The concept of One Person Company (OPC) Registration was introduced by the Company’s Act 2013. One Person Company (OPC) Registration, as the name signifies, has a single member having 100% control of the business, unlike the private limited company registration where a minimum of 2 members are required to form the company. Sole proprietors are recommended to start their businesses as one Person Company (OPC) Registration, which has a key benefit of limited liability i.e the owner's assets will not be utilized to pay off the company's debts of the One Person Company. OPC registration is suited for a new entrepreneur who wants to enjoy the benefit of limited liability, better brand image, keep the compliance cost low, and test the services/ product prototype. Any One Person Company (OPC) Registration has a limit of turnover worth Rs. 2 crores, and paid-up capital of Rs. 50 lakhs. Once One Person Company (OPC) registration has a paid-up capital more than Rs. 50 lakh or average 3 year turn over crosses limits worth Rs. 2 crores, then it will be converted into private limited company registration.
The OPC Registration has separate legal entity from its owners which safeguard the owner from being sued in case of any legal controversy. Also, the owner's assets will not be utilized to pay off the company's debts. Since in OPC registration, only one person is the sole owner of the company, making the decision is a lot easier and faster. Also, the owner can appoint directors for his help without giving any share to them.
An OPC registration will be required to confirm to the procurements relevant to private limited company registration, but it will also get the benefit of various exclusions, and therefore there is less compliance burden over the OPC. Only a resolution might be conveyed and entered in the minute book (with date and sign), and such a date should be considered the date of the meeting.
Registering a company gives a brand image to business compared to running a business as a sole proprietor. Generally, large business firms prefer to deal with companies instead of sole proprietor firms. There might be a requirement of tender or job work, which can be applied only by the company.
All financial institutions prefer to lend money to any company registration instead of proprietary firms. The features of transparency and perpetual succession of the company give it benefits over any other business form. The company registration has better governance, which provides more comfort to all the financial institutions.
✔ Minimum 1 Shareholder
✔ Minimum 1 Director
✔ Minimum 1 Nominee
✔ Only Indian residents can be Shareholder
✔ Minimum Authorised Share Capital to be Re.1
✔ Only Indian residents can be Nominee
✔ Directors & shareholders can be same person
✔ Minimum 1 Director must be Indian Resident
✔ DSC (Digital Signature Certificate) for director and shareholder
Name of one person company registration is a crucial step for new company registration. Two proposed names in order of preference, objective/purpose of business activity along with statutory fees are submitted to MCA. The proposed name should be unique and shouldn’t have punctuation marks. In case MCA has any observation then the form comes for resubmission, and in case of more than one resubmission, statutory fees is to be paid again. Once the name is approved, it is valid for 20 days (including weekends or other holidays), and all other formalities must be completed within this period.
Digital Signature is an online signature used for filing documents online. Digital Signature Certificate (DSC) is required for all shareholder and director for One Person company registration. It can be applied in parallel with applying for name approval as there is no DSC requirement in the name application. If the director or shareholder of the One Person Company registration already has DSC, this step can be skipped.
After getting DSC and name approval, the next step is to file forms- Spice + Part, Agile Pro, Spice MOA, Spice AOA, and INC 22 forms with MCA. These forms consist of information regarding registered office, authorised, paid-up capital, shareholding pattern, directors, shareholders details such as an address, education qualification, etc. Some of this information is required to be supported required proof like rent/title deed of registered office, PAN card, indentity proof, resident proof etc.
After submitting all the documents and getting verified by the Registrar of Companies (ROC), you will receive a Certificate of Incorporation within 7-12 days. This certificate of incorporation will act as a birth certificate for your company registration, and the company registration process ends here. The certificate of incorporation consist of company name, registered address, 21 digits alpha-numeric number Corporate Identity Number (CIN) approved by MCA and notified on the registered companies.
After getting the Incorporation certificate, a bank account needs to be opened in the name of your company. One needs to submit an incorporation certificate, MOA, AOA and other necessary documents required by the bank. Before the commencement of business, proposed paid-up capital must be deposited with the bank, and INC-20A needs to be filled with MCA to get the certificate of commencement.
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Yes, the whole process for One Person Company registration is online. You don't need to visit anywhere physically. Contact us Now.
There is no requirement of commercial space for One Person Company registration. Even your own residential or rented residential address can be used as the registered address of the Company. Once your start up is setup, and ready then you can change the registered address.
There is a requirement of at least 1 directors to incorporate a OPC.
Normally, it take 1-2 weeks time for One Person Company registration provided all documents are supplied on time.
Directors Identification Number (DIN) is issued to a person who will be appointed as a director in the One Person Company registration. It is mandatory to have DIN before any person can be appointed as a director.
A Digital Signature Certificate (DSC) is the digital equivalent of physical papers or certificates required to sign the form electronically. Yes, as both directors need to sign various documents to incorporate a company, thus all the directors must have DSCs.
The Authorized Capital is the maximum amount of capital that a company is authorized to issue to the shareholders. This authorized share capital will always or be equal to the paid-up share capital.
A portion of authorized capital that has been issued and paid by shareholders.