Overview of One Person Company Registration
Want to reduce your responsibility while you begin your own business? Registering as an OPC is a smart move. If there is just one owner of the firm, one of the easiest corporate entities to run in India is the One Person Company Registration, i.e, (OPC registration).
OPC is a hybrid between a corporation and a one-person business. It has several exemptions that assist it in meeting its compliance duties under the Companies Act. Compared to a Private Limited Company (PLC), it is a kind of corporation with less strict compliance obligations. Online one person company formation is very rapid, simple, and affordable.
The One Person Company concept was developed in response to the 2013 Companies Act, which aims to encourage small business owners and traders who start their own businesses and cut out unique identities. One of its main advantages is that just one person is required to start a one-person business. In a one person company, the owner could be in charge of their domain. A Private Limited Company (PLC) or Limited Liability Partnership (LLP) can only be formed if it has at least two members.
Minimum requirements for the online one person company registration
Below are the minimum requirements for the one person company registration online in India:
- A PAN card or passport
- In the case of NRIs and foreign nationals, a passport
- Voter ID and a driver’s license in scanned form
- Most recent gas or energy bill, bank statement, mobile phone bill, or landline bill
- Signature on a specimen
- Passport-size photos
- The documentation has to be self-attested. The document for NRIs needs to be apostille- or notarized-signed.
Additional Paperwork Needed by Registered Office:
- scanned copies of your gas or energy bill, your bank statement, and your mobile or landline bill
- Scanned copy of the lease contract
- If the member is the property’s owner, a scanned copy of the No-objection Certificate (NOC) is required.
Eligibility Criteria for OPC Registration Process
For one person company registration, applicants must comply with the following requirements:
- An Ordinary person who resides in India or an NRI can form an OPC.
- An OPC can be formed by only one member.
- There should be no similarity in the name between existing companies and trademarks.
- Individuals are NOT allowed to incorporate more than one OPC or to serve as the nominee of more than one OPC.
- A minimum of one director is required.
- Note: The director and shareholder are both the same person in an OPC.
- There must be a (OPC) Private Limited company name in the name of One Person Company.
- Indication of the other person’s name as a nominee is a prerequisite. A nominee joins the One Person Company in the same way that the subscriber would have in the case of their death.
What are the privileges of OPC registration?
The majority of business personnel want to register as a Private Limited Company due to its unique perks, but in reality, OPC Registration can provide them with remarkable opportunities and potential benefits with very minimal compliance. The following are a few advantages of registering a one-person business in India.
A separate legal entity
One Person companies are separate legal entities that are capable of carrying out all business-related activities.
Minimum compliances
Unlike private limited businesses, the one-person company has less of a regulatory burden, allowing them to concentrate more on their primary purposes.
Greater Credibility
A single-person-owned firm must have its accounts examined every year to gain the trust and credibility of customers and lending companies.
What are the reasons for choosing Online One Person Company Registration?
Other than the benefits offered by a sole proprietorship, one person company comes with some unique advantages. Registering your company under MCA enhances the legitimacy of your business. The following are some ways in which this will help your business:
- A business with just one owner can incorporate
- Unlike a sole proprietorship, your business name is safe and uncopyable.
- Minimal compliance
- The director’s limited liability
- Appropriate for Banking Credits and Loans
- Lower income tax rates
- No third party can get involved or interfere.
- In case of the owner’s death, ownership is simply transferrable to the nominee.
What is the process of OPC Registration?
The applicant must follow the OPC Registration steps listed below in order to register a one-person firm:
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Step-1- To Get DSC
The applicant must get a Digital Signature Certificate (DSC) from the Certifying Authority in order to register.
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Step-2- To Get DIN
The Director Identification Number (DIN) is being used. Along with the Director’s information, the DIN is applied in the SPICe Form.
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Step-3- Approval Of Name
XYZ (OPC) Private Limited will be the formal name of the company.
One name for the OPC may be requested for using SPICe, and RUN service will be utilized to confirm the availability of names (INC 32).
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Step-4- Incorporation Of One Person Company
Form SPICe must be filed for the incorporation of OPC within twenty days of the day that RUN, or approval of name, was approved. All necessary paperwork must be included with the SPICe form and uploaded to the MCA portal. At the time of registration, the PAN and TAN will be generated automatically.
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Step-5- Obtaining A Certificate Of Incorporation
If the information and supporting documentation are appropriate, the Registrar of Companies will issue a COI, or Certificate of Incorporation.
What are the Taxation Rules applicable to an OPC?
The following is a list of the tax regulations that apply to a one-person company:
- Income tax returns must be filed by the corporation.
- For all quarters, TDS (Tax Deducted at Source) forms must be fulfilled and include the TAN.
- If an OPC employs more than 10 people, it is required to register for Employee State Insurance (ESI).
- An OPC’s income is subject to tax at a rate of 25-30% of its total income for the fiscal year under the tax rates slab.
Why choose JustStart for one person company registration online in India?
We are a well-recognized and certified online platform famous for our result-oriented solutions for business/start-up. We have a team of highly-qualified experts, and this provides us an advantage over the competition. As a result, we assure that our clients receive highly rated professional services with complete satisfaction. We assist businessmen in managing and growing their company, allowing them to focus on it. Furthermore, our team is rigorously involved in assisting people with the process of one person company registration online in India.
FAQs
Can anyone sign up for an OPC?
According to the requirements of the Ministry of Corporate Affairs, only Indian citizens and NRIs at a time may register an OPC corporation.
What are the mandatory requirements of an OPC?
All such firms are obliged to keep accurate books of accounts, file annual and income tax reports to the RoC, and comply with statutory audit requirements.
What tax benefits are offered to an OPC?
Although there are certain advantages that are industry-specific, there are no general benefits. Profits must be taxed at a rate of 25-30%. Dividend distribution tax and minimum alternative tax are also applicable.
How long does the process of forming a one-person company take?
A One Person Company may be incorporated through Online Legal India in 7–10 days. The length of time required for incorporation will be determined by the client’s submission of pertinent papers and the timeliness of government approvals. Please pick a distinctive name for your company and make sure you have all the necessary paperwork before beginning the incorporation procedure to guarantee quick incorporation.
