What is One Person Company?

An OPC or One Person Company is a fusion of sole proprietorship and company, making a new legal arrangement wherein a company can be registered with just a single associate. The sole member of an OPC or One Person Company acts as both the director and shareholder of the organisation.

A business is registered as One Person Company or OPC to give it features of a sole proprietorship, with the limited liability and different legal identity of a company. The legal formation of One Person Company was introduced by the Companies Act, 2013 to make it simpler for tiny businesses and start-ups to start a company in India. Section 2(62) lays down the definition of One Person Company as a company which has just one person as a associate. A corporate lawyer must be consulted to register a one person company.

One Person Company Registration

There are many legal formalities under corporate laws to register One Person Company in India. The legal process to register a one person company is:

I. Obtain a Digital Signature Certificate: Digital signature is an encrypted-electronic signature that can be used to attest electronic documents. As a director, the owner of a one person company must obtain a Digital Signature Certificate to formations of  one person company. All Papers to get a Digital Signature Certificate include- Aadhaar card, PAN card, address proof along with an email id and contact number.

II. Obtain the Director Identification Number (DIN): To register the One Person Company, a DIN or Director Identification Number must be acquired through Form DIR-3. Along with the DIR-3 form, a copy of address proof and name of the director must be attached.

III. Get the Name of Company Approved: The name of the business must be decided and sent for approval to the Ministry of Corporate Affairs in Form INC-1. A total of 6 names are given in the special order to the MCA for approval. An owner can only proceed to register a One Person Company if the approval for a name is obtained from the MCA.

IV. Documents Required for One Person Company Registration: To register a One Person Company (OPC), the following documents must be submitted to the Registrar of Companies:

Memorandum of Association (MoA), which states the objectives and aims of the company.

Articles of Association (AoA), which states the bylaws which will be followed by the corporation.

A nominee must be appointed through a From INC-3 for the director in case the director dies or becomes incapable to perform his duties.

Proof of the registered office, with a Non-Objection Certificate and proof of ownership.

An affidavit and consent form of the director of one person company in Form INC-9 and DIR-2.

A professional statement certifying that all legal compliances have been made.

V. Approval from the Ministry of Corporate Affairs: All the above-mentioned documents are uploaded on the Ministry of Corporate Affairs website for approval. Once these documents are submitted, Form 49A and 49B are generated for PAN and TAN registration of the company.

VI. Certificate of Incorporation: The Registrar of Companies (ROC) issues a Certificate of Incorporation after verifying all the documents.