One-Person Company (OPC) Registration

A One-Person Company (OPC) offers entrepreneurs the unique advantage of limited liability while retaining complete control. This business structure allows a single individual to operate as a company, combining the benefits of a sole proprietorship with the legal protection typically afforded to private limited companies. As both the director and sole shareholder, you can enjoy full authority over your business decisions while mitigating personal financial risks.

At Allycon, we streamline the OPC registration process, making it hassle-free and cost-effective. From document preparation to filing, our expert team ensures you receive professional guidance throughout the process, helping you make informed decisions as you embark on your entrepreneurial journey.

Introduction to One Person Company (OPC)

Introduced under the Companies Act of 2013, OPCs allow individuals to establish a company while enjoying the advantages of both sole proprietorship and corporate structure. Designed to foster entrepreneurship, especially for Micro, Small, and Medium Enterprises (MSMEs), OPCs offer flexibility, limited liability, and the legal benefits of a company. As per Section 2(62) of the Companies Act, a company can be formed with one director and one member, both of which can be the same person.

Eligibility Criteria

Before registering an OPC, it is important to ensure you meet the eligibility criteria:

Indian Citizenship: Only natural persons who are Indian citizens can form an OPC. Legal entities such as companies or LLPs are ineligible.
Residency: The promoter must be a resident of India, having stayed in the country for at least 182 days in the previous calendar year.
Minimum Authorized Capital: An OPC must have a minimum authorized capital of ₹1,00,000.
Nominee Appointment: A nominee must be appointed during the incorporation process to take over in case of the promoter’s incapacity or demise.
Business Restrictions: OPCs are prohibited from engaging in financial activities like banking, insurance, and investments.
Conversion to Private Limited: If the paid-up capital exceeds ₹50 lakhs or the annual turnover surpasses ₹2 crores, the OPC must convert to a private limited company.

It’s worth noting that an individual can establish only one OPC, and an OPC cannot have a minor as its member. In the following section, you’ll find advantages and disadvantages one will get as a result of OPC registration online.

Advantages of One Person Company (OPC)

Some key advantages of OPC registration include:

Separate Legal Status: The OPC has a distinct legal entity, protecting the founder from personal liabilities.
Access to Funding: OPCs are better positioned to secure funding from banks, angel investors, and venture capitalists than sole proprietorships.
Reduced Compliance: OPCs enjoy certain exemptions from compliance requirements, simplifying management tasks.
Simple Incorporation: The incorporation process is straightforward, requiring only one member and a nominee, with no minimum paid-up capital.
Efficient Decision-Making: With one person in charge, decision-making is quick and streamlined.
Perpetual Succession: The company’s existence is maintained even if the sole member is replaced.

Disadvantages of OPC

While OPCs provide multiple advantages, there are some limitations:

Suitable for Small Businesses: OPCs are designed for small-scale businesses, which may face limitations when seeking to expand.
Business Restrictions: Certain activities like non-banking financial investments and charitable work are not permitted for OPCs.
Ownership & Management Overlap: The lack of separation between ownership and management may lead to potential conflicts of interest.

Required Documents for OPC Registration Online

To complete the OPC registration, you will need to submit the following documents to the Registrar of Companies (ROC):

Memorandum of Association (MoA)
Articles of Association (AoA)
Nominee’s Consent (Form INC-3), PAN, and Aadhaar Card
Proof of Registered Office Address
Director’s Declaration (Form INC-9) and Consent (Form DIR-2)
Professional Certification of Legal Compliance

Ensure all required documents are prepared in advance to expedite the registration process.

Registration of One Person Company (OPC) in India

In India, registering an OPC is made simpler with the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form, which has replaced previous methods of company incorporation.

The OPC registration process is divided into two stages:

Part A: This section of the SPICe+ form focuses on securing approval for the desired company name and applying for the Director Identification Number (DIN) or Permanent Account Number (PAN) for the proposed director.

Part B: The second section requires the submission of incorporation details, including the registered office address, share capital information, director particulars, and shareholder details.

Steps for OPC Registration Online

Obtain a Digital Signature Certificate (DSC):
Secure a DSC for the proposed director of the OPC, necessary for electronically signing key documents.
Acquire Director Identification Number (DIN):
Obtain a DIN from the Ministry of Corporate Affairs (MCA) for the proposed director.
Reserve the Company Name:
Submit an application for name reservation through the MCA portal using Form SPICe+ (Part A). Ensure that the company name is unique and does not resemble any existing company or trademark.
Draft MOA and AOA:
Prepare the Memorandum of Association (MOA) and Articles of Association (AOA), which outline the company’s objectives and internal regulations.
Submit Incorporation Forms:
File the necessary incorporation forms with the MCA, attaching relevant documents such as the MOA, AOA, proof of the registered office, and the nominee appointment.
Receive the Certificate of Incorporation:
Upon approval and verification by the Registrar of Companies (ROC), the Certificate of Incorporation is issued. The PAN and TAN numbers are generated automatically, streamlining the process.

Once incorporated, your OPC is officially recognized and ready to operate in India.

Why IndiaFilings for OPC Registration Online?

At Allycon, we streamline the OPC registration process, drawing on years of experience in company registration and compliance. We offer expert guidance at every step, from name reservation to document submission, ensuring a smooth and efficient process.

Our transparent pricing and focus on accuracy guarantee a hassle-free experience, and our dedicated team is on hand to assist with any questions. With Allycon, you can trust that your OPC registration will be handled with care and professionalism.

Post-Incorporation Formalities for OPC

After your OPC is successfully incorporated, it’s essential to meet ongoing compliance requirements, similar to those for private limited companies. Allycon’s experts are here to guide you through these formalities, ensuring your business stays fully compliant.

Related Business Registrations

In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.