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One Person Company Registration – RUDRA BPO
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OPC Registration

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What is One Person Company Registration? – Overview

To register a One Person Company in India, you must first understand its meaning. A One Person Company or OPC is a form of Private Limited Company incorporated under the Companies Act of 2013. It is owned by a single shareholder entitled to 100% share of its profits. However, his liability is restricted to the unpaid amount of his subscribed equity capital in the company. Decision-making processes are not very complicated as all decisions are approved by a single shareholder. So, if you do not want to share your ownership, a One Person Company can be your best choice!

Key Features of One Person Company:
Single-owner
Limited Liability
Distinct Management Structure
Entitlement to 100% Profits
Perpetual Succession through Nominee

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Checklist & Documents

  • Single Shareholder
  • One Resident Director
  • Maximum 15 Directors
  • Valid name of the OPC
  • A Registered Office
  1. Documents of Partners
    • PAN Card
    • Aadhar Card
    • Colour Photo
    • ID Proofs
    • Address Proofs
  2. Registered Premises
    • Latest Address Proof
    • NOC from the owner

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Note:
  1. Promoters include all first shareholders and first directors of the One Person Company
  2. We recommend you send the soft copies of documents to us. Also our start up advisors will share a questionnaire with you to seek necessary information. We will verify the information and legal documents sent to us. Please contact us for further clarifications and a copy of the prescribed NOC format.
How to Register One Person Company? – Stepwise Process

OPC Registration Process in India can be completed in a series of steps. A form must be filed with necessary OPC documents required for registration. The ROC will examine the filed application and if successfully verified, will issue a Certificate of Incorporation in the OPC’s name. The Certificate of Incorporation becomes a conclusive proof for OPC registration in India.

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What is One Person Company Registration Fees in India?

One Person Company Registration fees depend on the company’s nominal share capital. However, while calculating the overall cost, registration fees is only one factor. We have other factors which raise the overall cost of OPC registration in India. These include the following:

  • Cost of Digital Signature: The OPC Company Registration form is signed by one of the company’s authorised directors. For this, he uses his class 3 Digital Signature. We provide Class 3 Digital Signatures for all promoters of the OPC.
  • DIN of Directors: All Directors of the OPC must possess their DIN or Director Identification Numbers. DIN is a mandatory information to be submitted by all directors in OPC registration form.
  • Stamp Duty Payment: Documents like MOA and AOA submitted during OPC registration must be stamped and notarised. Stamp Duty applicable in the jurisdiction must be paid for this purpose.
  • Name Approval: The Cost of Name Approval is also an important factor contributing to the overall cost of OPC registration. This cost is fixed at Rs.1,000 per application.
Benefits of a One Person Company Registration

If you are going for single person company registration, a One Person Company should be your clear choice! Wondering Why? Go through the table below explaining all OPC benefits in detail and you will get your answer. From Sole Ownership Control to Limited Liability, OPC benefits are huge and numerous. They not only extend to its owner, but all other stakeholders like directors, creditors, and customers.

Sole Ownership

The single shareholder is entitled to pocket all the profits of the company.

Limited Liability

The liability of the sole owner is restricted to his subscribed capital only.

Easy Credit Facilities

Banks and Financial Institutions prefer to lend to legally registered entities

Easy to incorporate

The process of incorporation is extremely simple and 100% online


Smooth Management

The sole shareholder exercises full control over decision making in an OPC

Perpetual Existence

An OPC can be indefinitely succeeded by the nominee of each shareholder

OPC vs Sole Proprietorship

Both Sole Proprietorship and OPC are single-owner businesses in India. However, OPC is clearly a better choice for a single entrepreneur owing to several factors. These include easy incorporation, distinct legal identity, limited liability and so on. The table below draws a comprehensive and detailed comparison between the two businesses and highlights their pros and cons. It is insightful enough to help you make an informed choice.

One Person Company (OPC)

Merits (Pros)

Distinct Legal Identity
Limited Liability
Separate Management Structure
Perpetual Existence
No Sharing of Profits
Transparent Operations
Easy to Incorporate

Demerits (Cons)

Limited Investment Potential
Greater Compliances
FDI Not Permitted
Restricted Business Operations
Sole Proprietorship

Merits (Pros)

Easy to Set Up
No Requirement of Formal Incorporation
No Sharing of Profits
Lesser Compliances
Full Control Over Management

Demerits (Cons)

No Distinct Identity
Unrestricted Liability
No Separate Management Structure
Limited Investment Potential
Limited Period Existence
FDI not Permitted
Cannot Get Recognised as Startup
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