A One Person Company or an OPC is a company with only one person or a particular individual as its member. This also means that only one person is the sole shareholder of the company.
An OPC or a One Person Company registration procedure helps a person to establish his or her company by getting it officially registered. Doing so allows the individual to enjoy the benefits of the company without having to appoint a group of employees. In a company like this, the liability or shares is limited to that one person only who is also the only member of the company.
The main feature of a One Person Company is that it may or may not have more than one director. However, it can only have one shareholder. An OPC is registered as per the procedure and guidelines of the Ministry of Corporate Affairs (MCA). The company’s formation is under Section 2(62) of the Company’s Act in 2013.
Eligibility criteria for forming an OPC
Anybody who is a citizen of India and has been living in the country for a minimum of 185 days can apply for the registration of an OPC. Although, you should note that once your company has been registered as an OPC, you cannot re-register it as a private company or public limited company for at least 2 years after the date of registration and incorporation.
The registration procedure
To get an OPC registered, a person has to follow a set of steps and procedures.
Apply for a DSC or Digital Signature Certificate
A DSC or Digital Signature Certificate is a crucial document for individuals trying to get their OPC registered. In an OPC, since you are the main signatory authority, you must submit the following list of documents to a Certified Authority (CA) for getting your DSC.
- PAN Card
- Aadhar Card
- Address Proof
- Phone No.
- Email ID
Apply for a DIN
After you receive your DSC, you have to apply for the DIN or the Director Identification Number. For this, you need to fill out the SPICE(Simplified Proforma for Incorporating a Company Electronically) form and submit your address and ID proof to the director. This form is valid upto three directors. However, you should also remember that the DIR3 form is only for those companies that already exist.
Apply for name approval
After you receive your DSC and DIN, it is time for you to apply for your name approval. Your company’s name will appear in the format of “Name Private Limited“. There are two ways of getting your name approved. You can either do this while you fill out the SPICe form itself or via the RUN web service present on the MCA website. To do this, you need to submit one name of your choice and a few other preferred names as different options. You can move on to the new steps once you receive the approval for assigning a name to your company.
Prepare the necessary documents
Registering your company requires the availability of the following documents in order. This is to ensure that your company is legit and has followed the required procedure for registration.
Memorandum of Association (MoA). This is a document that underlines the objectives and goals that the company strives to follow.
Articles of Association (AoA). This is the document that underlines the by-laws within which the company plans to function.
In an OPC, since there is only one person and one director, you must appoint a nominee in case something unfortunate were to happen. This is to ensure the security of the company. The nominee needs to declare their consent in the form of INC-3 and supply his or her PAN card or Aadhar card.
Other documents like proof of ownership, proof of registered office, and a NOC from the owner are required.Consent and an affidavit of form INC-9 and DIR-2 from the supposed Director are required.A declaration certifying the fulfillment of all compliances is also required.
Fill the forms on MCA
The above-mentioned documents need to be attached to the SPICe form, the SPICe-MoA, and the SPICe-AoA on the MCA website.
After this only, the application procedure is going to be complete. The Registrar of Companies will then verify all of these to check if they are fit for approval. Once the verification is complete, they will approve them. The certificate of incorporation will be issued finally.