Online One Person Company Registration in India

Before the enactment of the Companies Act of 2013, the formation of a company in India necessitated at least two individuals. However, with the advent of this legislation, there’s a notable shift towards promoting One Person Companies (OPCs). The Companies Act of 2013 specifically facilitates the creation and operation of OPCs in India, allowing a single individual to spearhead such entities. While traditional private companies mandate a minimum of two directors and two members, a One Person Company is a departure from this norm, as it can be formed by a single person. The legal framework supporting OPCs in India is outlined in Section 262 of the Companies Act of 2013. The OPC Registration process requires the representation of the entire company by a lone director and a single member.

Noteworthy is the streamlined compliance structure associated with OPCs, which imposes fewer responsibilities compared to traditional private companies. This legal provision offers a simplified avenue for individuals looking to establish and operate companies independently in India.

Features of One Person Company in India

Following are some important features of One Person Company in India:

• Limitation of Liability: A one-person company member has limited liability. Because OPC is a registered corporation, it is treated as a separate legal entity, providing its members with greater protection. Members’ liability is restricted to their shares, therefore they are not accountable for any losses incurred by the firm. In the event of bankruptcy, creditors may sue the corporation rather than the director for procuring the company’s debt.

• Shareholder and sole directorship: In a One Person Company, a single member serves as a director and is responsible for managing the company’s day-to-day operations. There is no need for an executive director to oversee daily operations in this situation. A single member is more than adequate and serves as a shareholder with full responsibility.

• Ownership of Real Estate: Because the OPC is considered a separate legal organization, the individual has the ability to possess company property and other assets in their name. Other people cannot claim the properties, which include machinery factories, residential property, structures, and other assets. The OPC has the legal authority to acquire land directly in its name.

• Simple Succession: Despite the fact that the company’s everyday operations are managed by a single person, OPC offers opportunities for eternal succession. Following the death of a company member, the nominee can administer the business.

Documents Required for OPC Registration in India

Following are the crucial documents required for One Person Company Registration in India:

• A scanned copy of a current bank statement: Bank statements can be accessed via Internet banking or by visiting a bank branch. Account statements and transaction summary statements are two additional common titles for them.

• A phone bill, an electricity or gas bill and a mobile bill: Utilities often include power, gas, water/sewage, and garbage disposal. Other services, such as internet, cable TV, and phone service, are occasionally viewed as extra utilities because they are now considered standard in the majority of Indian households. The cost of utilities might vary greatly based on your location, the temperature where you reside, and your usage habits. As a result, these are also presented as critical documents for OPC Registration.

• Rental agreement in English, digitally transcribed: Tenants are frequently given hard copies of rental agreements. This must be scanned and submitted to the appropriate authority for documentation.

• A digital transcription of a landlord’s no-objection certificate: This document comes from the specific landlord. Section 12 of The Companies Act, 2013 requires that every corporation maintain a registered address. When a company is incorporated in India, the registered address is attached to the SPICe+ form. If the business’s address changes after formation, a Form INC-22 notification of the company’s new registration address must be sent to the ROC.

• A scanned copy of the property or sale deeds in English (if the property is owned): A sale deed is a legal document used in real estate transactions to confirm the purchase of property and the transfer of ownership from the seller to the buyer. This is the primary ownership transfer documentation. A sale deed is also known as a conveyance deed or a final deed.

Checklist for One Person Company Registration in India

Following is the checklist for OPC Registration in India:

• Membership standards must be met at both the maximum and minimum levels.

• Before incorporation, a nominee should be picked.

• Form INC-3 should be used to request the nominee’s approval.

• Companies (Incorporation Rules) 2014 require that the OPC name be selected.

• The minimum authorized capital of Rs. 1 Lakh.

• Digital Signature Certificate for Potential Director.

• Proof of the One Person Company’s registered office.

Procedure for One Person Company Registration

Following is the procedure for One Person Company Registration in India:

• Step 1: Verify your eligibility and paperwork.

• Step 2: Obtain DSCs and DINs for each director.

• Step 3: Submit a name reservation request Form SPICe+ for company incorporation.

• Step 4: Apply for a new PAN and TAN for your Company.

• Step 5: The ROC issues a certificate of incorporation with a PAN and TAN.

• Step 6: Open a bank account and get your business started.

The entire procedure of OPC Registration can be finished in only 20 days. All you have to do is contact RegisterKaro and complete the process as soon as possible.

Compliances for One Person Company in India

Certain requirements are outlined in the Companies Act of 2013 and must be satisfied by the deadlines specified. These rules promote transparency and good governance while protecting the interests of all parties concerned, including the ROC, shareholders, directors, investors, and tax authorities. These compliances are classified as annual compliances, recurring compliances, one-time post-incorporation compliances, and event-based compliances. The first category of one-time compliances has already been thoroughly discussed.

Compliance:

A one-person company must immediately comply with particular legal requirements established in the Companies Act of 2013 and, if necessary, secure local registrations in accordance with the state legislation of the state in which the One Person Company is conducting business. The full list of compliances, together with their timeframes, is shown below. Contact one of our startup advisors for more in-depth conversations.

Restrictions on One Person Company

Despite its many advantages, starting a one-person business comes with a number of constraints.

• Not Suitable for Scalability: Registering your company as an OPC is an excellent choice for a small business structure. However, if you intend to expand it up to higher levels, this may not work. The total number of persons in an OPC at any given time is always one. You cannot register your company as a One Person Company if you intend to add more members and shareholders. As a result, OPC is unlikely to obtain additional cash. This will stifle corporate expansion and growth.

• Increased Restriction on Commercial Activities: One Person Company is not permitted to engage in non-banking financial investment operations under the rules and regulations. Registering as an OPC does not provide you the freedom to invest in the security of other corporations.

• There is no distinct distinction between ownership and management: Because a single person serves as both the company’s director and its management, there is no apparent boundary between the two jobs. All decisions must be made and approved by a single individual. As a result, there is a greater likelihood of unethical behaviour.

What makes MrTaxpert the ultimate choice for your One Person Company registration?

MrTaxpert’s OPC Registration package provides DSC online for one of your Directors.

We will also provide a DIN, in case the Shareholders are different from the Directors, and the additional Digital Signature Certificate is needed for shareholders.

Our experts will also help you with deciding the Company’s Name.

TAN & PAN, drafting of AoA, paying the stamp duty & COI fee, obtaining the Name Approval Certificate & GST Registration, will be done.

A current account will be opened.