Overview of One Person Company Registration

The Companies Act of 2013 established the concept of a corporate body with one director as One Person Company (OPC), a novel form of corporate bodies in India. It allows one person to combine the benefits of a sole business with the limited liabilities of a corporate body by incorporating and managing a business organization as a private limited company. OPCs protect the business owner from private responsibility while providing a lot of elasticity and convenience of use. We will look into all the facets of OPC firm registration in this in-depth tutorial, including the necessary paperwork, the registration process, benefits, and commonly asked concerns.

What do you Mean by One Person Company?

A One-person firm (OPC) is a special kind of corporation that was created in India by the Companies Act of 2013; it allows a single person to form and run a business as a privately held corporation. All of the benefits of a sole proprietorship like total control and all kinds of elasticity as well as the consistency and limited responsibility of corporations are provided by OPCs. An OPC has a single stakeholder who will simultaneously work as the owner and operator of the company. The sole owner gets the advantage of limited liability insurance, which shields their personal properties from responsibilities and costs incurred by the firm in question.

Advantages of One Person Company Registration in India

Let's begin by looking at few of the main benefits of establishing an OPC corporation before getting into the formation process, documents, and other related things:

• Limited Responsibility: As a sole owner, you have limited responsibility, which shields your personal properties from financial responsibilities incurred by the company you run.
• Separate Judicial Entity: An OPC can possess property, enter through different types of requirements, and bring legal action on behalf of itself or others.
• Continuation of Company: A One Person Company provides both continuity and stability because ownership shifts its capacity of business to continue operating.
• Taxation Advantages: OPCs are having qualifications for several corporate entity-specific tax breaks and benefits.
• Sole Possession and Management: In addition to enjoying limited liability, the owner has total authority over all business decisions.
• Lower Regulatory: OPCs have comparatively reduced regulatory or administrative load when in comparison to other business forms.

Eligibility Criteria to Register a One Person Company in India

One must fall under the criteria given below in order to register OPC:

• The company must have only one shareholder, who simultaneously hold the posision of the sole director of the company.
• The shareholder must be a resident Indian citizen.
• The shareholder must not be a minor.
• The shareholder cannot be a shareholder or director in more than one OPC.
• One nominee must be there other than the director or shareholder
• There is no need for a minimum capital or paid-up capital for registering an OPC.
• The proposed company name must be different which means not similar to an existing corporation.
• The company must maintain a registered office address in India.

One Person Company Registration Documentation

In India, the Registrar of Companies (RoC) must receive specific documentation to set up an OPC. Among them some of the key documentation includes the following:

• Chosen nominee and producer Director's Records which includes but not limited to PAN card, Aadhar card, evidence of address (banking statement, utility bill, etc.), Passport-sized pictures (must be the recent one), Director Identity Number, or DIN etc.
• Records from the Registration Office like evidence of a registered office (utility bill, lease, etc.) and the property’s owner must provide an NOC (No Objection Certificate) if the space is rented.
• Corporate documentation which includes the Association Memorandum that is MoA and Association's Articles that is AoA.
• To sign digital papers, the nominated director must have a Digital Signing Certificate (DSC).

One Person Company Registration Process in India

An OPC must complete several processes and communicate with the government's Ministry of Corporate Affairs (MCA) to register. Steps you need to follow in order to register a One Person Company are discussed below:

Primary Requirements of Registration

• Acquire a Certificate of Digital Signature (DSC): To digitally sign online papers during the process of registering, the proposed director of the OPC will need to have a DSC from authorized authorities who are allowed to provide the same.
• Acquire a Director's Identification Number (DIN): In addition, the director's identification number (DIN) needs to be applied through the MCA website by the intended OPC member.
• Authorization of Name: Fill out the Form for name reservation that is RUN, in order to get clearance for a name. The suggested name must adhere to the available requirements and naming conventions.
• Draft the Paperwork for the Corporation: Draft the Articles of Association (AoA) and Memorandum of Association (MoA), among other requirements incorporating paperwork. Although the AoA details internal rules, policies and procedures, the MoA describes the goals and actions of the firm.

