How to Register One Person Company in India

One Person Company is a business that has a single shareholder. The only shareholder of the OPC must be a citizen and resident of India. Even though, as the sole owner, the shareholder is entitled to all the income and profits of the OPC, his liability towards the business is limited to the amount of unpaid capital he subscribed for. In India, there is no minimum paid-up capital requirement for establishing an OPC. For an OPC registration in India, the Companies Act of 2013 stipulates a maximum paid-up capital of Rs. 50 lacs and a maximum average annual turnover.

India's OPC registration procedure involves several steps 

The Companies Act, 2013 stipulates that One Person Company Registration in India is a requirement. The process of online OPC registration begins with the submission of an application to the Registrar of Companies, accompanied by all of the required supporting documentation. Using a Digital Signature Certificate, any director of the company may sign the application. After receiving the application, the Registrar conducts a thorough review of it. If he is satisfied with the application and supporting documents, he will register OPC online and issue a Certificate of OPC Registration within one week. 

STEP 1 – Documentation 

OPC Registration is heavily reliant on documentation. The primary documents of the applicant director, including PAN, ID proof, and address proof, must be submitted alongside recent utility bills, such as electricity, water, or telephone bill, and a no objection certificate from the owner of the registered business address. The required documents for OPC registration are listed below for your convenience. 

PHASE 2 – Name Selection for OPC Registration 

The Companies Act of 2013 outlines the eligibility requirements for company names. A company's name must be distinct and cannot be identical to that of an existing company or LLP. In addition, it cannot be identical to any pending or registered trademark. Since an OPC is registered as a private limited company, its name cannot contain words that imply government patronage, which is deemed "undesirable" by the government. You can also subscribe to our name search tool to determine the availability of suitable names. 

PHASE 3 – Obtain the Director's SSN of the Applicant 

The Digital Signature Certificate is the digital equivalent of a physical signature and is issued in accordance with the Information Technology Act. The application for One Person Company registration must be signed by the applicant director using only a digital signature certificate. Therefore, we can infer that the filing of an application for OPC Registration begins with the issuance of a digital signature for the applicant director of the company. 

STEP 4 – Approval of the Name for OPC Registration 

After choosing a valid name for your One-Person Company, you must reserve it with the Registrar of Companies. You may submit either the RUN application or PART A of the SPICe+ application for OPC registration for this purpose. The RUN application provides two opportunities for resubmission if the proposed names are invalidated. However, PART A of the SPICe+ application provides only one opportunity for resubmission if the proposed names are deemed invalid. In both RUN and PART A of SPICe+, you may propose two names per application. 

Step 5 – Spice Form Filing for OPC Registration with the ROC 

After the name of the OPC has been approved, the applicant may submit the OPC registration application found in PART B of the SPICe+ application. You will be required to provide basic information about the OPC, such as its name, address, DIN of all directors, names of all shareholders, company capital, proposed business activity, etc. After entering the required information, you can upload all supporting documents and sign the application using the applicant's DSC. The application must be filed with the Registrar of Corporations. 

STEP 6 – Certificate of OPC Registration Issuance and CIN Assignment 

The final step of OPC registration is the Issuance of a Certificate of OPC Registration, which occurs after successful verification of the information provided and the documents attached to the application. The Certificate of Registration issued to the OPC is conclusive proof that the ROC has successfully registered the OPC online. In addition to the Certificate of OPC Registration, the ROC also assigns the OPC a Corporation Identification Number as its unique identifier. 

Step 7 - PAN and TAN Numbers for the OPC 

After receiving the Certificate of Registration, the Department of Income Tax immediately assigns the OPC a PAN and TAN. Both of these documents are necessary for satisfying tax-related requirements. While PAN is required for payment of Income Tax and filing of ITR, TAN grants OPCs the authority to collect and deduct tax at the source. The PAN and TAN numbers are printed on the OPC's Certificate of OPC Registration, after which the e-PAN and e-TAN documents are emailed. 

In recent years, the structure of the one-person company (OPC) was introduced as a refinement of the structure of a sole proprietorship. In an OPC, a single promoter gains complete control over the company, limiting his or her liability to the extent of their contributions. 

Consequently, this individual will be the sole shareholder and director (however, a director nominee is present, but has zero power until the real director proves incapable of carrying on). Additionally, there must be no opportunity for employee stock options or equity funding contributions. Additionally, if an OPC has an average turnover of 2 crores or more for three consecutive years or acquires a paid-up capital of 50 lakh or more, it must be converted within six months to a private limited company or public limited company.