One Person Company

For the establishment of the OPC and the registration of one-person corporations, turn to Makemysales, India’s top online legal services platform. A single owner may establish a One Person Company (OPC), serving as both the director and shareholder. Online One Person Company Registration is possible with Makemysales.

Overview of One Person Company Registration in India

Detailed Information about One Person Company Registration in India

The Ministry of Corporate Affairs (MCA) name clearance is the first stage in one person company registration in India. The new OPC registration process is entirely online thanks to the MCA. There is no requirement for physical attendance because all document flow occurs electronically. To register, one must complete the Spice 32 form and request a digital signature certificate. Receive a certificate of incorporation after submitting the registration application on the MCA portal.

One Person Company Registration and Companies Act 2013

In India, the Companies Act 2013 established the idea of One Person Company Registration. With the help of this law, a single person can now launch and manage their own company without the aid of any partners. Limited liability protection, permanent succession, ease of incorporation, and compliance are all advantages of OPC Registration. You can get help from Kanakkupillai with all the paperwork needed to register a one-person business in India. We are dedicated to provide our customers hassle-free, cheap services. Contact us right away to find out more about OPC registration!

Benefits of One Person Company Registration Online in India

Due to its unique benefits, most company personnel opt to incorporate as a Private Limited Company. However, the unspoken reality is that OPC Registration can provide them with superior chances and unique advantages while requiring substantially less compliance. The following are a few advantages of registering a one-person business in India.

Limited Liability

Without the burden of losing personal property, OPC Company in India offers more options to take risks, investigate, and explore better business opportunities. Therefore, for fresh, young, and creative entrepreneurs, a one-man business is advised.

Existence Continues

When a sole proprietorship dies or when the primary owner of the company passes away, the business will essentially come to a stop. In contrast, an OPC firm benefits from having a unique legal identity. It would then pass to the nominee director for this purpose, ensuring that the firm continues to operate—or, to put it another way, that it exists.

Greater Credibility

An individual who owns, operates, or manages a business entity must have the accounts audited on a yearly basis. And among investors, lending institutions, and other groups and stakeholders who rely on the entity, this is thought to have better trust and believability.

Up from the previous cap of Rs 100 crore, medium-sized firms can now register as MSMEs with a turnover of up to Rs 250 crore. Around 2 crore MSMEs in India are anticipated to gain from the new definition, which will make it simpler for them to get finance, subsidies, and other advantages.

Ease In Funding

Like a private limited company, an opc in India can raise money from banks, other NBFCs, venture capitalists, financial institutions, angel investors, and other organisations that extend credit and provide funding. To raise finances from outside sources, a One Person Company can potentially transform itself into a Private Limited Company.

Registration with Least Requirements

No company can beat OPC regarding the registration process, as it can be done with the slightest requirements. Today, not even one company can bet on the simplicity and ease with which an OPC can be registered, as it holds the most minor requirements compared to others.

Benefits of Small-Scale Industries

All the advantages provided to small-scale companies, such as easy investment without depositing security to specific levels, financial assistance or loans at cheaper interest rates, advantages under foreign trade policy, and many more on the list, can be utilised by an OPC registration online in India. These are critical benefits that are crucial to the company’s early development.

A common business registration form in India is the OPC Company. Every OPC is required to file an annual return for a single person company, and this return must be done so within 60 days of the AGM. An annual return called Form MGT-7 contains information about shareholders and directors. In addition, extra compliance paperwork may be necessary based on the kind of entity and the nature of the business activity. For your company’s complete compliance, it is advised that you consult an expert advisor.

Acknowledged As A Trustful Separate Legal Business Structure

Any business structure registered under the 2013 Company Act is regarded as a distinct legal entity and benefits from more reliable company registration than unregistered businesses.

By meeting the standards listed below, anyone in India can establish an OPC corporation or a single-person business. Below are the OPC Registration Requirements:

Since either a shareholder or a director may be the same person, both are necessary.
The company’s owner or director must be an Indian citizen.
Several minor compliances with the necessary paperwork
A person or the business owner can devote more time to concentrating on the growth of his or her organisation and its functional areas as a result of this decreased strain.

Documents Required for One Person Company Registration

One Person Company Registration is simple, however it requires the paperwork listed below.

