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One Person Company (OPC) Registration with Bharat United Startups
Starting a business is an exciting journey, and for solo entrepreneurs, One Person Company (OPC) registration offers a unique opportunity to establish a business with limited liability while enjoying complete control. Bharat United Startups simplifies this process, ensuring entrepreneurs can focus on their dreams while we handle the legal formalities.
What is a One Person Company (OPC)?
Introduced under the Companies Act, 2013, the One Person Company (OPC) structure allows a single individual to operate as a company, blending the benefits of a sole proprietorship and a private limited company. This structure provides limited liability, a distinct legal identity, and ease of management, making it ideal for small business owners and solo entrepreneurs.
Key Features of an One Person Company (OPC):
- Single Ownership: A single individual acts as the director and shareholder.
- Limited Liability: The owner’s liability is restricted to their investment in the business.
- Separate Legal Identity: The company is recognized as a distinct entity.
- Nominee Requirement: A nominee is mandatory to take over in case of the owner’s incapacity or death.
Benefits of Registering an OPC
1. Limited Liability Protection
Unlike sole proprietorships, an OPC shields the owner from personal liability for company debts or losses.
2. Separate Legal Entity
An OPC enjoys a distinct identity, allowing it to own assets, enter into contracts, and sue or be sued independently of the owner.
3. Simplified Management
With only one person managing the company, decision-making is swift, ensuring efficient operations.
4. Ease of Compliance
Compared to other corporate structures, OPCs have fewer compliance requirements under the Companies Act, 2013.
5. Easy Access to Funding
OPCs are considered private companies, making it easier to secure funding from banks, angel investors, or venture capitalists.
6. Perpetual Succession
The nominee ensures business continuity in case of unforeseen circumstances involving the owner.
Eligibility Criteria for One Person Company Registration
Before registering an OPC, ensure compliance with the following requirements:
Criteria | Requirement |
---|---|
Promoter | Must be an Indian citizen and a resident of India. |
Nominee | Indian citizen and resident nominee required. |
Authorized Capital | Minimum Rs. 1,00,000. |
Business Activities | Cannot engage in non-banking financial activities or investments. |
Ownership Limitation | A person can establish only one One Person Company (OPC) at a time. |
Turnover and Capital Limits | Conversion to private limited required if turnover > Rs. 2 Cr or paid-up capital > Rs. 50 Lakh. |
Step-by-Step OPC Registration Process
Registering an One Person Company (OPC) with Bharat United Startups is a seamless experience. Here’s how it works:
Step 1: Obtain a Digital Signature Certificate (DSC)
The proposed director must secure a DSC for electronically signing the registration documents.
Step 2: Obtain a Director Identification Number (DIN)
Apply for the DIN through the Ministry of Corporate Affairs (MCA) portal. This unique identifier is mandatory for directors.
Step 3: Name Reservation
Propose a unique company name and apply for approval using Form SPICe+ (Part A). Ensure the name complies with MCA guidelines and trademark rules.
Step 4: Draft the MOA and AOA
Prepare the Memorandum of Association (MOA) and Articles of Association (AOA) that outline the company’s objectives and rules.
Step 5: File Incorporation Forms
Complete the SPICe+ (Part B) form, attaching required documents such as the nominee’s consent, proof of registered office, and declarations.
Step 6: Certificate of Incorporation
Upon approval, the Registrar of Companies (ROC) issues a Certificate of Incorporation, along with the company’s PAN and TAN.
Required Documents for One Person Company Registration
For the Director and Nominee:
- PAN Card
- Aadhaar Card
- Address proof (Passport, Voter ID, or Driving License)
- Passport-sized photographs
For Registered Office:
- Utility bill (Electricity, Water, or Telephone Bill)
- Rent agreement or NOC from the property owner
Other Documents:
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- Declaration by the director and nominee
Advantages and Disadvantages of an OPC
Advantages | Disadvantages |
Limited liability for the owner. | Restricted to a single member. |
Separate legal identity. | Cannot engage in non-banking financial activities. |
Simplified decision-making process. | Conversion required if turnover exceeds Rs. 2 Cr. |
Easy compliance compared to private limited firms. | Limited scope for raising large-scale capital. |
Why Choose Bharat United Startups for One Person Company (OPC) Registration?
1. Expertise in Legal Compliance
Our team of experts ensures that every aspect of One Person Company registration complies with the latest legal requirements.
2. Transparent Pricing
We offer competitive pricing with no hidden costs, making the process budget-friendly for entrepreneurs.
3. End-to-End Support
From document preparation to post-incorporation compliance, we handle it all.
4. Quick Turnaround Time
With our streamlined process, you can expect swift completion of your One Person Company (OPC) registration.
Post-Incorporation Compliance for OPCs
After incorporation, certain compliance requirements must be met:
Compliance | Frequency |
Filing of Annual Returns | Annually |
Income Tax Filing | Annually |
Appointment of an Auditor | Within 30 days of incorporation. |
GST Filing (if applicable) | Monthly/Quarterly as per turnover |
OPC vs Other Business Structures
Feature | One Person Company (OPC) | Sole Proprietorship | Private Limited Company |
Legal Status | Separate legal entity | No separate legal identity | Separate legal entity |
Liability | Limited | Unlimited | Limited |
Members | 1 | 1 | 2-200 |
Fundraising | Easier than proprietorship | Difficult | Easier with venture capital |
Perpetual Succession | Yes | No | Yes |
Get Started Today!
With Bharat United Startups, registering your One Person Company has never been easier. Whether you’re a first-time entrepreneur or an experienced business owner looking to formalize your venture, our expert team is here to guide you every step of the way. Contact us today and take the first step toward building your entrepreneurial dream!
By partnering with Bharat United Startups, you can embark on your entrepreneurial journey confidently, knowing that every legal aspect of your private limited company registration is in expert hands. Let us help you turn your startup dreams into reality!
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