One Person Company (OPC) Registration
2 DIN + 2DSC + Name Approval + COI + MOA + AOA + PAN + TAN
Online OPC Registration in India Starting at just Rs. 4999/-
A new concept has been introduced in the Company’s Act 2013, about the One Person Company (OPC).
Earlier, In a Private Company, a minimum of 2 Directors and Members are required whereas in a Public Company, a minimum of 3 Directors and a minimum of 7 members. This prevented a single person from running a company. But now as per Section 2(62) of the Company’s Act 2013, a company can be formed with just 1 Director and 1 member. It is a form of a company where the compliance requirements are lesser as compared to a private company.
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Separate Legal Existence
A One Person Company would obtain the status of a separate legal entity. Such OPC registration ensures that the entity is separate from the owner, unlike a proprietorship firm. OPC can own the assets in its own name and enter into a contract with the parties. The actions of the company are independent of the owner. This is the main benefit of OPC registration.
Lower Compliance Requirements
A Single Person Company is benefited with an exemption to many compliances unlike a private company. Compliances like holding General and Board Meeting, etc. are not applicable to OPC. However, Board Meeting must be held if more than one director is on Board.
Limited Liability of Owners
One of the benefits of registering OPC lies in the separate legal entity of the company where the liability and obligations are not charged over the personal assets of the sole member. The liability of a member is limited to the unpaid amount of the capital subscribed by the member. Even in the case of liquidation, the personal assets of the member are protected, except in certain specified cases.
Separation of Management and Ownership
Even if the OPC is owned by sole personnel, the owner may appoint a director owing up to the responsibility to operate and run a company. The operational duties are assigned to the director(s) whereas the member would be able to fetch profits channeling efforts towards other businesses. However, in One Person Company, the shareholder holds complete control over being a stakeholder.
Documents Required For One Person Company Incorporation
- Copy of PAN Card of shareholder
- Passport size photograph of the owner
- Copy of Aadhaar Card/ Voter identity card
- Copy of Rent agreement (If rented property)
- Electricity/ Water bill (Business Place)
- Copy of Property papers (If owned property)
- Landlord NOC (Format will be provided)
Step-1- To Get A DSC
For registration, it is required for the applicant to get a Digital Signature Certificate (DSC) issued by the Certifying Authority.
Step-2- Reservation Of Name Through SPICe+ FORM (Part A)
For Name reservation, click on the ‘SPICe+’ Form placed under ‘MCA Services’ The name reservation is done through the SPICE+ form that includes all the steps right from the Name Reservation to post-incorporation compliances.
The applicant has to enter the name he/she wants to reserve, for the incorporation of an OPC. After that, submit the ‘Part A’ for reservation of name and incorporate formalities.
Step 3-Downloading SPICE+ Part B For Incorporation Purpose
The very next step is to download the Part B in PDF format for filling the related forms, which are as follows:-
• AGILE-PRO,
• SPICe+AoA,
• SPICe+MoA,
• INC-9 and URC-1) and for affixing the “DSC,”
SPICe+ Part B Includes The Services Like: -
• Incorporation
• DIN allotment
• Issue of PAN and TAN
• Issue of EPFO registration and ESIC registration.
• Particulars of Opening the Bank Account for the Company,
• Allotment of GSTIN.
Step 4- Uploading Part B On The MCA Portal
After filing all the requisite details along with the documents, the next step is to submit SPICE+B on the MCA portal. Once SPICe+ Part B is submitted, other forms (AGILE-PRO, SPICe+ AOA, and SPICe+ MOA) will also become available.
Also, INC-9 will be auto-generated based on the information filled in SPICe+ Part B. After successful submission of these forms, these can be downloaded, and DSC can be affixed in the respective form. Lastly, the above forms can be uploaded in the below-mentioned sequence- SPICe+ Part B , SPICe+ MOA, SPICe+ AOA, AGILE-PRO, INC-9.
Step 5- Pre-Scrutiny Check
After uploading the form, the next step is to go for a ‘Pre-scrutiny’ check. After pre-scrutiny, the applicant must click on the Confirmation button for the successful submission of the Application form.
Step 6- Payment Of The Requisite Fees
After a successful pre-scrutiny check, a Service Request Number will be generated for making a payment of a requisite fee for “OPC incorporation.”
Step 7- Obtaining COI From The Registrar
The registrar will issue a Certificate of Incorporation if the registrar finds the information along with the documents is appropriate.
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1. Why should I form an OPC?
An OPC is a good alternative to running a sole proprietorship, largely because it gives limited liability to the business owner. This means that your liability is limited to the amount you’ve invested in the business; business debts cannot be recovered from personal possessions. Also, a sole proprietorship ceases to exist on the death of its promoter. In the case of an OPC, the nominee director takes over and the entity continues to exist. Single entrepreneurs who do not have another partner to start a private limited company may also consider it. -
2. Who can register for an OPC?
OPC company registration can be done only by Indian residents, and that, too, only one at a time, as per the specifications of the Ministry of Corporate Affairs. -
3. What are the mandatory requirements of an OPC?
All such businesses must maintain books of accounts, comply with statutory audit requirements and submit income tax returns and annual filings with the RoC. -
4. How much capital is required to start an OPC?
There is no difference in capital requirement between an OPC and a private limited company. It needs an authorised capital of Rs. 1 lakh to begin with, but none of this actually needs to be paid-up. This means that you don’t really need to invest any money into the business. -
5. What are the tax advantages available to an OPC?
No general advantages; though some industry-specific advantages are available. Tax is to be paid at flat rate of 30% on profits, Dividend Distribution Tax applies, as does Minimum Alternate Tax. -
6. What is the main drawback of an OPC?
The MCA is skeptical about a single person in charge of a large corporation. Therefore, it requires all OPCs to be converted into private limited or public limited companies on crossing a certain revenue number. Currently, in case of an average turnover of Rs. 2 crore or more for the three consecutive years or a paid-up capital of over Rs. 50 lakh, the OPC must mandatorily be converted into an OPC. -
7. How much does it cost to run an OPC?
The cost of an OPC is only marginally lower than that of a private limited company. You’ll be shelling out around Rs. 12,000 to incorporate, then paying around Rs. 15,000 a year in compliance fees and an auditor to inspect your books. -
8. How many directors can there by in an OPC?
An OPC has certain limitations. The person starting the business is its only director and shareholder. There is also a nominee director, but this person has no power whatsoever for raising equity funds or offer employee stock options. The nominee exists only to take over in case of the death or incapacitation of the director. The nominee is chosen by the director, and can be anyone, such as your spouse, parents or siblings. The nominee will need to provide identity proof during registration. -
9.Can I start more than one OPC at a time?
No, an individual can form only one OPC at a time. This rule applies to the nominee in an OPC, too.
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