The director and nominee’s Aadhar card, voter card, PAN card, driver’s licence, etc. can serve as identification.
composing the company’s articles of incorporation (AOA) and memorandum of association (MOA). Both should be supplied throughout the registration process as they are both highly significant. Don’t forget to list all of your company’s goals and objectives.
The form INC-3 must be used to submit the specified nominee’s consent, which is necessary. The PAN card and Aadhar card of the OPC nominee must be provided for the registration process.

The One Person Company’s authorised director and nominee must submit the affidavit in form INC-9 and DIR-2.
During registration, residential verification of the location of the registered office, where business-related operations and communications take place, must be provided. Any utility statement will do, as long as it isn’t more than two months old. Examples of such bills are those for electricity, gas, telephone and so on.
Notification of No Objection

If you lease space for your business, you must have a lease agreement.
a copy of the nominee’s and designated director’s PAN card
Along with the form, please include two passport-size photos of the director and candidate.
The director’s DSC and DIN are necessary for OPC registration.

Eligibility Criterion for OPC Registration in India

Phase 1: To Get An OPC Or One Person Company Registration Under The Law, You Have To Fulfil The Below-Provided Conditions:

Only an Indian citizen is capable of the following:

able to include an OPC
He/she must have spent at least 182 days in India over the course of the previous year in order to qualify as a nominee for a company member.
OPC must convert into a private limited or public limited company within six months if its annual turnover threshold surpasses Rs 2 crores.

Phase 2: For OPC Registration Online In India, The Applicant Has To Fulfil The Following Considerations:

The applicant must be an Indian national who is able to form a One Person Company and who has resided in India for at least 182 days in the year prior. It should be mentioned that a new requirement applies to OPCs or One Person Companies whose annual turnover threshold surpasses Rs 2 crores. This requires that such a company upgrade within six months to become a Public Limited Company or Private Limited.

Features of One Person Company Registration in India

One Person Company Registration is New Concept

OPC is a novel idea that the Ministry of Corporations oversees in accordance with the Companies Act of 2013.

One Person Company Registration requires One Shareholder

To create a One Person Company in India, only one shareholder is needed. The stockholder must be an Indian resident since they must have spent at least 182 days in India.

An Immediate Nominee is required for One Person Company Registration.

Even though a business can be started by just one person, there should be a nominee who can assume the shareholder’s obligations in the event of a serious illness or accident. The nominee must consent to serve as the OPC shareholder’s nominee and must be an Indian citizen. A corporation functions as a distinct legal entity when registered with the OPC.

One Director is needed for One Person Company Registration.

Two directors are required as a minimum for a private limited business. As opposed to a public limited, which needs 7, an OPC can be founded with as little as one director, who may also be the company’s shareholder and owner. 15 directors are the maximum number that an OPC may appoint.

Fewer Compliances Required for One Person Company Registration

A one-person corporation has less compliance requirements than a private limited company because, according to the legislation, it can be founded with just one member and director.

There is a separate legal entity for a one-person company registration.

OPC is a distinct legal entity, just like private and public limited companies.

One Person Company Registration has Limited Liability

A corporation registered as a one-person company benefits from the restricted liability of its directors, who are prohibited from using their own assets or money to pay off the company’s debt.

One Person Company Registration Procedure

Online with Kanakkupillai, one Person company registration is an easy and hassle-free process. According to the Companies Act of 2013, an OPC can only be established in India with one shareholder who is a resident of India. The shareholder must designate a nominee who will assume accountability in dire circumstances.

An OPC can be established with just one director, who may also be the company’s shareholder, in contrast to private and public limited companies. The directors of the company have limited responsibility and are recognised as independent legal entities.

The steps for one-person company registration through Makemysales in India are as follows:

Apply for a Director Identification Number (DIN) and a Digital Signature Certificate (DSC):

Applying for a DSC and DIN for the director and nominee is the first step in registering your OPC.

Name approval:

The next step is to choose a distinctive name for your business and submit it for approval to the Ministry of Corporate Affairs after obtaining the required DSC and DIN.

Drafting of Memorandum of Association (MOA) and Articles of Association (AOA):

The legal documents that define the rights, obligations, and goals of the company and its members are the MOA and AOA. It is necessary to draw and submit these documents for approval.

Filing of registration forms:

The registration forms must then be submitted to the Registrar of Companies (ROC) when the MOA and AOA have been approved.

Payment of fees: Registration forms must be submitted along with payment of the registration costs.

