Complete Guide to Registering a One Person Company

Introduction to One Person Company (OPC) –

The Companies Act, 2013 introduces a unique business structure called a One Person Company (OPC), designed specifically for entrepreneurs who wish to operate as a single-person entity. Furthermore, OPC allows an individual to own and manage a company independently while enjoying the benefits of limited liability protection. This means that the company’s debts and liabilities cannot affect the owner’s personal assets.

2. Key features of One Person Company (OPC)–

1. You can register it with just one member, giving the owner complete control over business decisions and operations.
2. In addition, the owner limits their liability to the capital they have invested in the company.
3. Moreover, an OPC operates as a distinct legal entity, separate from its owner.
4. Compared to other company structures, OPCs face fewer compliance requirements.
5. Additionally, OPCs have the advantage of continuity; the company can continue to exist even if the owner passes away or decides to transfer ownership.

Complete Guide to Registering a One Person Company in India

3. Eligibility for One Person Company (OPC) Registration –

1. Only a natural person who is an Indian citizen can establish an OPC.
2. The promoter must be a resident of India. Specially, the term “resident” refers to someone who has stayed in India for a minimum of 182 days during the preceding financial year.
3. Furthermore, the OPC must have a minimum authorized capital of Rs 100000.
4. The promoter must appoint a nominee during the OPC’s incorporation.

4. Documents Required for One Person Company (OPC) Registration –

1. Memorandum of Association (MoA)
2. Articles of Association (AoA)
3. Submit the nominee’s consent, along with their PAN card and Aadhaar card, via Form INC-3.
4. Proof of Registered Office
5. The proposed director should furnish a declaration in Form INC-9 and their consent in Form DIR-2
6. A qualified professional certifies that the company has adhered to all necessary legal compliances.

Complete Guide to Registering a One Person Company in India

5. The Process of One Person Company Registration –

A. A Unique Company Name –

The name of the OPC must be unique and adhere to the Companies (Incorporation Rules) 2014. You need to use the RUN (Reserve Unique Name) service on the Ministry of Corporate Affairs (MCA) website to check and apply for name availability.

B. Digital Signature Certificate (DSC) –

The first step in the OPC registration process is to obtain a Digital Signature Certificate (DSC) for the proposed director. Since you must file all forms for company registration online, you need a DSC to sign the documents electronically. You can apply for a DSC from authorized certifying agencies.

C. Director Identification Number (DIN) –

The Ministry gives a unique Director Identification Number (DIN) to the director of the OPC. You need to file Form DIR-3 to obtain the DIN.

D. Preparation of MOA, AOA –

E. Filing the Incorporation Form (SPICe+ Form) –

Businesses use the SPICe+ form to register a One Person Company (OPC). Access the SPICe+ form on the MCA portal and fill in the details for the proposed company and upload the necessary documents.

F. Obtaining Certificate of Incorporation –

After you submit the SPICe+ form, the Registrar of Companies (RoC) verifies the documents. If everything is in order, the RoC will issue the Certificate of Incorporation (CoI). The CoI will contain the Corporate Identity Number (CIN), the official name of the company, and the date of incorporation.

Complete Guide to Registering a One Person Company in India

6. Common Challenges in One Person Company (OPC) Registration –

1. Errors in the submission of Form DIR-3 for obtaining a DIN, such as mismatched personal information or incorrect details, may cause delays.
2. Filling out the SPICe+ form incorrectly or failing to attach the required documents can lead to rejection.
3. Entrepreneurs who are unfamiliar with the legal framework for registering companies under the Companies Act, 2013 may face difficulties in interpreting and fulfilling regulatory requirements.

Complete Guide to Registering a One Person Company in India

7. Conclusion –

A simplified yet structured process allows you to register a One Person Company (OPC). By following the step-by-step guide, you can ensure a smooth and efficient registration process. Proper preparation, understanding legal requirements, and ensuring compliance with the Companies Act, 2013, will help you establish and grow your OPC successfully.

Connect with us for registering your OPC hassle-free. At every step of the registration process, be it obtaining a DSC or DIN or filling out the SPICe+ form, our expert team is there to guide you. We offer services at an affordable rate.

By following the step-by-step guide, you can ensure a smooth and efficient registration process. Errors in the submission of Form DIR-3 for obtaining a DIN, such as mismatched personal information or incorrect details, may cause delays.