One-Person Company (OPC) Registration with Kickstart Business Advisors
One-Person Company (OPC) registration is an innovative business structure introduced under the Companies Act, of 2013, allowing a single individual to form a company. Before this Act, forming a company required at least two members.
One-Person Company (OPC) registration is an innovative business structure introduced under the Companies Act, of 2013, allowing a single individual to form a company. Before this Act, forming a company required at least two members. Now, with OPC registration, a single person can operate as both the director and sole member of the company, enjoying the benefits of a company without the need for partners. This write-up explores the OPC registration process, necessary documents, and why you should choose Kickstart Business Advisors.
Requirements
To register a One Person Company, the following requirements must be met:
Minimum Authorized Capital: Authorized capital must be at least ₹1 lakh
Minimum Paid-up Capital: There is no minimum paid-up capital required
Natural Person as Director: The director must be a natural person, not a corporate entity.
Indian Resident: The OPC can only be incorporated by an Indian resident.
Minimum Age: The director must be at least 18 years old.
No Disqualifications: The member must not be disqualified under any grounds listed in the MCA Companies Act, 2013.
Minimum Capital: Authorized capital must be at least ₹1 lakh.
Lawful Activity Only: The OPC cannot be formed to conduct unlawful activities.
Capital and Turnover Limits: Paid-up capital should not exceed ₹50 lakh, and annual turnover should not exceed ₹2 crore.
Nominee Requirement: A nominee must be designated and must consent to the role using Form INC-3.
Unique DIN and DSC: The director must obtain a Director Identification Number (DIN) and Digital Signature Certificate (DSC).
Registered Office Address: A registered address is required for business operations.
Characteristics
OPCs have unique characteristics that set them apart:
Limited Liability: Like private or public companies, OPC members have limited liability, protecting their assets.
Perpetual Succession: OPCs enjoy perpetual succession, with the nominee taking over in the event of the director’s death.
Director-Shareholder Relationship: The director handles daily operations and serves as the sole shareholder.
Asset Holding: OPCs can own assets, including property, equipment, and more, under the company’s name.
Compliance Requirements: OPCs must comply with specific regulatory requirements similar to other companies, including annual filings.
Advantages
OPCs offer several benefits that make them an attractive option:
Separate Legal Identity: OPCs are distinct legal entities, that protect the personal assets of the sole member.
Funding Opportunities: OPCs can access funding through venture capital, angel investors, and other means.
Simplified Compliance: Unlike other companies, OPCs are not required to prepare cash flow statements or detailed annual reports.
Ease of Incorporation: The incorporation process is simpler compared to other company types.
Straightforward Administration: With only one member, decision-making is faster, and internal conflicts are minimized.
Documents Required
To register an OPC, the following documents are needed:
Minimum Paid-up Capital: There is no minimum paid-up capital required
Address Proof: Proof of the business address Rental agreement, tax receipt, sale deed
Utility bill: electricity bill, water bill, gas bill all latestÂ
Contact details:Â Email ID and phone number of all the directors
Registration Process
The OPC registration process is straightforward yet detailed:
Document Filing: Begin by submitting all required documents online, signed digitally by the company promoter.
Brand Name Selection: Choose a unique name for your OPC that complies with MCA guidelines and file it with SPICE+ (Part A).
MoA and AoA Preparation: Draft the Memorandum of Association (MoA) and Articles of Association (AoA), detailing the company’s objectives and rules.
SPICe+ Application Filing: Complete the SPICe+ application form, signed digitally and certified by a company secretary or chartered accountant.
Certificate of Incorporation: Upon verification of all documents, the Registrar of Companies will issue the Certificate of Incorporation( CIN), officially registering your OPC.
Why Kickstart Business Advisors?
OPC registration involves precise documentation and compliance with MCA regulations. Kickstart Business Advisors offers expert guidance to streamline the process, ensuring your OPC is registered efficiently. Our team of legal, accounting, and business experts supports you through every step, from documentation to compliance. Choose Kickstart Business Advisors to navigate OPC registration with confidence, ensuring a smooth and compliant business start.
FAQs
What is an OPC?
An OPC is a company that can be formed by a single person, acting as both the director and the sole member.
Can an NRI form an OPC?
No, only residents of India can form an OPC.
Is there any limit on the turnover of an OPC?
Yes, the annual turnover of an OPC should not exceed ₹2 crore.
Can an OPC convert into a private limited company?
Yes, OPCs can convert into private limited companies after meeting specific criteria set by the MCA.
Is it mandatory to appoint a nominee in an OPC?
Yes, appointing a nominee is mandatory in case of unforeseen circumstances affecting the director.
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