One Person Company (OPC) Registration in India � process, advantages, fees, requirements
A One Person Company (OPC) registration in India is the latest form of business structure in India which was introduced by the Companies Act, 2013 and abbreviation OPC stands for a One Person Company. This business structure was launched to give a boost to entrepreneurial ideas of the people who have a higher potential to begin their business venture as a one member army. These businesses are usually micro- businesses where the turnover is not likely to surpass Rs. 2 crores even in the best case scenarios.
The registration of One Person Company OPC in India may be initiated in accordance with the guidelines of the Companies Act, 2013. Anyone can start a company all by oneself without the complex procedures of having any partner(s). This Act has made commencing a business easier and more encouraging. The One Person Companies are an important factor in developing the overall economy of the country, because OPC gives a single person running a business eligibility for bank loans and credit points, etc.
While registering for OPC, you should ensure that the director or the nominee is a Resident of India. You can incorporate an One Person Company OPC in India by registering with Seedup.in
Important Points to note for Registration of One Person Company (OPC) in India
· An OPC can have more than 1 director, but should have only 1 shareholder.
- OPCs remain unaffected by the death of a member or a shift / change in ownership.
- It does not take a lot of effort to set up and maintain OPCs.
- The paperwork and annual compliances required is limited in case of OPC.
- An OPC can work as a stockbroker or sub-broker.
- In the case of OPC, there isn’t any long list of compliances to be followed.
- 1 individual is allowed to incorporate only 1 OPC, as per the government guidelines.
Procedure for the Registration of One Person Company OPC in India
- Fill the form – The first step is for you to fill out the simple form and answer the required questions carefully.
- Apply for DSC – The second step is to obtain the DSC for the Director in order to apply for the Name Approval procedure.
- Verification and Name Approval – The details provided by you will be verified by our experts and we will use them to get your OPC’s name approved.
- Filling and Filing of Spice Form(s) for registration of the OPC
- Obtain COI of OPC – The last step will be to receive the Certificate of Incorporation of the OPC
Eligibility Criteria for Registration of One Person Company OPC in India
The following points are the government mandated eligibility criteria for registering your venture as an OPC:
1. Only a person who is a citizen of India and resident of India can be the sole shareholder of OPC. Resident in India refers to a person who had lived in India for a time not less than 182 days in the preceding one year
2. Legal entities like private/ public limited companies or LLP are not allowed to join an OPC as a shareholder.
3. The promoter must nominate a nominee during the incorporation of the OPC.
4. The Nominee can be a ‘Nominee’ in only one OPC.
5. The maximum Paid Up capital of an OPC is Rupess Fifty lakhs.An OPC is not allowed to have a minor as its member.
6. In case an OPC has achieved a turnover of over Rs 2 crores or has a paid-up capital more than Rs 50 lakhs, it has to be converted into a private or public Company within 6 months.
7. The OPC can have one shareholder and one Nominee
8. The OPC can have more than one Director.
Why OPC Registration in India will be beneficial for you?
The legal liabilities are minimised.
The OPC is a separate legal entitty.
Registering as an OPC ensures increased browwing capacity.
It also gives uninterrupted functioning of the company.
Privileges of registration of One Person Company OPC in India
Minimized Liability
This means that the personal property of the Shareholder will always remain safe and untouched even if the OPC suffers losses and is in debts.
Continued Functioning
An OPC being a separate legal identity, gets passed on to the nominee shareholder if the present shareholder goes out of the picture. The OPC continues to be functional.
Increased Credibility
The books of an OPC are supposed to be audited on an annual basis, which ensures it has the image of higher credibility between vendors and lending institutions.
Easy to Sell OPC
The documentation procedures in case of OPCs are quite simple in nature, which makes it easier to be bought and sold.
Full Control laying in the hands of a Single Owner
An OPC can have as many as 15 directors for official maintenance without them holding any shares of the OPC; The single ownership helps in faster decision making process and quicker execution.
Required list of Documents for OPC Registration:
Copy of PAN Card of the owner/director
Passport sized photos of the owner/director
Copy of Voter identity card or Aadhar card
Copy of the rent agreement in case of rented business place
Electricity/ Water bill of office space
Copy of Property papers in case of own property
NOC from the landlord, the format for which we will provide
Important Forms for OPC Registration:
Name reservation: RUN service shall be used for name availability.
Incorporate OPC: After name approval, form SPICe shall be filed for incorporation of the OPC within 20 days from the data of approval of RUN.
The company shall file form INC-22 within 30 days once form SPICe is registered in case the address of correspondence and registered office address are not same.
Name Reservation, Allotment of Director Identification number (DIN), Incorporation of New Company, Allotment of PAN and Allotment of TAN) in one form by applying for Incorporation of a new company through SPICe form (INC-32) – Simplified Proforma for Incorporating Company electronically (SPICe)
with eMoA (INC-33),
eAOA (INC-34).
