What is OPC Registration-One Person Company?

One Person Company (OPC) is the modern form of doing business that came into effect with Companies Act 2013. Since the introduction of OPC, more entrepreneurs are commencing their business, and thus OPC has played the role of benefiting the overall economy in India. One of the favorable features of OPC is that it can be registered with just one person while in other entity, more than one promoter is required to start the company.

Since many advantages, OPC comes with its cons such as it must nominate one nominee to act in case a single member deceased or becomes insolvent. Also, it has to be converted to Private Limited once its turnover exceeds INR 2 Crore, which leads to a lengthy procedure of conversion.

Before registering the OPC, one should know the constraints and eligibility requirements for incorporating OPC in India:

• An only natural person is allowed to incorporate OPC

• Indian resident who had resided in India for 182 days or more in preceding years shall register OPC
• Minimum authorized capital for OPC registration is INR 1 Lakh
• No legal entity such as LLP or Company other than an individual can incorporate OPC
• A single person must be nominated as a nominee by a promoter at the time of incorporation
• No OPC shall be registered to carry financial activities
• OPC shall be converted to a private company if the turnover exceeds INR 2 Crore or paid-up share capital exceeds INR 50 Lakhs.

OPC can be registered with a minimum of 1 director who can be a shareholder as well. OPC needs minimum compliance compared to other forms of companies:

• Start the process by applying to the Certifying Authority for Digital Signature Certificate. DSC is needed to sign the e-form digitally.
• Earlier DIN was applied separately in form DIR-3, however now up to three DIN can be applied through SPICe form
• Apply for the name reservation through RUN online on MCA. Up to two names can be applied in a single form.
• Once the name approval letter is received, the applicant shall proceed with the incorporation application.
• Download SPICe form from MCA and fill the complete form by attaching necessary documents
• Submit the form by paying the stamp duty and government fees online.
• Registrar after the proper verification of complete application shall grant a certificate of incorporation.

The applicant shall prepare the following documents to submit it with ROC:

• Memorandum of Association that contains the objects of the company
• Article of Association that contains by-laws under which the company operates
• Consent Letter in Form-3 from nominee since there is an only single person appointed as a sole member
• Consent of proposed director in form DIR-2  
• Declaration in an affidavit in form INC-9.

The government of India to promote and boost the corporate structure has initiated the forward-thinking idea of incorporating micro-business and providing an opportunity to the persons with entrepreneurial ideas and with minimal capital to build their single-person company. To get your Certificate of Incorporation for OPC, contact us.