VakilFirm.com allows you to register a One-Person Company online.

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  • COI, PAN & TAN
  • MOA & AOA
  • Spice + Forms
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    One Person Company in India: What is OPC Registration?

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    Begin your business as a one-man empire!!!!

     

    One person company in India is a novel idea that was introduced with the Company Act of 2013. In India, a single (one) person can form an OPC company. An OPC company (single indiviual0 could not form a business prior to the following of the Companies Act 2013. An opc company combines the advantages of a corporation with those of a single proprietorship. As per our CA and CS Ritesh Mishra and  SnehaKapoor, before the commencement of the OPC company and its introduction, if someone desired to start a company, they could only do so as a single proprietorship. But now the option is open.

     

    Thus according to Section 2 (62) of the Company’s Act 2013, a business can be formed with just a single director and 1 member. In India, a One Person Company registration is a kind of entity with more periodic compliance requirements than a Private Limited Company.

     

    A one-person company can be incorporated in India under the Companies Act 2013 with just 1 member and director. It’s also likely that the Director and a member be 1 and the same person. An individual can register an OPC company in India whether they are a resident or non-resident Indian.

    Benefits of One Person Company Registration Process

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    There are numerous advantages to company incorporation and registration in India:
    1. There are fewer ROC compliances- Less Burden

      As per Section 2(68) of the Companies Act, 2013, OPC is a Private Limited Company with 1 member. As a result, the ROC Compliances that apply to Private Limited Companies must be followed by OPC. In order to encourage OPCs, the Companies Act of 2013 exempted the OPC from a number of ROC Compliances, such as the requirement to hold an Annual General Meeting. Finally, the OPC has a lower ROC Compliance load than the ROC.

    2. Proprietorship in a well-organized format

      One person company in india is a well-organized variant of a proprietorship since it allows multiple small and medium-sized business owners to work in a corporate setting while maintaining complete control. As a result, OPC will benefit from the advantages of proprietorship and private limited liability.

    3. Limitation of Liability

      Unlike Proprietorship, the responsibility of an OPC member is limited to the value of its OPC shares.

    4. Legal Entity in Its Own Right

      In the viewpoint of the law, OPC, like Private Limited, is a separate legal entity. As a result, it is distinct from its members and directors, and it has all of the powers of a corporation. It possesses the legal capacity to sue and be sued in its corporate capacity, as well as a common seal and the ability to own assets in its own name.

    Eligibility for registering a One Person Company in India

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    • A natural person who was a resident of India in the previous calendar year can form OPC company.
    • An OPC can only have one member.
    • The name must be distinctive and should not be confusingly similar to any other firm or trademark.
    • A person can’t use more than one OPC at a time.
    • A company has 1 nominee not more than that.
    • A minimum of one director is required.
    • In the case of one person company in India, the minimum paid-up capital is Rs 50 lakh, while the average annual turnover in the previous financial year was Rs 2 crore. However, according to the most recent budget, there are no restrictions on paid-up capital or turnover limits.
    • The opc company must include Private Limited in its name.
    • Give the name of the other person as a nominee as a precondition. A nominee joins the One Person Company in the same way that a subscriber does when he or she dies.

    OPC registration process Documents: OPC registration online

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    In India, the following OPC registration process
    documents are required. The following are legislative prerequisites for OPC registration anyplace in India, for which our well-resourced and internationally acclaimed law practice situated in Delhi has been providing efficient and effective legal services for the past year:

    • One Subscriber and one Director; both can be the same individual
    • There is only one nominee.
    • A paid-up capital of INR 1,00,000 is required for opc registration online.
    • Copies of the proposed Director/and Subscriber’s Nominee’s PAN Cards.
    • The Director’s DIN and DSC.
    • Address Proofs of the Proposed Director’s and Nominee’s Residences.
    • Proof of the OPC’s Proposed Registered/Head Office’s Location.

