One Person Company (OPC) Registration Online

A One Person Company is a distinct legal entity that has perpetual succession. To comply with the regulations and guidelines set by the Ministry of Corporate Affairs (MCA), it is necessary to apply for online registration of a One Person Company in India under the Companies Act of 2013. An OPC is a type of organization that can be established with just one owner who can serve as both the company's shareholder and director.

Under the Companies Act of 2013, a new way of starting a company called the One Person Company (OPC) has been introduced. An OPC is a distinct legal entity with perpetual succession that can be formed with just one owner acting as both the shareholder and director. To register an OPC in India, it is necessary to comply with the regulations and guidelines of the Ministry of Corporate Affairs (MCA) and apply online under the Companies Act of 2013. OPCs have fewer compliance requirements compared to Private Limited Companies.

One Person Company (OPC) is a business structure formed by a single person who serves as both the director and owner of the company. In accordance with the Companies Act of 2013, OPC registration in India is a form of a sole proprietorship that allows the owner to run the business with complete authority while limiting their duties and financial liabilities for the company.

One Person Company (OPC) Registration offers better opportunities and advantages with much less compliance. OPC registration in India:

1. Limited Liability: OPC registration in India provides entrepreneurs with more opportunities to take risks and explore better business opportunities. Best suits for new, young, and innovative entrepreneurs.
2. Continuation of existence: Unlike a single-person-owned company, an OPC enjoys the benefits of a separate legal identity. Therefore, if the proprietor or owner dies, the company continues to exist through the nominee director.
3. Greater Credibility: OPC requires annual audits which enhance the credibility and trust of investors, lending institutions, and other organizations.
4. Ease in Funding: OPC brings up funds through financial institutions, angel investors, venture capitalists, banks, NBFCs, and other credit and fund-providing organizations. An OPC has the liberty to upgrade itself to a Private Limited Company to bring up funds from outside.
5. Registration with Least Requirements: OPC registration needs minimum documents. The process is simple and easy.
6. Benefits of Small-Scale Industries: OPC registration online in India can use all the benefits offered to small-scale industries such as easy investment without depositing security, financial help or loans at lower interest rates, advantages under foreign trade policy, and more. These benefits play a vital role in the development of the company in its starting days.
7. Distinct Legal Business Identity: OPC is recognised as a separate legal entity as it is registered under Company Act 2013 which comes under more trustworthy company registration when compared to non-registered companies.

The requirements for starting an OPC or One Person Company are as follows:

• A single person can act as both the shareholder and director.
• The owner or director must be an Indian citizen.

Minimal documentation for compliance purposes.

To register an OPC or One Person Company, certain documents are required. These include

• Identity proof of the director and nominee, which can be their Aadhaar card, Voter ID, PAN card, driving license, etc.
• Memorandum of Association (MOA) and Article of Association (AOA) of the company. Both of these documents are important for the registration procedure. Highlight all the aims and objectives of your company in these documents.
• INC-3 form as the consent of the designated nominee, The nominee of the OPC has to submit their PAN card and Aadhaar card for the registration procedure.
• Affidavit in form INC-9 and DIR-2 from the designated director and nominee of the One Person Company.
• Residential proof of the registered office. For example, utility bills such as electricity bills, gas bills, telephone bills, etc., and these bills should not be older than two months.
• No Objection Certificate.
• Rent agreement in case you are running your business on a rented property.
• A copy of the PAN card of the designated director and nominee.
• Passport-size photographs of the director and nominee along with the form.

DSC and DIN of the director are essential for the OPC registration purpose.

To register an OPC online in India, the applicant must fulfill the following conditions:

1. The applicant should be a citizen of India and should be residing in India for at least 182 days in the preceding year.
2. If a One Person Company (OPC) has a paid-up share capital exceeding INR 50 lakhs or an average turnover exceeding INR 2 crores, it is allowed to convert itself into a private limited company within six months.

Requirement for registering OPC:

A nominee or a member of the company must hold Indian citizenship.
The person should be the only member of the company.
The person should have stayed in India for at least 182 days in the previous year.

• New Concept: OPC is a novel concept governed by the Ministry of Corporation under the Companies Act, 2013.
• One Shareholder: It requires only one shareholder to establish an OPC in India. She/he should be an Indian resident and must have stayed in India for a minimum period of 182 days.
• An Immediate Nominee: A nominee who can take responsibility for the shareholder in case of extreme circumstances like death or incapacity. The nominee should be an Indian citizen and has to give his/her consent as a nominee of the OPC shareholder. Under OPC registration, a company acts like a separate legal entity.
• One Director: OPC can be formed with only one director, who can also be the shareholder and owner of the company. An OPC can appoint a maximum of 15 directors.
• Fewer Compliances: OPC needs fewer compliances as compared to a private limited company.
• Separate Legal Entity: OPC is also considered a separate legal entity.
• Limited Liability: Under OPC registration, a company enjoys the benefits of limited liability of its directors, according to which their personal assets and funds cannot be used to incur the debt of the company.

One Person Company registration in India is an online process, and it is done in accordance with the Companies Act, 2013.

The following is a step-by-step procedure for registering OPC online:

• Apply for DSC or Digital Signature Certificate.
• Apply for DIN or Directors Identification Number, which can be filed with the SPICe+ form.
• Select a unique name for the company and obtain company name approval.
• Double-check all documents and proofs before submission, such as address proof, ID proof, etc.
• Submit the application form along with all necessary documents.
• Open a new bank account for the company.
• Once all documents and forms are verified by the authorities, the Registrar of Companies will grant a certificate of Incorporation containing the CIN number and PAN and TAN of the Company.

Although there are similarities between One Person Company and a sole proprietorship business in several ways, there are certain differences between these two legal or business structures that can be observed.