Submit Documentation and Forms to the RoC

Send the paperwork and submit the forms to the Register of Companies (RoC). Among them, some of the important include but not limited to proposals for a business incorporating, Form INC-32 (SPICe+), the digital version of the Memorandum of Association is Form INC-33 (SPICe+ MoA) and the electronic copy of the charter of association is Form INC-34 (SPICe+ AoA). After the submission of the above forms according to the OPC's allowed share capital, pay the necessary registration costs and stamp fees.

Get Registration Certification

The OPC will get an official Certificate for Incorporation when the RoC examines and authenticates the papers that were presented. The certificate, not only includes the company's Identification Number (CIN) but also attests to the entities' legitimate presence. This is how your registration of OPC got completed here.

OPCs' Post-Registration Conformity

OPCs must follow continuing compliance guidelines after registering to keep their legal situation:

• Yearly Returns: Submit all the financial returns for the year to the RoC.
• Management Meetings: Have a minimum of two annual board meetings. Yearly legally required audits of all the financial accounts must be carried out.
• Taxation of Income Returns: Every year, submit your income tax returns.
• Company Secretary: Designate a person to handle compliance issues. Notify the chairman of the board of any changes to the corporation's details or the leadership.

How much Time will it Take to Register an OPC?

In order to Register a OPC you must have patience because the process of company registration approximately takes 20-25 days entirely from document preparation to getting a registration certificate. Sometimes it gets delayed because of the clarification or we can say questions raised by the authorities and mostly it happens when you complete the process of registration without experts or in haste. Hence it is always suggested to take experience expert guidance while incorporating any kind of entity in India.

Cost of Registration of One Person Company in India

This is the most favorite question of all the clients hence we are here to make it clear. In order to form a One Person Company the business owner needs to file paperwork before the Registrar of the Company under whose jurisdiction your registered business address will fall. All this we are clearing because the stamp duty varies from one state to another state and accordingly the overall cost of the OPC incorporation also varies. In the costing of such company registration following costs will be included:

• Professional Fees which may vary expert to expert
• Stamp duty is not uniform because it get modifications as per the Registrar of the Companies
• Documentation Fees
• Fees of DSCs

Now you must know why it is impossible to provide a single universal figure or number for OPC registration. It keeps varying on the basis of different factors. But instead of all this if you ask for the approximate amount it goes up to Rs. 20000-50000 Plus Paid up capital. Hence you have to have this much amount in order to register an OPC in India.

Governing Law of One Person Company in India

Before 2013 there was no such corporate body which could be formed with one director only. But by understanding the need of such an entity in the market concept of one person entity has been launched through Company Act of 2013. Hence the law which governs the registration, functioning, compliances etc of such entities is Companies Act of 2013. It is defined under Section 2 sub clause 62 of the companies act of 2013. In order to get more details of the one person entity you can go through the mentioned section of the company law. Oyster laws which are applicable on such entity includes the following:

• The Companies Act, 2013.
• Rules prescribed under the Companies Act, 2013.
• Guidelines issued by the MCA which is an important website of the corporate bodies.
• Regulatory provisions related to corporate governance.
• Applicable taxation laws and regulations.
• Specific provisions related to limited liability companies.
• Amendments and notifications by the Government of India.
• Legal precedents and judicial interpretations.
• Directives from regulatory or other authorities like the Securities and Exchange Board of India (SEBI).
• Relevant provisions of the Indian Contract Act which came into existence in the year of 1872.

Why to Choose Whizseed for One Person Company Registration?

Whizseed helps in making the strategic choice to register an OPC in India. It can help startups and only proprietors in India in several ways. Besides other benefits, it also provides limited responsibility safety, independent legal company status, and tax incentives. An OPC can build a strong basis for company prosperity by following continuous compliance guidelines from Whizseed and the right accreditation process. We are believed by hundreds of entrepreneurs and Startups for support and direction during the process of registering to ensure a seamless and effective OPC Registration. Some of the features which makes us different in the market are:

• Expert guidance and support
• Streamlined registration process
• Cost-effective solutions
• Tailored services for startups
• Compliance completion guidance
• Transparent pricing
• Timely completion of tasks
• Dedicated customer support
• Proven track record
• Comprehensive guidance throughout