Online One Person Company popularly known as OPC launched with the introduction of Companies Act 2013, as an alternate refinement over sole-proprietorship. Similar to Sole-Proprietorship, OPC is a single ownership firm with the legal status of Company.
Single Promoter has full authority over the company; however, unlike proprietorship; they restrict their liability up to the extent of their Contribution during formation. A single person was not allowed to incorporate a company under the old act; OPC came into effect with the introduction of Companies Act 2013. OPC shall adhere to the rules and guidelines prescribed under the act which we have also enumerated henceforth.
You can easily apply for Online One Person Company registration under the provisions of the Company Act 2013 through MCA. We have enumerated the topic in detail henceforth.
Pros & Cons of Online One Person Company Registration in India
Every legal status has several merits and demerits, making it 50-50 choice for any entrepreneur to choose from. We have decided to jot down the few points herein below:
Advantages:
One Person Company registration unlike private/public companies is provided with several exemptions and have a lesser burden of compliance making it favourable choice
Several sole-proprietorship doing business gets organized sector of operation by entering into the corporate domain with limited liability benefits
In case the business ends up in crises, the sole owner's assets are not at stake since OPC comes with limited liability up to the extent of shareholding
One Person Company registration can be done with just one director and one shareholder who can be common persons
Funding the business is easier for corporate than proprietorship since financial institutes prefer lending money to companies due to their legal structure
OPC needs no annual general meeting which is the most favored exemption also it needs to conduct only 2 board meeting a year; once in every half-year
Disadvantages:
A total number of member in OPC can only be one with numerous restrictions such as:
No minor allowed
Only a natural person, i.e., no corporate
Indian citizen
One Person Company registration is suitable for the business that remains small otherwise they are compulsorily converted to a private company, therefore restricting its growth only up to INR 2 Crore of turnover
OPC can carry the restricted business with no Section-8 activities or Non-Banking Financial Activities
Concept of One Person Company registration is not yet recognized under the Income Tax Act therefore irrespective of its limited turnover; it is liable for flat 30% corporate tax
Procedure for Online One Person Company Registration in India
Apply for One Person Company registration online following these simple steps, such as:
Start the process by arranging the digital signature certificate of sole-director for digitally signing the e-form for one person company registration. Apply to Controller Authority from Siffy, e-mudra or any DSC Software
If the director of the proposed company is becoming the first time director and doesn't hold valid DIN, apply for his Director Identification Number.
Earlier DIN was applied separately through DIR-3 however now proposed company can apply up to 3 DIN in SPICe form
Reserve name through web service “RUN” up to two names can be applied. Check the name before applying from MCA. If the proposed name is found resembling an already registered name, ROC shall reject the same.
ROC, in case found name reservation application in order, shall allot Name Reservation Letter with 20 days validity
Download the SPICe kit from the MCA portal, fill the details and attach necessary documents.
Affix the DSC of Sole-Director and certifying professional before uploading the same online
Submit the form through the payment of government fees and stamp duty online.
ROC shall allot Certificate of Incorporation if it found details and documents furnished are correct.
Submit e-form 20A for the Declaration of Commencement of business within 180 days of incorporation. Every company incorporated on or after 2nd November 2018 has to file INC-20A mandatorily otherwise OPC will be liable to pay heavy damages in the form of penalty.
Documentation for Online One Person Company Registration in India
Document required for One Person Company Registration Process varies as per the category of the applicant which we have jotted down for you henceforth:
How our team can assist you with One Person Company Registration in India?
It is viable for a single person to start his own company without the complexity of having partners which encourage more and more entrepreneurs to come forward to commence their business which ultimately plays a vital role in enhancing overall economic development.
Online One Person Company registration fit for small start-ups who likely don’t expect their turnover to cross INR 2 Crore. To get an One Person Company registration certificate and its post-incorporation compliance, contact with Corpbiz.