One Person Company Registration

If you have some entrepreneurial ideas to start your business and dreamof becoming owner and director of your own company, then OPC is one of the modern business forms to start. 

You can take OPC registration quickly and start your single-person company. However, before taking OPC registration, you must be fully aware of the various aspects of registering an OPC.

This article has covered all importantquestions that might arise in your mind related to one person company registration. 

What is one person company (OPC)?

The concept of one person company was introduced under the Companies Act, 2013. One person company is the hybrid of a private limited company and sole proprietorship. An individual who is willing to be the director and owner of the company can start his/her OPC. 

Under the OPC, the owner has limited liabilities with complete decision-making power to run his/her venture. 

Note: An OPC has to compulsory convert into a private limited or a public limited within six months, if

• Its annual turnover exceeds Rs 2 crore or
• The paid-up share capital exceeds Rs. 50 lakhs.

Benefits of one person company registration in India

• Being the sole owner, you have the quick-decision making power. 
• There are no minimum capital requirements.
• It enjoys separate legal entity status.
• Theliability of the director is limited to the capital contribution. 
• OPC registration is quick and simple with minimum compliances.
• It increases trust and credibility among the various stakeholders
• Variousother benefits as provided to small scale industries (SSI), such as lower interest rate loans, easy funding, collateral security, etc. 

Minimum requirements for OPC registration 

Before starting a one-person company, you have to fulfil the following requirements:

1. Minimum one shareholder and one director (both can be the same). The person must be both a citizen and resident of India (who had lived in India for 182 days or more in the preceding year).
2. Minimum one nominee at the time of incorporation and selected by the company’s promoter.
3. Director identification number for all directors
4. Digital signature certificate for one promoter and one witness. 

Documents and forms required for one person company registration 

Documents 

• Copy of the director’s PAN Card
• Recent passport-sized photograph of the owner
• Copy of the director’s identity proof such as Aadhaar Card/Voter identity card/ Driving License 
• Copy of the director’s address proof such as electricity bill/phone bill/water bill
• Copy of address proof of the registered office, i.e., property papers (in case of an owned property) or rent agreement (If in case a rented property)
• No-Objection Certificate (NOC) from the actual owner

Forms

• Promoter’s declaration in the form INC-9
• Promoter-Non-Deposit declaration under the FEMA (Foreign Exchange Management Act) and SEBI (Securities Exchange Board of India)
• Consent of Director in the form DIR-2
• MOA (Memorandum of Association) and AOA (Article of Association) Subscriber Sheet

Process of One person company registration 

The process of one person company registration is simple with the below-mentioned steps:

Step 1: Obtain DSC and DIN

The first step is to apply for the DSC (Digital Signature Certificate) and DIN (Director Identification Number). DSC is required to digitally sign the OPC registration forms, whereas DIN is required to obtain every proposed director of the company.

Step 2: Name reservation through SPICe+ Form (Part A)

The OPC name must have the suffix “OPC Pvt. Ltd.” The owner is required to reserve the name of the company that must be unique. For OPC name reservation, you need to file Part A of the SPICe Plus form with the “Proposed name of the company.”

Step 3: Submission of MOA and AOA

On successful reservation of name, you need to submit the incorporation documents and the MOA &AOA of the company. It shall be filed in Part B of the SPICe+ form. You can also file PAN and TAN application simultaneously, as these forms are attached with the SPICe+ form.

Step 4: Incorporation certificate

MCA takes 4-5 days to verify the documents after submission. After approval of all the documents and forms, it will issue an incorporation certificate with CIN. 

Taxation provisions on One Person Company 

An OPC has to follow all taxation provisions like a private company, such as

• Filing of Income-tax return and the OPC income is taxed in a financial year at 30 per cent.
• Tax Deducted at Source (TDS) deduction and filing of quarterly TDS returns  
• Mandatory Employee State Insurance (ESI) registration, subject to the applicability