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One Person Company Registration

One Person Company (OPC) can be formed with only 1 owner, who acts as both the director as well as a shareholder of the company. There can be more than 1 director, but not more than 1 shareholder. It is registered as per the compliance and regulatory guidelines of the Ministry of Corporate Affairs (MCA).

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How to do One Person Company registration Online

Vakilsearch helps you to register One Person Company in India in 3 simple steps.

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DSC & DIN

We reserve the name of your company, and help you obtain the DSC and DIN.

Step 1

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Drafting & Filing

We draft and file the documents required for your OPC registration (MoA, AoA, PAN & TAN).

Step 2

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Post Registration

We help you with the post-registration formalities and compliances.

Step 3

What is One Person Company (OPC) Registration?

The One Person Company (OPC) in recent times was launched as a good refinement over the sole proprietorship. In OPC, a single promoter gains full authority over the company thereby restricting his/her liability towards their contributions to the enterprise. Therefore, the said person will be the sole shareholder and director (however, a director nominee is present, but has zero power until the real director proves incapable of getting into the contract). Also, there can be no opportunity for contributing to employee stock options or equity funding. Additionally, if an OPC company has an average hattrick turnover of Rs. 2 crores and over or acquires a paid-up fund of Rs. 50 lakh and over, it has to be converted to a private limited company or public limited company within six months.

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Documents required for OPC Registration

The director of the OPC should submit the scanned transcripts/ copies of the following documents mandatory for OPC registration-

  • PAN card or Passport
  • Passport, for NRIs and Foreign Nationals
  • Scanned transcript of Driver's License or Voter’s ID
  • Updated gas or electricity invoice/Bank account Statement/Mobile or landline phone invoice
  • Specimen signature or impression
  • passport-sized photo
  • Please Note: The first 3 documents should be self-attested by the OPC director. All the documents for a foreign national or an NRI must be notarized (if residing in India or a non-Commonwealth country at present) or apostilled (if living in a Commonwealth country at present).

    Documents Necessary For The Registered Office

  • Scanned transcript of Current Bank Account Statement/Phone or Mobile Invoice/Gas or Electricity Invoice)
  • Scanned transcript of Rental Agreement written in the English language
  • Scanned transcript of N-O or No-objection Certificate from the concerned property landowner
  • Scanned transcript of Property or Sale Deed printed in English (if the property is owned)
  • Note: Your office space which is registered needs to be a commercial area; however, it can be your house of residence as well

    What is included in this package?

  • Directors Identification Number for 1 Director
  • Digital Signature Certificate for 1 Director (If the shareholders are different from directors, then additional DSC is required for Shareholders)
  • Guidance for choosing the Company Name (Need Help in choosing your Company Name? Click here to refer the Naming Guidelines OR watch our Video by clicking here - http://bit.ly/1jD7tAX
  • PAN Number
  • TAN Number
  • The registration process includes - Drafting the Memorandum & Articles of Association, RoC filing fees for an authorized capital, Government Stamp Duty, and Certificate of Incorporation.
  • Name Approval Certificate
  • GST Registration
  • PF Registration
  • ESI Registration
  • PT Registration (Only applicable in Maharashtra)
  • DBS or ICICI Zero Balance Current Account [Powered by Vakilsearch]
  • Benefits of OPC Registration

    Limited Liability

    The directors' personal property is always safe in a private limited company, no matter the debts of the business.

    Continuous Existence

    Sole Proprietorships come to an end with the death of the proprietor. As an OPC company has a separate legal identity, it would pass on to the nominee director and, therefore, continue to exist.

    Greater Credibility

    As an OPC needs to have its books audited annually, it has greater credibility among vendors and lending institutions.

    FAQs on One Person Company Registration

    Why should I form an OPC?

    An OPC is a good alternative to running a sole proprietorship, largely because it gives limited liability to the business owner. This means that your liability is limited to the amount you’ve invested in the business; business debts cannot be recovered from personal possessions. Also, a sole proprietorship ceases to exist on the death of its promoter. In the case of an OPC, the nominee director takes over and the entity continues to exist. Single entrepreneurs who do not have another partner to start a private limited company may also consider it.

    Who can register for an OPC?

    OPC company registration can be done only by Indian residents, and that, too, only one at a time, as per the specifications of the Ministry of Corporate Affairs.

    What are the mandatory requirements of an OPC?

    All such businesses must maintain books of accounts, comply with statutory audit requirements and submit income tax returns and annual filings with the RoC.

    How much capital is required to start an OPC?

    There is no difference in capital requirement between an OPC and a private limited company. It needs an authorised capital of Rs. 1 lakh to begin with, but none of this actually needs to be paid-up. This means that you don’t really need to invest any money into the business.

    What are the tax advantages available to an OPC?

    No general advantages; though some industry-specific advantages are available. Tax is to be paid at flat rate of 30% on profits, Dividend Distribution Tax applies, as does Minimum Alternate Tax.

    What is the main drawback of an OPC?

    The MCA is skeptical about a single person in charge of a large corporation. Therefore, it requires all OPCs to be converted into private limited or public limited companies on crossing a certain revenue number. Currently, in case of an average turnover of Rs. 2 crore or more for the three consecutive years or a paid-up capital of over Rs. 50 lakh, the OPC must mandatorily be converted into an OPC.

    How much does it cost to run an OPC?

    The cost of an OPC is only marginally lower than that of a private limited company. You’ll be shelling out around Rs. 12,000 to incorporate, then paying around Rs. 15,000 a year in compliance fees and an auditor to inspect your books.

    How many directors can there by in an OPC?

    An OPC has certain limitations. The person starting the business is its only director and shareholder. There is also a nominee director, but this person has no power whatsoever for raising equity funds or offer employee stock options. The nominee exists only to take over in case of the death or incapacitation of the director. The nominee is chosen by the director, and can be anyone, such as your spouse, parents or siblings. The nominee will need to provide identity proof during registration.

    Can I start more than one OPC at a time?

    No, an individual can form only one OPC at a time. This rule applies to the nominee in an OPC, too.

    OPC Registration Process Duration

    5 Business Days

    Firstly, the OPC director should petition or apply for the DSC otherwise known as Digital Signature Certificate, which is mandatory to file for the company registration records. For this to come through, one only needs to submit a few scanned documents; after which our agents will file the form by filling it and put it online for submission.

    7 Business Days

    Once the application for the DSC is done, our agents will ask you to choose a name for your business and send us the relevant scanned documents for the same. The sent documents will be used to file for the SPICe i.e. INC-32 and the MoA is otherwise known as the Memorandum of Association and the AoA also known as the Articles of Association. Finally, at the end of this process, the Certificate of Incorporation will be processed and approved.

    2 Business Days

    All companies need a registered PAN or Permanent Account Number and TAN or Tax Account Number. The application will be filed online by our representatives, however, you will be asked to courier the hard copies of the relevant and required documents yourself. Post the processing, the TAN and PAN will be dispatched to you to your registered office address only within 21 business days.

    Why Vakilsearch

    15 Business Days

    Talk to us and let us know a little bit more about your company and rest assured. You will have the certificate of incorporation within 15 business days. It is very fast and very simple. Additionally to your request, we will be handling in and around 450 requests this month.

    9.1 Customer Score

    We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.

    160 Strong Team

    Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.

    Recent Updates

    30th March: Companies (Amendment) Bill, 2020

    Section 446B of the Act has been amended. The monetary penalty has been reduced for start-up, one Person Company, producer, and small companies. This will facilitate ease of doing business.

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