One Person Company Registration Online - Benefits, Process, Requirements, Fees
Updated on May 26, 2021 10:42:13 AM
One Person Company (OPC) is a type of private limited company which can be formed with just one person who will act as director and shareholder of the company. The need for one person company arised due to the limitations of sole proprietorship firm which is the most popular form of business registration for small businesses in India. Unlike private limited company or an LLP where at least 2 people are required, entrepreneurs can now incorporate their company with one person only.
One Person Company Registration Certificate Sample
What is a One Person Company?
One Person Company or "OPC" is a kind of private limited company which is registered under the Companies Act, 2013. It can be registered with a single person who acts both as the director as well as shareholder of the company. OPC company use "opc private limited" or "opc pvt ltd" at the end of their company name because it is a private company owned by single person.
Earlier in a private limited company, a minimum of 2 directors and 2 members were required. A single person could not form a private company. But a new concept of OPC was introduced as per Section 2(62) in the Company’s Act 2013 where a single person can form a private limited company.
Benefits of One Person Company registration
Limited Liability:It helps in protecting personal assets of the owners with limited liability protection. So if there are any financial issues with the company, the assets of the director are secured and could not be seized by banks or departments.
Credibility:As OPC is a private limited company, it has higher credibility than traditional proprietorship firms. Unlike Sole Proprietorship, the Certificate of Incorporation is issued to One Person Company.
Continuous Existence:Unlike proprietorship, where the firm comes to an end with any mishappening with the proprietor, One Person Company continues to exist as it is passed on to the nominee director.
Separate Legal Entity:An OPC is a private legal entity in its own right and hence the business owners aren’t subject to any personal liability. The company can acquire assets and incur debts on its own name.
NRIs can register OPC:As per the amendment in the Union Budget 2021-22, One Person Companies can be incorporated by non-resident Indians. A person who has stayed in India for a minimum period of 120 days immediately preceding the financial year can register an OPC.
Process of One Person Company Registration
Step 1. Application for Digital Signature Certificate (DSC)
One person company incorporation is a complete digital process and therefore requirement of Digital Signature Certificate is a mandatory criteria. The person who would act as director and subscriber to the memorandum of the company needs to apply for a DSC from the certified agencies. Obtaining a DSC is a complete online process and it can be done within 24 hours. This process involves 3 simple verifications that are document verification, video verification and phone verification.
Step 2. Application for the name approval
Name application for one person company can be done through SPICe RUN form which is a part of SPICe+ form. While making the name application of the company, industrial activity code as well as object clause of the company has to be defined.
Note:It should be ensured that business name does not resemble the name of any other already registered company and also does not violate the provisions of emblems and names (Prevention of Improper Use Act, 1950). You can easily check the name availability by using our company name search tool to verify the same.
Step 3. Filing of SPICe Form (INC-32)
Post name approval, details with respect to registration of the company has to be drafted in the SPICe+ form. It is a simplified proforma for incorporating a company electronically. The details in the form are as follows:
Step 4. Filing of e-MoA (INC-33) and e-AoA (INC-34)
SPICe e-MoA and e-AoA are the linked forms which have to be drafted at the time of application for company registration. Memorandum of Association (MOA) is defined under section 2(56) of the Companies Act 2013. It is the foundation on which the company is built. It defines the constitution, powers and objects of the company. The Articles of Association (AOA) is defined under section 2(5) of the Companies Act. It details all the rules and regulations relating to the management of the company.
Step 5. Issuance of PAN, TAN & Certificate of Incorporation
Post approval of the above mentioned documents from the Ministry of Corporate Affairs; PAN, TAN & Certificate of Incorporation will be issued from the concerned department. Now, the company is required to open a current bank account by using these documents. You can contact us for assistance with your current bank account opening.
Register your OPC in India with Professional Utilities
The process of registering a One Person Company is complicated and involves various compliances. Our experts at Professional Utilities can simplify the whole registration process for you. Register your OPC online in 3 easy steps:
Step 2: Provide all the required documents for registration of the company and make 50% payment in advance.
Step 3: Your incorporation certificate including other documents will be delivered to you and you’ll have to make the balance payment.
Minimum requirements for OPC registration
As per the Companies Act 2013, there are minimum requirements that need to be met for one person company incorporation online.
Unique business name
No minimum capital requirement
A nominee must be appointed during incorporation
Address proof of office
Documents required for One Person Company registration
For incorporating your business as a One Person Company, you need to provide proper identity and address proof. The documents are required to be submitted to the Registrar of Companies.
Passport size photographs
Copy of Aadhar Card or Voter ID
Copy of PAN Card
Copy of Bank Statement (not older than two months)
Valid address proof of office which can be the latest electricity or any other utility bill.
If it is a rented office, then No Objection Certificate is required from the owner of the property.
Documents you’ll get after OPC registration
Post incorporation of one person company, you’ll receive the following documents:
Certificate of Incorporation
Permanent Account Number (PAN) of the company
Tax Deduction or Collection Account Number (TAN) of the company
Articles of Association (AoA)
Memorandum of Association (MoA)
Direction Identification Number (DIN)
Digital Signature Certificate (DSC)
EPF and ESIC registration documents
Company Master data
One Person Company registration fees
The total fees for registration of an OPC company or One Person Company in India is Rs. 4,499 including government and professional fees.
Total time required for OPC registration
On average, it takes around 7-10 working days to register a one person company or opc company in India subject to document verification by the Ministry of Corporate Affairs (MCA).
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Frequently Asked Questions (FAQs)
How do I register for one person business?
You can either register a Proprietorship Firm or a One Person Company. After choosing the entity type, you’ll need to provide proper documents and proofs along with professional certifications to MCA portal.
Can a single person form a company?
Yes, a single person can form a company by registering a one person company or sole proprietorship. The type of business entity will depend on the business requirements.
How much does it cost to register a one person company in India?
It will cost around Rs. 4,499 including govt and professional fee to register a one person company in India.
What are the documents required for one person company?
As per the Companies Act, 2013, you need to provide proper identity proof and address proof of director and business office. You also require a nominee director in case of any mishappening with the existing director and shareholder of the company.
What are the benefits of one person company?
A single person can form a private limited company and enjoy all the benefits of Pvt Ltd Company. Some of the main benefits are limited liability, separate legal entity, credibility and tax benefits.
Can OPC be converted into Pvt Ltd?
Yes, an OPC can be easily converted into Pvt Ltd company.