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What is an OPC ?

One Person Company (OPC) Registration in India

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    What is an OPC?

    A One Person Company(OPC) is a type of a business organisation that comes under the Companies Act, 2013 and in particular suitable for solo entrepreneurs. Such a company lets an individual run and manage the company with a limited liability feature and a separate legal existence. The One Person Company (OPC) can be classified as a legal entity distinct from its sole proprietor. In this case, the company holds independent rights and obligations to acquire assets, sign up to contracts, and carry out all the other functions of business, while the owner’s responsibilities are just limited to the capital contributed by him. 

     

    Registration of OPC takes place in India through the Ministry of Corporate Affairs (MCA) under SPICe+ system. At the time of incorporation of OPC, a nominee has to be appointed who would manage the affairs of the company when incapacity or demise of the owner. OPCs are recommended for those individual business owners who look to have a legal shield and get recognition of the business but still prefer to be alone without any partners.

     

     In the process of incorporation of OPC, getting DIN and DSC for OPC are part of the requirements that have to be fulfilled before registration. Registration of OPC generally takes 7-12 days only, if the documents have been prepared well in advance. 

    One Person Company (OPC) Registration Packages

    Choose a plan that best fits your business needs.

    Starter

    Packages starting from

    ₹ 2,499 +Govt. Fee
    (All Inclusive)

    Advanced

    Packages starting from

    ₹ 4,999 +Govt. Fee
    (All Inclusive)

    Premium

    Packages starting from

    ₹ 44,999 +Govt. Fee
    (All Inclusive)

    Documents Required for OPC Registration

    For Partners

    For Registered Office

    Eligibility & Basic Requirements

    Merits of OPC Registration

    Limited Liability Protection

    The owner’s liability is limited to the invested capital. They are not liable for the company’s debt.

    Separate Legal Entity

    An OPC has an independent legal identity. It can own assets and enter contracts in its own name.

    Full Control with Ownership

    A single person owns and manages the business. This fosters quicker and independent decision making.

    High Business Credibility

    OPCs enjoy higher credibility than sole proprietorships. Banks and vendors prefer dealing with companies with high credibility.

    Perpetual Succession

    Even after the owner dies, the company continues to exist.The nominee is the person who ensures continuity.

    Easier Compliance

    There are fewer compliance requirements for One Person Companies compared to Private Limited Companies.

    Step-by-Step OPC Registration Process

    We at FOXTAX do a registration of OPC that is simple to understand and in line with all laws. We deal with the whole OPC incorporation process, and you just stay relaxed.

    Initial business Consultation

    Through a preliminary discussion we can find out whether you meet all the conditions to register your OPC. We shall also go over what OPC registration means regarding your situation.

    Preparation of documents

    We gather and verify the documents that are required for the application of the owner and the nominee. A thorough review is done by our team.

    Company name reservation

    Using the company name reservation process (SPICe+ Part A, or RUN form for OPC) of the MCA, we are going to apply for company name approval via SPICe+ system.

    DSC & DIN Acquisition

    We get a Digital Signature Certificate (DSC) and a Director Identification Number (DIN).

    Filling forms for Incorporation

    The incorporator, viz. company director, is required to sign the MOA (Memorandum of Association) and the AoA (Articles of Association) after which they are filed with the MCA with the SPICe+ (Part B) forms.

    Certificate of Company Formation

    The MCA releases the Certificate of Incorporation together with PAN and TAN, in case your application is accepted. That is how a company is incorporated as an "One Person" under the Company act (OPC) after all the registration process and legalities are completed.

    Frequently Asked Questions (FAQs)

    what is the eligibility criteria to register an OPC?
    An individual having Indian citizenship as well as resident of India can apply for registration of an OPC. The person has stayed in India for at least 120 days in preceding financial year. Besides, a nominee has to be an Indian citizen as well as resident of India.

    Is it possible for NRI to register an OPC in India?
    It's not possible at all for Non-Resident Indians (NRIs) and foreigners to register One Person Company (OPC). A sole member and nominee have to be both citizens as well as residents of India, as per the criteria for membership of OPC.
    Is there any requirement of minimum capital to start OPC?
    Minimum paid-up capital of the company is not required at all. Though generally authorized capital of INR 1 Lakh is kept so that it can help in business requirements in future and also for opening bank accounts. OPC registration fees in India is determined from authorized capital only.
    Is appointment of a nominee mandatory for OPC registration?
    Yes, it is mandatory to have a nomination during registration of OPC. That is, when a member of OPC dies or is not capable of acting, the nominee who has been appointed takes over the company. This is an important feature of OPC nominee rules.
    Can an OPC be transformed into a Private Limited Company?
    An OPC can be made into a Private Limited Company when the company expands. OPC shall compulsorily change to a Private Limited Company if the paid-up capital is above INR 50 million or the average annual turnover crosses INR 200 million. This statutory process of transforming an OPC into a Private Limited Company is governed by the Companies Act, 2013.
    Is audit compulsory for an OPC?
    The necessity for an audit is based on the income limit set by law. Although OPCs have easygoing compliance standards, an official audit can be required in case the company's income exceeds the statutory limits. This requirement is part of the OPC statutory regulations.
    What are the requirements for the annual compliance?
    The company is expected to file various forms with the ROC, complete the income tax returns, and maintain the necessary legal documents for the compliance. These include MGT-7 and AOC-4 forms for an OPC (annual filing). The company should make sure to keep its documents up to date within the specified timeframes as delay might mean penalties.
    How does FOXTAX help after OPC registration?
    FOXTAX assists with OPC tax filing after the company is registered and takes charge of other related activities like maintaining compliance, accounting services. It includes OPC statutory compliance, OPC tax filing, and managing all other requirements for ongoing OPC compliance.
    Can I register an OPC myself?
    Yes, you can register an OPC yourself by visiting the MCA portal and filling out the SPICe+ form. However, the process is detailed and requires careful preparation of documents like the DSC, DIN, MoA, and AoA. It is often recommended to use a professional service or a Chartered Accountant to ensure the process is completed correctly and without delays, as they can handle the technicalities and legal requirements efficiently.
    Is OPC better than LLP?
    Whether an OPC is better than an LLP depends on your specific business needs. An OPC is a company with a separate legal entity and limited liability, which is a good fit for a single entrepreneur who wants a corporate structure. An LLP also offers limited liability but is a partnership structure, which is more suitable for professionals or small businesses with multiple partners.
    OPCs have a stricter compliance regime than LLPs, but LLPs are not subject to the mandatory conversion rules that OPCs face. Ultimately, the choice depends on factors like the number of owners, the nature of the business, and future funding plans.
    Can an OPC be a small company?
    Yes, an OPC can be classified as a "small company" under the Companies Act, 2013. A small company is defined based on its paid-up capital and annual turnover thresholds. If an OPC meets these criteria (e.g., paid-up capital not exceeding the prescribed limit), it can enjoy certain benefits, such as simplified annual filings and fewer compliance requirements, making it easier to manage.

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