ONE PERSON COMPANY REGISTRATION
A one-person company is an arrangement where only one person serves as the member, director and shareholder, this is defined in S. 2 (62) of the Companies Act 2013 with this concept being introduced in the 2013 amendment. Unlike a sole proprietorship, in case of an OPC, the company and the owner have separate legal personalities which limits the liability to the extent of the owner’s investment he or she put in the company.
The main advantage of OPC is that prior to the introduction of this concept the benefits of limited liability and continuous existence after death or retirement was only applicable to LLPs and companies, with the introduction of OPC these benefits are extended to a single person entity also.
- Can be incorporated only by an Indian citizen.
- Needs to fall within the category of Resident of India. (182 day rule according to the Income Tax Act)
- Needs to be a natural person, not an artificial person like a company.
- Minimum authorised capital = 1,00,000. Rs
- Since it only has a single member, a nominee must be appointed for continuity.
- Businesses dealing with financial activities will not qualify.
- Minors do not qualify.
- Copy of Passport(NRI) or PAN Card
- Copy of Passport, Voter’s ID or Driver’s License
- Copy of latest Current Bank Account Statement Or Electricity or Gas Invoice
- Passport-sized photo
- Memorandum of association
- Articles of association
- Consent of nominee in Form INC – 3
- Form INC -9 and DIR – 2 dealing with Affidavit and Consent of the proposed Director
- Signature or impression
- Copy of Lease agreement
- NOC from property landowner (OR)
- Copy of Property papers or sale deed.
Note: Documents should self-attested by the single shareholder . In case of an NRI, the documents must be notarised.
- Apply for Digital Signature (DSC) : Requires same documents as mentioned above in the documents required section.
- Name Approval Application
- Apply for Director Identification Number
- Documents Required : Memorandum of association, articles of association, consent of nominee in Form INC – 3, proof of place of business, Form Form INC -9 and DIR – 2 dealing with Affidavit and Consent of the proposed Director.
- Filing Forms with MCA : has to be done through SPICe Form
- Issue of certificate of Incorporation : After everything is complied with.
- Who can register for an OPC?
Any Indian citizen who is a natural citizen.
- How much capital is required to start an OPC?
Minimum authorised capital = 1,00,000
- Can I start more than one OPC at a time?
One owner can have only one OPC at a point of time.