Overview of One Person company (OPC)
A One Person Company (OPC) is a unique business structure introduced in the Companies Act, 2013, aimed at empowering individual entrepreneurs to form a company without the complexity of finding partners. This model allows a single individual to operate as both the shareholder and the director, offering the benefits of a corporate entity while retaining control and simplicity.
The OPC model is particularly beneficial for small businesses and solo entrepreneurs who wish to scale their operations without the burden of extensive regulatory compliance associated with other types of companies. It bridges the gap between sole proprietorship and a full-fledged company, providing limited liability protection and perpetual succession.
An one person company enjoys numerous advantages, including ease of incorporation, fewer compliance requirements, and the ability to convert into other types of companies as it grows. This structure is ideal for individual entrepreneurs seeking to benefit from the corporate framework's advantages while maintaining full control over their business.
Benefits of One Person Company Registration
Since a one person company is a legally incorporated entity, all the details and one-person company documents are readily available on the official website of the Ministry of Corporate Affairs for verification, making it easier for the company to acquire credit from financial institutions.
One Person company Registration process
Registration for a one-person company is a simple process, and it can be done online through the Ministry of Corporate Affairs portal. Here is the step-by-step guide to registering as a one-person company.
Step 1: Obtain Digital Signature Certificate
In the first step, it is important to acquire the digital signature certificate for the proposed owner of the company. It is necessarily required to sign all the one-person company documents during the online registration process.
Step 2: Obtain Director Identification Number
The company has to obtain Director Identification number, which is provided by the Ministry of Corporate Affairs (MCA) which serves as unique identification for the proposed owner.
Step 3: Name approval
A name for the company must be chosen. It is important that the reserved name be unique and not resemble any of the existing companies. The applicant can reserve the name from the Ministry of Corporate Affairs portal by submitting the SPICe+ (A) form.
Step 4: Creating MoA and AoA
A Memorandum of Association is a legal document that specifies the company's objectives and basic details. In contrast, an Article of Association is a document which defines the rules and regulations of the company. Both documents are required to be filled and submitted to the Registrar of Companies (ROC) for approval.
Step 5: Form Filling
In this step, all the above stated documents, i.e MoA, AoA along with DSC of the proposed director, are submitted on the Ministry of Corporate Affairs (MCA) portal for verification. After the submission, the PAN number and TAN are generated automatically.
Step 6: Issue of certificate
Once all the one-person company documents are submitted, the respective authorities will do a verification check. If the application satisfies all the requirements, a certificate of Incorporation will be issued, which is proof that the company is now registered.
Documents required for the Incorporation of One Person Company
Setting up a one person company (OPC) involves submitting specific documents to ensure compliance with legal and regulatory requirements. Here are the essential documents required for the one person company registration
Identity Proof of the Director and Nominee
PAN Card: The primary identity proof for the director and nominee.
Aadhar Card: Essential for the eKYC process.
Address Proof of the Director and Nominee
Passport, Voter ID, or Driving License: Any of these documents can serve as proof of address.
Recent Utility Bill: Electricity bill, telephone bill, or gas bill not older than two months.
Residential Proof of the Director and Nominee
Bank Statement: Should not be older than two months.
Mobile Bill or Telephone Bill: Latest bill showing the address.
Registered Office Address Proof
Ownership Proof: If the office premises are owned by the director, provide a sale deed or property deed.
Rent Agreement: If the office premises are rented, a rental agreement along with a no-objection certificate (NOC) from the property owner is required.
Utility Bill: Recent electricity bill, water bill, or property tax receipt of the registered office address.
Nominee Consent
Form INC-3: A signed consent form from the nominee, indicating their willingness to become the nominee director in case of the original director's death or incapacitation.
Director Identification Number (DIN)
Proof of application or allocation of DIN for the proposed director.
Digital Signature Certificate (DSC)
A valid DSC for the proposed director and nominee, used for online filing of forms.
One Person Company Registration Fees
The fees of one person company registration in India can vary depending on several factors, including:
- Government Fee: For several OPC registration procedures, the Ministry of Corporate Affairs (MCA) sets standard costs. They pay for the costs of reserving a name, incorporating, and submitting paperwork to the Registrar of Companies (RoC) that are related to completing your application.
- Professional Fees: There will be professional fees if you choose to hire a professional, like a chartered accountant or company secretary, to help you with the one-person company registration procedure and make sure you're following the law. The range of services rendered and the professional's level of experience determine these prices.
- Extra Costs: There are several unspecified one-person company registration costs to take into account in addition to professional and government fees.
- Stamp duty: Depending on the applicable stamp duty rules of the state where the business is formed, some papers, such as the Memorandum of Agreement and the Articles of Association, may need to be stamped.
- Bank fees: one person company registration transaction fees may apply when paying online for professional services or government levies.
- Notary fees: There may be additional costs associated with notarizing certain papers.
How Taxlegit help in OPC Registration
At Taxlegit, we provide comprehensive services to simplify the registration process for one person companies. Our expert consultants offer:
Professional advice on legal and regulatory aspects.
End-to-end assistance with documentation, compliance, and registration.
Efficient and time-saving registration process.
Ongoing compliance and advisory services.
Startup tips and strategies to help grow your business.
Assistance with funding opportunities through our network of investors.
