One Person Company (OPC) Registration in India

Introduction

One Person Company (OPC) registration has emerged as a modern and innovative form of business under the Companies Act, 2013, aiming to facilitate the incorporation of micro-businesses and entrepreneurs with innovative ideas. By allowing a single individual to establish a company, OPC registration encourages entrepreneurship and fosters economic development in India. This article provides a comprehensive guide to OPC registration, outlining its benefits, the required documents, important forms, and the step-by-step process of incorporation.

Benefits of One Person Company Registration:

OPC registration offers several advantages, making it an attractive option for entrepreneurs:

• Limited Liability: The personal assets of the member are protected, and only the investment in the company is at risk.

• Continuous Existence: OPC enjoys perpetual existence, ensuring continuity even in the event of the member’s demise.

• Greater Credibility: Mandatory annual audit enhances credibility, fostering trust among vendors and lending institutions.

• Ease of Sale: OPC can be easily sold due to minimal documentation requirements.

• Full Control: The single owner retains complete control over the company’s operations and decision-making.

• Ease of Fundraising: OPCs have access to banking benefits and can obtain loans and credits from financial institutions.

• Minimal Compliance: OPCs have fewer regulatory obligations compared to other corporate entities, reducing administrative burden.

Documents Required for One Person Company Registration:

To initiate OPC registration, the following documents are required:

1. Copy of PAN Card of the owner
2. Passport-size photograph of the owner
3. Copy of Aadhaar Card or Voter identity card
4. Copy of Rent agreement (if applicable)
5. Electricity or Water bill of Business Place
6. Copy of Property papers (if owned)
7. No Objection Certificate from the landlord

 

Important Forms for OPC Registration:

Several essential forms need to be submitted for OPC registration, including:

1. Declaration by promoter in form INC – 9
2. Declaration of Promoter as to Non-receipt of Deposit under FEMA and SEBI
3. General declaration by Promoter DIR-2 for Consent of Director
4. MOA and AOA Subscriber Sheet
5. No Objection Certificate of the property owner
6. AGILE PRO S

How to Incorporate One Person Company:

The process of incorporating an OPC involves the following steps:

• Obtain DSC and DIN: Obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN) for proposed directors.

• Name Reservation: File an application for the reservation of a suitable name for the OPC.

• Prepare Documents: Prepare documents, including MoA, AoA, nominee consent, proof of registered office, and director declarations.

• Filing Forms with MCA: Attach the necessary documents to SPICe+ Form and upload them to the MCA website for approval.

• Payment of Fees: Pay the required filing fees and stamp duty based on the authorized share capital and the state of registration.

• Certificate of Incorporation: Upon verification, the Registrar of Companies (ROC) issues a Certificate of Incorporation (COI), completing the OPC registration process.

Conclusion:

One Person Company (OPC) registration offers numerous benefits for entrepreneurs and micro-businesses in India. From limited liability to ease of fundraising, OPCs provide a conducive environment for business growth and development. By following the step-by-step incorporation process outlined above, entrepreneurs can establish OPCs efficiently and unlock their potential for success.