One Person Company (OPC) Registration: Process, Fees & Documents

If you are an individual entrepreneur dreaming of starting your own business, then registering a one-person company (OPC) could be the best decision you can make. An OPC lets you enjoy the benefits of a private limited company without needing multiple shareholders. In this guide, we explain the eligibility, OPC process, fees, documents required, benefits of OPC registration, and why you should choose us for your registration needs.

What is a One-Person Company?

A one-person Company is a type of company that can be started with just one person as its sole shareholder and director. It was introduced under the Act of the Companies, 2013 to encourage sole proprietors to enter the organized corporate sector.

Eligibility of One-Person Company Registration

Before registering for an OPC, you must meet the following eligibility criteria:

• Only a natural person who is a citizen of India and a resident in India can incorporate an OPC.
• The nominee (person who will take over the OPC in case of the owner’s death or incapacity) must also be an Indian resident.
• A person can incorporate only one OPC or be a nominee in only one OPC.
• The paid-up capital of an OPC must not exceed ₹50 lakhs.
• The annual turnover should not cross ₹2 crores in any financial year.

One-Person Company Registration Process

 One person company registration process involves the following steps:

1. Obtain Digital Signature Certificate (DSC): The first step is to get a DSC for the proposed director to digitally sign the application documents.
2. Application for Director Identification Number (DIN): If you do not have a DIN, it must be obtained along with the incorporation application.
3. Reserve the Company Name: Apply for name reservation through the RUN; refer to the (Reserve Unique Name) form on the MCA portal. Make sure the name complies with the Companies (Incorporation) Rules.
4. Prepare Incorporation Documents: Draft the Memorandum of Association (MoA) and Articles of Association (AoA) for the company along with other necessary documents.
5. File SPICe+ Form: Submit the SPICe+ form online to the Ministry of Corporate Affairs, viz. (MCA) along with required documents and fees.
6. Integrated Registrations with SPICe+: The SPICe+ form also covers mandatory registrations for PAN, TAN, EPFO, ESIC, GSTIN (if required), and Professional Tax (in applicable states), simplifying the setup of your OPC by enabling multiple registrations in one single application.
7. Get Certificate of Incorporation (COI): Once your application is approved, the Registrar of Companies (ROC) issues the Certificate of Incorporation, and your OPC is officially registered.

One-Person Company Registration Documents

You need the following documents to register one person company (OPC):

• Passport-sized photograph of the owner.
• Copy of PAN card of the owner.
• Proof of identity – Aadhaar card, driving license, or passport.
• Proof of address – recent bank statement, utility bill, or telephone bill.
• Any authorized proof of registered office address – rent agreement (if rented) or sale deed (if owned) along with NOC from the owner.
• Specimen signature and consent of nominee in Form INC-3.
• Memorandum of Association, viz. (MoA) and Articles of Association (AoA).

One-Person Company Registration Fees

The registration fees for one person company (OPC) vary depending on factors such as authorized capital, professional charges, and state stamp duty. Typically, the government fees for authorized capital up to ₹10 lakhs range from ₹3,000 to ₹7,000. Additionally, professional fees can be charged by consultants or service providers can be around ₹5,000 to ₹15,000 depending on the services offered, such as drafting documents, DSC application, and follow-up with the ROC.

Benefits of One-Person Company Registration

There are several benefits of One Person Company registration:

1. Limited Liability: Liability of the owner is limited or restricted to the capital invested in the company. Personal assets remain protected.
2. Separate Legal Entity: OPC is a separate legal entity that is distinct from its owner. It can own property, enter into contracts, and sue or be sued in its name.
3. Easy Fundraising: Banks and investors prefer registered companies over unregistered businesses, making it easier to get loans or investments.
4. Perpetual Succession: The company that continues to exist even after the death of the owner since the nominee takes over.
5. Brand Recognition: A One-person company enjoys better level of credibility and trust among various customers, suppliers and other groups, such as stakeholders, compared to a sole proprietorship.
6. Tax Benefits: OPCs can avail of various deductions and benefits available to private limited companies, reducing the overall tax burden.

Why Choose Us for Your OPC Registration?

We are experts in company registration services and have helped numerous of entrepreneurs successfully register their OPCs across India. Here's why you should choose us for registration:

• Expert Guidance: Our teams of professionals will guide you at every minor step of the registration process.
• Affordable Packages: We offer the competitive pricing with no hidden charges.
• Quick Processing: We ensure your OPC registration is completed in the shortest time possible.
• Dedicated Support: Our support team is always available to answer your all-relevant queries and resolve any issues...!
• Transparent Process: We provide regular updates on the progress of your registration.

Contact CRSPL Business Consultants to get professional help and make the registration successful smoothly.

Conclusion

Registering a one-person company is the best option for individual entrepreneurs who want to relish the various advantages of limited liability and a separate legal entity while maintaining full control over their business. By choosing us, you can register your OPC hassle-free and focus on growing your dream business. Our experts easily handle all kinds of paperwork, compliance and various other legal formalities, ensuring you don't miss any steps. We make the process simple, fast, and cost-effective so you can start your entrepreneurial journey with confidence and peace of mind, knowing your business is set up correctly and legally compliant.

Frequently Asked Questions (FAQs)

Q1. Can I turn an OPC into a private limited company later?

Yes. An OPC can voluntarily convert into a private limited company after two years of incorporation or mandatorily if its paid-up share capital exceeds ₹50 lakhs or turnover exceeds ₹2 crores.

Q2. Can an OPC have more than one director?

Yes. While an OPC can be started with one director, it can appoint up to 15 directors after incorporation if needed.

Q3. Do I need a nominee for OPC registration?

Yes, it is always mandatory to nominate a person who will take over the OPC in case of the owner's death or incapacity like nature. The nominee must provide consent in Form INC-3.