Overview of One Person Company Registration

Companies Act 2013 gave birth to the concept of One Person Company. Section 2(62) of Companies Act defines ‘One Person Company’ as “a company run by a single person who is acting as a shareholder and director at the same time”. One Person Company Registration has lower compliance as compared to a Private Limited Company.

Entrepreneurs in the initial stage of their business prefer to create OPCs instead of sole proprietorship business because the advantages that OPCs offer.

OPC or One Person Company can be formed with a single person who is the owner and director of the company. It was introduced under the Company’s Act, 2013. One Person Company Registration is a type of sole proprietorship business in the form of a company that gives complete authority to the single person to run the business while limiting his liabilities and duties for the business.

Benefits - Why one should go for One Person Company Registration in India?

Mostly business personnel prefer to register a Private Limited Company because of its exclusive benefits but they are unaware that One Person Company Registration can provide them better opportunities with very less compliance.

Some amazing benefits of OPC Registration:

• Ease In Funding

  Just like a private limited company, OPC can also raise its fund through financial institutions, angel investors, venture capitals, etc. An OPC can also graduate itself into a Private Limited Company to raise its funds.

• Better Opportunities

  OPC has better opportunities and is benefitted with limited liability according to which the company would be limited to the values of the share you hold in it. One Person Company Registration gives you more chances to take risks and explore better opportunities without any pressure of losing on personal assets. Hence, it is an encouraging option for the young, new and innovative entrepreneurs.

• Incorporation With Least Requirements

  No one can beat OPC when it comes to starting a company with the least requirements. You can start an OPC by fulfilling the below requirements.

  In this case, the shareholder and director can be the same person and should be a citizen of India. Due to little compliances and burden, a person has more time to focus on his company and functional areas.

• Benefits for Small Scale Industries

  An OPC can avail all the benefits provided to small scale industries such as easy funding without depositing security to certain limits, loans at lower interest rates, benefits under foreign trade policy, etc. These benefits play a crucial role in the progress of the company in its initial days.

• Recognized As A Trustful Separate Legal Entity

  Any business that is registered under the Company Act, 2013 and has a separate legal entity and is considered as more trustworthy as compared to the non-registered ones

Registration Procedure of One Person Company

OPC registration is an online procedure, done as per the provisions of Companies Act, 2013. Here are the steps you need to follow to get your registration done:

• Apply for DSC

  DSC is obtained by the director to sign all the online documents. It can be obtained from nearby agencies; the fees of obtaining DSC vary from agency to agency.

• Application to Obtain DIN

  Director’s Identification Number can be filed along with the SPICe+ form. All you need is the name and residential proof of the designated director. Before January 2018, Form DIR-3 was used to obtain the Director’s Identification Number. But now applicant can obtain DIN for three directors along with SPICe+ form.

• Company’s Name Approval

  Once you have obtained DSC and DIN, now it’s time to decide the name of the company and get it approved by the Ministry of Corporate Affairs. Name of the company should be in the format of “XYZ (OPC) Private Limited.” 

• Re-check all the Documents

  It’s quite obvious no one wants to resubmit their documents, so it’s better to recheck them and make sure all the documents are in the accurate format. Check whether the details of your PAN card matches with the details of your other proof such as address proof. In case of some spelling mistakes, get it corrected before the submission.

• Submission of Forms

  After uploading the documents, Form 49A and Form 49B would be generated for the company’s PAN and TAN. You can use them to file PAN and TAN of the company which will further help you to open a bank account for the company.

• Issuance of Certificate of Incorporation by the Authorities

  All the documents and forms are verified by the authorities. Once the verification is done Registrar of Companies would issue you a certificate of Incorporation that will contain CIN number.

  One Person Company Registration cannot be done without submitting above mentioned documents.