One Person Company Registration in India – Know More About It

One Person Company Registration in India is a type of private limited company which is formed with one single person acting as director and shareholder of the company. The need for One Person Company (OPC) arises due to the limitations of sole proprietorship firms.

The Companies Act, 2013 introduces a new form of company that can be incorporated by an individual as a single member and one director. The director and member are the same people. Thus, OPC can be formed by a resident of India or a non-resident that contains features of a company and benefits of a sole proprietorship.

In this blog, we will discuss the registration process along with the documents and the examples and limitations of OPC.

What are the Steps of the Process of One Person Company Registration in India?

The process of Online Company Registration in India and OPC Registration fees charged on completion are as follows:

Step 1: Apply for DSC –

This is the first step of OPC registration, to obtain the Digital signature certificate (DSC) of the director which requires the documents as follows:

• Aadhar card
• Address proof
• Photo of director
• Email address and mobile no. of the proposed director
• PAN card of the director

Step 2: Apply for DIN –

Once the DSC is made, the next step is to get the Director Identification Number (DIN) of the proposed director in E-Form SPICe+ along with the identity and proof of address of the director. The DIN of a minimum of three directors can be applied in E-Form SPICe+ of One Person Company Registration in India.

Step 3: Application for OPC company name approval –

The name should not be undesirable. The MCA has issued guidelines relating to the approval of names.

Step 4:  Essential Documents –

After the name is approved, you have to submit the documents as discussed in this blog.

Step 5: Forms Filling with MCA-

The documents attached to the SPICe+ Form, SPICe-MOA, and SPICe-AOA along with the DSC of the director as well as the professional. The PAN and TAN have been generated along with the SPICe+ Form at the time of the incorporation of the company.

Step 6: Issue of Registration certificate

After verification of all the forms filled for incorporation of One Person Company Registration in India, the ROC (Registrar of companies) will issue a certificate, you can commence the business.

What are the Documents Required for OPC Company Registration in India?

The One person company registration documents required to be submitted to the Registrar of Companies are as follows:

1. Passport-size photograph of the owner

2. Copy of the Aadhar card Voter identity card or driving license of the owner

3. Copy of PAN card

4. Copy of Bank Passbook statement (which is not older than 2 months)

5. Address proof in form of the latest electricity bill

6. Copy of rent agreement (In case of rented property)

7. Copy of Sale deed or ownership proof (In case of owners property) for One Person Company Registration in India

8. No objection certificate from the owner.

What is the Eligibility of One Person Company Under the Companies Act, 2013?

As per the provisions of the Companies Act, 2013 a One person company is a private company that has only one person as a member. It is to be noted that all the provisions of private companies would apply in an OPC, unless otherwise specifically excluded.

The Eligibility criteria to incorporate an OPC –

• Only Natural persons and
• Residents and Non-Resident of India, both are eligible to incorporate an OPC.
• The residency period is reduced to 120 days from 182 days for NRIs.

Is registration compulsory for one person company?

Yes, the One Person Company Registration in India is mandatory under the Companies Act, 2013 which requires a single person to be a director and a single member owning the business. The compulsory conditions for registration of a One-person company are as follows:

• One Individual can only use OPC.
• A One Person Company shall have a nominee.
• Earlier the one person company turnover limit was prescribed under the provisions of the Companies Act of 2013, after the amendment, there are no restrictions on the paid-up and turnover limits.

What are the limitations of the Incorporation of an OPC?

The limitation of One-person company are discussed in the points as follows:

1. Management and ownership –

The One Person Company Registration in India has no line of ownership and management because the sole member can also be the director of the company. All decisions must be made and approved by a single member. The barriers between ownership and control are becoming increasingly, leading to unethical commercial activities.

2. Only suitable for small businesses –

One-person company is best for small-sized businesses. In any case, the OPC cannot have more than one member. OPC cannot take funds with the help of appointing more directors or members. Therefore, more members cannot join the company for expansion and growth.

3. Business operations are restricted –

OPC is prohibited from engaging in non-banking financial investments, such as investing in securities. One Person Company Registration in India cannot be changed to a Section 8 company.

4. Lack of expertise –

The sole member manages the company and unlike the private or public company, managerial expertise is not available to an OPC.

Checklist for One-person company registration

The following is the list of requirements for registration of an OPC:

• Minimum and maximum of one member
• A nominee must be appointed before the incorporation
• The nominee’s consent is taken in Form INC-3
• The OPC name must be chosen as per the guidelines issued by the MCA
• The minimum authorized capital of Rs. 1 lakh
• DSC of the proposed director
• Registered Office Proof of the OPC company.

What is OPC Company Registration Fees?

One Person Company Registration Fees depends on the nominal share capital of the company. E.g., the government fees for the OPC registration whose share capital is 10,00,000 would be Rs. 2000/-. On the other hand, the share capital can range between Rs. 10,00,000 to Rs. 50,00,000, and the fees charged by the government are Rs. 2,000 in addition to Rs. 200 for each Rs. 10,000 of share capital or part.

In addition to the government fees, the fees of obtaining the documents such as a Digital Signature Certificate (DSC) and Director Identification Number (DIN) of the directors.

What are the Famous One Person Company examples?

There are many examples of One Person Company Registration in India. However, many successful businesses started with just one person who had a vision and the technical skills to deliver it to the world.

Popular news sites like Techmeme, Newsblur, Instapaper, and Duckduckgo are one person company examples that started this way which makes the costs of operating much more bearable in the beginning.

Some of the one person company in India example are Truffle House (OPC) Private Limited is located in Delhi and its current status is strike-off. The other example is Akhan Dairy (OPC) Private Limited is classified as a non-government company and is registered at ROC-Shillong.

Why choose professional One Person Company Registration Services in India?

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Conclusion

OPC Registration is introduced by the Companies Act, 2013 with the main objective to support entrepreneurs who have the potential of raising their businesses. In this article, we have understood the process with documents and limitations of an OPC.