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One Person Company Registration

What is One Person Company?


To understand what a One Person Company (OPC) is, we first need to look at the unique identity it provides. Registering as an OPC offers corporate status and numerous benefits to its members and directors. Unlike Private companies, which require at least two members, OPCs allow a single person to enjoy the benefits of a corporate entity. This type of company structure was introduced in the Companies Act, 2013, to eliminate this drawback, and the process of OPC registration is now simplified with online filing. One of the key features of an OPC is that it has only one shareholder who owns 100% of the company's stake. To ensure perpetuity, it is mandatory to appoint a nominee who will take the place of the owner in case of death or incapacity. Essentially, an OPC is a type of Private Limited Company.


Benefits of One Person Company Registration


Separate Legal Existence

By registering as a One Person Company, the entity obtains the status of a separate legal entity. This ensures that the company is distinct from its owner, unlike a proprietorship firm. As a result, an OPC can own assets in its own name and enter into contracts with other parties. The actions of the company are independent of the owner, making OPC registration highly advantageous.

Lower Compliance Requirements

By registering as a One Person Company, the entity obtains the status of a separate legal entity. This ensures that the company is distinct from its owner, unlike a proprietorship firm. As a result, an OPC can own assets in its own name and enter into contracts with other parties. The actions of the company are independent of the owner, making OPC registration highly advantageous.

Limited Liability of Owners

Registering an OPC provides the benefit of a separate legal entity, where the liability and obligations are not imposed on the personal assets of the sole member. The liability of a member is limited to the unpaid amount of capital subscribed by them. This means that in the event of liquidation, the personal assets of the member are protected, with only a few exceptions.

Separation of Management and Ownership

In an OPC, the sole owner can appoint a director to run and manage the company. This allows the owner to focus on other businesses while the director(s) handle operational duties. Despite having a director, the shareholder still maintains complete control as the sole stakeholder of the company. This structure allows for a clear separation of management and ownership responsibilities in the OPC.


Documents Required for Online OPC Registration


PAN Card

PAN Card of shareholder, nominee, and Directors.

Identity Proof

Aadhar card and Voter ID/ Passport/ Driving License of Shareholder, Nominee, and Directors.

Director’s Address Proof

Latest Telephone Bill /Electricity Bill/ Bank Account Statement of Shareholder, Nominee, and Directors.

Photograph

Latest Passport size photograph of Shareholder, Nominee and Directors

Business Address Proof

Latest Electricity Bill/ Telephone Bill of the registered office address

NOC from owner

No Objection Certificate to be obtained from the owner(s) of registered office

Rent Agreement

Rent Agreement of the registered office should be provided, if any


One Person Company Registration

1. Answer Quick Questions
  • Pick a Package that best fits your requirements
  • Nearly 10 minutes to fill in our Questionnaire
  • Provide basic details & documents required for registration
  • Make payment through secured payment gateways
2. Experts are Here to Help
  • Assigned Relationship Manager to help you with OPC registration.
  • Procurement of Digital Signatures (DSC)
  • Application for OPC Name Reservation under SPICe
  • Documents drafting including MOA and AOA
  • Certificate of Incorporation
  • Application for PAN and TAN
3. Your OPC is Registered
  • All it takes is 12 – 15 working days*
*Subject to Government processing time

Process to register OPC online

Day 1 - 2
  • Review of documents and information provided
  • Application for Digital Signature Certificate
Day 3 - 6
  • Checking Name availability
  • Application for Name Reservation under “LLP-RUN”
  • Drafting of MoA, AoA & other required documents
Day 7 - 9
  • Name reservation application under SPICe
  • Filing company registration application
  • DIN allotment application
  • Application for PAN and TAN of company
Day 10 - 12
  • Government processing time

Explore One Person Company Registration

Frequently Asked Questions


Below mentioned are the pre-requisites to register an OPC in India:
  • The shareholder must be individual and Indian resident
  • At least one director is appointed, who shall be an Indian resident
  • A nominee who is above the age of 18 years and Indian resident must be appointed as Nominee on registration
  • . A place of business must be provided as the registered office address of OPC

The requirement of minimum paid-up capital for OPC registration has been eliminated. The initial capital required to start a business must be subscribed during the registration process, and the subscriber must hold at least one share. However, it is important to note that a minimum authorized capital of INR 1 lakh must be maintained.

