How to Register a One Person Company: Your Step-by-Step Guide
Understanding a One Person Company (OPC)
A One Person Company (OPC) is a hybrid structure that blends the flexibility of a sole proprietorship with the advantages of a corporate entity. It is ideal for solo entrepreneurs who want to benefit from limited liability and a formal corporate structure.
Steps to Register a One Person Company
1. Obtain a Digital Signature Certificate (DSC)
The registration process begins with obtaining a Digital Signature Certificate (DSC) for the proposed director, essential for signing documents digitally.
How to get a DSC:
- Choose a Certifying Authority (CA) from the authorized list on the Ministry of Corporate Affairs (MCA) website.
- Complete the DSC application form and submit it with identity and address proof.
- Follow the verification steps provided by the CA.
2. Apply for a Director Identification Number (DIN)
Next, apply for a Director Identification Number (DIN) by filing Form DIR-3 on the MCA portal.
Requirements for DIN:
- Identity proof (such as a PAN card or passport)
- Address proof (such as Aadhaar card or voter ID)
- A passport-sized photograph
- DSC of the proposed director
3. Reserve Your Company Name
Select a unique name for your OPC and get it approved by the Registrar of Companies (RoC) using Form SPICe+ Part A.
Steps to reserve a name:
- Log in to the MCA portal and access the SPICe+ form.
- Enter your desired company name and check for its availability.
- Submit the form with the required fee.
4. Prepare the MoA and AoA
Draft the Memorandum of Association (MoA) and Articles of Association (AoA), which outline the company’s objectives and governance rules.
5. File the SPICe+ Form (Incorporation Form)
After name approval, file the SPICe+ Form (Part B) to complete the incorporation process. This form consolidates various services, including DIN allotment, name reservation, incorporation, PAN, TAN, and GSTIN.
Documents needed for SPICe+ Form:
- MoA and AoA
- Proof of registered office address
- Utility bills (not older than two months)
- Consent form from the nominee (Form INC-3)
- Declaration by the sole promoter and first director (Form INC-9)
- Identity and address proof of the director and nominee
6. Pay the Fees
Pay the applicable fees for the incorporation process, which varies based on the company’s authorized share capital.
7. Verification and Approval
The Registrar of Companies (RoC) will verify your application. Upon successful verification, the RoC will issue a Certificate of Incorporation (CoI).
8. Post-Incorporation Compliance
Once incorporated, there are several compliance steps to follow:
- Apply for PAN and TAN: Automatically processed with the SPICe+ form.
- Open a Bank Account: Set up a bank account in the name of the OPC.
- Commencement of Business: File Form INC-20A within 180 days of incorporation to declare business commencement.
- Maintain Statutory Registers: Keep statutory registers as required under the Companies Act, 2013.
Key Advantages of an OPC
- Limited Liability: Protects personal assets by limiting liability to the amount invested in the company.
- Continuity: The company continues to exist regardless of the status of the owner.
- Separate Legal Identity: An OPC has its own legal identity, separate from its owner.
- Simplified Compliance: Fewer regulatory requirements compared to other corporate structures.
- Full Control: The owner retains complete control over the company’s operations and decisions.
Conclusion
Registering a One Person Company in India is a streamlined process designed to support solo entrepreneurs. By following this step-by-step guide, you can efficiently establish your OPC, leveraging the benefits of limited liability and a separate legal identity. This structure not only simplifies management and compliance but also provides a solid foundation for business growth and sustainability.
