One Person Company (OPC) Registration in India
Launch your solo venture with confidence! Register as a One Person Company in India and enjoy full control with limited liability.
Introduction
The concept of One Person Company (OPC) in India was introduced through the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity. This model combines the perks of a sole proprietorship and a company form of business structure, making it ideal for small entrepreneurs.
Eligibility and Requirements
To register an OPC in India, there are specific criteria that need to be met:
01
Single Shareholder: Only one person is needed to act as both the director and the shareholder, though a nominee must be appointed.
02
Director and Nominee: The OPC can have more than one director, but the shareholder cannot be more than one. The nominee must also be a natural person who is an Indian citizen and resident in India.
03
Residency: The sole member should be a resident of India, i.e., should have stayed in India for at least 182 days in the preceding calendar year.
04
No Minor: The member and nominee cannot be minors.
Steps for Registration:
Obtain Digital Signature Certificate (DSC):
Since the registration process is online, a DSC is necessary for the sole director.
Director Identification Number (DIN)
The director needs to obtain a DIN, which can be applied for during the OPC registration process.
Name Approval
File for the approval of the company name through the RUN (Reserve Unique Name) service available on the MCA portal. The name should include "(OPC) Private Limited" as part of the last name.
Filing of Forms with MCA
File the incorporation forms like SPICe+ along with the required documents including details of the member and nominee, registered office proof, and the Memorandum of Association (MoA) and Articles of Association (AoA).
Appointment of Nominee
Nominee consent must be obtained and filed along with the incorporation documents.
Issuance of Certificate of Incorporation
Upon verification of the application, the Registrar of Companies (RoC) will issue a Certificate of Incorporation, and the OPC can commence its business operations.
Advantages of a OPC
01
Limited Liability: The personal assets of the member are protected; liability is limited to the amount invested in the company.
02
Full Control: The single member has full control over the operations without the interference of any other person, which is often a benefit in making quick decisions.
03
Less Compliance: OPCs enjoy several exemptions and concessions in terms of compliance under the Companies Act.
04
Continuity of Existence: The existence of the OPC is not affected by the change in its membership, and it continues with the nominee.
Post-Incorporation Obligations
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Annual Filings: OPCs must comply with regulatory filings such as Annual Returns and Financial Statements with the RoC.
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Conversion: OPCs can be converted into a private or public company after two years of incorporation or when it exceeds certain thresholds of turnover or capital.
OPC is an excellent choice for small entrepreneurs who are venturing alone into the business world. It offers simplicity in operation and management while providing the benefits of limited liability and corporate status, which helps in building credibility with financial institutions and vendors.