One Person Company Registration | OPC

Online OPC Registration in India: Eligibility, Process, and Documents

If you want to start your journey as a single entrepreneur, a One Person Company is the best corporate structure to opt for. It gives you the freedom to run your business single-handedly, taking complete control of all its major financial decisions. However, you will still have the flexibility to delegate the day-to-day managerial tasks to the Board of Directors.

Another advantage of starting a one person company is 100% entitlement to all the profits, despite the liabilities being limited to the deposited capital amount. Compared to other single owner structures like Sole Proprietorships, where the proprietor is responsible for bearing all liabilities alone, with personal assets at risk, it brings a huge relief to single entrepreneurs. So, what are you waiting for? Start your One Person Company now with our expert assistance!

What is One Person Company?

One Person Company (OPC): The Ideal Choice for Solo Entrepreneurs

In India’s corporate landscape, a One Person Company (OPC) stands out as an ideal structure for solo entrepreneurs. Let’s understand why!

India’s corporate framework typically requires multiple owners to start a company — for instance:

  • A Private Limited Company requires at least two entrepreneurs.
  • A Public Limited Company requires a minimum of three entrepreneurs.

In contrast, an OPC, governed by the Companies Act, 2013, empowers individuals to start a business with a Private Limited structure while being the sole owner. Unlike other models, ownership in an OPC cannot be shared with multiple individuals or corporate entities. The single owner holds 100% stakes and is responsible for investing the entire capital.

One key advantage of an OPC over other sole ownership structures, like a Proprietorship Firm, is the concept of limited liability. This means that while the owner enjoys 100% of the company’s profits, their liability is limited to the capital invested in the company’s bank account.

In essence, a One Person Company offers the perfect balance of control, protection, and growth opportunities — making it the go-to choice for aspiring solo entrepreneurs in India.

Key Features of One Person Company:

A One Person Company combines the key features of a Private Limited company and a Sole Proprietorship, enabling a single entrepreneur to own a corporate structure with full control over decision-making and management. Let’s have a look at its key features:

  • Sole Ownership
  • 100% Profit Entitlement
  • Limited Liability
  • Continued Existence Through Nominee
  • Lower Tax Rates

One Person Company Registration Eligibility in India

OPC company registration requires certain minimum criteria to be met. These criteria are based on the minimum number of members, directors, and other basic requirements like a name, registered address, and capital of the company. Let’s understand what you need to start a One Person Company.

  • Minimum 1 Member / Shareholder: An OPC is owned by a sole shareholder owning 100% stakes. The shareholder must be an Indian citizen. Foreign nationals cannot start a One Person Company in India, though an NRI is allowed to do so.
  • Minimum One Director: Like a Private Limited Company, a One Person Company is also managed by a Board of Directors. However, at the initial stage, the OPC can be established with a single director, and later increase the number to the maximum limit of 15.
  • A Unique Name: The OPC must have a unique name that communicates its brand and business activity. Additionally, it must also adhere to certain legal requirements prescribed by the MCA. The name of the OPC must not be similar to the name of any other company or LLP. Also, it must be original and not infringing other trademarked brand names. At Bizfoc, we give a free check to the name you choose for your OPC and help it get approved by the ROC.
  • A Registered Address: An OPC must have a registered office address for MCA records during the incorporation process. This address is the official correspondence of the company, where it not only receives all government and tax notices, but also maintains its books of accounts. The office must be located in a lockable and constructed premises only.
  • Minimum Capital: An OPC does not require any minimum capital to get incorporated. Its incorporation can be done with any amount of deposited capital in the company’s bank account, as decided by the shareholder. This includes zero capital as well.

Documents Required for OPC Registration in India

The process of online OPC Registration cannot be completed without submitting proper documents of the shareholder and the company. These documents establish the legal identity of the OPC and highlight its terms of regulations. Here is a brief list of the documents:

Documents of Shareholder & Directors:
  • PAN Card
  • A Proof of Identity: Submit any one of these – Aadhar, Driving License, or Passport
  • A Proof of Address: Submit any utility bill (electricity/gas/water/landline) or bank statement not older than 2 months. Note that it must have the shareholder’s name and the address clearly mentioned on it.
  • A Passport-Size Colour Photograph
  • DIN, in case of directors only
  • DSC for authorised director
Documents of the OPC:
  • Registered Address Proof: The OPC must serve any utility bill (electricity/gas/water/landline) not older than two months as its registered address proof. This indicates that the office is in fact located and resident at the stated registered address. Note that the address proof must have the OPC’s name and the office address mentioned on it.
  • NOC from the Office Owner: Also, whether the office is rented or self-owned, a No Objection Certificate signed and stamped by its owner is essential. This serves as a declaration that the office owner does not have any issues with the OPC’s office located at his premises.

Process for OPC Registration

Online OPC Registration process with Bizsetupsolutions is quite seamless and hassle-free. Our consultation achieves the end-to-end process competition in just a couple of weeks. We also provide expert advisories and documentation assistance to make sure the application filed for OPC registration is flawless in every way! Here are the steps we follow:

1. DSC for the Shareholder and Directors Since OPC registration form is filed online, it requires the digital signature of an authorised director for authentication. The signature has to be uploaded as a file attachment with the application. We help your directors and shareholders secure their DSCs through our quick, online process.

2. DIN for Directors All directors of the OPC need to have their DIN or Director Identification Number for OPC registration. The DIN helps in the unique identification of directors and track their compliance status. At Bizsetupsolutions, we help all your OPC directors secure their DIN with immediate effect.

