The concept of Corporate Laws in India was entirely revolutionized by The Companies Act, 2013. One such game-changing new addition was the introduction of the One Person Company Registration. This introduced a new way to register under the Companies Act without the hassle of gathering proprietors and benefactors, but with the advantages of a limited liability company.

This new addition was a pleasant change as it allowed a single person to take charge of the company affairs instead of a required minimum of two individuals to function as members of any other company.

What is OPC?

OPC is a company registration where only one person is required as the board of member for the company to function. There are instances where we see startups and SMEs lack shareholders and benefactors in the beginning. So getting registered under an OPC act is the most convenient option for newborn ideas. It comes with both advantages and disadvantages. A new company could not do any better than an OPC registration because it is very easy to get, and it comes with many perks.

Advantages of an OPC

• Limited liability is the most advantageous feature in a one-person company. Since only one person is the member and the sole shareholder, OPC guarantees liability protection.
• Being the sole member of a company, the owner has full control over decisions and resolutions. There is also no need to hold an AGM.
• There is no minimum paid-up capital assigned to an OPC.
• The concept of perpetual succession does not apply to a one-person company. So, the death of the director and sole shareholder will result in dissolving the company.
• The OPCs have acquired many special privileges and tax exemptions from the government under The Companies Act, 2013.

Disadvantages of an OPC

• Mainly the lack of members in an OPC gives lesser credibility to its investors. 
• After the death of the only shareholder, the company ceases to exist.
• OPC is only suitable for small businesses.
• The owner of an OPC has to appoint a nominee. Without one, it is not possible to get the registration.

How can we help you?

One Person Company registration has more advantages than disadvantages. Amidst all the struggle, a startup’s best option is to go for OPC registration. The government certainly gives a head start to all the budding SMEs. Online Legal India^TM know how important incorporation is for a new business. Go for the One Person Company Registration at a very affordable charge and take care of your business without any hassle. This is the best option for a new businessman who lacks manpower and shareholders. So, if you have faith in your own business, you want to build a brand, get registered under an OPC and get a head start.

The concept of Corporate Laws in India was entirely revolutionized by The Companies Act, 2013. One such game-changing new addition was the introduction of the One Person Company Registration. This introduced a new way to register under the Companies Act without the hassle of gathering proprietors and benefactors, but with the advantages of a limited liability company.

What is a One Person Company?

One Person Company is a company registration where only one person is required as the board of member for the company to function. There are instances where we see start-ups and SMEs lack shareholders and benefactors in the beginning. So getting registered under an OPC act is the most convenient option for newborn ideas.

One Person Company (OPC): Process of Registration

1. Application for DSC: The first step is to obtain the Digital Signature Certificate (DSC) of the proposed Director which required the following documents:

• Address Proof
• Aadhaar card
• PAN card
• Photo
• Email Id
• Phone Number

2. Application for DIN: Once the DSC is generated, the next step is to apply for the DIN (Director Identification Number) of the proposed Director along with the name and address proof of the person.

3. Name Approval Application:  The next step is the selection of the name of the company. The format should be “XYZ (OPC) Private Limited”.

The name approval can be received after sending an application in Form SPICe 32 from the end of Ministry of Corporate Affairs. Once the name is approved by the MCA the next step should be taken.

4. Documents Required:  The following documents should be prepared before submission:

a. The Memorandum of Association (MOA) has to be prepared and the objectives should be mentioned clearly for which the company is being formed.

b. The Articles of the Association (AOA) which talks about the laws by which the company will run.

c. Since there are only 1 Director and a member, a nominee on behalf of such a person has to be appointed because in the case along with his consent in Form INC – 3.

d. Proof of the registered office of the proposed Company along with the proof of ownership and a NOC from the owner.

e. Declaration and Consent of the Director in Form INC -9 and DIR – 2 respectively.

f. A declaration by the professional certifying that all compliances have been made precisely.

5. Issue of the certificate of Incorporation: On verification of the above-submitted documents and required forms, the Registrar of Companies (ROC) will issue a Certificate of Incorporation and the business can be commenced.

Benefits of an OPC

• Limited Accountability is the most advantageous feature in a one-person company. Since only one person is the member and the sole shareholder, OPC guarantees liability protection.
• Being the sole member of a company, the owner has full control over decisions and resolutions. There is also no need to hold an AGM.
• There is no minimum paid-up capital assigned to an OPC.
• The concept of perpetual succession does not apply to a one-person company. So, the death of the director and sole shareholder will result in dissolving the company.
• The OPCs have acquired many special privileges and tax exemptions from the government under The Companies Act, 2013.

Limitations of an OPC

• Mainly the lack of members in an OPC gives lesser credibility to its investors.  
• After the death of the only shareholder, the company ceases to exist.
• OPC is only suitable for small businesses.
• The owner of an OPC has to appoint a nominee. Without one, it is not possible to get the registration.

How can we help you?

Amidst the entire struggle, a start-up’s best option is to go for OPC registration. The government certainly gives a head start to all the budding SMEs. We all know how important that is for a new business. Go for the One Person Company Registration at a very affordable charge with Online Legal India^TM as they would take care of your business without any hassle. This is the best option for a new businessman who lacks manpower and shareholders. They have the best minds in the business who would give you service round the clock until your contentment.