What is One Person Company | OPC Registration Process in India
One Person Company (OPC) is a type of business entity that restricts the ownership and control to one individual under the Companies Act 2013. It provides all the benefits associated with other corporate entities, including legal protection and limited liability, while also permitting an entrepreneur to retain complete control over their operations.
The minimum requirement for setting up such a company is at least one director and only one shareholder which makes it easy for single entrepreneurs to do business without having to share resources or profits with anyone else.
One-Person Company provide greater ease of operation than partnerships as well as more clarity on finances compared to sole proprietorships by providing distinct enforcement of contracts, higher threshold limit before the audit, etc.
One-Person Company Registration Process
The registration process for OPC involves several steps that need to be followed correctly to ensure compliance with the law. Here are the essential steps:
- Obtain Digital Signature Certificate (DSC): This is a digital signature used to sign electronic documents and forms online.
- Apply for Director Identification Number (DIN): DIN is a unique identification number issued by the Ministry of Corporate Affairs (MCA) for directors of companies registered in India.
- Name Reservation: The next step involves selecting a name for your OPC and applying for its reservation on MCA’s website through Form INC-32.
- File Incorporation Documents: Once you have obtained DSC, DIN, and name approval, it’s time to submit incorporation documents such as a Memorandum of Association (MoA) and Articles of Association (AoA), along with other required forms like SPICe+ form.
- Pay Registration Fees: After submitting all the necessary documents, pay registration fees according to your authorized capital through online modes available on the MCA portal or offline mode using bank challan at designated bank branches
- Get a Certificate of Incorporation: If all formalities have been complied with correctly then ROC will issue a Certificate Of Incorporation which will signify that now the corporation has been formed!
Some Important Documents Required During OPC Registration
- PAN card, Aadhaar card, or voter ID proof of director.
- Latest 6 months bank statement of director
- Latest utility bill (like-electricity bill) for address proof of business premise
- Rent agreement and NOC from the landlord if registered office space is rented
Compliance Assistance
Once you have successfully incorporated your OPC, various compliance requirements need attention from time to time such as filing annual returns with the Registrar of Companies(ROC), conducting regular board meetings, etc.
You may take help from professional service providers like Chartered Accountants or Company Secretaries of ComplianceBuddy who can guide you on tax filings, auditing requirements, and other regulatory compliances based on business needs.
They specialize in handling these complex legal formalities so that you stay compliant without worrying about any legal issues down the line.
Conclusion
Overall, starting a One Person Company involves certain unique challenges but can offer several advantages like limited liability protection and easier decision-making processes. By following appropriate procedures & fulfilling statutory obligations diligently by seeking the right guidance, entrepreneurs can set up their own OPCs successfully in India.
