One-Person Company Registration

In India, One Person Company (OPC) registration is a new concept introduced under the Companies Act 2013. It allows a single person to incorporate a company which was not possible before the enactment of this law. An OPC offers the benefits of a sole proprietorship while having features of a company.

As per Section 2 (62) of the Companies Act 2013, a company can be formed with just one director and one member making OPC registration possible with only one person. Compared to a Private Limited Company, OPCs have fewer compliance requirements.

OPC registration in India is open to both resident and non-resident Indians. One can become the sole member and director of an OPC or appoint different individuals for each role.

FREQUENTLY ASKED QUESTIONS

What is the role of a Nominee in an OPC?

In an OPC, a Nominee plays a crucial role as they become a member of the company in the event of the promoter’s death or incapacitation. The Nominee has the responsibility to take over the business operations and manage the affairs of the company.

What does the Authorized Capital fee refer to?

The Authorized Capital fee is a payment made by a company to the Government for the right to issue shares. The fee represents the maximum amount of shares that a company can issue to its shareholders and it depends on the company’s capital requirements and business goals.

How can one expedite the incorporation process?

To speed up the incorporation process, it is important to ensure that all required documents are ready and that the chosen company name is unique. This helps to avoid delays caused by the rejection of documents or the need for a name change.

What is a Dormant Company?

A Dormant Company is a business entity that has not carried out any significant transactions or operations for a specific period. This type of company must still comply with the annual filing and reporting requirements, but it is not actively involved in business activities.

What is the meaning of DSC?

DSC stands for Digital Signature Certificate, which is a digital identity document that helps to establish the identity of the signatory when filing electronic documents. The use of a DSC ensures authenticity and security of documents and transactions.

What is the Director Identification Number?

The Director Identification Number (DIN) is a unique identification number assigned to each Director of a company. It is a permanent number that remains unchanged and helps to identify the Director in various official documents and filings.

Is an OPC a better option than a Private Limited Company?

An OPC offers certain advantages over a Private Limited Company, such as the ease of formation, limited liability and the ability to enjoy the benefits of a separate legal entity. However, the choice between the two depends on the specific needs and goals of the business owner.

Is an audit necessary for an OPC?

Yes, an audit is mandatory for an OPC as per the Companies Act. The audit is conducted by a Chartered Accountant who examines the company’s financial statements and issues a Statutory Audit report.

Is GST registration compulsory for an OPC?

A GST registration is compulsory for an OPC if it makes inter-state supply of goods or services, regardless of the annual turnover. Failure to register can result in penalties and legal consequences.

Can an OPC raise funds?

An OPC can raise funds from various sources, such as venture capital, financial institutions and angel investors. Additionally, it can convert into a Private Limited Company to access more funding options and opportunities for growth.

Documents Required For OPC Registration

PAN Card

Passport

Voters Identity Card

Ration Card

Driving License

Electricity Bill

Telephone Bill

Aadhaar Card

Bank Statement

Sale Deed Copy

Lease / Rent Agreement

MOA Subscriber Sheet

AOA Subscriber Sheet

Passport Size Photo

Recent Utility Bill

Business Place