In India, register a One Person Company (OPC) requires one member who represents the company and manages the whole firm with the director. This type of company requires fewer requirements compared to the Private Company.
The One Person Company came up with the objective to develop a Sole Proprietorship Firm. One Person company is one of the types of Private Limited Company. Any individual can register a One Person Company, but to run the company, registration is mandatory.
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What is a One Person Company?
A One Person Company is a business entity formed and operated by a sole individual, encompassing attributes typical of a company, including perpetual succession, limited liability, and a distinct legal identity. The OPC structure allows a single person to establish and oversee the entire company.
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Who is eligible for OPC Registration?
- A natural person who is an Indian resident can form a One Person Company.
- Unlike the other types of companies, only one member can form a One Person Company.
- The name that has been created should be unique and it should not be similar to any other company and should not match up with the trademark which is already in existence.
- An individual cannot have and operate more than one OPC.
- There must be a least one director in a One Person Company along with the member.
What is the process to register a One Person Company?
Here are certain conditions that must be fulfilled to incorportate a One Person Company in India. If in case, the subscriber is dead, the nominee of that subscriber enters and works as a single member of the company.
Here is the step by step process to register a One Person Company.
- Step 1: Apply for the DSC which is the Digital Signature Certificate of the proposed director.
- Step 2: The Member of the OPC must apply for the Director Identification Number (DIN) of the proposed director.
- Step 3: Next, it should be taken for name approval. The Members of OPC should apply for the name reservation in the Ministry of Corporate Affairs (MCA) portal. They should apply with one name on the SPICe+ (INC-32) application form.
- Step 4: Accumulate or submit all the essential documents and should attach all these documents to the SPICe Form, SPICe-AOA, and Memorandum of Association (MOA) and should upload them to the MCA site for approval.
- Step 5: After completing the verification of the documents that is submitted, the Registrar of Company (ROC) will provide or issue an Incorporation Certificate which will enable the member of OPC to run and initiate the company.
What is the cost to register a one person company?
The nominal share capital determines the government fees which is required to register a One Person Company in India. For instance, if the Share Capital of the OPC is INR 10 lakhs, then the Government fees for registering an OPC would be INR 2,000.
And if the nominal share capital is INR 10 lakhs to INR 50 lakhs – INR 2,000, then INR 200 will be added to each INR 10,000 share. However, there are also some additional fees that would definitely apply for the OPC incorporation in India for example stamp duties, form filing fees and DIN form fees.
Hence, the incorporation process in OPC is quite easy. It is like, to start a company there must be more than one person either in a Private Company or Public Company but this has changed after the enforcement of the Company Act 2013. Now section 2(62) of the Companies Act 2013 provides that One Person Company can be formed by a single member.
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In conclusion, a One Person Company is a unique business structure designed for individuals to operate a company with limited liability and perpetual succession. Eligibility for OPC registration is limited to Indian residents, with strict criteria such as a single member, unique company name, and a prohibition on owning multiple OPCs.
To register a One Person Company involves obtaining a Digital Signature Certificate, Director Identification Number, name approval, document submission, and ultimately receiving an Incorporation Certificate from the Registrar of Companies to commence operations.
FAQs
1. What are the eligibility criteria to register a One Person Company in India?
An individual must be an Indian citizen and a resident of India in order to register an OPC. Foreign nationals and Non Resident Indians (NRIs) are ineligible to create OPCs.
2. What are the minimum and maximum number of directors required for an OPC?
An OPC must have at least one director and a maximum of 15 directors. By default, the only shareholder is also the director.
3. How do I check name availability for my OPC registration?
You can use the Ministry of Corporate Affairs (MCA) website or a professional to check the availability of your selected company name. The name must be distinctive and adhere to naming criteria.
4. What are the documents required for OPC registration?
The documents required for OPC registration are PAN card / Shareholder of the Director, Aadhar card or Passport for identification, Address proof and Passport-sized photograph of the director.
5. What is the minimum capital requirement for registering an OPC?
No stated minimum capital requirement exists for OPC registration.
You can establish an OPC with whatever amount of authorised and paid-up capital necessary for your business.
6. Can a single person forms a company?
A company can be established by an individual according to the Companies Act. Section 3(1)(c) allows for the formation of a private company by a single person for any lawful purpose. Specifically fall under this category.
