Starting a new company in India should meet certain parameters that help ensure smooth operations. Moreover, entrepreneurs should know the company structures in detail, which gives ways to plan everything with ease. Another thing is that it provides methods to achieve goals with high success rates. Moreover, understanding a company structure provides ways to proceed further to generate profits. One Person Company (OPC) structure is becoming a popular choice in India because it allows only one person as a member. It shows methods to enjoy the benefits of both proprietorship and a company. 

What are the benefits of registering One Person Company?

• Easy to incorporate 

The primary benefit of One Person Company is that it is easy to incorporate when compared to other company structures. It requires only one member and one nominee and doesn’t need any paid-up capital. 

• Ideal for individuals 

OPC is suitable for individuals who want to start a company at estimated costs, and they can appoint a nominee after their death. Furthermore, it makes feasible methods to start a company with various options. 

• Sole director and shareholder 

Only one member will act as the sole director in OPC formation, and he/she has to manage the company. A sole director is a shareholder who is responsible for all activities in OPC, and there is no need to appoint any other director. 

• Complete control by the individuals 

Since One Person Company involves only individuals, they can make their own decisions and take control completely. Furthermore, conflicting opinions don’t arise in OPC formation that, ultimately, gives ways to obtain optimal results.  

• Funding becomes easy 

The main advantage of starting OPC is that it enables an individual to get funds from banks and other sources without any difficulties. Also, the documentation process is very simple when compared to other company structures. 

• Income tax benefits

If an OPC has the potential to create more employment opportunities, then it can register under the Start-up India scheme of the government. This will help claim income tax benefits allowing individuals to save money. OPC increases transparency in the market when dealing with government authorities. 

• Limited liability 

OPC has only limited liability and a separate legal entity that provides methods to get more protection from losses. Only the creditors can sue the company if they have invested some money in the OPC. 

• Allows individuals to claim ownership of the properties  

The main advantage of OPC is that it holds all the property related to the business, thereby showing ways to become an owner of machinery items and other things. 

Knowing the restrictions

Before starting an OPC company, one should know the restrictions in detail that help make informed decisions. An individual shouldn’t appoint a minor as a nominee in OPC formation because a minor is not eligible to hold a share with beneficial interests. It is not possible to convert an OPC into a company under section 8 of the act. Furthermore, an OPC cannot perform any non-banking financial investment activities.

How to register OPC in India?

Those who want to incorporate OPC in India should keep certain things in mind that help focus more on their operations and other things. Here are the steps to follow in OPC online registration process:

• Getting DSC 

A digital signature certificate (DSC) is necessary for starting one person company in India, and individuals should get the same from a certified authority. At the same time, they have to pay some fee for obtaining this certificate, and it may vary with authority.

• Acquiring DIN 

Director Identification Number, shortly known as DIN, is a number allotted to an individual who wants to become a director. 

• Name reservation 

Those who want to start an OPC should choose the right name for the company after making complete research. On the other hand, they should make sure that the name stands out from others in the market. It is wise to check the availability of a company name online which helps save time. Choosing a unique name is important because it provides methods to stand out from others. 

• Name approval 

Entrepreneurs should apply for name approval on the Ministry of Corporate Affairs (MCA) website. The RUN (Reserve Unique Name) service will check everything and approve the name at the earliest. At the same time, an individual should apply for the OPC through SPICe and INC-32. An individual should submit all the required documents after getting the name approval from RUN within 20 days.  

• Applying for PAN and TAN 

OPC applicants should apply for PAN and TAN to run their operations successfully. On the other hand, they should know the documents needed for getting PAN and TAN from various sources, which makes the process simple. The Registrar of Companies (RoC) will issue a PAN and TAN certificate for those who want to start an OPC. 

• Incorporation of One Person Company 

Individuals can incorporate One Person Company after obtaining PAN and TAN certificates from concerned authorities. The registration of one Person Company will become easy online, and one should focus more on the documentation process with more attention. This is because even a small mistake can lead to rejection, and applicants should know how to file them with high accuracy. 

• Obtaining an incorporation certificate 

The Registrar of Companies (RoC) will provide a Certificate of Incorporation (COI) after approving everything, including the company’s name. Entrepreneurs can utilize the same for further operations and plan their work immediately. 

• Opening a bank account 

Entrepreneurs should consider opening a bank account after getting an incorporation certificate. A bank account is necessary for a business to prepare audit reports and other things. 

Hiring one Person Company registration services

Several companies in India offer one Person Company registration services for individuals to reduce the burden. On the other hand, not all of them are the same, and one should check them online to hire the best services. Partnering with a reputed company offers solutions for handling complex problems in the registration process.  

Disclaimer

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