Overview of OPC Registration
The Companies Act, 2013 introduced a new business structure known as One Person Company (OPC), allowing a single entrepreneur to establish a company while enjoying the benefits of limited liability and a separate legal entity status.
Before this act, a single individual could not form a company, as a minimum of two directors and two members was required. The only alternative was a sole proprietorship, which did not offer the same legal protection as a company.
Under Section 2(62) of the Companies Act, 2013, an OPC can now be incorporated with just one director and one member, who can be the same individual. Compared to a private limited company, OPCs are subject to fewer regulatory compliances, making them a simpler and more structured option for solo entrepreneurs.
Benefits of OPC Registration in India
Registering a One Person Company (OPC) offers several advantages, making it an ideal choice for solo entrepreneurs.
1. Legal Protection & Limited Liability
- OPC is recognized as a separate legal entity, protecting the founder's personal assets.
- The member's liability is limited to the value of their shares, ensuring they are not personally responsible for company debts.
- Creditors can only take legal action against the OPC, not the individual member.
2. Easy Access to Funding
- OPCs can raise capital from venture capitalists, angel investors, and incubators.
- Recognized as a private company, making it easier to secure business loans from financial institutions.
3. Simplified Compliance Requirements
- The Companies Act, 2013 provides exemptions and fewer compliance obligations for OPCs.
- No requirement for a cash flow statement, and the sole director can manage tasks like signing account books.
4. Quick & Hassle-Free Incorporation
- Requires just one member and one nominee (the member can also act as the director).
- No minimum paid-up capital required, simplifying the registration process compared to other company structures.
5. Efficient Management & Decision-Making
- A single owner allows for quick decision-making and streamlined business operations.
- Resolutions can be passed without the need for complex approvals.
6: Reduced Paperwork & Compliance
- The OPC registration process involves minimal documentation.
- Compliance obligations are significantly lower than private or public limited companies.
7: Exclusive Benefits for Small-Scale Businesses
- Easier access to funding with lower interest rates on business loans.
- Collateral-free financing under government initiatives.
- Additional benefits under the Foreign Trade Policy to support small enterprises.
7: Perpetual Succession
- Despite having only one member, an OPC enjoys perpetual succession.
- A nominee, appointed during incorporation, takes over the business in case of the member's demise, ensuring continuity.
Checklist for Online OPC Registration in India
To register a company in India, the following criteria must be met:
Requirement | Details |
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Eligibility | Only a natural person who is an Indian citizen can register an OPC. Companies and LLPs are not eligible to form an OPC. |
Residency Requirement | The applicant must be a resident of India, meaning they must have resided in India for at least 182 days in the previous calendar year. |
Minimum Authorized Capital | An OPC must have a minimum authorized capital of ₹1,00,000, as stated in its capital clause. |
Nominee Appointment | The promoter must appoint a nominee during registration. This nominee will assume ownership in case of the promoter's demise or incapacitation. |
Business Activity Restrictions | OPCs cannot engage in financial services such as banking, insurance, or investment-related activities |
Mandatory Conversion to a Private Limited Company | If an OPC's paid-up share capital exceeds ₹50 lakhs or its average annual turnover surpasses ₹2 crores, it must be converted into a Private Limited Company as per regulatory guidelines. |
Ownership Limitations | An individual can own only one OPC at a time. Additionally, minors cannot be members of an OPC. |
Documents Required for Online OPC Registration
The following documents are required to successfully register a One Person Company (OPC) in India:
- Memorandum of Association (MoA)– Defines the objectives and scope of the company.
- Articles of Association (AoA) – Outlines the rules and regulations governing the company's operations.
- Nominee's Consent & Identification – Form INC-3, along with the nominee's PAN card and Aadhaar card, must be submitted.
- Registered Office Proof – Address proof of the company's registered office (e.g., lease agreement, utility bill, or NOC from the owner).
- Director's Declaration – Declaration by the proposed director via Form INC-9 and DIR-2
- Professional Certification – Declaration by a Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant, confirming compliance with legal requirements.
OPC Registration Process in India
The process of registering a One Person Company (OPC) involves the following steps::
Step 1: Obtain a Digital Signature Certificate (DSC)
- The proposed director must apply for a DSC from a government-authorized agency.
- Required documents include:
- Address proof
- Aadhaar card & PAN card
- Passport-sized photograph
- Email ID & phone number
Step 2: Apply for Director Identification Number (DIN)
- DIN is obtained through the SPICe+ form.
- The director's name and address proof must be provided.
- The SPICe+ form allows the application of DIN for up to three directors at the time of incorporation.
Step 3: Name Reservation
- Choose a company name in the format ABC (OPC) Private Limited
- Submit the name approval request using Form SPICe+.
- Only one preferred name can be submitted; if rejected, resubmission is required.
Step 4: Prepare Required Documents
- The following documents must be submitted to the Registrar of Companies (RoC):
- Memorandum of Association (MoA) & Articles of Association (AoA).
- Nominee appointment details, including Form INC-3, PAN card, and Aadhaar card.
- Registered office proof (ownership documents, utility bill, or No Objection Certificate (NOC) from the owner).
- Declaration and consent from the director (Form INC-9 and DIR-2).
- Professional certification by a CA, CS, or Cost Accountant verifying compliance.
Step 5: Filing of Forms with MCA
- Attach all required documents to SPICe+, SPICe-MoA, and SPICe-AoA forms.
- Upload the forms on the Ministry of Corporate Affairs (MCA) portal with the DSC of the director and certifying professional.
- PAN and TAN numbers are generated automatically upon submission.
Step 6: Issuance of Certificate of Incorporation
- The Registrar of Companies (RoC) reviews and verifies the documents.
- Once approved, the Certificate of Incorporation is issued, allowing the business to commence operations.
OPC Compliance Requirements in India
Under the Companies Act, 2013, a One Person Company (OPC) must adhere to specific compliance requirements within defined timelines. These can be categorized into annual, periodic, event-based, and post-incorporation compliances. Mandatory Post-Registration Compliances for OPCs
Compliance | Description |
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Board Meetings | Conduct at least one board meeting every quarter, ensuring a minimum gap of 90 days between meetings. |
Bookkeeping | Maintain accurate and updated books of accounts as per statutory guidelines. |
Statutory Audit | Get the financial statements audited by a qualified Chartered Accountant. |
Income Tax Return Filing | File the company's ITR annually, typically before September 30th. |
Filing of Financial Statements | Submit:Form AOC-4 for financial statements &Form MGT-7A for the annual return (specific to OPCs) |
Why Choose CapEasy for Online OPC Registration?
One Person Companies (OPCs) have become an increasingly popular business structure since their introduction under the Companies Act, 2013. While setting up an OPC, there are specific requirements and compliance norms that must be followed to ensure smooth incorporation and efficient operations.
At CapEasy, we offer comprehensive end-to-end services for online OPC registration in India. From expert guidance during the initial planning stage to fulfilling all regulatory requirements, our team ensures that your OPC is registered quickly, correctly, and compliantly—while maintaining its legal integrity throughout its lifecycle.