What is a One Person Company?

Section 2(62) of the Companies Act, 2013 states, One Person Company is a small-scaled company that has only a single person as to its member. Furthermore, a member of a company is nothing but a subscriber to its shares. An OPC has a sole shareholder. These types of companies are usually created when the business is the brain-child of a single person. Entrepreneurs having businesses in the early stages opt for the OPC model in place of the sole proprietorship. Please note that in the case of OPC, a company can have more than one director. However, shareholder can't be more than one.

What are the procedures to register OPC in India?

First, you have to apply for a Digital Signature Certificate (DSC) of the proposed director. Then the next step is to get a Director Identification Number. After that, you'll have to submit the name approval application. Then you'll have to prepare a couple of documents like the Memorandum of Association and the Articles of the Association. Once done, you can now fill forms to obtain the certificate of incorporation from the Ministry of Corporate Affairs. When your every document is verified by the Registrar, you'll receive the certificate of incorporation marking the start of your business.

What are the benefits of OPC in India?

Limited Liability: In sole proprietorship business, proprietor has unlimited liability toward business. However, in case of a company, liability of the shareholder is limited to its share capital. Separate legal entity : Sole Proprietorship firm and it's proprietor are one and the same person for the purpose of business. PAN of the proprietor is used for proprietorship firm also. Further, in case of death of the proprietor, the firm comes to an end. On the contrary, OPC has a separate legal entity, i.e., death of its share holder will not result in discontinuation of the company. Some other features are: Uninterrupted existence Better borrowing capacity Holding Annual General Meetings are not required Financial Statements doesn't need to include cash flow statements Hiring a company secretary is not compulsory Director's office can stay vacated providing additional reasons They can pay extra remuneration to the director Several provisions of quorum and meetings don't apply here

Documents required for OPC registration?

A. Documents of Company: Proof of Address: Copy of utility bills such as electricity, not earlier than 2 months. In case of rented premises, Copy of rent agreement alongwith No Objection Certificate from landlord. B. Documents of Directors: Digital Signature: Passport size photograph, copy of PAN Card and Aadhar Card, email id and Phone number. Identity proof: Voter's ID Card, Passport, Driving Licence, PAN (Any one) Address Proof: Copy of Bank statement, Electricity Bill, Telephone bills, not earlier than 2 months. In case of rented premises, Copy of rent agreement alongwith No Objection Certificate from landlord.

Salient Features of OPC in India?

Limited Liability: In case of proprietorship firm, liability of proprietor is unlimited, i.e., his personal property can also be utilised for discharging liability of business. However, through formation of OPC, liability of shareholder shall restrict to its share capital. The owner's personal property will remain safe no matter what happens with the company. Continuous Existence/Separate Legal Entity: A proprietorship concern comes to an end in case of death of proprietor. However, An OPC will continue to exist in an event like the director's or shareholder's death. Being a separate legal entity, it will move on to nominee directors. Greater Credibility: OPCs are required to conduct yearly audits on its book. That's why it possesses higher credibility than a sole partnership firm. Easy to Sell: To sell an OPC, a limited amount of documentation work is required. This makes an OPC easy to sell to a third party Easy Fundraising opportunities: Setting up an OPC is a pretty simple process. You can secure funds in the form of a loan by setting up your own OPC.

How much time does it take to register an OPC in India?

Getting a Digital Signature Certificate usually takes 2 days Director Identification Number can take 1-2 days 5 days for registering the name Another 5 days to obtain the incorporation certificate.

How can VJM & Associates LLP help you in starting OPC in India?

We have assisted many clients in setting up their own One Person Company in the past. Here are the steps where we can assist you Getting a Digital Signature Certificate Obtaining Director Identification Number Guiding you to choose a well-suited name Helping you to register the name in CRC (Central Registration Centre) Lending a hand to prepare necessary documents required in incorporation filing

Step 1: Obtain Digital Signature Certificate

Digital signature certificate of the personnel is needed in Private Company Incorporation in India. The digital signature certificate is required for filling of e-forms online on the portal of MCA (the Ministry provided portal for online registration). Digital Signature Certificate is issued by the Certifying Authority in token form. It is valid for 1 or 2 years. List of documents required for digital signature certificate: Passport size photograph of the applicant or applicants Self-attested Address proof of the applicant or applicants Self-attested PAN card of the applicant or applicants

Step 2: Obtaining Director Identification Number (DIN)

Director Identification Number or DIN is a unique identification number given by the Ministry of Corporate Affairs to the individual or in duals applying for the allotment of DIN. The number is assigned for a lifetime by the Ministry unless the holder or holders surrender or withdraw it. The director or directors of a company shall receive and intimate the DIN during the time of Private Ltd company incorporation. Getting DIN is mandatory for getting an appointment as Director in any Company. The director or directors can use the DIN number for other company formation. He/she/they can get an appointment as Designated Partner in the LLP. List of documents required for digital signature certificate : Passport size photograph of the applicant or applicants Self-attested address proof of the applicant or applicants Self-attested PAN card of the applicant or applicants

Step 3: Application for Company Name approval for OPC

Deciding on a name that is catchy enough to attack attention, is one of the most vital aspects of setting an OPC up. The name will be in this format - XYZ (OPC) Private Limited. There are two options to get your name approved. Either make an application through Form SPICe 32, or you can use the RUN service provided by MCA. When the name gets approved by the Corporate Ministry, we can move forward to the next step.

Step 4: Submitting Documents for OPC registration

The following documents have to be submitted to ROC. The Memorandum of Association The Article of Association Form INC-3 containing nominee director's details along with his documents Proof of registered office address along with a NOC from owner Consent and NOC of the direction in form DIR-2 and INC-9 respectively A declaration by the director certifying that every compliance is done

Step 5: Filing for Certificate of Incorporation

These documents have to be attached with SPICe-MOA Form, SPICe and SPICe-AOA and the DSC form of the director and will have to upload the bunch in the MCA site for Corporate Ministry's approval. After uploading, the site will generate the 49A & 49B form for the company's PAN & TAN generation. And, after the application is verified by the Registrar, you'll have the much-awaited Certificate of Incorporation marking the beginning of your OPC.