    Simple One Person Company Registration Process

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    1. Step 1
      First, we must verify all documents and check the availability of the company name. Based on the first consultant, we will identify the type of registration that is OPC registration process.
    2. Step 2
      Upon receipt of the documents, we will create a Digital Signature Certificate for all directors. Every director needs to have a Digital Signature for the purpose of corporate integration.
    3. Step 3
      After the DSC is prepared, the company’s formation and registration documents and their use in e Form Spice 32 need to be prepared.
    4. Step 4
      In the final step, we will apply to the Ministry of Corporate Affairs (MCA). Also, get our authorization certificate for OPC registration online.

    Timelines for one person company registration

    The prospective directors’ DSC and DIN can be obtained in one day. An OPC’s Certificate of Incorporation takes 3-5 days to get. The entire incorporation procedure for an OPC takes about 7-10 days, depending on departmental approval and answer from the proper ROC.

    Is there a difference between a one person company registration process and a Sole Proprietorship?

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    At one person company registration process one person can own a limited shareholding company and ownership, a business owned by a person where there is no difference between owner and business. Here is the difference between them:

    1. Limitive Debt
      For OPC as it is a separate legal entity the shareholder’s obligation is limited to the unregistered registration fee in his or her name. On the other hand, the obligation of land ownership is that any claims against him will be made against the business.
    2. Tax bracket
      OPC can be considered for the same Tax Collectors as other private companies because although OPC is included under the Companies Act, 2013 the concept of OPCs is not in the tax laws. Conversely, Sole proprietorships are required to file income tax returns as ownership and the owner is considered one under the tax law.
    3. Sequence
      The nominee is nominated by the member. The nominee will be in charge of the Company if a member dies or becomes inactive. But in the case of a single patent, this can only be done by making a will that may or may not is challenged in a court of law.
    4. Compliance
      The OPC registered in India must file annual returns as a normal company and will also need to have the accounts audited similarly. Although sole ownership will only need to be audited under the provisions of Section 44AB of the Income Tax Act, 1961 if profits exceed the limit.

    What are the Limitations of an OPC Registration process?

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    • The One Person Company may not have any minors as members or nominees.
    • A share having beneficial interest cannot be held by a minor.
    • OPC will not be able to convert voluntarily until two years have passed since its incorporation.

    What does our Package provide?

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    As company registration advisors, we provide end-to-end business registration services to our clients.

    We offer you very affordable and cost-effective packages. For new company registration online, our package includes the following features:

    • OPC registration and incorporation Certificate
    • Consultation on trademark registration -
      Free
    • Directors' DIN and DSC
    • Certificate of Directors' Shares -
      Free
    • AOA and MOA documents
    • Spice Form 32
    • PAN and TAN application
    • Registration of a Provident Fund -
      Free
    • Registration with the ESIC -
      Free

    Why us VakilFirm.com ? : Company Registration Consultants

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    • We file an application for name approval for your one-person business.
    • We write the MoA (Memorandum of Association) and AoA (Agreement of Association) for one person company registration process
    • We will submit your incorporation documents to the MCA on your behalf. The PAN and TAN are assigned at the same time.
    • We’ll keep you up to date on the progress of your OPC Registration.

    FAQ'S

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    What is the procedure for converting an opc company to a Private Limited Company?

    Bypassing a special resolution after increasing the minimum number of members and directors to two, an OPC company can be changed voluntarily into a private limited company. For the conversion of OPC to a private limited company, a written No Objection Certificate (NOC) from the creditors is required.

    Who is eligible for enrollment in an OPC?

    Only a single individual who is an Indian citizen and resides in India is qualified to serve on an OPC registration as a member and nominee. The term “resident in India” means a person who has spent about 182-100 days in India during the previous financial year

    How much capital does it take to start an OPC?

    The capital conditions for an OPC and a private limited company are similar. It requires an initial permitted capital of one lakh rupees, although none of this must be paid up. This indicates that you do not require to put any funds into the OPC company. Also, you must need OPC registration online.

    What is the maximum number of directors that an OPC registration process can have?

    There are certain limitations to using an OPC. The sole director and shareholder of the company is the person who founded it. A nominated director is also present, but this individual has no authority to raise equity money or give employees stock options. The nominee’s sole goal is to take over in the possibility of the director’s death or incapacitation. The director chooses the nominee, who can be anyone, including your partner, parents, or siblings. During the OPC registration, the candidate will be needed to submit ID proof.

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