Registration of One Person Company (OPC). Setindiabiz provides consultancy and support for the incorporation of OPCs. On a call with our expert advisors, learn about eligibility, process, cost, timeline, and the list of documents required to set up OPCs.
| One Person Company (OPC) Registration Details | |
|---|---|
| Professional Fee | Rs. 3,499/- (Best Fee Guaranteed by Setindiabiz) |
| Government (ROC) Fee |
The government fee for One Person Company (OPC) Registration depends on three factors:
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| Cost Calculator | Online One Person Company Registration |
| Timeline | 3-7 Working Days after complete documentation. |
| Eligibility |
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| Stepwise Process |
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| Documents Required |
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| How We Help You! |
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The shareholder may be an individual capable of entering into a contract or legal entity.
The directors are responsible for overseeing the operations and ensuring compliance.
One director must be a resident of India and stay there for at least 120 days.
The company name must be unique and distinct from others, whether a company or LLP.
No minimum capital level is prescribed. However, the incorporation fee is based on capital.
The proposed business activity of the LLP must be Legal and well-defined in the LLP Agreement.
Section 2(62) of the Companies Act, 2013, and Rule 3(1) of the Companies (Incorporation) Rules, 2014, clearly provide that only a “natural person” who is an Indian citizen can be the shareholder of an OPC. Therefore, a foreign citizen can not open a one-person company. Prior to 2021, the sole member of an OPC was to be an Indian citizen and resident in India. This meant that the person had to have stayed in India for at least 182 days in the previous financial year.
However, the Companies (Incorporation) Second Amendment Rules, 2021, relaxed the residency requirement, allowing Non-Resident Indians (NRIs) to establish OPCs in India. The following is the current position with respect to nationality.
| Indian Citizens | Foreign Nationals |
|---|---|
| An Indian Citizen, regardless of their residential status (resident or non-resident), can incorporate an OPC in India. | Foreign Citizens/nationals cannot incorporate an OPC in India. |
| Director & Shareholders Documents | |
|---|---|
| 1. Passport size colour photo | Mandatory |
| 2. PAN Card | Mandatory |
| 3. Proof of Identity (any one of the below) |
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| 4. Proof of Residence (any one of the below) |
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| Proof of Registered Office Address | |
| 1. Proof of Property Ownership | Required |
| 2. Latest Utility Bill (any one of the below) |
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| 3. NOC from the Owner of Premises | Required |
| Note: Address proof for the promoter and registered office premises should be the latest bill (not older than 60 days). The bill must have the full name and complete address on it. | |
The OPC Registration Process is completed by following a series of steps. We have listed below the logical steps required for setting up your business as a single-owner company, a “One Person Company.
Documentation for OPC Incorporation
The One-Person Company registration process begins with preparing all necessary documentation. To register for OPC in India, you will need the promoters’ basic KYC documents and the registered office documents. Refer to the list of documents above for complete information. Also, since the application is to be signed digitally, ensure the promoters have their Class 3 digital signature certificates.
Select a name for your one-person company
The next step in the OPC Registration process is selecting a valid name for the OPC as per MCA guidelines. After selecting the name, you must get it approved and reserved by the ROC. For this, an application can be filed in PART A of the SPICE Plus form to the ROC. Once the name is reserved, it is valid for 20 days, and the OPC must be incorporated within this time.
Drafting of MOA and AOA for Incorporation
MOA is the constitution of the one-person company, and the AOA is its document of internal rules and regulations. These essential OPC documents must be submitted during the one-person company registration process. So, make sure these are drafted beforehand in the appropriate legal format. All shareholders must sign them and stamp them by a public notary after paying the applicable stamp duty.
Filing application for OPC Registration Online
Once all the documents and drafts are ready, you can finally file the SPICe+ application for OPC incorporation online. The form must be accompanied by the necessary documents and drafts, uploaded in their digital formats. Finally, the authorised director can sign the form using his class 3 Digital Signature Certificate. The form is further certified by a practising professional such as a CA, CS, CMA or Advocate of the High Court.
Issue of Certificate of Incorporation
After submission, the SPICE Plus application reaches the office of the Registrar of Companies (ROC). The ROC examines all the details and documents submitted for accuracy and authenticity. If satisfied with the submissions, the ROC approves the application and proceeds with the OPC Company Registration process. It registers the OPC and issues a Certificate of Incorporation in its name.
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:
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.
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.
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.
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
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.
The single shareholder is entitled to pocket all the profits of the company.
The liability of the sole owner is restricted to his subscribed capital only.
Banks and Financial Institutions prefer to lend to legally registered entities
The process of incorporation is extremely simple and 100% online
The sole shareholder exercises full control over decision making in an OPC
An OPC can be indefinitely succeeded by the nominee of each shareholder
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.
A One Person Company is a single owner business akin to a Proprietorship Firm. However, unlike a proprietorship, the liability of the sole shareholder of an OPC is limited. MoDecision-makinga proprietor, the sole shareholder of the OPC does not get involved in the management of the business. The management is controlled by directors in an OPC. We have prepared a comprehensive and detailed comparison table for all forms of businesses, for your better understanding.
To register OPC in India, you are required to pay OPC Registration fees to the ROC. This depends on the company’s authorised capital. The overall cost of OPC company registration also includes the costs of DSC, DIN, and stamp duty on MOA and AOA.
No. A person can become a member in only one OPC.
An OPC can be inherited by the nominee of the shareholder after his death. Every successive shareholder of the OPC must choose a nominee immediately after he assumes the office. No individual can be appointed as a nominee, unless he gives his consent in INC-3 form. The consent of the nominee along with his notice of appointment must be submitted to the ROC in INC-4 form.
Before a One Person Company occupies a registered office, a no objection certificate must be obtained from its owner. While filing the application for OPC Pvt Ltd registration, you are required to submit the NOC issued by the owner. Download the format of NOC here.
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