Certificate of Incorporation: The ROC issues a Certificate of Incorporation, which signifies the formal formation of your OPC, following the successful filing and verification of necessary paperwork.

It’s crucial to keep in mind that any money invested in the business belongs to it, not the director or shareholder. The director’s culpability in extreme circumstances, such as bankruptcy or insolvency, is capped at the amount invested in the company. As a result, the director’s personal assets cannot be taken in order to settle business debts.

Directors of OPCs must, however, keep accurate records and adhere to all legal obligations. If you don’t, you risk fines and being barred from serving as a director. Additionally, seeking legal advice is advised when establishing an OPC and managing its affairs.

Checklist for One Person Company Registration

Here is a simple checklist to make sure you have everything ready if you’re planning to register your company as a one-person operation:

– Obtain a DSC (Digital Signature Certificate).

– Fill out the SPICe+ form to request a Directors Identification Number (DIN).

– Pick an original name for your business and secure approval for it.

– Compile all required paperwork and identification, including proof of address.

– Submit your application form and the necessary paperwork.

– Using Forms 49A and 49B, respectively, obtain PAN and TAN for your business.

– Create a new business bank account.

– Await the Registrar of Companies’ verification of all paperwork before requesting a certificate of incorporation.

It is crucial to remember that registering as a One Person Company has both benefits and drawbacks. Although it provides the sole proprietor with limited liability, it also places certain limitations on the number of directors, stockholders, and annual turnover. A legal professional should always be consulted before beginning the registration process.

One Person Company Registration Restrictions

One Person Company registration comes with a number of advantages but also some limitations. For instance, an OPC is only permitted to have one member and director at any given time. Additionally, an OPC’s yearly turnover in the prior fiscal year cannot have exceeded INR 2 Crores. Additionally, an OPC is not qualified for venture capital or equity funding. Before choosing OPC registration, it is essential to be aware of these constraints so that you can work within them to get the most out of it.

OPC registration can be a practical choice for business owners seeking to reduce their personal responsibility while operating their enterprises independently. However, it is essential to follow the right steps and fulfil all prerequisites before beginning the process. Choosing a distinctive name, gathering the required paperwork, creating a bank account, and obtaining a Digital Signature Certificate (DSC) and Directors Identification Number (DIN) are a few crucial milestones in the OPC registration process.

The number of directors, stockholders, and yearly turnover are all expressly capped by OPC, it is crucial to note. Indian Companies Act of 2013

OPC Registration vs. Sole Proprietorship Registration

We can imagine or observe that a one-person company resembles a single proprietorship in various ways. Even while there are many ways in which these two legal or corporate frameworks are similar, there are certain ways in which they are different.

Ownership: A single individual owns and manages a sole proprietorship, whereas a single individual owns and manages an OPC.

Legal Entity: Unlike a sole proprietorship, which is regarded as a single legal entity with its owner, an OPC is a separate legal entity from its owner.

Owner liability in an OPC is restricted to the amount invested by the owner, but under a sole proprietorship, the owner is personally responsible for the debts and liabilities of the company.

Continuity: In contrast to a sole proprietorship, which ceases to exist upon the death or retirement of the owner, OPC has a permanent existence, meaning that it is independent of the owner.

Compliance: The Companies Act and other rules must be complied with by OPC, while Sole Proprietorship has comparatively lower compliance responsibilities.

Taxation: The tax rates and treatment for OPC and Sole Proprietorship are different. Sole Proprietorship is taxed as an individual, but OPC is taxed as a company.

Compared to a sole proprietorship, where the owner must rely on personal savings and loans, the OPC has better access to funding because it may issue shares and raise money.

Expansion: Unlike a sole proprietorship, which has little alternatives for growth, OPC can swiftly increase its activities by bringing on more shareholders.

Makemysales's OPC Registration Package

At Makemysales, we provide a complete OPC registration package that includes all the necessary documentation and compliance requirements to set up an OPC. Our package includes

Name Reservation,

Drafting of Memorandum of Association (MOA) and Articles of Association (AOA),

Obtaining Digital Signature Certificate (DSC),

Director Identification Number (DIN),

Filing of Incorporation Documents with ROC,

PAN and TAN Applications,

and GST Registration if required.

With our expert assistance, you can easily set up your own One Person Company and enjoy the benefits of limited liability and separate legal entity status. Contact us today to learn more about our OPC registration package.

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