One Person Company

One Person Company Registration

One-person company or OPC is a new form of business introduced by the Companies Act of 2013. In an OPC the owner of the company has a full authority to decide what is good or bad for his or her business and he or she can take steps accordingly. The said person is the director and the sole shareholder of his or her company and there are no equity or stock options until and unless the said company’s turnover and paid-up funds doesn’t exceed a certain prescribed threshold.

Documents for OPC registration

For staring an OPC you have to produce the following documents:

  • A copy of the Aadhaar card or the voter id card of the owner of the company.
  • A copy of the PAN card of the owner of the company.
  • Passport size photograph of the owner of the company.
  • If the said company is conducting its operations from the house of the owner then the papers of the property must be attached. Or if the company is operating from a rented place then the NOC of the landlord and a copy of the rent agreement must be attached.
  • Along with with all these documents an address proof of the owner also must be attached.

Procedure for OPC registration

The procedure for incorporation of an OPC includes followings steps:

1.Obtaining DIN and DSC number

The first and foremost step is obtaining a digital signature certificate (DSC) of the director. It can be obtained by producing the following documents of the proposed owner: PAN card, Aadhaar card, address proof, email id, phone number, and the photo of the owner of the OPC.

After getting a DSC your next move is to apply for the Director Identification Number (DIN) of the director or proposed owner of the company along with the address and name proof.

2.Name approval or reservation application

The next step will be to deciding the name of your company. There are few steps that you have to follow for getting an approval of your company’s name, you can go to the next step once Ministry of Corporate Affairs (MCA) has approved the proposed name of your company.

3.Necessary documents

There are some necessary documentations like Memorandum of Association and Articles of Association that has to be fulfilled for completing the registration process. These documentations lay down rules and regulations and objects that the company will follow after getting incorporated. Since an OPC has only one member and a director, therefore, a nominee has to be appointed on behalf of the person concerned. So that if anything happens to the original director of the company the nominee on his or her behalf can take the responsibility of the operations of the company.

4.Filing of the forms with the Ministry of Corporate Affairs

All the necessary documents of the aforesaid OPC should be uploaded to the website of MCA for the approval. After uploading all the documents, you will receive Form 49A and Form 49B which are needed for generating TAN and Pan of your company. You also have to upload them after filling in all the details that are asked in these forms.

5.Issuance of the incorporation certificate

After you have completed all these steps then the only step remains of the verification by the Registrar of Companies (ROC). The ROC will issue the incorporation certificate once they are fully satisfied with all your documents. Once your certificate is issued then you can start commencing your business.

OPC registration process duration

The registration process though is simpler but can be time-consuming. For registering an OPC it could take around 1 or 2 months depending upon the availability of the concerned authorities and the documentation that you are producing.

FAQs on OPC registration

Yes. Forming an OPC is always a good alternative than another form of business models since it does not require any complex rules and regulations to follow. And moreover, the owners of the business have a limited liability which means you are only liable for the amount you have invested in that business and your all other personal possessions are not considered in recovering of the debt.
There are no certain conditions on the capital investment of an OPC. It could be same as of a private limited company, to begin with, i.e. 1 lakh or if you want you can start with an idea and grow yourself.
There can be only one director and shareholder of the company and that is the original owner who is starting the company. The director of the company can choose a nominee but it can only act upon the death or the current director becoming incapable of continuing the operations of the company. The nominee could be anyone and he or she is chosen at the time of registering the company by the owner.