One Person Company (OPC)

Introduction

Over the last few years, there has been an exponential growth in solo entrepreneurs that prefer to establish their businesses and run them with the benefits of a registered corporate company. Such visionaries are provided with the One Person Company (OPC) form of the Company in the Companies Act, 2013. This concept of operation called the OPC registration can be considered a revolution that gives individual entrepreneurs the perks of having a get up a get down operation sold to them as a private limited company, with its limited liability, legal status, and bearing business credibility.

You start your business as an OPC to protect your freelancer assets from the requirement to sleep with creditors and benefit of having a corporate status than a freelancer one to boost your professional image before your clients, banks, and interested investors.

What is the One Person Company Registration?

One Person Company (OPC) is a form of a private limited company which only possesses one shareholder and also only one director and this may be the same individual. It is a compromise between single ownership and a normal privately owned company.

Incorporated under the planning (2) 62 of the Companies Act, 2013, OPC is a formal version of businesses that is developed by an individual entrepreneur without the need to associate with any other partners. It possesses a legal individuality and is appropriate not only to those who want to be only moderately liable but at the same time have the whole control over the business.

Why is OPC Registration Required?

• Limited Liability: Owner risk his or her personal assets.
• Separate Legal Entity: OPC is a separate entity own it.
• 100 % Ownership: Absolute owners in the running of the business with no disturbance.
• Ease of Compliance: Compared to other privately owned enterprises, there are less requirements in compliance.
• Business Reputability: The ability to be known by banks and vendors as a formal corporate body.
• Funding: There is more easy access to loans and venture capital easier than a sole proprietorship.

Legal Necessity: OPC registration is enough to make sure that your company consults the legal framework created by the Ministry of Corporate Affairs (MCA). It also renders your business credible, makes your business entitled to government schemes, and eliminates risks.

Eligibility Criteria

• The applicant should be a natural person being an Indian citizen as well as someone that lives in India.
• The OPC should not possess more than one shareholder and director.
• The director of the company can also be the shareholder of the company.
• At the time of incorporation a nominee director has to be appointed and he should also be a resident Indian.
• The OPCs cannot indulge in Non-Banking Financial Investment activities or pursue any charitable goals.
• OPC annual turnover should not surpass the mark of 2 crore whereas the paid-up share capital should be confined to 50 lakh.
• In case either of these financial limits is exceeded, then the OPC is obliged to be transformed into a private limited or a public limited company.

Documents Required

For Director/Shareholder:

• PAN Card
• Aadhaar Card/ Voter ID /Passport /Driving License
• Passport-size Photograph
• The most recent Utility bill or bank statement (not more than 2 months old)

In respect of Nominee Director:

• PAN Card
• Aadhaar Card/ Voter ID / Passport/Driving License
• Form INC-3 Consent Letter

In respect of Registered Office:

• Reciept/ bill of electricity/ property tax (not more than 2 months old)
• Rent Agreement (per rented)
• No Objection Certificate (NOC) by a property owner

Step-by-Step Process

• Step 1: A Digital Signature Certificate (DSC) – Obtain a DSC of the proposed director and of the nominee director. Signing of e-forms is compulsory.
• Step 2: Approval of Name (SPICe+ Part A) – Use the SPICe+ form to apply at MCA portal to get the name approved.
• Step 3: Documentation – File and prepare the necessary documents such as MOA, AOA and declarations.
• Step 4: File SPICe+ (Part B)
  e-MOA (INC-33)
  e-AOA (INC-34)
  AGILE-PRO-S in PAN, TAN, EPFO, ESIC, GST and bank account
  Consent of nominee (INC-3)
• Step 5: Certificate of Incorporation – Once submitted successfully, MCA provides the Certificate of Incorporation (COI) which comes combined with the PAN and TAN.

Timeline

• DSC Procurement: 1 2 days
• Name booking: 1-3 days
• Documentation and Fillling: 2-3 days
• Government Approval: COI: 3 to 5 days
• Total Duration: 7 to 12 working days

Fees and Cost

Government Fees:

• Stamp Duty (state to state)
• Application Fee for PAN / TAN
• Name Reservation Charges (in case of them)

Our Profession Charges:

• Expert Consultation
• DSC of a single director
• Name sanction support
• Composition of MOA, AOA etc.
• Registering of SPICe+ forms
• Emission of PAN, TAN and COI
• Post registration advisory compliance

Total Cost: Costing begins 5,999 + government charges

Penalties for Non-Compliance

• Penalty on Late Filing 100 per day per form
• Director Disqualification: inability to file due returns in a year could result to disqualification
• Strike-off of Company: Constant default can lead to deletion in the MCA records
• Conversion Mandate: Non-conversion faces punishment in the case where turnover or capital exceeds stop limit

Therefore, it is essential to file and convert as soon as possible (in case it is necessary).

Why choose Us ?

• We are a group of company secretaries, chartered accountants and law experts who have over the years been practicing business registrations. We will ensure the OPC registration procedure becomes transparent, hundred percent online and free of hassles.
• Reasons why clients trust us:
• Free medical advice
• Short Lead Time
• End-to-End Documentation support
• Affordable Packages
• Business Support throughout the Lifetime
• No hidden cost.
• We do name approval to post-incorporation compliance.