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One Person Company (OPC) Registration

Identity and Address Proof

  • Scanned copy of PAN card or passport (for foreign nationals & NRIs)
  • Scanned copy of voter ID, passport, or driving license
  • Scanned copy of the latest bank statement, telephone or mobile bill, electricity or gas bill
  • Scanned passport-sized photograph with specimen signature (blank document with signature for directors only)

Registered Office Proof

  • Scanned copy of the latest bank statement, telephone or mobile bill, electricity or gas bill
  • Scanned copy of notarized rental agreement in English
  • Scanned copy of a no-objection certificate from the property owner
  • Scanned copy of sale deed/property deed in English (in case of owned property)

One Person Company (OPC) Overview

An One Person Company (OPC) is a unique entity under the Companies Act, 2013, allowing an individual to form a company with limited liability and succession. It combines the advantages of a company with the flexibility of sole ownership.

Formation and Structure

  • Formation: Only one person is required for OPC registration, eliminating the need for a group of people.

  • Legal Entity Status: OPC enjoys a separate legal entity status, protecting the individual from personal liability.

Advantages of OPC in India

  1. Legal Standing:

    • OPC enjoys a separate legal entity status, protecting the member from personal liability.

  2. Easy Access to Funding:

    • Private nature of OPC allows easy fundraising from venture capital, angel investors, etc.

  3. Less Conformity:

    • Exemptions from certain compliance requirements under the Companies Act of 2013.

  4. Easy Integration:

    • Simple integration without legal hassles, with no minimum paid-up capital requirement.

  5. Easy Management:

    • Administration is simplified as a single person manages and leads the company.

  6. Constant Repetition:

    • OPC has perpetual succession, ensuring continuity even with a single member.

Checklist for OPC Registration

  1. Membership Requirements:

    • Ensure compliance with maximum and minimum membership criteria.

  2. Nominee Selection:

    • Choose a nominee before incorporation.

  3. Nominee Approval:

    • Use Form INC-3 to request the nominee's approval.

  4. Name Selection:

    • Select an appropriate name for OPC, adhering to the Companies (Incorporation Rules) 2014.

  5. Authorized Capital:

    • Maintain a minimum authorized capital of ₹1 Lakh.

  6. DSC and Registered Office:

    • Obtain the Digital Signature Certificate (DSC) of the potential director.
    • Provide evidence of the OPC's registered office.

Compliances for OPC

One Time Compliance

  1. Appointment of First Auditor:

    • Within 30 Days of Incorporation.

  2. Issue of Share Certificate:

    • Within 60 Days of Incorporation.

  3. Stamp Duty Payment on Share Certificate:

    • Within 30 Days of Certificate Issue.

  4. Filing of INC-20A (Declaration for Business Commencement):

    • Within 180 Days of Incorporation, but before commencing business.

Steps for OPC Registration

  1. Eligibility and Documentation Check:

    • Ensure eligibility and gather necessary documentation.

  2. DSCs and DINs Request:

    • Request Digital Signature Certificates (DSCs) and Director Identification Numbers (DINs) for each director.

  3. Name Reservation:

    • Submit a name reservation request using Form Spice+ for company incorporation.

  4. PAN and TAN Application:

    • Apply for PAN and TAN for the new business.

  5. Certificate Issuance:

    • RoC issues an incorporation certificate with PAN and TAN.

  6. Bank Account Opening:

    • Open a bank account to commence business operations.

AuditorWorks Registration Package

AuditorWorks offers a comprehensive registration package for OPC in India, including:

  • Digital Signature Certificate for one director.
  • Directors Identification Number (DIN).
  • Assistance with company name selection.
  • PAN and TAN application, articles of association drafting, stamp duty payment, and certificate of incorporation fee.
  • Name approval certificate acquisition.
  • Registration for GST, PF, ESI, and PT (applicable in Maharashtra).
  • Opening a zero-balance current account in DBS or ICICI.

Features of OPC

  1. Easy Succession:

    • Perpetual succession even with a single member, with a nominee chosen for continuity.

  2. Limited Liability:

    • Limited liability for the member, protecting personal assets.

  3. Sole Directorship and Shareholder:

    • Single-member acts as both director and shareholder, simplifying management.

  4. Ownership in Property:

    • OPC, as a separate legal entity, can hold property and assets in its name.

Restrictions on OPC

Despite advantages, OPC has limitations:

  1. Not Apt for Scalability:

    • Suitable for small business structures; not ideal for scaling up.

  2. Higher Restrictions on Business Activities:

    • Limited freedom for non-banking financial investment activities.

  3. No Clear Distinction Between Ownership and Management:

    • Single person as director and manager may lead to ethical concerns.

In summary, OPC registration offers a unique business structure with advantages like limited liability and easy access to funding. However, understanding its restrictions and complying with necessary regulations are crucial for a successful and compliant operation. If you have specific queries or need further guidance on OPC matters, feel free to ask.

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