One Person Company

• What is a one person company?
• What are one person companies examples?
• What is OPC in Companies Act, 2013?
• Who is eligible to become a member of an OPC?

To register a One Person Company (OPC) in India, you need to fulfill certain requirements and follow a specific procedure. The Companies Act, 2013, governs the registration and functioning of OPCs in India. Here are the complete requirements for OPC registration:

Minimum requirements:
a. Director: A minimum of one director is required, who must be an Indian citizen and resident in India.
b. Shareholder: OPC can have only one shareholder, who can also be the director.
c. Nominee: A nominee must be appointed by the director, who will become the shareholder in case of the director’s death or incapacity.
d. Capital: There is no minimum capital requirement for OPC registration.

Name reservation:
a. Choose a unique name for your OPC, ensuring it does not infringe any existing trademarks or violate the naming guidelines prescribed by the Ministry of Corporate Affairs (MCA).
b. Submit an application for name reservation in the prescribed Form SPICe+ (part of the Integrated Incorporation Process).

Digital Signature Certificate (DSC):
a. Obtain a Class-II Digital Signature Certificate for the proposed director(s) and shareholder(s).
b. DSC is required to file the online application for OPC registration.

Director Identification Number (DIN):
a. Apply for DIN for the proposed director(s) of the OPC.
b. DIN can be obtained by submitting Form DIR-3 online.

Documents required:
a. Identity proof and address proof of the proposed director(s) and shareholder(s) (e.g., PAN card, Aadhaar card, passport, etc.).
b. Proof of the registered office address of the OPC (e.g., utility bills, rental agreement, etc.).
c. Consent and declaration from the proposed director(s) and shareholder(s) in the prescribed format.
d. No-objection Certificate (NOC) from the property owner for using the registered office address, if applicable.
e. Passport-sized photographs of the proposed director(s) and shareholder(s).

OPC registration process:
a. Prepare and file the necessary documents online through the MCA portal.
b. Form SPICe+ (part of the Integrated Incorporation Process) needs to be filed, including details of the proposed director(s), shareholder(s), nominee, and other relevant information.
c. Pay the requisite fee based on the authorized capital of the OPC.
d. Once the application is processed and approved, the Registrar of Companies (RoC) will issue a Certificate of Incorporation (CoI) along with a unique Corporate Identity Number (CIN).
e. After obtaining the CoI, the OPC can commence its business operations.

It is essential to note that OPCs have certain limitations and requirements, such as:

OPC cannot have more than one director or shareholder.
OPC must be converted into a private limited company if its paid-up capital exceeds Rs. 50 lakhs or its average annual turnover exceeds Rs. 2 crores for three consecutive years.
OPCs are not eligible for certain activities, such as non-banking financial investment, charitable activities, etc.
It is advisable to consult a professional or a Company Secretary to ensure compliance with all legal requirements and to have a smooth registration process for your One Person Company in India.