3. Drafting MOA and AOA MOA or Memorandum of Association is the OPC’s constitutional document specifying all its legal details like reserved name, registered address, liability, capital, and the nominee’s name. On the other hand, AOA or Articles of Association contains the rules and regulations of the company. Both these drafts are submitted in their electronic formats in INC 33 and INC 34 forms respectively. At Bizsetupsolutions, our experts prepare these drafts for you in the correct formats with the correct and updated information.

4. Name Approval of the OPC After preparing MOA and AOA drafts, we file the application for OPC name approval. We help you select a valid name that adheres to all legal guidelines and then, using SPICE Plus application (PART A), we apply for its approval and reservation by the ROC. If the name gets approved, you will receive a name approval letter valid for 20 days only. Within these 20 days, we file the complete application for OPC registration.

5. Filing SPICE Plus Form After getting your OPC’s name approved, we file the SPICE Plus application (PART B) that’s required for OPC registration. All the details and information entered are first verified by our experts and then filled into the form. Also, we check and upload the necessary attachments before final submission.

6. Pay Application Fee and Submit the Form To complete the process, we pay the required application fee and submit the application after attaching the authorised director’s DSC.

7. Receive Company Registration Certificate Once the submission is successful, the application reaches the processing stage. It takes around 7-10 days to get processed and if no incorrect information or documents are found, the ROC issues a Certificate of Registration and CIN in the OPC’s name.

Fees for One Person Company Registration in India

Incorporating a One Person Company Registration in India costs around ₹5,499 (Including government fee). The breakdown of the fees is as follows:
Company Registration Charge Amount in ₹
Bizsetupsolutions Professional Fees 2,999
DSC for 1 Directors 1,000
Name Approval Govt Fees 1,000
Stamp Duty Fee (Varies State Wise) 500
Total Fees 5,499

Time Taken for One Person Company Registration in India

The duration of One Person Company Registration in India is 7-10 working days. Name is generally approved in 2-3 working days and company incorporation is approved in 3-4 working days. Breakdown of time taken by us:

  1. Name Reservation Application – Within 4 hours!
  2. Digital Signature Process – 1 working day
  3. Company Incorporation Application – 2 working days

Benefits for One Person Company Registration in India

OPC registration offers several unique advantages that can significantly benefit entrepreneurs and small business owners. Here are some key benefits:

  • 100% Profit Entitlement: As the sole owner of the OPC, you are entitled to 100% of the profits generated by the company. This ensures that all earnings directly benefit you without the need to share with partners or investors.
  • Limited Liability: OPC registration provides limited liability protection to its sole owner. This means your personal assets are safeguarded from any business debts or liabilities, reducing personal financial risk.
  • Low Taxation: OPCs often enjoy lower tax rates compared to other business structures. The income tax rates applicable to OPCs are generally favorable, which can result in significant tax savings.
  • Continued Existence Through Nominee: OPCs are required to appoint a nominee during registration. In the event of the owner’s incapacity or demise, the nominee can take over the company’s operations, ensuring continuity and stability of the business.
  • Separate Management Authority (Board of Directors): Even as a single-owner entity, an OPC can appoint directors to manage its operations. This allows for the separation of ownership and management, providing a structured approach to running the business efficiently.

Post Incorporation Compliances by One Person Company

Even after the OPC registration process is complete, certain compliances are required to start the company legitimately. These compliances, termed as the post-incorporation compliances have to be completed within a specific duration starting from the incorporation date. Let’s have a look at what these compliances are and what are the due dates.

  • INC 22: Filed within 30 days of incorporation, this form is used to intimate the ROC of a permanent registered office address chosen for the OPC. It is applicable only if the shareholder has failed to provide a specific registered office address during incorporation and went ahead with a temporary postal address for the time being.
  • ADT 1: After OPC registration, it is mandatory to appoint the first auditor. This is done in the first Board of Directors meeting held within 30 days of OPC incorporation. Also, within the same time-frame, ADT-1 form is filed to the ROC for intimating details of the appointed auditor.
  • Opening a Bank Account: If the OPC’s bank account has not been opened during the incorporation process (application available in the SPICE Plus Form), it must be opened within the next 30 days. All business transactions of the OPC and its capital amount deposition requires a separate bank account in the OPC’s name.
  • Shareholder’s Certificate: A Shareholder Certificate must be issued to the shareholder under the OPC’s letterhead within 60 days of OPC registration. It serves as proof of capital deposited by the shareholder in the company’s bank account. The share certificate must be stamped and a proper stamp duty must be paid on it.
  • INC 20A: Before starting its business activities, the OPC must file a Declaration of Commencing Business to the Registrar of ROC. This is done in the INC 20 A form within 6 months from incorporation. Starting business activities without submitting this declaration shall be considered illegitimate.

Why Choose Bizsetupsolutions As Your OPC Registration Consultant?

Registering and operating an OPC requires meeting several regulations under the Companies Act. Hence the guidance and assistance of a professional consultant would make the process more seamless and streamlined. If you’re looking for one, Bizfoc is always at your service!

Here’s why we stand out as OPC registration consultants all over in India:

  • Expertise and Experience of Seasoned Professionals
  • End-to-End Support
  • Tailored Solutions Customized to Your Business Needs
  • Timely Service
  • Transparent Pricing

Conclusion

Opening a One Person Company allows a single entrepreneur to invest in a corporate structure that offers 100% profit entitlement while restricting the liability to the deposited capital amount. Moreover, the OPC registration process is extremely streamlined with its online application filing requirement and document submission. So, if starting a One Person Company has been your dream, rest assured you’re on a journey to high growth, low liabilities, and continued existence for a long period of time.