One Person Company (OPC) Registration in India

OPC Registration in India are considered to be the most modern form of business under the Companies Act, 2013. By allowing entrepreneurs to build single-person companies, a new innovative idea has been developed to promote the incorporation of micro-businesses and entrepreneurs with entrepreneurial ideas.

One Person Company (OPC) can easily be registered under the outlines of the Companies Act 2013 and the laws relating to it, making it possible for such a company to work as a business without the necessity of partnerships. The result is an increase in the number of people who start businesses. In addition, the OPC registration is suitable for small businesses whose turnover does not exceed Rs. 2 crores. In the case of OPC registration, it is important that either the nominee or the director be an Indian citizen.

Benefits of One Person Company Registration:

There are many benefits accruing to One Person Company Registration in the development of India’s economy. The number of entrepreneurs coming up and starting their own businesses is on the rise. Incorporating OPC allows the company to enjoy banking benefits and the ability to obtain loans and credits from banks. The following points explain the benefits for OPC Registration in India:

• Limited Liability

The member’s personal property is always safe, no matter the debts of the business. In OPC only investment in the company can be lost, personal assets of the member are saved.

• Continuous Existence

An OPC has a separate legal identity, it would pass on to the nominee director, therefore, it has perpetual existence.

• Greater Credibility

An OPC requires to have its books audited yearly, that’s why it has higher credibility between vendors and lending institutions.

• Easy to Sell OPC

OPC Company is simple to sell because of less documentation work involved.

• Full Control over the Company with a Single Owner

This fact helps to make fast decisions and execution. Although OPC can select as many as 15 directors for official functions, without providing any share to them.

• Easy to raise funds and loans.

OPC is one of the easiest forms of corporate entities to operate. Very less ROC filing is to be registered with the Registrar of Companies. No need to handle the Annual General Meeting and other regular compliances.

Documents Required for One Person Company registration:

• Copy of PAN Card of the owner
• Passport size photograph of the owner
• Copy of Aadhaar Card or Voter identity card
• Copy of Rent agreement (If rented property)
• Electricity or Water bill of Business Place
• Copy of Property papers (If property is owned)
• No Objection certificate from landlord

Some Important Forms for OPC Registration:

• Declaration by promoter in form INC – 9
• Declaration of Promoter as to Non receipt of Deposit under FEMA and SEBI
• General declaration by Promoter
• DIR-2 for Consent of Director
• MOA and AOA Subscriber Sheet
• NO Objection Certificate of owner of property
• AGILE PRO S

How to Incorporate One Person Company :

Following are the steps that shall be required to follow to incorporate One Person Company (OPC):

Step 1. Obtain DSC (Digital Signature Certificate) and DIN (Director Identification Number):

At first, the proposed directors must obtain a Digital Signature Certificate (DSC) and Director Identification Number (DIN).

Step 2. Name Reservation:

Then next step is file an application for the reservation of a suitable name. Application for name reservation can be filed in form SPICe plus Part A or in integrated SPICe form at the time of incorporation.

Step 3. Prepare Documents:

Now, next is to prepare the following documents which are required to be submitted to the Registrar of Companies:

• The Memorandum of Association (MoA)
• The Articles of the Association (AoA)
• Since there is only 1 Director and a member, a nominee on behalf of such a person has to be appointed because in case he becomes incapacitated or dies and not able to perform his duties the nominee will perform on behalf of the director.
• Nominee’s consent in Form INC – 3 will be taken along with his PAN and Aadhar.
• Proof of the Registered office of the proposed Company along with the proof of ownership and a No Objection Certificate from the owner.
• Declaration and Consent of the proposed Director in Form INC-9 and DIR-2 respectively.
• A declaration by the professional certifying that all compliances have been duly made.

Step 4. Filing Forms with MCA:

All above mentioned documents will be attached to the SPICe+ Form, SPICe-MOA and SPICe-AOA along with the DSC of Director and professional and will be uploaded to the MCA website for approval.

Step-5 Payment of Stamp duty and filing fees:

Once forms for incorporation of company is uploaded, next step is payment of filing fees and stamp duty. It depends upon the authorized share capital of the company and state in which registered office of the company is situated.

Step 5. Certificate of Incorporation:

After detailed scrutiny and verification, the Registrar of Companies (ROC) will issue a Certificate of Incorporation (COI).

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.

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