Online One Person Company(OPC) Registration In India
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One Person Company (OPC) Registration in India
One Person company (OPC) – Overview
A one person company (OPC) is a business entity in India that has only one member, who is the shareholder and promoter of the company. The shareholder is an Indian citizen and resident who has lived in India for at least 182 days in the preceding year.
The shareholder can nominate another person as a nominee in the event of their death or incapacitation. One person companies were introduced under the Companies Act of 2013 to promote self-employment in India. It is not possible to incorporate more than one OPC or to be a nominee for more than one OPC. Non-Banking Financial Institutions are not allowed to be part of an OPC.
In order to register an OPC, subscribers and directors must provide an affidavit stating that they have not been convicted of any offenses related to the formation or management of a company or found guilty of fraud or breach of duty to a company in the preceding five years. An OPC is a separate legal entity from the promoter, providing limited liability protection to the sole shareholder.
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Documents Required for One Person Company (OPC) Registration
- Identity proof of director and nominee(PAN card)
- Address proof of director and nominee(Aadhar card, Driving Licence, Electricity bill, Passport)
- Address proof of office (Rent agreement or sale deed, electricity bill, property tax receipt)
- No Objection Certificate from landlord
- DSC and DIN of director
- Passport photo of director
Advantage Of One Person Company
There are several advantages to registering a one person company (OPC) in India, including:
- Limited liability protection: As a separate legal entity, an OPC provides limited liability protection to the sole shareholder, meaning that their personal assets are not at risk in the event that the company incurs debts or faces legal action.
- Ease of formation: OPCs are relatively easy and inexpensive to set up, as there are few regulatory requirements.
- Tax benefits: OPCs may be eligible for certain tax benefits, such as being able to claim business losses on the shareholder’s personal tax return.
- Ability to raise funds: OPCs may have an easier time obtaining financing from banks or other lenders, as they have a separate legal identity and limited liability protection.
- Potential for growth: OPCs have the potential to grow and evolve into larger business entities if the shareholder chooses to do so.
- Continuity of business: In the event of the death or incapacitation of the shareholder, the OPC can continue to operate through the nominee, ensuring the continuity of the business.
One Person Company Registration Process
The process for registering a one person company (OPC) in India is as follows:
- Choose a unique name for the OPC and get it approved by the Ministry of Corporate Affairs.
- Obtain the Digital Signature Certificate (DSC) and Director Identification Number (DIN) of the shareholder and director (if different).
- File the Memorandum of Association (MOA) and Articles of Association (AOA) with the Ministry of Corporate Affairs.
- Obtain any necessary approvals and licenses, such as a GST registration and professional tax registration.
- File the Incorporation Form with the Ministry of Corporate Affairs.
- Obtain a certificate of incorporation from the Ministry of Corporate Affairs, which serves as proof of the OPC’s registration.