individual can establish and run a company with limited liability. It combines the benefits of a company, such as a separate legal entity, with the advantages of sole proprietorship.
Yes, both resident and non-resident Indians are eligible to form an OPC in India. However, at least one director must be a resident of India.
There is no minimum capital requirement for OPC registration in India. The OPC can be formed with any amount of capital as deemed appropriate by the owner.
Yes, an OPC can be converted into a private limited company. However, such conversion is only possible after two years from the date of incorporation or if the OPC's paid-up capital exceeds the threshold limit specified in the Companies Act, 2013.
Yes, an OPC is required to nominate a person who will become the owner in case of the sole member's death or incapacity. The nominee must give their consent in writing, and their details are mentioned in the Memorandum of Association (MOA).
OPCs have fewer compliance requirements compared to private limited companies. They need to file annual financial statements, maintain books of accounts, and conduct an annual general meeting. OPCs are exempted from holding general meetings unless specifically required.
No, an OPC can have only one director. However, it can appoint a maximum of 15 directors once its paid-up capital exceeds the threshold limit.
No, as the name suggests, an OPC can have only one member. It is designed for sole proprietors who want the advantages of a corporate structure.
No, an OPC cannot issue shares to the public. It is prohibited from inviting the public to subscribe to its shares or securities.
OPCs are eligible for the same tax benefits available to other companies, such as corporate tax rates and deductions. However, it is advisable to consult with tax professionals for accurate guidance on tax planning and compliance for OPCs.