OPC Registration
Starting from ₹3,000 + GST
Table Of Content
OPC Registration Made Easy
In accordance with the Companies Act of 2013, the concept of One Person Company, commonly known as OPC, was introduced. If you simply go by the name, it means that OPC Registration involves only one member who is 100% responsible for controlling and managing the business or company. This is quite different from any private limited company registration, which requires at least two members. It is often advised that sole proprietors consider OPC registration owing to its key benefit of limited liability, which means that the assets of the owner are safeguarded from the debts of the company or organization. The concept of OPC registration is perfect for new entrepreneurs who are looking for limited liability, decreased compliance costs, a stable and powerful brand image, and the opportunity to test product prototypes and services.
Every OPC registration has a paid-up capital of Rs. Fifty lakhs and a turnover limit of Rs. 2 crores. In case an OPC registration exceeds its average turnover limit of Rs. 2 crores over three years or its paid-up capital of Rs. Fifty lakhs of it needs to be converted into a private limited company registration immediately.
Advantages of OPC Registration
A distinctive legal entity
OPC registration certainty creates a distinct legal entity, thereby safeguarding the owner from various legal liabilities and ensuring that their assets are not used in order to settle the debts of the company. Moreover, the process of decision-making becomes much faster and more streamlined, with the owner having the power to appoint directors without having to share company ownership.
Decreased compliance burden
In order to carry out a legal OPC registration, you are required to adhere to private limited company requirements, but you do enjoy various exemptions, thereby leading to reduced compliance burdens. A resolution, with date and signature, entered in the minute book is considered to be the meeting date.
Image of the brand
When it comes to enhancing the brand image of a business, it is more beneficial to register a company rather than operate as a sole proprietor. Moreover, larger firms are also inclined to deal with registered companies instead of sole proprietorships. Furthermore, various job contracts or tenders may require you to register your company.
Fundraising made easy
In case of any changes regarding shareholders, there’s a restriction of 2 years. This means that, if fundraising is done, new shareholders are bound to come in but there’s going to be a restriction of 2 years.
How to be Eligible for an OPC Registration?
These are the following requirements to be eligible for an OPC registration:
Steps Involved in an OPC Registration
The different steps involved in an OPC registration are as follows:
Step 1
Approval of application for name
Two proposed names that should be listed in order of preference, along with the objective and statutory fees of the business activity, are submitted to the MCA. Once the name gets approved, it stays valid for 20 days within which every other formality needs to be completed.
Step 2
DSC Application
A Digital Signature Certificate is mandatory for every director and shareholder of the one person company. In case the shareholders and directors already possess DSCs, then it can be applied for simultaneously with name approval.
Step 3
Preparing the relevant documents and form submission
Forms such as Spice + Part, Spice MOA, Agile Pro, INC 9, and Spice AOA with the MCA need to be filled. Moreover, supporting documents such as title/rent deeds for the registered office, identity proof, resident proof, and PAN Card are also required.
Step 4
Getting the Incorporation Certificate
After the submission and verification of all your required documents by the Registrar of Companies, you’re going to receive the Incorporation Certificate within 7-12 working days.
Step 5
Opening a bank account
After you have received the Incorporation Certificate, you’ll be required to open a bank account in the name of your company. The Incorporation Certificate, MOA, AOA, and other relevant documents need to be submitted to the bank. Then, you’ll need to deposit the paid-up capital before you can carry out your business operations.
Documents Mandatory for OPC Registration
For each director and shareholder
For address proof of the new company
Extra requirements for Foreign Nationals
Frequently Asked Questions
What does an OPC Registration in India mean?
One Person Company Registration, also known as OPC Registration, is a kind of business structure introduced in accordance with the Companies Act, 2013. This allows a single individual to function as a separate legal entity.
Who all are eligible to register themselves as an OPC in India?
Any Indian resident or citizen who doesn’t hold another OPC registration, and is not a minor, can register himself/herself as an OPC.
What are the main benefits of an OPC Registration?
Limited liability, ease of compliance, the ability to enjoy various tax benefits, and a separate legal entity, are the key benefits of an OPC Registration.
Can an OPC Registration have more than one director?
No, every OPC registration can have only one director. However, a nominee can be appointed who’ll take over in case the sole director is no more.
Is there a minimum capital requirement to carry out an OPC Registration?
No, there isn’t any minimum capital requirement in order to carry out an OPC registration in India.
What is the main point of difference between OPC registration and private limited company registration?
OPC registration allows for a single individual to create a company, whereas private limited company registration requires at least two directors and shareholders.