One Person Company registration or OPC registration in India is a new concept introduced within the Companies Act of 2013. A single person can incorporate one Person Company in India. Before the enforcement of the Companies Act 2013, a single person was not able to set up a company. An OPC company registration has the characteristics of a company and the advantages of a sole proprietorship. Previously, if a person had to start a business, they should only opt for a sole proprietorship.
According to Section 2, Paragraph 62 of the Companies Act of 2013, only one executive and one partner can establish a company. One person company registration in India is an entity with fewer compliance requirements than a private limited company.
Benefits Of OPC Company Registration Or OPC Registration Online
Independent existence
An OPC company registration provides a status of a separate legal entity. In the eyes of the law, a company is a person having a common seal and perpetual succession. An OPC acquires the authority to perform all the functions of a registered company.
Limited Liability
Unlike a joint stock or private company, the limited liability concept of a One Person Company registration in India means that the member’s liability will be up to his share in the company. In OPC company registration, one person holds the entire stake and has full authority over the company’s operation.
Detached property
The OPC registration will have separate assets as it acquires its identity and operates as a separate legal entity. The OPC will become the owner of its assets, and the members will have no insurable rights to the company’s assets.
Transferability of shares
The OPC registration has only one shareholder. The question of the transfer of a part of the share does not arise at all because if it happens, the company ceases to be a "one-person" company. OPC company registration does not allow the transfer of shares
Tax flexibility and savings
In OPC company registration, the Directors' fees, rent, and interest are deductible expenses that reduce the company’s profitability and your business’s taxable income.
Registered LLC, community recognized.
OPC company registration is the most popular business structure in the world. The OPC company registration has the status of a company which helps the entrepreneur attract and retain a quality workforce by granting corporate designations such as directorships.
Independent existence
An OPC company registration provides a status of a separate legal entity. In the eyes of the law, a company is a person having a common seal and perpetual succession. An OPC acquires the authority to perform all the functions of a registered company.
Limited Liability
Unlike a joint stock or private company, the limited liability concept of a One Person Company registration in India means that the member’s liability will be up to his share in the company. In OPC company registration, one person holds the entire stake and has full authority over the company’s operation.
Detached property
The OPC registration will have separate assets as it acquires its identity and operates as a separate legal entity. The OPC will become the owner of its assets, and the members will have no insurable rights to the company’s assets.
Transferability of shares
The OPC registration has only one shareholder. The question of the transfer of a part of the share does not arise at all because if it happens, the company ceases to be a "one-person" company. OPC company registration does not allow the transfer of shares
Tax flexibility and savings
In OPC company registration, the Directors' fees, rent, and interest are deductible expenses that reduce the company’s profitability and your business’s taxable income.
Registered LLC, community recognized.
OPC company registration is the most popular business structure in the world. The OPC company registration has the status of a company which helps the entrepreneur attract and retain a quality workforce by granting corporate designations such as directorships.
Documents Needed For OPC Registration Online
Below is a list of documents that are required for OPC registration online.
One Person Company Registration Procedure
These are all the necessary steps for pvt ltd company registration in India
Apply For DSC
The first step for One Person Company registration is to obtain a Digital Signature Certificate (DSC) of the proposed director, which requires the following documents:
Apply For DIN
Once the Digital Signature Certificate (DSC) is created, the next step for One Person Company registration is to apply for the Director Identification Number (DIN) of the proposed director in the SPIC form, along with the director’s name and address.
Apply For Name Approval
The next step in OPC registration online is to decide on the company’s name. The Company’s name shall be “ABC (OPC) Private Limited.” The name can be approved in Form SPICe+ 32. Only one preferred name can be given in Form SPICe+ 32, along with the meaning of keeping that name. If a name is rejected, another name can be submitted using a different SPICe+ 32 application form.
Required Documents for One Person Company Registration
We need to prepare the following documents that must be submitted to the ROC for One Person Company Registration:
Filling Forms With MCA
All these documents will be attached to SPICe, SPICe-MOA, and SPICe-AOA form along with the DSC of the Director and Professional and will be uploaded on the MCA site for approval. Pan Number and TAN have been generated automatically at the time of incorporation of the company. There is no need to submit separate applications for obtaining PAN and TAN.
Issuance of a Certificate of Registration
After verification, the Registrar of Companies (ROC) will issue a certificate of incorporation, your OPC company registration is done and you can start doing business.
FAQ's
Few doubts important to be resolved quickly
Only an individual who is an Indian citizen and domiciled in India is a member and candidate of OPC. For the above purpose, the expression “resident of India” means a person who has resided in India for no longer than a hundred and eighty- days throughout the previous monetary year.
An individual can be a member of only one OPC registration online. A person can get only one OPC registration online.
The OPC registration online has no specific tax advantage over any other form. The tax rate is 30%, and other tax provisions like MAT & Dividend Distribution Tax apply to any other company form.
A minor, a foreign citizen, a non-resident and any person ineligible under the contract will not be able to become a member and do One Person Company registration or OPC company registration.
