How to Apply OPC Registration Online in India?

OPC can be registered online on the official website of http://www.mca.gov.in/. As per Section 2(62), now a single person can form a company known as One-Person Company (OPC). Companies act imposes fewer legal requirements on OPC compared to private or public companies.

OPC being a new concept, promotes the growth of micro-businesses and has encouraged many people to come forward for doing the business. OPC is the most favourable option of doing business for a young entrepreneur with no time, resource or extra partner to execute the plan. OPC gets the benefits of two entirely different business structures, i.e., sole proprietorship and Private Company.

Online OPC Registration

OPC can be registered online following these simple steps:

• DSC: get the DSC of the applicant is the mandatory requirement for any company registration as the online forms are signed digitally.
• Name reservation: Reserve the name for the registration of OPC. Apply online through MCA by filing RUN form in which up to two names are applied. The name shall have "OPC Private Limited" at the end of its name.
• Filing of e-form online: After the name is approved and all the documents are ready, the applicant shall file the forms online for OPC Registration. Apply in e-form SPICe available on MCA for downloading. Make sure the size of the form doesn't exceed 6MB after doing the final pre scrutiny of the form. Submit the form along with the payment of prescribed fee and stamp duty depending upon the state of the registered office.
• Approval/Rejection of application: After the receipt of an application, the registrar can either approve or reject the application. However, the application is not rejected at once, and the registrar allows resubmitting the form in case of any deficiency. Upon approving the application, Certificate of Incorporation is issued with PAN number mentioned on it along with CIN number and Date of incorporation.

Documentation

Following documents are annexed with SPICe form:

ü  MOA & AOA

ü  INC-3 for taking the nominee’s consent

ü  Self-attested copy of Aadhar & PAN card of director, member, and nominee.

ü  Declaration if Affidavit as per the form INC-9 to be given by the director

ü  The first director shall give their consent to act as a director in the prescribed format of DIR-2

ü  Certifying professionals such as CA/CS/CWA shall also give his or her declaration in form-8

ü  Proof of registered address office.

Benefits of OPC

Following are the advantages of formation of One Person Company:

• Liability is Limited: Sole owner is liable up to their shareholding, i.e., there will be no impact on personal saving and wealth of entrepreneur in case of the company suffered huge loss or debt. Unlike a Sole Proprietorship, where the proprietor needs to pay off the liabilities, an individual in OPC is not liable if the business is unable to pay off its liabilities.

• No AGM required: There is no mandatory requirement of one AGM per year as in the case of other companies. Resolution can be communicated to the member and noted in Minute Book, which is signed by the member along with the date that will be considered as the deemed date of the meeting.

• Perpetual succession: OPC has the feature of perpetual succession that makes the raise of funds or capital easier for an entrepreneur. Creditors are warned that the owner will not be held liable for their claims.

• Members: OPC can have a minimum of 1 person as to its members and also cannot have more than one such member. No person can be the sole member of more than OPC at a time.

• Suitable for Small Ventures: OPC is suitable for new ventures as OPC can have maximum paid up capital of INR 50 Lakhs and Turnover of INR 2 Crore and in case of such limit is increased beyond the stated limit, OPC is compulsorily converted into Private Limited.

Final Thoughts

The main motive behind choosing the OPC over other business structures is that it allows the sole person with a dynamic business idea to carry on the business on his own with the limited resource available with him.

You can contact us for providing you with the best advice and consultation in case you are willing to be the “boss of your own” by forming OPC; our team of experts will assist you and will provide complete guidance for the formation of OPC in just a few days.