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With the growth of development, the business landscape becomes a strategic move. Well, working alone in a business is not more than an adventure. But someone cares for the solo dedicate. Yes, one-person company registration is the best route for the individual who is in the early business stage. It means an individual can form their own business within a legal boundary. Interestingly, the OPC registration in India is a combination of a sole proprietorship and a company.
You are eligible for complete control of your business and the ownership. In this comprehensive guide, we will explore how you can form a one-person company in India, the process, registration fees, and much more. Let’s explore this page to learn in more detail.
What is a One Person Company in India?
In India, a single person can incorporate a company under the Companies Act, 2013. For solo entrepreneurs, the one-person company is one of the most effective and approachable practices to enjoy the benefits of corporate privileges and legal requirements. The key aspects of an OPC registration in India are
- Single Member: A single member of a registered OPC acts as director as well as shareholder.
- Limited Liability: The investment of a member is protected with limited liability. It means the personal assets will not be affected by the financial risks.
- Separate Entity: The formation of the OPC is separate from its owners. This signifies that a registered One Person Company acts as a separate legal entity.
- Nominee: During the One Person Company (OPC) registration, listing the name of the nominee is mandatory. The ownership of the company will be transferred to a nominee if an unexpected event happens to the original member.
- Restrictions: A one-person company is not allowed to be transformed into a Section 8 company. Such companies are also restricted from monitoring the non-banking financial investment activities.
Also Read This: Start Your One Person Company in Chennai
The eligibility criteria for OPC registration in India?
Before establishing a solo business, the individual needs to meet the specific eligibility requirements. Breakdown of eligibility:
| Eligibility | Explanation |
| Indian citizen | For the one-person company (OPC) registration, the applicant must hold Indian citizenship and reside in India with valid documents. |
| Natural Person | The individual who is registering for OPC must be a natural person, not a corporation or LLP. |
| Single member | A registered OPC is permitted to have only a single member |
The required document for OPC registration
The initial step to register a company online in India involves the preparation of the necessary documents. The needed paperwork is:
- Identity proof like Aadhar Card, passport, or PAN card of the applicant
- The address proof that includes the bank statement or premise bill that clearly shows the residential address details.
- The designated director’s photograph
- The evidence of the registered office
- The No Objection Certificate from the residential owner (if applicable)
- Draft and submit the MoA and AoA
Also Read This: Be the Boss of Your Own Company – OPC is the Way!
Step-by-Step- Company Registration Online in India
For the company formation in India, you need to follow the different steps laid out. In this situation, expert guidance and support can be proven beneficial. The professionals of Company Registration Online can seamlessly complete the registration process. The detailed steps are
- Obtain DSC and DIN
DSC: Directors must obtain a director identification number, which serves as a unique identifier.
DIN: The directors need to secure the director identification number, which acts as of identity.
Name Approval
To secure exclusive rights for the company, an application must be submitted to the Ministry of Corporate Affairs, abbreviated as MCA.
The selected name must have a unique image or not already have existing evidence.
- Document Preparation
MOA: It is essential to draft and file the Memorandum of Association, which should outline the company’s objectives, scope, and activities.
AoA: The Articles of Association are required to establish the laws and regulations governing the company and the responsibilities of its members.
Other Required Documents: With the application form, provide the address proof, identity, and many other necessary certificates.
- Filing with ROC
With the application of incorporation and the other necessary documents, file them with the RoC.
- Certificate of Incorporation
The officials will examine all documents and the application form. The certificate of incorporation will be provided by the Registrar of Companies. Congratulations, your company is registered as an OPC.
ROC also allotted a PAN and TAN.
- Post-Incorporation
To manage the business’s financial transactions, open a business bank account.
To avoid the potential penalties, meet the ongoing compliances like annual return filings and management of financial statements.
Also Read This: From Idea to Incorporation: Register Your Company Online Today
Final Words
In summary, the business registration process for a one-person company contains multiple steps. Understand the requirement of authority, and analyze your business nature to form an OPC. As a single person, registering your business as a one-person company is an advantageous move for legal recognition, limited liability, and a platform for future growth. Apply now for a one-person company to obtain multiple benefits.
FAQ | Company Registration online in India
1. Who is restricted from establishing a One Person Company?
Ans. Teens below 18, a person who is not an Indian citizen, and an individual who has already registered a business as an LLP or other legal entity.
2. How does the nominee act during OPC registration?
Ans. The single person appoints the nominee during the person’s business registration. During the tragedy with the original person, the nominee will act as a member of the OPC.
3. Can a foreign company register its business as an OPC?
Ans. No, the Indian citizens are only allowed to form their business as a One Person Company.
What is the maximum number of directors allowed in an OPC?
Ans. An OPC can have a maximum of 15 directors, but it can only have a single member.
5. After OPC registration, is GST certificate registration required?
Ans. If the annual turnover of an OPC increases up to 20 lakhs, you need to secure the GST certificate.
