One Person Company Registration in India
July 16, 2022
The One Person Company (OPC) structure was introduced in recent times as a refinement of the structure of a sole proprietorship firm. In OPC, the sole promoter has absolute rights over the company, thereby limiting his liability towards his contribution to the enterprise. Therefore, the said person shall be the sole shareholder and director (although a director nominee exists, but has zero power unless the actual director proves to be unable to proceed). In addition, there may be no opportunity to contribute to employee stock options or equity funding. Further, if an OPC has an average turnover of ₹ 2 crore for three consecutive times and receives paid-up funds of ₹ 50 lakh and above, it can be converted into a private limited company or a public limited company within six months. should go.
Benefits of OPC Registration
Limited Liability
The directors’ personal property is always safe in a private limited company, no matter the debts of the business.
Continuous Existence
Sole Proprietorships come to an end with the death of the proprietor. As an OPC company has a separate legal identity, it would pass on to the nominee director and, therefore, continue to exist.
Greater Credibility
As an OPC needs to have its books audited annually, it has greater credibility among vendors and lending institutions.
Documents Required for OPC Registration
- PAN card or passport
- Passports, for NRIs and foreign nationals
- Scanned transcript of driver’s license or voter’s ID
- Updated gas or electricity invoice/Adhaar Card/bank account statement/mobile or landline phone invoice
- Specimen signature or impression
- Passport-size photo.
Please Note: The OPC director must self-attest to the first three documents. All paperwork for a foreign citizen or NRI must be notarized (if they are currently residing in India or a non-commonwealth country) or apostilled (if living in a commonwealth country at present).
Documents Necessary for the Registered Office
- Scanned transcript of current bank account statement/phone or mobile invoice/gas or electricity invoice
- Scanned transcript of rental agreement written in the English language
- Scanned transcript of a no-objection certificate from the concerned property landowner
- Scanned transcript of property or sale deed printed in English (if the property is owned).
Note: Your registered office space needs to be a commercial premise; however, it can be the sole director’s place of residence as well.
Process for One Person Company Incorporation
- Step 1: Check eligibility and documents
- Step 2: Apply for DSC & DIN of all the directors
- Step 3: Application for name reservation
- Step 4: File Spice+ form for company incorporation
- Step 5: Apply PAN and TAN for your new company
- Step 6: RoC issues a certificate of incorporation with a PAN and TAN
- Step 7: Open a bank account and start operation.
Why Edu-Visor?
- For your one-person company, we submit an application for name approval
- We draft the MoA (Memorandum of Association) and AoA (Articles of Association)
- We file the incorporation documents with the MCA for you. The PAN and TAN are allocated simultaneously
- We will keep you informed about the status of your OPC Registration.
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