Are you interested in starting your own business and want to reduce your liability? You should consider registering your business as a One Person Company (OPC). Many entrepreneurs in the starting stage of their business prefer OPC instead of Sole Proprietorship Business. Here are the details about OPC and how to register an OPC in India:

What is a One Person Company?

Under the Companies Act 2013, the concept of One Person Company in India was introduced. It allows the single person to incorporate the company and get the benefits of both the company and sole proprietorship. After the enforcement of the Company Act 2013, this concept became available.

The primary objective of OPC is to corporatise MSMEs and promote entrepreneurship. All the advantages of a Private Limited Company, including being a separate legal entity, perpetual succession and protecting the personal assets from the firm’s liabilities are included in OPC.

Documents required for OPC Registration

The documents required for OPC registration, includes:

  • Aadhaar card of the shareholder and director
  • PAN card of the shareholder and director
  • Proof of address of the shareholder and director
  • Passport-size photograph of the shareholder and director
  • NOC from the registered office owner
  • If it is a rental property, then the rental agreement of the registered office
  • Utility bills of the registered office which should not be older than two months
  • AOA and MOA of the company
  • DSC of the shareholder and director
  • DIN of the director

How to register an OPC?

To register OPC online in the Ministry of Corporate Affairs Portal (MCA Portal), follow the below-given steps:

  • Step 1: Get a DSC

Get the proposed director’s Digital Signature Certificate (DSC). To get this, you need the following documents:

  • Aadhaar card
  • Address proof
  • PAN card
  • Photo
  • Email Id
  • Phone number
  • Step 2: Apply for DIN

After DSC, the next step is to apply for the Director Identification Number (DIN) of the director in the SPICe+ form. Give the director’s name and the address in the form.

  • Step 3: Name approval application

Reserving the unique name for your company is the third step. Apply for name reservation in the MCA portal by submitting the SPICe+ (Part A) form. The name should not resemble any existing company name or trademark and should be unique.

  • Step 4: Preparation of AOA and MOA

The Articles of Association (AOA) and Memorandum of Association (MOA) of the company should be filed with the Registrar of Companies (ROC). AOA deals with the company’s internal rules and regulations, and the MOA deals with the company’s objectives.

  • Step 5: Filling of Forms

Once the form is filled, along with the necessary documents, it can be submitted online with a prescribed fee.

  • Step 6: Issuing Certificate of Incorporation

After verification, the ROC will provide the Certificate of Incorporation, and you can commence the business.

Checklist for registering OPC

  • Maximum and minimum of one member.
  • Before incorporation, a nominee should be appointed.
  • In Form INC-3, there should be the consent of the nominee.
  • The OPC name must be under the provisions of the Companies (Incorporation Rules) 2014.
  • 1 lakh is the minimum authorised capital.

Final thoughts

Now that you have learned about the registration of OPC, it is time for you to put your OPC ideas into action. Getting the necessary documents, the application process, the name approval procedure, and the incorporation of OPC can take approximately 7-15 days.

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