How and why you should register a One Person Company (OPC) in India – Complete registration procedure for OPC

1.0 Introduction

The concept of OPC is in crawling stage in India and would require some more time to set and reach in its maturity position to be fully accepted by the business organization. But, it is becoming the most preferred form of business organization especially for small entrepreneurs which are a lover of personal freedom and who possess Professional skills and excellence can adopt the business of his choice.

2.0 What is One Person Company?

One Person Company is new concept introduced under new Companies Act 2013, which has only one person as a member who is also a director. The concept of OPC was introduced to provide the corporate version of proprietorship.

In other words, since proprietorship has no legal existence in the eyes of law, the government has introduced this concept to provide a legal framework for a sole proprietorship, so that they can register and start their business in India.

3.0 How to register One Person Company (OPC) in India – A Complete GST registration procedure

Now, since we have explained you the basics about the OPC, let us now discuss the registration procedure for One Person Company (OPC) in India.

Let us discuss the OPC registration step by step:

#Step No. 1 – Documents Required for OPC registration in India

The first step for OPC registration is to get the documentation part done. This is one of the most important tasks for OPC company registration, because if it is not done properly, then you might face rejection in future. Hence, take time and gather all the documents properly.

Following is the list of documents required company registration to avoid the hassle and other complexity.

For directors and shareholders:

Copy of PAN card.
ID Proof – Aadhar Card/ Voter ID card/ Driving License – Any One.
Address proof – Bank Statement/Telephone bill/Mobile Bill/Electricity bill – Anyone.
Recent Passport Size Photo.

For Registered address proof

Copy of Electricity bill.
Copy of NOC (No Objection Certificate).
Rent agreement or ownership proof of the premises.

#Step No.2 – Obtain Digital Signature Certificate (DSC)

After the documents are properly arranged, the next step is to get the digital signatures, so that all the legal documents can be signed online. Digital Signatures are prepared in a pen drive form which is then attached to the computer to sign the respective documents.

#Step No.3 – Obtain Director Identification Number (DIN) for OPC

Director Identification Number (DIN) is assigned to every individual who wants to become the director in any company in India. In other words, like PAN is required for every person to file the income tax return, similarly DIN is required by every person to become the director of the Company. Further, DIN once allotted is valid for lifetime.

If any person intended to be appointed as director of a company can make an application to ROC in the following manner:

Log in into website i.e. mca.gov.in.
Download Form -DIR-3 and filed the required details and affix DSC
Get it Certified by Professional like CA/CS
Once form get complete it should be Pre scrutiny for uploading on website
For uploading and processing, the form fee of sum Rs.500 should be paid. Once payment made challan would get and DIN would be allotted immediately.

#Step No.4 – Application for Reservation of name for OPC registration

Once the famous writer Shakespeare said that what is there in the name? However, this may not be true when it comes to registering a company in India. Name of the company reflects its identity and therefore, it is important that you should choose the name properly.

For reservation of name, you need to choose desirable names for proposed OPC. The name should reflect your brand name and the proposed business which you wish to start.

Further, the proposed name should not be offensive, resemble or violation of any provision of the act. Once name approved by the ROC it is valid for 60 days only. Following steps would be followed for checking the name availability.

Log in into website i.e. mca.gov.in.
Download Form –INC-1 and filed the required details and affix DSC
Get it Certified by Professional like CA/CS
Once form get complete it should be Pre scrutiny for uploading on website
Upload the filed form on mca.gov.in along with a fee of Rs.1000.
One has to keep regular check to see the status of form filed and wait for the name
Once name is approved by ROC it will be valid for the period 60 days only

#Step No.5 – eMOA and eAOA and other documents

Once the name of the company is approved, now the next step is to prepare all the remaining documents like MOA and AOA and other incorporation related documents. Once the documents are formed, then you can proceed to file the incorporation.

#Step No.6 – File for incorporation of the Company

Under this step, the spice incorporation form is filed along with all the necessary documents. This step is one of the most time-consuming task and should be done properly to avoid the rejection from the government.

4.0 Important points to be taken care off while incorporating OPC in India

Here are certain points which are to be taken care off while incorporating One Person Company in India:

Appointment of Nominee: To register a One Person Company (OPC) in India, a nominee shall also be required who shall take over the company in case of death of the sole member.

Death of Sole member: In case if there is any change in ownership, Cessation of a member of OPC due to death and incapacity to contract the Company shall file Form –INC-4 with ROC. Details of the newly appointed member may also be provided in the same above Form.

Can Add more directors: An OPC can be incorporated with one director however, further directors can also be added. A company can have maximum 15 directors on the board.

5.0 Conclusion

If you are looking for registration services and would like to know more feel free to contact us at info@hubco.in and get a free consultation.