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OPC Company Registration Overview
Today, let’s discuss about OPC Company registration in India. We have come across many upcoming entrepreneurs who are ambitious about starting their own business. But have no idea about different kind of corporate business structure. Many of them think OPC is similar to Sole proprietorship.
A One person company –OPC Company is a company that has only one person as its member or owner. OPC got introduced to individuals who are capable of starting their own business.
OPC enables a sole proprietor to convert his firm into company with limited liability. He can avail benefits of a company with OPC registration in India. OPC is a business structure that enjoys benefits from both form of business structure that is sole proprietorship and private company in India. Thus it eliminates the hassle of finding the right kind of co- partner or associate or member to start your business as a registered legal entity
As per section2 (62) of the Companies Act, 2013, One Person company means a company that has only one person as a member. One person company is bringing the unstructured version of Sole Proprietorship business into the structured version of Private Company. OPC is the opening path for sole proprietors and startups. OPC is one of the best openings for sole proprietors and startups.
Benefits of Registration as OPC Company in India
As upcoming entrepreneurs you need to understand What are the benefits of OPC company registration in Chennai, India. Start a business with one person with corporate ownership.
- OPC company is a company that can be started with one director and member as against a private limited company.
- OPC gives you better opportunities with minimal compliance. One person can start a business with little compliance. Due to fewer compliances a person gets to concentrate more on core business activities.
- Complete control by the Individual. The member can have complete control of his business. The control remains in the hands of one person only.
- Limited liability of OPC is another top attraction and advantage. The member of OPC has limited liability. OPC becomes a separate legal entity from its members. Being an OPC it has separate legal existence away from its members.
- Easy compliance and tax flexibility. An individual has to follow easy compliance and avails the benefits of tax advantages too.
- Benefits of small scale Industries are enormous being an OPC. Easy funding, less compliance, loan at lower interest rate and so on are some of the benefits OPC company incorporation in India under small scale industries.
Eligibility Criteria for Registration as OPC
Let’s see who are the conditions and criteria a person must have to start OPC company in India
- A natural person can form OPC who is an Indian resident in the preceding calendar year.
- Only one member can form an OPC
- OPC company name must be unique. It should not be similar to existing trademark and other companies’ name.
- A person cannot register more than 1 OPC
- A person cannot be the nominee for more than one OPC company.
- You must have one OPC director
- For OPC, as per govt. limitations, the threshold limit of paid-up capital is
- Rs. 50 Lacs and the average annual Sales Turnover is Rs. 2 crores in the preceding financial year. However, as per the latest announcement there in now no restriction paid up capital and turnover limit on OPC.
- The one person company name must have the words ‘(OPC) private limited’ in its name.
- As a pre-condition the OPC must indicate the name of another individual as its nominee. In the event of the OPC owner’s death, the nominee automatically takes his place and becomes the OPC member.
Required documents for OPC Incorporation in India
For DSC application
- Passport size photo of applicant
- Address proof and identification proof copy of applicant
- Specimen signature of the applicant
- Email id and Mobile number of the applicant
For SPICE + form- registration application
- identification proof of both nominee and the subscriber
- For residential proof the applicant can provide any of the following documents. – Copy of latest 3 months bank account statement or phone bill or electricity bill
- Copy of rent agreement
- NOC from the property owner
- Memorandum of association and Articles of association
- Declarations from subscribers and directors of OPC
- Proof of office address
- Copy of electricity or utility bill of office address not older than two months
- Nominee consent in INC-3 form
- Disclosure of directors’ interest
- any other document required
Documents required for AGILE-PRO
- Proof of principal place of business
- Documents necessary for authorized signatory for GST registration
- For bank account opening, a copy of the resolution passed by board of directors along with their ID and address proof
- For the opening of ESIC – ID proof, address proof and signature of authorized signatory
- Other credentials –ITR returns, annual filings etc.
Procedure for Registration
- Step 1- Get Digital Signature certificate for subscriber
- Step2- Reservation of OPC company name through SPICE+ Form part A.
- Step3- Downloading and filling up of OPC registration application form through PSICE+ Form Part B along with necessary supporting documents like MOA,AOA, declarations and other documents
- Step4- Uploading of Part B on MCA portal
- Step5 Pre-scrutiny
- Step- 6 Payment of requisite of fee
- Step7: obtaining incorporation certificate
Restrictions on One Person company
- No minor cannot become nominee of OPC company
- No minor can hold a share of OPC with beneficial interest
- OPC cannot perform voluntary conversion before completion of 2 years from the date of OPC registration.
- OPC cannot be converted or incorporated into a company as per Sec 8 of Companies Act
- They cannot perform non-banking financial investment activities
FilingPoint procedure for OPC Registration
It is advisable to get your OPC registration through the best company registration consultants in India. Chartered Accountants, Company Secretaries and advocates are the perfect professional to get your OPC registration with perfect legal formalities and no hassles in future. Seek advisable from our professional experts today.
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