What is One Person Company (OPC) Registration in India?

As per Section 2, of the Companies Act, 2013, a company that is owned by only one single person is known as a One Person Company (OPC). Registration of a company is absolutely significant before any establishment starts a business. One way a one-person company can be registered is online. OPC Registration Online in India is an easy way to register a One Person Company.

Features of One-Person Company

• One-person company must have a minimum share capital of Rs 1 lakhs.
• As per the Companies Act, 2013, the director of the company must appoint a nominee mandatorily.
• Section 149 of the Act states that the company must hold at least one board meeting in every half of the calendar year.
• One of the most fundamental features of One Person Company is that it has only one member as both the shareholder and as director.
• The company must submit the annual report which must be signed by the Company Secretary (CS). In case the CS is not available, then the Director must sign the report.
• As per Section 40 of the Act, a cash flow statement is not significant for filing the company’s financial statement.

Advantages of starting a One-Person Company

• Limited liability: One of the most crucial advantage that a company looks in a company is the element of “Limited Liability”. A one-person company, established in the country, entails this benefit. It means that the liability on the directors and other members is limited. It means that the personal assets of the members of the company will not be affected if the Company incurs any loss or when it goes into debt. Their property remains safe.
• No requirement of minimum capital: There is no requirement of a minimum capital at the time of formation of the one-person company, however, the capital amount shall not exceed the maximum capital of Rs 50 Lakhs.
• Lesser compliances to follow: Minimum paperwork and less compliance are the two major and crucial advantages of OPC registration.
• Lesser legal disputes: There are minimum chances of legal disputes if the power is in the hands of one authority. There are less chances of disagreements between the partners and directors of the company.
• Continuous Existence: Even though OPC is run by a single person, there is a requirement in which he needs to appoint a nominee who will be responsible forhandling the business activities in case of his illness or death. This means that a One Person Company(OPC) has a major factor and benefit of continuous existence, the business activity of which is not affected in case of illness or death of its owner.
• Easy to set up: The setup process of an OPC is simple and the steps for its registration are less complicated.

One-Person Company Registration Process

Starting an OPC requires the individuals to follow a proper registration process. The process involves certain steps that must be followed by every individual that step by step.

Filing an application for Digital Signature Certificate

The first step is to file an application for Digital Signature Certificate, also known as DSC. A Digital Certificate is a digital key that is issued by the concerned authority for the purpose of validating and certifying an individual’s identity. These certificates make use of public-key encryptions to create signatures.

One of the first and the most crucial steps in the One Person Company Registration Process is acquiring a Digital Signature Certificate.

Company’s name approval through RUN

The company then needs to get the company name approved by the Reserve Unique Name(RUN). RUN is a service provided by the Ministry of Corporate Affairs(MCA) to simply the company name approval process. The fees that the applicant must pay for the name approval is Rs 1000.

Filing INC-32 Form or SPICe

The next step is filling a SPICe form and submitting the required documents along with the form. The documents that must be submitted are as follows –

• Copy of PAN card of the applicant,
• Copy of Voter card or passport or driving license,
• Passport-sized photograph of the applicant,
• An updated and latest bank statement or telephone bill,
• MOA (Memorandum of Association)and AOA (Articles of Association) of the company,
• Copy of sale deed or property deed (if the property is owned by the applicant),
• Copy of Rent Agreement,
• A No-Objection Certificate(NOC) from the property owner if the property is rented,
• Other significant documents as required by the authority.

Certificate of Incorporation

The last step in the registration process is obtaining the certificate of incorporation. It is obtained to the company after proper evaluation from the authorities. The applicant also receives Corporate Identity Number (CIN) from the Registrar of Companies (ROC).

Minimum Requirements of One-Person Company

Minimum requirements for OPC registration is one Shareholder, One Director, One Nominee, and One Member.

Documents Required for OPC Registration

• Memorandum of Association (MOA) and Articles of Association (AOA)
• Affidavit of the director and the subscriber
• NOC from the landlord and rent agreement if the property is situated in a rented office
• Proof of ownership in case of owned property.
• Any utility bill which includes an electricity bill, telephone bill of the registered office address.
• Identity proof of the director.

Source: https://medium.com/@singhparul/what-is-one-person-company-opc-registration-in-india-4786f7ba5dc4