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What is the One Person Company Registration Process in India

  • March 09, 2022
  • Registrationwala
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OPC is an acronym for One Person Company. An OPC has attributes of private limited companies. Still, it is one with lesser compliance requirements. Registration of OPC under the Companies Act, 2013 requires only one person. It can be fully operative with a minimum of one director.

This new initiative has empowered an individual to start his venture, providing a unique identity to his business model. OPC has already been prevalent in developed countries like the UK, Singapore, the USA, etc. This business model was introduced in India under the New Companies Act, 2013.

 

What are the Benefits of Incorporating a One Person Company in India?

A One Person Company, or OPC, is a business entity formed with the idea that only one person will head the business. They shall be responsible for taking care of the company's day-to-day affairs and shall be the sole beneficiaries of all the profits. Thus, incorporating an OPC Company comes with the following benefits:

  1. Being the sole beneficiary of all the profits: When you are heading your company, managing it, and taking care of its business transactions, the one person who will draw all the benefits from it would be you. 
  2. Taking decisions faster: With an OPC, your decisions are the final ones. With no one giving you any second opinion or making you doubt your decisions, you can keep your head high and take decisions quickly

 

Steps to Incorporate OPC in India:

  • The sole member of OPC must obtain a DIN along with DSC.

(Note: Minor shall not be eligible to be a member or nominee of OPC. A person shall not incorporate more than one OPC)

  • File Form No. INC1: An application shall be made to the Registrar of Companies (ROC) for name approval in Form No. INC1.
  • File Form No. INC2: Application for incorporation has to be filed in form no. INC 2.
  • Obtain written consent of nominee in form No. INC 3.
  • MOA and AOA: Memorandum of Association (MOA) and Article of Association (AOA) are the primary documents of any company in India, by-laws. Therefore, OPC must also draft its MOA and AOA and file these documents with ROC.

 

The Memorandum of Association, in the case of a company, has 7 clauses which are: Name Clause, Registered Office Clause, Main Object Clause, Liability Clause, Capital Clause, Subscriber Clause, and Nominee Clause. In the case of other companies, there are only 6 clauses. The nominee clause is not applicable in the case of other companies.

  • The word one person company must be used at the end of the company's name. Example ABC Construction OPC Private Limited or PQ Construction Private Limited OPC
  • File Form DIR-12: The appointment of the director has to be made by filing form DIR-12 along with his consent to act as a director.

 

After following all the steps mentioned above, ROC shall issue a Certificate of Incorporation (COI) in the format of INC 11, which means you have got your OPC registration certificate. Now you can start your business.


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