One Person Company Registration
How To Register A One Person Company?
Legalguard.in helps you to register One Person Company in India in 3 simple steps.
We help you obtain digital signature certificate.
We draft and file the documents required for your OPC registration (MoA, AoA & Declarations).
We help you with the post-registration formalities and compliances.
What is One Person Company (OPC)?
The One Person Company (OPC) was launched as a good refinement over the sole proprietorship. In OPC, a single promoter gains full authority over the company thereby restricting his/her liability towards their contributions to the enterprise. Therefore, the said person will be the sole shareholder and director (however, a director nominee is present, but has zero power until the real director proves incapable of getting into the contract). Also, there can be no opportunity for contributing to employee stock options or equity funding. Additionally, if an OPC company has an average hattrick turnover of Rs. 2 crores and over or acquires a paid-up fund of Rs. 50 lakh and over, it has to be converted to a private limited or public limited company within six months.
Documents Required for OPC Registration
In India, one person company registration cannot be done without proper identity and address proof. These documents will be needed for the director and the nominee of the company to be incorporated. Listed below are the documents that are accepted by MCA for the online company registration process.
Identity And Address Proof
- Scanned copy of PAN Card
- Scanned copy of Voter’s ID/Passport/Driver’s License/Adhar
- Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
- Scanned passport-sized photograph
The residence proof documents like the bank statement or the electricity bill must be less than 2 months old.
Registered Office Proof
For online company registration in India, the company must have a registered office in India. To prove admittance to the registered office, a recent copy of an electricity bill, water bill or gas bill must be submitted. Along with the utility bill, a letter from the landlord with her/his consent to use the office as a registered office of the company should be submitted.
Note: Your registered office need not be a commercial space; it can be your residence too.
Benefits of OPC Registration
The directors' personal property is always safe in the one-person company, no matter the debts of the business.
Sole Proprietorships come to an end with the death of the proprietor. As an OPC company has a separate legal identity, it would pass on to the nominee director and, therefore, continue to exist.
As an OPC needs to have its books audited annually, it has greater credibility among vendors and lending institutions.
OPC Registration Process
Company Registration in India will boost the progress of startups and provide an additional edge over those who have not registered. The Ministry of Corporate Affairs governs the company registration process with rules and regulations framed following the law.
- Step 1: Application for DSC (Digital Signature Certificate).
- Step 2: Application for the name availability.
- Step 3: Filing of the eMoa and eAoA to register a private limited company along with ESI-PF, PAN & TAN application
- Step 4: Issued certificate of incorporation by RoC with PAN and TAN
Search a Company before Company Registration
One of the primary steps in Company Registration is to ensure that the company name has not already been taken by another legal entity. We can run a company name search to check the availability of the particular name in India against the MCA and trademark database.
The Company name can be checked in MCA Database
and in Trademarks Database
We recommend the businesses to come up with three to four alternative names. The Ministry of Corporate Affairs will be the final authority to approve the name based on the availability rules and regulations.
If you are disappointed that a preferred name is taken, do remember that the name of your company doesn't have to be your brand name.
What you get after Company Registration
Legalguard.in Company Registration Package Includes:
Access To Experts
We provide access to reliable professionals and coordinate with them to fulfil all your legal requirements. You can also track the progress on our online platform, at all times.
By handling all the paperwork, we ensure a seamless interactive process with the government. We provide clarity on the incorporation process to set realistic expectations.
With a team of over 150 experienced business advisors and legal professionals, you are just a phone call away from the best in legal services.
Frequently Asked Questions
Do I need to be physically present during this process?
No, new company registration is a fully online process. As all documents are filed electronically, you would not need to be physically present at all. You would need to send us scanned copies of all the required documents & forms.
How much time is needed for setting up a one person company in India?
We can register a Company as early as 4 days. The time also depends on the relevant documents provided by the applicant and the speed of approvals from the government. To ensure speedy registration, kindly pick a unique name as the proposed Company name and also ensure that you have all the required documents prior to the starting of the registration process.
What are the rules for picking a name for a one person company?
There are very comprehensive rules for Company names. Basically, the first word should be a noun, followed by the word depicting the business of Company (not necessary but advisable), followed by the words (OPC) Private Limited.
What is a DSC?
DSC i.e. digital signature certificate is required to electronically sign the documents required to be filed for registration of a Company. It is made by submitting identity documents with a certifying authority and downloaded in a token like a pen drive.
What are articles of association and memorandum of association?
These documents contain the rules, vision and mission of your organisation, and define, among other things, the exact business and the roles and responsibilities of shareholders and directors.
Can Director & Shareholder be the same person?
Yes. Director & Shareholder can be the same person in One Person Company.
What is the role of Nominee in a One Person Company?
In the event of death or incapacity to enter into contracts of the shareholder the nominee becomes the shareholder of the One Person Company.
Can the director of a One Person Company also be a salaried person?
Yes, a salaried person can become the director in a private limited, public limited, LLP or OPC. One needs to check the employment agreement if that allows for such provisions. In a lot of cases, the employers are quite comfortable with the fact that their employee is a director in another company.
Can one register a One Person Company on their home address?
Yes, one can register the company at their residential address. One requires to submit the utility bill copy of the same.
Is it necessary that the utility bill being submitted as office addres proof should be in the name of director or shareholder?
No. The utility bill can be in the name of any person other then a director or shareholder.
What is authorised capital and paid up capital?
The authorised capital is the maximum value of equity shares that can be issued by a company. Paid-up capital is the amount of shares issued by the company to shareholders. Authorised capital can be increased any time after incorporation to issue additional shares to the shareholders.
Is there any turnover limit for a One Person Company?
Earlier there was limit of turnover and capital of OPC but now these limits have been removed and there is no limit for turnover and capital now.
Can foreign citizen register a One Person Company in India?
No. A non-resident can not register a One Person Company in India.
Can State of Residence of Director & State of Office Address of Company be different?
Yes. Both Can be different.
How many OPCs one can register?
One person can register only one OPC.