In case eMoA, eAoA are not applicable, users are required to attach the pdf attachments of MoA and AoA. There is no need for reserving a name separately before filing SPICe. One name for the proposed company can be applied through SPICe (INC-32).
Procedure for Incorporation or registration of One Person Company (OPC) in India
Apply and Receive DSC :
The respective director/directors must apply for and obtain a Digital Signature Certificate(DSC).
Search and Reservation of a Name for the OPC:
The next step involves applying for the reservation of a suitable name for the OPC must be made in the web based form RUN.
Articles of Association:
Model articles of association are provided in Tables F, G, H, I and J of Schedule I, as are applicable, and can be adopted by a company either in totality or otherwise.
Provisions for Entrenchment:
If the articles of association contain any provisions for entrenchment, the company must inform in the eAOA Form INC 34
The signing of Memorandum and Articles of Association :
The AOA and MOA of the company must be signed by the sole owner who is also the subscriber to the memorandum. The individual must enter details regarding his name, address, description, and occupation, if any, in the presence of at least one witness, who is also required to attest the signature as well as sign and give his details.
Particulars of Subscriber :
The sole member/owner is required to file the particulars of subscription with the Registrar at the time of incorporation.
Nomination by the sole owner
- The subscriber to the memorandum of an OPC should mandatorily nominate a person, once the prior written consent of such person is received, who shall, in the event of the subscriber’s death or his incapacity to contract, become the successive owner of that OPC.
- The name of the person nominated has to be mentioned in the memorandum of the OPC and such nomination in Form No INC-2 along with the consent of such nominee obtained in Form No INC-3.
The procedure for online filing is stated below.
Filing of OPC Online:
An integrated incorporation Form INC-32 has been issued bu the MCA. This allows an OPC to be incorporated online by filling the Simplified Proforma for Incorporating Company Electronically (SPICe) form in Form INC-32 (using Digital Signature Certificate of the Director) along with (eMOA) in Form INC-33 and (eAOA) in Form INC-34.
All about the Taxes of One Person Company OPC in India
- The OPC has to file for Income Tax Returns.
- The OPC’s TDS has to be filed for all quarters stating the TAN. The deduction of tax at the source is obligatory if the company has employed people.
- The OPC has to get an ESIC registration if it employs more than 10 people as mandated by the law.
- The OPC has to enroll for GST as well as file the returns as required.
In accordance with the tax slab rate an OPC’s income is taxed at 30% of its entire income in a fiscal year. This is comparatively higher than the tax slab rate for individual which ranges from 10% to 30% of the income depending on the income of the individual.
Exemptions allowed for OPC:
- Sign on annual returns.
- Hold Annual General Meetings and Board Meetings.
- Signing on Financial Statements.
- Option to dispense with the requirement of holding an AGM.
- Power of Tribunal to call meetings of members.
- Calling an extraordinary General meeting.
- Notice of meeting.
- Statement to be annexed to notice.
- Quorum for meetings.
- Chairman of meetings.
- Restriction on voting rights.
- Voting by show of hands.
- Voting electronic means.
- Demand for the polls.
- Postal ballot.
- Circulation of the members’ resolution.
- Section 96. Option to dispense with the requirement of holding an AGM.
- Section 98. Power of Tribunal to call meetings of members.
- Section 100. Calling of extraordinary general meeting.
- Section 101. Notice of meeting.
- Section 102. Statement to be annexed to notice.
- Section 103. Quorum for meetings.
- Section 104. Chairman of meetings.
- Section 105. Proxies.
- Section 106. Restriction on voting rights.
- Section 107. Voting by show of hands.
- Section 108. Voting through electronic means.
- Section 109. Demand for poll.
- Section 110. Postal ballot.
- Section 111. Circulation of members’ resolution.
Statutory Annual Compliances to be followed by an One Person Company OPC in India
- The OPC has to hold at least two board meetings as prescribed by the government.
- Statutory audit by a chartered accountant has to be conducted every year.
- Appointment of an Auditor as mandated by the government.
- The OPC has to ensure the annual filing of ITR.
- The OPC has to maintain minutes and statutory registers.
- Form AOC-4 for financial statement has to be filed by the OPC.
- MGT-7 for an annual return has to be filed by the OPC.
A One Person Company takes at least 10-15 days for the Incorporation. So register yourself at www.seedup.in now!
What all you will get under Seedup.in’s OPC Registration Package:
You will obtain a DIN for 1 Director
DSC for 1 Director is also included
Assistance with name search and approval
You will get the MOA/AOA
The ROC registration fee is included
You will also receive a Company PAN /TAN Card