The eligibility criteria for forming a One Person Company requires the individual to be an Indian resident above 18 years of age, as per the definition of an Indian resident who has spent at least 182 days in India in the previous calendar year. It's important to note that a person can only be a member of one OPC at any time, be it during or after registration.

The eligibility criteria to appoint a nominee for a One Person Company includes being an Indian resident and a minimum age of 18 years. It is also necessary for the nominee to provide their consent for the appointment to the company.

Individuals who are 18 years old and above and have a Director Identification Number (DIN) can become directors of a company. Citizenship and residency requirements are not specified, so foreign nationals can also become directors. The process of obtaining a DIN is now merged with the company formation process and is limited to a maximum of three DINs. .

The Director Identification Number is a distinct number assigned to individuals upon application to the Ministry of Corporate Affairs. This number enables any person to become a director in any company or designated partner in a Limited Liability Partnership (LLP).

A Digital Signature Certificate, issued in the form of a token by Certified Authorities, is required for online OPC registration in India. An applicant must affix their DSC to any form filed online. Directors need a DSC for DIN application, while the nominee and shareholder must possess a DSC to submit e-forms for incorporation.

The authorized capital represents the upper limit of capital that a company can raise by issuing shares, whereas the paid-up capital represents the amount of money actually raised by the company through the issuance of shares and paid by the shareholders. For registering a One Person Company in India, there is no minimum requirement for the paid-up capital. However, it should not exceed the authorized capital.

An OPC can engage in multiple businesses if it is specified in the MoA of the company and approved by the registrar. However, the company can only register multiple businesses that are related and from the same field. Businesses that are unrelated, such as fashion designing and event management, or construction, cannot be registered under the same company.

A company can be registered at either a commercial or residential location by providing the required documentation. The registered office serves as a point of communication for any correspondence from the Ministry of Corporate Affairs and other relevant authorities. The registered office address will also be displayed on the Ministry's portal.

A body corporate cannot become a member or nominee in an OPC, as only individuals are eligible. If a body corporate wishes to have a 100% stake in a company, it can establish a wholly owned subsidiary.

No, the shareholder must be an Indian resident for OPC company registration.

The physical presence of any member or director is not required for the registration of an OPC as the entire process is conducted online. All the necessary forms are filed on the web portal and digitally signed. The required documents can also be submitted through email or uploaded on the portal for filing.

After 2 years from the date of incorporation, an OPC can be converted into a Private or Public Company, unless it is required to be converted by law.

When the paid-up capital of an OPC exceeds 50 lakh Rupees or the Average Annual Turnover during the relevant period exceeds 2 Crore Rupees, it is mandatory to convert the OPC into a Private or Public Company. This mandatory conversion is applicable regardless of the period of existence of the OPC.

Once, the company is registered, it must fulfill below-mentioned requirements on priority:
  • Opening a current account of the company
  • Appointing of the Statutory audito
  • Depositing the paid-up capital mentioned while registration
  • Issuance and allotment of shares

Every year, if a company has more than one director, it is mandatory to hold board meetings. The company's accounts and financial statements should be audited by an independent auditor, and then the company must file Form AOC-4 and MGT-7 as part of its Annual Compliance within the specified time.

The company's daily transactions are recorded in the books of accounts by the accountant/s. An independent auditor verifies the accounts to ensure that no statutory compliance is missed and provides an audit report. Please note that nxtwaystartup.com is only accountable for the accounting service provided, but can assist in appointing an independent auditor for your business.

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