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 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 business, according to Section 2, Paragraph 62 of the Companies Act of 2013. Fewer compliance requirements for one-person company registration in India than for private limited companies.
Features of One Person Company Registration
1. One Shareholder/member:
The basic idea behind a one-person company registration is to have one shareholder or member. A natural person who is both an Indian citizen and a resident may establish a one-person business. The person who creates OPC is the sole shareholder in the company. According to the statute, a person may only a shareholder in one one-person company at any given time.
2. One Director:
The OPC must have at least one director, who may be the sole shareholder.
The maximum number of directors permitted under the Act is 15.
If the original shareholder passes away or becomes incapable, the shareholder must designate a replacement. Such a nominee shall nominate any other person as his nominee upon becoming a member. The nominee must also meet the conditions of being an Indian citizen and resident. According to the guidelines, if the nominated individual is already a member of another one-person company, he must determine within six months which one-person company he will stay with.
Benefits of OPC company registration online
One-person companies are the corporatization of sole proprietorships, so they have all the advantages of corporations in addition to various leniencies in applying company law. The benefits of OPC registration online in India include the following:
- It can have more than one director, but there can only be one shareholder.
- It is not impacted by a member’s passing or a change in ownership.
- Comparatively simple to set up and maintain.
- Limits the members’ legal obligations, and minimum documents are required.
- Can function as a stockbroker or a sub-broker
- Not several observances
- No intervention of a third party is present.
- No one is allowed to incorporate more than one one-person business.
Necessary Documents Needed For OPC Registration Online
Below is a list of documents that required for One Person Company registration online:
- Passport or PAN card
- Driving licence or voter ID card, or a passport in the case of foreign nationals
- A new gas or electric bill
- A sample signature
- Passport size photo
One Person Company Registration Procedure
Step 1: Apply for DSC:
Obtaining a Digital Signature Certificate (DSC) of the intended director is the first step in registering a One Person’s Company and calls for the following documents:
- Proof of address
- Aadhaar card
- PAN card
- Email ID
- Contact information
Step 2: Request a DIN:
After the Digital Signature Certificate (DSC) has been generated, the next step in registering a One Person Company is to request a Director Identification Number (DIN) from the SPIC form along with the prospective director’s name and address.
Step 3: Submit a name approval request:
Choosing a name for the business is the next stage in the online OPC registration process. For example you choose “XYZ” as your company’s name so, “XYZ (OPC) Private Limited” should be the company’s name. Form SPICe+ 32 can be used to approve the name. In Form SPICe+ 32, you may specify only one preferred name and the rationale for selecting it. You can also use a separate SPICe+ 32 application form to submit an alternative name if the first name does not get approved.
Step 4: The documents needed to register a one-person business:
The following documents must prepare and submitted to the ROC for one-person company registration online:
- The Memorandum of Association (MoA), which specifies the company’s intended use for incorporation, sets up the rules that govern the organisation.
- The Articles of Association define the company’s laws (AoA).
- Since there is only one director and member, the company must appoint a nominee in their place. If the director becomes ill or passes away and cannot perform their duties, the nominee will act in the director’s place and take their place. His PAN and Aadhar cards will also be accepted, along with his consent form INC-3.
- Proof of the proposed company’s registered office, ownership documentation, and an owner’s no-objection certificate
- Forms INC -9 and DIR -2, respectively, include the nominated director’s declaration and consent.
- A certification from a professional stating that all standards have been met
Step 5: Filling Out Forms with MCA:
All of these documents, along with the director’s and professional’s DSCs and the SPICe-MOA and SPICe-AOA forms, will uploaded to the MCA website for approval. When the company was incorporated, an automated Pan Number and TAN were generated. You are not required to submit a separate application to obtain a PAN and TAN.
Step 6: Issuance of a certificate of incorporation:
Your one person company registration is complete, and you can begin conducting business. The Registrar of Companies (ROC) will provide a certificate of incorporation following verification.