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One Person Company (OPC) Registration in India with YathraFin


Starting a One Person Company (OPC) in India is ideal for solo entrepreneurs who want the benefits of a private limited company with simplified compliance requirements. This corporate structure provides limited liability protection and a distinct legal entity, yet requires only one shareholder. With YathraFin, registering an OPC is streamlined and efficient, letting you focus on your business growth.
Here is an all-encompassing guide for establishing and understanding a One Person Company in India.


What is a One Person Company ?


A One Person Company (OPC) is a unique business structure designed for single entrepreneurs who wish to enjoy the benefits of a corporate entity while retaining full control. Introduced under the Companies Act, 2013, an OPC allows a single individual to run a company with limited liability and continuity of the business even after transfer or succession, as the nominee becomes the new shareholder.


Why Choose YathraFin for OPC Registration ?


YathraFin simplifies the OPC registration process by providing expert guidance at every step. Here's why YathraFin is the preferred choice for OPC registration:

  • Dedicated Assistance: We assist with documentation, legal requirements, and compliance.
  • Experienced Team: Our experts ensure all necessary procedures are followed to avoid delays.
  • Post-Incorporation Support: We help with compliance requirements so you can operate smoothly.
  • Cost-Effective Packages: YathraFin offers budget-friendly registration packages without compromising on quality.

Key Features of a One Person Company


  • Single Ownership: Only one individual is required as the sole shareholder and director.
  • Limited Liability: The liability of the shareholder is limited to their share capital.
  • Separate Legal Entity: The OPC is a distinct legal entity, independent of its owner.
  • Perpetual Succession: In the event of the owner’s demise, the nominee takes over ownership.
  • Less Compliance: OPCs have simpler compliance requirements compared to private limited companies.

Types of One Person Companies


In India, OPCs are typically categorized based on business activities:

  • Manufacturing OPC: Focuses on producing goods or products, requiring industry-specific licenses.
  • Service OPC: Provides services such as consultancy, IT, and professional services.

Documents Required for One Person Company Registration


To register an OPC, you’ll need the following documents:

  • Identity Proof: Aadhar, PAN card for the shareholder and nominee.
  • Address Proof: Utility bills, bank statements, passport, or driving license for address verification.
  • Director Identification Number (DIN): Mandatory for the director.
  • Digital Signature Certificate (DSC): Required for signing digital documents.
  • Registered Office Address Proof: Utility bill and NOC from the property owner (if rented).

Eligibility Criteria for Registering a One Person Company


The following requirements must be met to register an OPC in India:

  • Single Shareholder and Nominee: The OPC must have only one shareholder, who can appoint a nominee.
  • Minimum and Maximum Shareholders: Only one shareholder is permitted, and the same person acts as the director.
  • Indian Citizenship: Both the shareholder and nominee must be Indian citizens and residents.
  • Company Name Approval: The name must meet MCA guidelines and avoid conflict with existing names.

Step-by-Step Registration Process with YathraFin


  • Step 1

    Digital Signature Certificate (DSC)

    Obtain a DSC for signing documents electronically.

  • Step 2

    Director Identification Number (DIN)

    Apply for DIN for the director of the OPC.

  • Step 3

    Name Approval

    Submit the name reservation application to the Ministry of Corporate Affairs (MCA).

  • Step 4

    File SPICe+ Form

    The SPICe+ form integrates various forms for simplified registration.

  • Step 5

    Submit MOA and AOA

    Draft and submit the Memorandum of Association (MOA) and Articles of Association (AOA).

  • Step 6

    Certificate of Incorporation

    Upon approval, a Certificate of Incorporation is issued.

  • Step 7

    PAN and TAN

    Apply for PAN and TAN, mandatory for taxation.

  • Step 8

    Bank Account Setup

    Open a bank account in the name of the OPC for business transactions.

Rules and Regulations for One Person Companies


OPCs must comply with the regulations under the Companies Act, 2013, including:

  • Annual Financial Statements: OPCs must file their annual financial statements.
  • Annual ROC Filing: File annual returns with the Registrar of Companies (ROC).
  • Limit on Turnover: If an OPC’s annual turnover exceeds ₹2 crore, it must convert to a private limited company.
  • Change of Nominee: The nominee can be changed at any time by filing a form with MCA.

Compliance Requirements After Registration


Once registered, an OPC must fulfill the following compliance obligations:

  • Annual ROC Filing: File annual returns with the Registrar of Companies.
  • Financial Statements Submission: Submit annual financial statements to the ROC.
  • Income Tax Filing: File annual income tax returns
  • Event-Based Compliances: Inform ROC regarding changes in business, address, or nominee.

Benefits and Government Schemes for One Person Companies


Registering an OPC brings numerous advantages, including access to various government schemes and benefits:

  • Limited Liability Protection: Protects personal assets in case of business losses.
  • Separate Legal Entity: The OPC operates as a separate entity from its owner.
  • Government Schemes: Eligibility for MSME schemes and Startup India benefits if other criteria are met.
  • Easy Management: With only one person required to manage the company, it offers simplified operations.
  • Conversion to Private Limited Company OPCs can easily convert to private limited companies when growth demands.
FAQ

Frequently Asked Questions

These FAQs cover essential details like eligibility, required documents, process steps, and benefits. It helps clarify common queries about setup, compliance, costs, and timelines.

Any Indian resident can start an OPC as the sole shareholder.
An OPC has only one shareholder, while a private limited company requires at least two.
The nominee appointed during registration takes over the OPC.
No, OPCs cannot issue shares to the public or list on stock exchanges.
OPCs must convert to private limited companies if the turnover exceeds ₹2 crore.
Yes, OPCs can avail MSME benefits if they meet the eligibility criteria.
An OPC can have up to 15 directors, though only one shareholder is allowed.
Filing of annual returns, financial statements, and income tax returns is mandatory.
No, only Indian citizens who are residents of India can start an OPC.
Yes, a DSC is mandatory for the director to sign digital forms.
Yes, OPCs can convert to private limited companies upon meeting specific criteria.
No minimum paid-up capital is required, though a nominal capital is recommended.
OPCs enjoy the same tax rates as private limited companies, along with MSME benefits.
An OPC can only have one shareholder, who also acts as the director.
The OPC must convert to a private limited company once turnover exceeds ₹2 crore.
No, OPCs are exempt from holding AGMs.
Yes, a nominee is required to take over the company in case of the owner’s demise.
Yes, the nominee can be changed at any time by filing the required form with the MCA.
No, unlike public companies, OPCs do not need to publish their financials.
If the owner wants to add shareholders, the OPC must convert to a private limited company.


With YathraFin, registering a One Person Company is straightforward and reliable, allowing solo entrepreneurs to build their businesses with limited liability protection. For a hassle-free OPC registration process, expert compliance management, and affordable packages, contact YathraFin today and start your journey towards establishing a One Person Company in India!

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