The steps included in the process of OPC registration are as follows-

Obtain DSC and DIN

The foremost step in the process is to acquire a DSC and DIN for the director of the company.

Apply for Name Approval

Now, the applicant needs to file Form INC 1 for the reservation of the company’s name. Also, the name must have suffix “OPC Pvt Ltd.” Further, the two ways of reserving a name are firstly, by filing an application form in SPICe 32 and secondly, by using RUN (Reserve Unique Name) Web services provided by MCA (Ministry of Corporate Affairs).

Application for the OPC Registration

Now, the promoters need to apply for registration with the ROC within whose territorial jurisdiction the registered office of the company is located. Further, the Application for the Incorporation needs to be filed in the Form INC 2.

Signing of MOA and AOA

In the next step, the sole member of the company needs to sign the MOA (Memorandum of Association) and AOA (Article of Association). Also, the said member needs to provide details, such as his name, occupation, address, designation, in the presence of at least one witness. Further, the witness needs to provide his/ her basic details and signature as well.

Affidavit by Director and Subscriber

Now, the sole member, who is a subscriber of MOA and AOA, requires providing a duly signed affidavit in the form INC 9.

Particulars of Subscribers

Now, the applicant needs to file the particulars of subscription with ROC (Registrar of Company) during incorporation.

Declaration by Professionals

After that, a declaration made either by a CA/ Advocate/ Cost accountant/ or CS in practice needs to be filed in Form INC 8.

Submission of the Forms and Documents

In this step, the applicant requires to annex SPICe Form, SPICe MOA, and SPICe AOA, together with the DSC of the Director. Further, the same needs be uploaded on the official MCA website for the approval as well. After, uploading the required documents, Form 49 A and 49 B will automatically be generated, which will later be used for the generation of TAN and PAN. Also, the said MCA forms are required to be uploaded to the MCA portal after affixing the Digital Signature of the proposed Director.

Issuance of the Certificate of Incorporation

After the completion of Process, the ROC will issue COI (Certificate of Incorporation) for the commencement of the business operations.

Benefits of One Person Company Registration

A One Person Company Private Limited has many advantages as compared to Companies and Proprietorship firm. Some of them are listed below-

Compliance Burden

The One Person Company includes in the definition of “Private Limited Company” in the Companies Act, 2013. Thus, an OPC will be required to comply with provisions applicable to private companies. The OPCs have been provided with a number of exemptions and therefore have lesser compliance burden.

Organized Sector of Proprietorship Company

OPC will bring out the unorganized sector of proprietorship into the organized one of a private limited company. Various small and medium enterprises, doing business as sole proprietors, might enter into the corporate domain. Proprietors always have unlimited liability. If such a proprietor does business through an OPC, then liability of the member is limited.

Minimum Requirements

It must have minimum one shareholder, one director and one nominee. The director and shareholder can be the same person. There is no need of any Minimum Share Capital. Letters ‘OPC’ to be suffixed with the name of OPCs to distinguish it from other companies.

Limited Liability Protection to Directors and Shareholders

The most significant reason for shareholders to incorporate the ‘single person company ‘is certainly the desire for the limited liability. An OPC gives the advantage of limited liability to entrepreneurs whereby the liability of the member will be limited to the unpaid subscription money. This benefit is not available in case of a sole proprietorship. Thus OPC allows an individual to take risks without risking his/her personal assets.

Legal Status and Social Recognition for Business

Large organizations prefer to deal with private limited companies instead of proprietorship firms. Pvt. Ltd. Business structure enjoys corporate status in society which helps the entrepreneur to attract quality workforce and helps to retain them by giving corporate designations, like directorship. These designations cannot be used by proprietorship firms.

Adequate Safeguards

In case of death/disability of the sole person should be provided through another individual as nominee director. On the demise of the original director, the nominee director will manage the affairs of the company till the date of transmission of shares to legal heirs of the demised member.

Easy To Get Loan from Banks

Banking and financial institutions prefer to lend money to the company rather than proprietary firms. In most of the situations banks insist the entrepreneurs to convert their firm into a private limited company before sanctioning funds. So it is better to register your start-up as a One Person private limited rather than proprietary firm.

Complete Control of the Company with the Single Owner

This leads to fast decision making and execution. Yet he/she can appoint as many as 15 directors in the OPC for administrative functions, without giving any share to them.

Easy to Manage

No requirement to hold annual or Extra Ordinary General Meetings. A One Person Company may conduct at least one meeting of the board of directors in each half of a calendar year and the gap between the two meetings shall not be less than ninety days. The quorum for meetings of board will not apply to One Person Company in which the no of directors is only one. Where the company is having only one director, all the businesses to be at the transacted meeting of the board shall be entered into minute’s book. No need to hold Board meeting in this case.

Filling With ROC

Very few ROC filing is to be filed with the Registrar of Companies. Mandatory rotation of auditor after expiry of maximum term is not applicable. The provisions of sec 98 and sec 100 to 111 [both inclusive], relating to holding of general meetings, shall not apply to a One Person Company.

Perpetual Succession

An OPC being an incorporated entity will also have the feature of perpetual succession and will make it easier for entrepreneurs to raise capital for business.

Tax Flexibility and Savings

In an OPC, it is possible for a company to make a valid contract with its shareholder and directors. This means as a director he/she can receive remuneration, as a lesser he/she can receive rent, as a creditor he/she can lend money to own company and earn interest. Director’s remuneration, rent and interest are deductible expenses which reduce the profitability of the company and ultimately bring down taxable income of the business.