Introduction to One Person Company (OPC) Before the Companies Act of 2013 was enacted, only two individuals could come together to form a company. However, this legislation introduced the concept of One Person Company (OPC) in India, streamlining the registration and operation of such entities. Unlike public and private companies, which require at least two directors and two members, OPCs can be registered with just one person.

Registration Process for OPC The process for registering an OPC involves several steps:

  1. Eligibility Check and Documentation: Ensure you meet the eligibility criteria and gather the necessary documents.

  2. Digital Signature Certificates (DSCs) and Director Identification Numbers (DINs): Obtain DSCs and DINs for each director.

  3. Name Reservation: Submit a name reservation request using Form Spice+ for company incorporation.

  4. PAN and TAN Application: Apply for PAN and TAN for your new business.

  5. Incorporation Certificate: The Registrar of Companies (RoC) issues an incorporation certificate along with PAN and TAN.

  6. Bank Account Opening: Open a bank account for your business operations.

The entire OPC registration process can be completed in approximately 20 days, and you can seek assistance from services like Vakilsearch to streamline the process.

Required Documents for OPC Company Registration To register an OPC, you will need the following documents:

  • Scanned copy of a current bank statement

  • Utility bills (electricity, gas, phone, mobile)

  • Rental agreement (digitally transcribed in English)

  • No-objection certificate from the property owner

  • Scanned copy of property or sale deeds (if owned)

Vakilsearch Registration Package for OPC in India Vakilsearch offers a comprehensive registration package for OPCs in India, which includes services such as obtaining Digital Signature Certificates, Directors Identification Numbers, assistance with choosing a company name, PAN and TAN application, drafting articles of association, paying government fees, obtaining name approval certificates, and registering for GST, PF, ESI, and PT (if applicable in Maharashtra). Additionally, they assist in opening a zero balance current account with DBS or ICICI.

Checklist for OPC Registration Ensure compliance with the following checklist for OPC registration:

  • Meet maximum and minimum membership requirements.

  • Choose a nominee before incorporation.

  • Use Form INC-3 to request the nominee's approval.

  • Select a suitable name for your OPC.

  • Maintain a minimum authorized capital of ₹1 Lakh.

  • Obtain the DSC of the prospective director.

  • Provide evidence of the OPC's registered office.

Features of One Person Company OPCs offer several advantages, including:

  • Easy succession in case of the member's demise.

  • Limited liability for the member, protecting personal assets.

  • Sole directorship and shareholder structure.

  • Ownership rights for the OPC in properties and assets.

Compliances for OPC OPCs are subject to specific compliances, including one-time requirements such as appointing the first auditor, issuing share certificates, paying stamp duty, and filing the INC-20A declaration for business commencement.

Restrictions on OPC Despite their advantages, OPCs have limitations, including restrictions on scalability and certain business activities. Additionally, there may be a lack of clear distinction between ownership and management roles.

Advantages of OPC in India OPCs offer legal standing, easy access to funding, reduced compliance requirements, easy integration, simple management, and perpetual succession.

Why Choose Vakilsearch? Vakilsearch offers a one-stop solution for OPC registration, including name approval, drafting necessary documents, PAN and TAN allocation, and progress tracking.

FAQs on OPC Registration in India Commonly asked questions about OPCs in India are provided in the FAQs section, covering topics such as eligibility, features, differences from other business entities, registration fees, directors, and more.