OPC Registration

OPC

A One Person Company is a company with a single member.It was introduced by the Companies Act, 2013. OPC extends the concept of limited liability to a company run by a single person. It is similar in respects to a private limited company with certain differences like fewer compliances and relaxation of certain restrictions. Thus, an OPC is subject to all the provisions of the Act like a private limited company unless expressly excluded.

Advantages and benefits of OPC

  • Limited Liability Protection to Directors personal assets
  • Helps for Testing of Business Model and Enables Funding
  • Better image and credibility in Market
  • Complete Control of the Company with a Single Owner
  • Easy to Manage and Freedom from Compliances
  • Easy to Sell OPC

Documents required for OPC registration

  • Copy of PAN Card of owner
  • Passport size photograph of owner
  • Copy of Aadhaar Card/ Voter identity card
  • Copy of Rent agreement (If rented property)
  • Electricity/ Water bill (Business Place)
  • Copy of Property papers (If owned property)
  • Landlord NOC (Format will be provided)

Minimum requirement for OPC

  • One person
  • One director
  • One shareholder
  • One nominee

Steps involved in the registration of OPC

Digital Signature of Director
As the application for Company Incorporation is filed online through Spice-32 Form, the process starts with the issue of Digital Signatures of class two for the promoter.

Name Approval Of Company
The Company must be incorporated with a unique and new name which should not be the same or similar to an already registered company, LLP or a registered/applied trademark.

Filing for Incorporation
One single application (spice 32) is filed for allotment of DIN, and incorporation of the company. with the approval of this form, the Certificate of Incorporation is Issued.

PAN, TAN & Bank Account
The Income-tax Department allots a Permanent Account Number and TAN, which is mentioned on the certificate of incorporation. Next is Bank A/c opening for the company.

What is a nomination in OPC Registration?

Since only one person is the shareholder of the OPC hence, hence at the time of incorporation of a one person company, any other person is nominated as nominee with their consent.

What is the limit of Capital with a One Person Company can be Incorporated?

A One Person Company can be registered with maximum capital of Rs. 50 Lac. If the OPC wants to increase capital beyond 50 Lac, then the same need to convert as a normal company.

What is the turnover limit for a one person company?

The OPC Can have an average turnover of Rs. 2 Crores during three years if the turnover exceeds the limit then the same need to mandatorily convert as a normal company.

Meaning of “Limited Liability” in OPC Company?

Limited Liability implies that the owner or shareholder of the One Person company is not personally liable to pay debts of the business. They are only responsible for the unpaid shares of the capital of the company. To qualify, the shareholder needs to comply with all laws and pay taxes on time.

Can a OPC converted into Private Limited Company?

Yes, a One Person Company converts itself into a Private Limited Company as following

Voluntary conversion
When a OPC gets incorporated, it cannot convert itself to Private or Public company for a period of not less than two years from the date of incorporation. Means if you want to get converted voluntarily you have to wait for two years to over

Compulsory Conversion
When a OPC has a paid-up capital more or equal to Rs. 50 lakhs or, the Annual turnover for the relevant financial year exceeds Rs. 2 crores, then in such conditions, the company has to compulsorily convert itself into Private Lismited Company or Public Limited Company.