OPC Registration

The Companies Act, 2013 introduced a new kind of Company called One Person Company or OPC registration. An OPC is like a regular company with benefits like limited liability and being treated as a separate legal entity.

A single individual could not establish a business prior to the Companies Act of 2013. A sole proprietorship was the only legal form of business ownership available to new entrepreneurs. This was due to the need for a business to be formed with a minimum of two directors and two members.

According to Section 2(62) of the Companies Act 2013, a company can now be made with just one director and one member. The director and member can be the same person. Compared to a private firm, an OPC has less regulations to follow. 

Benefits of OPC Registration in India

Following are the benefits of OPC registration in India:

Legal Protection:

• OPC has a separate legal identity from its members, shielding the founder.
• Member's liability limited to shares, not personally accountable for losses.
• Creditors can only pursue legal action against the OPC, not the member.

Easy Fundraising:

• OPC can attract funds from venture capitalists, angel investors, and incubators.
• Viewed favorably as a private corporation, simplifying loan acquisition from financial institutions.

Reduced Compliance Requirements:

• Companies Act, 2013 grants OPCs exemptions and reduced compliance.
• No cash flow statement requirement, director alone can handle tasks like signing accounts books.

Simple Incorporation:

• Requires only one member and one nominee, with the member often acting as the director.
• No minimum paid-up capital requirement, simplifying incorporation compared to other companies.

Ease of Management:

• Single-person management facilitates quick decision-making and easy resolution passing.

Fewer Compliance Requirements:

• Registration process for OPCs needs minimal paperwork due to reduced compliance requirements.

Benefits for Small Scale Industries:

• Avail easy funding without collateral security, lower interest rate loans, and benefits under foreign trade policy.
• Facilitates progress and development, especially in early stages.

Perpetual Succession:

• Despite having one member, OPC enjoys perpetual succession.
• Nominee appointed during incorporation takes over in the event of the member's demise.

Checklist for OPC Registration Online

The following are the essentials for OPC registration online in India:

Documents Required for OPC Registration

Following documents are essential for OPC registration online:

• Memorandum of Association or MoA
• Articles of Association or AoA
• Nominee's consent, PAN card as well as Aadhaar card (submitted via Form INC-3)
• Proof of Regd Office
• Declaration by proposed director (Form INC-9 and DIR-2)
• Declaration by qualified professionals for certifying legal compliances.

OPC Registration Fees

• OPC registration fees depend on factors including share capital.
• Government levies Rs. 2,000 for share capital < Rs. 10 lakhs, with Rs. 200 extra for every additional Rs. 10,000 up to Rs. 50 lakhs as OPC registration fees.
• Incorporation fee waived to promote entrepreneurship.
• OPC company registration charges cover DIN, DSC, stamp duties (vary by state), and filing forms.

OPC Registration Process

Following are the steps for OPC Company registration procedure in India:

Step 1: Apply for DSC

• Obtain Digital Signature Certificate (DSC) for proposed director with required documents i.e. Address proof, Aadhaar card, PAN card, Photo for identification, Email Id, Phone no.

Step 2: Apply for DIN

• Apply for Director Identification Number (DIN) via SPICe+ form.
• Provide name and address proof of director.
• DIN can now be applied within SPICe+ form for up to three directors.

Step 3: Name Approval Application

• Decide on company name in "ABC (OPC) Private Limited" format.
• Submit name approval application in Form SPICe+.
• Only one preferred name allowed with significance; can reapply if rejected.

Step 4: Documents Required

Prepare documents for submission to ROC:

• Memorandum of Association (MoA) and Articles of Association (AoA).
• Nominee appointment with consent in Form INC-3, PAN card, and Aadhaar Card.
• Proof of registered office, ownership proof, and NOC from owner.
• Declaration and Consent of proposed Director (Form INC-9 and DIR-2).
• Professional declaration certifying compliance.

Step 5: Filing of Forms With MCA

• Attach documents to SPICe+ Form, SPICe-MOA, and SPICe-AOA.
• Upload to MCA site with DSC of Director and professional.
• PAN Number and TAN generated automatically.

Step 6: Issue of Certificate of Incorporation

• ROC verifies documents and issues Certificate of Incorporation.
• Business operations can commence thereafter.

What Are the Compliances for One Person Company in India?

The Companies Act of 2013 has certain rules that need to be followed by companies within specific deadlines. These regulations can be broken down into four main groups: annual compliances, frequent compliances, compliances based on events and one-time compliances following incorporation.

The mandatory compliances for an OPC post registration include:

Given below is the table showing the timelines for OPC compliances to be followed:

Timelines for OPC Registration

The time required for registration of OPC is as given below:

Why Choose StartupFino for OPC Registration Online?

One Person Companies have gained much popularity since they were introduced in 2008. While forming an OPC, certain requirements and compliances must be adhered to in order to make the incorporation and subsequent functioning effective.

StartupFino is a company that specialises in offering complete services for OPCs registration online. We can help you with everything from providing advice in the initial phase to ensuring that you meet all the necessary requirements, while also keeping your OPC in good legal standing.