One Person Company Registration, or OPC Registration, is a novel idea included in the Companies Act of 2013, passed in India. In India, a one-person company can be incorporated. A single person could not form a business before implementing the 2013 Companies Act. An OPC company registration combines the benefits of a single proprietorship with the traits of a corporation. Before, a person should only choose a single proprietorship if they had to start a firm.
Only one executive and one partner may form a company, according to Section 2, Paragraph 62 of the Companies Act of 2013. Fewer compliance requirements are there to apply for One Person Company registration in India than in private limited companies.
Overview of OPC Registration
One Person Company Registration is one of the simplest corporate structures to manage in India, as there is only one business owner (OPC). OPC is a hybrid of a business and a single proprietorship. It has made several concessions to assist it in meeting its compliance duties under the Companies Act. Less strict compliance criteria apply to this type of corporation than a Private Limited Company. OPC registration is extremely quick, simple, and inexpensive.
The one-person company structure, a variant of the sole proprietorship firm structure, was first introduced in 2013. In an OPC, a single promoter gains complete control over the business, reducing their accountability for the company’s contributions.
Benefits of OPC company registration
Since the one-person company is the corporatization of sole proprietorships, they enjoy all the benefits of corporations and several legal exemptions. The following are some advantages of OPC registration in India.
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Although there can be multiple directors, there can only be one shareholder.
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A member’s demise or a change in ownership does not affect it.
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Relatively easy to set up and manage.
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Limits the members’ legal obligations and calls for a minimal set of documents.
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Can serve as a sub-broker or a stockbroker.
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Hardly many observances
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No outsider has stepped in to intervene.
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Incorporating more than one one-person company by a single person is prohibited.
Necessary Documents Needed For OPC Registration Online
The following is a list of the documents needed for online OPC registration:
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PAN card or a passport
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In the case of foreign nationals, a passport, voter ID card, or driving licence
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A current utility or gas bill
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A sample signature
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Photo in passport size
One-Person Company Registration Procedure
Step 1: Apply for DSC
The first step in registering a One Person Company is to obtain a Digital Signature Certificate (DSC) of the intended director of the company, which necessitates the following paperwork:
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Identity proof
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Address proof
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PAN Card
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Photograph
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Contact information
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Email ID
Step 2: Request a DIN:
The next step in OPC Company registration is to obtain a Director Identification Number (DIN) from the SPIC form along with the potential director’s name and address when the Digital Signature Certificate (DSC) has been generated.
Step 3: Submit a request for name approval:
The next step in the online OPC registration process is picking a business name. The business’s name shall be “ABC (OPC) Private Limited.” To approve the name, use Form SPICe+ 32. You may only specify one preferred name and the justification for choosing it in Form SPICe+ 32. If your first name is rejected, you can submit a different name using another SPICe+ 32 application form.
Step 4: Submission of Documents for One-Person Company Registration:
When registering a one-person company, the ROC must receive the following documents:
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The guidelines governing the organization are specified in the Memorandum of Association (MoA), which details the company’s intended use for incorporation.
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The Articles of Association (AoA) outline the company’s laws.
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The company must designate a nominee in their place because there is only one director and member. The nominee will act in the director’s place and take their place if the director falls ill or passes away and cannot carry out their responsibilities. You need to submit his consent form INC-3 and PAN and Aadhar cards.
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Proof of the proposed company’s registered office, proof of ownership, and a no-objection letter from the owner.
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Forms INC -9 and DIR-2 must include the declaration and consent of the nominated director, respectively.
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A professional’s certification confirming that all requirements have been met
Step 5: Filling Out Forms with MCA:
An automated Pan Number and TAN were generated when the company was incorporated. You must submit all these documents, such as the director’s and professional’s DSCs, the SPICe-MOA and SPICe-AOA forms, on the MCA website for approval. You do not need to submit a separate application to obtain a PAN and TAN.
Step 6: Issuance of a certificate of incorporation:
You can start doing business now that your OPC company registration is complete. After verifying all the necessary documents, you will receive the certificate of incorporation form the Registrar of Companies (ROC).
Who can become an OPC member?
A person must be an Indian citizen and a resident of India in order to act as a member and nominee of an OPC. A “resident in India” has spent at least 102 days in India during the fiscal year prior, as referred to above.
Final Words
If you still need clarification about an OPC company registration or what documents you’ll need, know that it’s not difficult to form an OPC.
In that case, speak with the experts at Lawgical India for guidance on the best course of action for your company’s requirements.
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