Step by Step Process of One Person Company Registration

One Person Company is a new idea introduced under the Companies Act, 2013. The main concept of One Person Company in India is to encourage micro-businesses in the Indian Economy. The registration process of One Person Company is online, which saves the individual's time and effort. One Person Company Registration process is very easy as compared to Private Limited Company and Public Limited Company, which can be done under the Companies Act 2013. It requires only one director and member. This company is managed and controlled by one person only, and the director or member must be Indian Resident. This company is perfect for small businesses where the company's turnover is not more than INR 2 Crores. Scroll down to check more information regarding One Person Company Registration in India.

• One Person Company is a unique and new concept governed by the Ministry of Corporation under the Companies Act, 2013.
• OPC requires only one shareholder, but the shareholder must be stayed in India for a minimum period of 182 days.
• OPC can be established with only one director, who himself can be the company's owner and shareholder.
• The company enjoys benefits with the limited liabilities of its directors.
• OPC is also a separate legal entity, just like any other public limited and private limited companies.
• OPC has fewer compliances as compared to a private limited company.

Following are the conditions you have to fulfil for One Person Company registration:

• Only an Indian citizen can operate an OPC.
• He/she can be a nominee for a member of the company.
• If the turnover limit of OPC exceeds Rs. 2 Crore, it has to be turned into a Public Company or a Private Limited Company within a time duration of 6 months.
• A person should be staying in India for at least 182 days.

You can avail all the advantages of One Person Company by completing the registration process online. You can check the advantages of One Person Company Registration from below:

• It requires minimum paperwork.
• Easy funding.
• Limited liabilities.
• It requires a minimum of one director.
• It is easy to create and run.
• It helps to increase trust.
• Free from multiple compliances.
• No minimum paid-up share capital.
• Deduction under Income Tax Law.
• It remains unaffected with credit rating.
• Receive interest on late payment.
• Separate legal entity.

Following are some essential documents required for One Person Company Registration in India:

• Submit a copy of the owner's PAN card during the registration process.
• Article of Association (AoA) and Memorandum of Association (MoA) both are very important documents and submitted during the registration process. Before the submission, highlight all the objectives of your company.
• Latest passport size photographs of the owner of the company.
• Submit an Identity proof of the owner of the company such as Aadhar card, Voter Id, Driving License, etc.
• Submit the residential proof of the office where all the activities are performed at the time of registration it can be the latest electricity bill, water bill, telephonic bill, gas bill, etc. along with the proof of ownership.
• Director and nominees have to submit their affidavit in form DIR-2 and INC-9.
• Submit a copy of property papers (In case of owned property).
• In the case of rented property, submit the Rent Agreement.

To finish the process of One Person Company Registration, follow the steps as mentioned below:

Step 1: Name Search

First, search for the company's name and get it approved by the Ministry of Corporate Affairs (MCA). The company's name should be unique and different from any other registered company.

Step 2: Apply for DSC and DIN

After the name approval, obtain DSC from the director to sign all the documents online. It can be obtained from any agencies; the fees of obtaining a Digital Signature Certificate vary from agencies to agencies. DIN can be filed with the SPICe+ form. For DIN, all you need is name and address proof of the director.

Step 3: Verifications of all the documents

Before submitting the documents, it's better to recheck them and ensure that you have all the documents and are in an accurate format. In case if you find some spelling mistakes in the documents, first get it corrected before the submission.

Step 4: Submission of Incorporation form

All the important documents will be attached to SPICe + Form along with the DSC of the director. After this, Form 49A and Form 49B will be generated for its PAN and TAN. Use them to file TAN and PAN of the company, which will further help you to open a bank account.

Step 5: Issuance of Certificate of Incorporation

After verifying all the documents by the authorities, the Registrar will issue you a Certificate of Incorporation that will contain CIN number.

Following are some mandatory compliances for the One Person Company Registration:

• Filing of ITR (Income Tax Return).
• Annual filings to the registrar of companies.
• Keeping up statutory registers.
• Form AOC-4 for a financial statement.
• MGT-7 for and annual return.
• Appointment of Auditor.
• Auditing of financial statements by any professional Chartered Accountant.
• Conducting a minimum of two board meetings.

With the help of One Person Company Registration, many small traders and artisans have increased their potential. In the starting stage of their business, we prefer you to create One Person Company instead of any sole proprietorship business because of the benefits OPCs offer. OPC has its assets and liabilities.