One Person Company Registration

The contemporary concept of a ‘One Person Company (OPC) has been introduced in the Companies Act, 2013 by the MCA to provide an entire new bracket of opportunities for the budding entrepreneurs who are capable of starting a venture single handedly by allowing them to create a single person economic entity. An OPC is a hybrid structure where the OPC owner will enjoy all the benefits of a private limited company which precisely means that the OPC owner will have the access to bank loans, credits, limited liability, access to market, legal protection, etc, all in the name of an independent entity. OPC Registration is governed by Companies Act,2013 and administered by MCA.

An OPC can be formed in two under the following two categories:-

Advantages of OPC Registration

  1. Only One Shareholder – Only a natural person who is an Indian resident shall be eligible to incorporate an OPC. The person must have stayed in India for a period of at least 182 days in the preceding one year.
  2. Single Promoter – OPC is the only corporate entity which can be started and operated by a single promoter with a limited liability protection in India and ensures the perpetual existence if the business along with easy ownership transferability.
  3. Nominee for the Shareholder – The only owner of the OPC shall nominate another person who shall become the director in case of incapacity/death of the original director. Only a natural person who is an Indian resident is eligible to become a nominee of the OPC.
  4. Uninterrupted Existence – The incorporated OPC has a ‘perpetual succession”, i.e., uninterrupted existence until it’s been legally dissolved. Since the company has a separate legal existence, it is unaffected by the death or departure of any member and continues to be in existence irrespective of the changes in its ownership.
  5. Easy Transferability –The ownership of an OPC can be transferred easily by transferring the company shares. The signing, filing and transfer of share certificates and shares transfer form are sufficient to transfer the ownership of the company. In OPC, ownership can be either transferred either by altering the nominee director’s information, shareholding or the directorship.
  6. Borrowing Capacity –It is very much noticeable that the banks and other financial institutions prefer to provide funding to a company rather than partnership firms or proprietary concerns. However, an OPC cannot issues multiple types of equity security as it is owned by one person at all the times.
  7. Owning Property – A company enjoying the status if artificial person is eligible to acquire, own enjoy and alienate property in its name. The property that is owned by the company could be buildings, land, machinery, intangible assets, factory, residential property, etc. Additionally, the nominee director is prohibited to claim any ownership of the company while serving as the nominee director.

Requirements for OPC Registration

Procedure for OPC Registration

Step 1:Applying for Digital Signature of Director (DSC)

DSC is an equivalent of the physical or paper certificates in their digital format. The process OPC Registration begins with applying for the DSC because the application for One Person Company is filed online with the DSC of the director only. In order to issue a DSC, a signed application form with a photo ID and Address proof of the director is submitted.

Step 2:Applying for Direction Identification Number (DIN)

Director Identification Number is a permanent and a unique identification number issued to the Director of a company or a designated partner of the LLP by the Registrar of Companies. In accordance with the New Companies Act, 2013 – no person can hold an office of the director without having a DIN. An application to the ROC is made with a photo, attested ID and address proof duly signed by a practicing professional, a CA/CS/CMA for the allotment of DIN.

Step 3:Name Approval of the One Person Company(OPC)

Name of each and every company should be new and unique. In other words, no company name should resemble to that of an already registered company, LLP or a registered trademark. After the successful allotment of DSC and the DIN, an application is made to the ROC for the approval of the company name for OPC Registration The Registrar is entitled with the discretionary powers when it comes to the approval of the company name.

Step 4:Drafting of the MoA and AoA of the Company

The Memorandum of Association (MoA) of the OPC includes all the information about the company such as the Name of the Company, state of company incorporation, details of the authorized capital and declaration of the company about being it a limited company. The Article of Association (AoA) accommodates all the internal rules of the organization. It is mandatory for the promoters to adopt and sign the MoA and AoA before it could be filed with the ROC.

Step 5:Company Incorporation

Once your application is filed you will receive an ARN number. The Incorporation certificate is received within 15-20 days .It is a proof that OPC has been created. The COI also includes your CIN (Company Identification number).

Step 6:Opening of a Company Bank Account

It is mandatory for a company to have a bank account in order to operate its business. Our expert executives are here to help you in getting the company PAN, RAN and TDS payment compliance to help you open the company bank account.

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