One Person Company (OPC) Registration
One Person Company(OPC) is the most modern form of business that came into existence by the company’s Act 2013.This concept of One Person Company(OPC) was mainly brought in to help out the small entrepreneurs who want to start there own business and who think they can manage their business on there own itself.Previously the law doesn’t permit to register a company with one person. One Person Company(OPC) is treated the same as Private Limited Company as both of the company has the same features to a larger extent.
One of the biggest advantages of registering one’s business as a One Person Company(OPC) is that an individual can start his business with one person alone whereas this feature is not available in any other company registration like Private Limited Company or a Limited Liability Partnership(LLP) where there is a requirement of minimum two members to start the business. One Person Company(OPC) is similar to Private Limited Company, it is treated is a separate legal entity from its promoter. In simple words, a One Person Company(OPC) is a type of Private Limited Company with one shareholder.
One Person Company(OPC) is the only company in which 100% of the stake of the company owned by the shareholder this feature is not available in any other company formation. A nominee has to be appointed on a compulsory, This is done to make sure who will take the position of the owner in case of death.
One Person Company(OPC) is benefiting to a larger extent in developing the Indian economy. One Person Company(OPC)encourages more number of entrepreneurs to commence a business entity. One Person Company(OPC) is appropriate to a small business house where the turnover should be less than Rs. 2 Crores.
Advantages of registering a business as a One Person Company(OPC)?
The liability of the directors/shareholder is limited to the assets of the company i.e the personal property of the directors/shareholder is not liable to no matter the debts of the business.
One Person Company(OPC) is a separate legal entity that would be passed on to the nominee, In the case of death of the director henceforth it has continuous existence.
One Person Company(OPC) has to audit on a yearly basis. It has higher credibility which helps them to get a loan from lending institutions.
Easy to Sell OPC
One Person Company(OPC) can be sold to any individual. The process of selling would involve very limited documentation work.
Full Control over the Company with a Single Owner
The control of the company is with a single owner which helps to take fast decisions and execution of that.
Annual General Meeting
One Person Company(OPC) doesn’t require to have an annual general meeting and even it has no other regular compliance as other entities
Checklist for Registering a One Person Company(OPC) in India
In order for One Person Company(OPC) company to be registered in India, below are the conditions that have to be met
A One Person Company(OPC) must have at least one director and more. There can be 15 of the directors in the business
The name of your business must be Unique. The recommended name should not match any current organizations or trademarks in India.
Minimum Capital Contribution:
There is no Minimum capital Contribution to a company. A company should have an authorized capital of in any event Rs. 1 lakh.
The registered office of an organization doesn’t need to be a business space. Indeed, even a leased home can be the registered office.
OPC Registration Process
OPC registration procedure is easy but a professional would be needed to complete the same. In addition, the procedure has been completely changed by the government in order to promote the ease of doing business. TaxxInn is experienced in OPC registration with an experience of registering more than 10000 OPC and consulting thousands of OPC partnerships throughout India.
Apply Digital Signature Certificate
The first step of the OPC Registration process is to apply for a Digital Signature Certificate to the directors of the proposed OPC . This is one of the important steps as the registration process of OPC is done online and requires the forms to be digitally signed.
1 of 6 steps
Check for OPC Name availability
Before the process of registering OPC . We will ask you for a few names of your choices. We need to check the availability of the name to make sure it’s already not taken. Names can be checked on the MCA portal. This is done in order to avoid rejections.
2 of 6 steps
Name Approval and Reservation
Name Approval or Name Reservation is the method of reserving a unique name via RUN (Reserve Unique Name) submission form. A list of two proposed names of the OPC will be submitted to the authority for approval. The ROC reserves a name out of two names, and the OPC registers with the same name. The Registrar will approve the name only if it is not considered undesirable by the Central Government. Nor name should not relate in any way to any of the existing partnerships, OPC , trademarks or corporate entities.
3 of 6 steps
MOA & AOA Submission
Once the name has been approved, it is necessary to draft up a Memorandum of Association and Articles of Association. Both MOA and AOA are registered with the declaration of agreement of the MCA.
4 of 6 steps
Get Incorporation Certificate of LLP
When the Registrar approves your MOA and AOA, you’re closer to having your OPC licensed. The next step is to obtain an OPC Incorporation Certificate. You can do this by submitting all the documents to the Registrar. The time frame is between 2 and 6 days. Once you have your OPC Incorporation Certificate, you ‘re ready to go
5 of 6 steps
Apply for PAN,TAN,GST and Current Account
Once the company gets incorporated one has to apply for PAN and TAN. On the other hand one can apply for GST according to the threshold limit. After this, you should submit an Incorporation Certificate, MOA, AOA and PAN to a bank to open your bank account.
6 of 6 steps
Company Name search
The first step of the Company Registration is to ensure that the company name has not been taken by another company. We can search the company name to check the availability of the specific name in India against the MCA and trademark database.
We Suggest the Company to think of three to four elective names during the approval phase of one Person Company(OPC) Registration. The Ministry of Corporate Affairs will be the final authority to approve the name dependent on the availability rules and guidelines.
If your favored name is taken, do remember that the name of your Company doesn’t need to be your brand name. However, in case you’re going to trademark your brand name, likewise, check if it has already been trademarked at http://www.ipindia.gov.in/. In the event that it has been trademarked, If it has been trademarked, you would need a no-objection certificate from its owner to have it approved as your company’s name.
OPC is sole proprietorship business with limited liability features
The key feature of OPC is One Person Company managed by a single owner.
Separate Legal Entity
OPC is a separate legal entity from his/her owner in the eyes of law.
OPC owner’s equity cannot be transferred freely to others.
OPC requires less compliances as compare to private & public limited.
One nominee required who will take over OPC in case owner absence.
FAQs on OPC Registration
One Person Company(OPC) is the most modern form of business that came into existence by the company's Act 2013. This concept of One Person Company(OPC) was mainly brought in to help out the small entrepreneurs who want to start there own business and who think they
can manage their business on there own itself.
- Why an individual should prefer OPC?
- Incorporating OPC is simple.
- Charges and Expenses are less.
- Separate legal entity.
- Liability is Limited.
Yes, the incorporation cost is cheaper than the Private limited company
Any individual who is a resident and citizen in India would be eligible to incorporate a One Person Company(OPC).
No, an individual can't incorporate multiple One Person Company(OPC)
No, a minor is not eligible to be a member or a director or a shareholder of a One Person Company(OPC).
Yes' a One Person Company(OPC) can be converted into a PVT Limited company whenever the shareholder wants to do so.
It gives credibility to business in the eyes of financial institutions, providers and potential customers. As it makes it simpler for companies to get loans at ideal terms from banks or convincing potential customers while going into bargains.
Yes, It is necessary to mention the word OPC in all the official documents where ever the company name is mentioned.
The nominee will the legal person who will take over the company after the death of the owner.
One Person Company(OPC) does not require any minimum capital to form
If you have all the documents in order, it will take no longer than 10 days. It is dependent on the ROC.