Procedure for OPC Registration in India

As the name suggests, One Person Company or OPC is a Company setup by a single person or individual and the Companies Act, 2013 introduced the new concept of One Person Company. A single person manages the company. A One Person Company has all the Company’s features, like limited liability, perpetual succession & a separate legal entity. In India, the need of One Person Company arised due to the limitations of Sole Proprietorship Firm which is the most popular form of business registration for small businesses. Unlike LLP or Private Limited Company where at least 2 individuals are required, entrepreneurs can now incorporate their company with only one person or individual. In this article, we are going to discuss detailed Procedure for OPC Registration online.

Who is eligible for the Procedure for OPC Registration in India?

A One Person Company can be established by a natural person who is an Indian Citizen & Resident of India. The following are the eligibility criteria to setup an OPC:

1. Only an Indian citizen who resides in India can establish a One Person Company;
2. An individual establishing the One Person Company must be at least 18 years old;
3. An individual establishing an OPC must not be disqualified under the Companies Act, 2013;
4. The individual forming the OPC must not be a nominee or member of more than 1 OPC;
5. Only a natural person or individual can form an OPC, not any legal entity or company;
6. Only one individual can be the Director & Shareholder of a One Person Company.

Note: Moreover, some businesses cannot establish themselves as OPC like financial or banking institutions, non-profit organizations and companies involved in activities like investment in securities.

Online Procedure for OPC Registration in India

Following is the step-by-step procedure for OPC Registration in India:

Step 1: Apply for DSC & DIN: The 1^st step of OPC Registration process is to obtain DSC (Digital Signature Certificate) of the proposed Director which requires the vital documents such as Aadhar Card, latest photograph, address proof, PAN Card, Email ID, Phone Number.

Once you get the DSC, the next step is to apply for the DIN (Director Identification Number) of the proposed Director in SPICe+ Form along with the Director’s Name and the address proof. Form DIR-3 is the option available for existing companies. It means with effect from Jan 2018, the applicant need not to file DIR-3 separately. Now, DIN can be applied within the SPICe+ form for up to 3 Directors.

Step 3: Get Approval for Proposed Company Name: After obtaining DSC & DIN, the next step while registering an OPC is to decide on the Company’s Name. The name of the Company can be approved in the SPICe+ Form and if the name gets rejected, another name can be submitted by applying another SPICe+ Form.

Step 4: Prepare all the Documents: Once your name gets approved, then you need to prepare all the vital documents required for OPC Registration, our experts will prepare all the vital documents on your behalf.

Step 5: Filing of Forms with MCA: Once we prepared all the documents, then these documents will be attached to the SPICe+ Form, SPICe-MoA & AoA along with the DSC of the Director & the professional and it will be uploaded to the MCA portal for the approval. The PAN & TAN is generated during the Company Incorporation. There is no need to file separate applications for getting PAN & TAN.

Step 6: Issue of the Incorporation Certificate: On the verification, the RoC will issue a Certificate of Incorporation & you can start your business without any hassle.

Restrictions of One Person Company in India

1. No minor can hold a share with beneficial interest;
2. One Person Company can’t perform voluntary conversion n before the completion of two years from the Incorporation date of OPC;
3. It can’t perform Non-Banking Financial Investment activities;
4. It can’t be incorporated or converted into a Company under Section 8 of the Act;
5. No minor shall become a nominee/member of the One Person Company.

Conclusion

There are numerous benefits of doing online procedure for OPC Registration in India in terms of effectiveness & speed. It provides quicker verification & approval procedures, permits speedy document submission, removes the need for in-person visits & provides a practical platform for online fee payment. Overall, it fastens up the procedure for OPC Registration, saving owners’ time & hard work.  It is recommended to seek professional guidance for the Online OPC Registration from Us.