TAX
PaieOverview of (One Person Company) Registration
An OPC is a business structure that allows a single person to own and operate a company with limited liability protection. The key features of OPC include:
Only one individual can own and run the OPC.
Limited Liability:The owner’s liability is limited to the unpaid share capital of the company, meaning their personal assets are protected from the company's liabilities.
Separate Legal Entity:The OPC is a separate legal entity, distinct from the individual owner, allowing it to own property, enter into contracts, and sue or be sued in its own name.
Continuity of Business:The OPC exists even if the sole member changes, ensuring perpetual succession.A nominee is a designated individual who takes over the company's management and ownership if the sole member becomes incapacitated or dies. The nominee ensures the OPC's continuity and smooth functioning.
Who is applicable for OPC Registration
Single PersonIndian Nationals
Small or New Businesses
Not Applicable for Certain Entities
Benefits of OPC Registration
1. Limited Liability Protection
One of the major benefits of OPC is that the owner has limited liability and his personal assets are protected from business debts.
2. Single Owner Control
Unlike a Private Limited Company, OPC allows a single person to run the company. The sole member retains 100% ownership and control over business decisions.
3. Separate Legal Entity
An OPC is considered a separate legal entity, which means it can enter into contracts, own assets, and assume liabilities independently.
4. Minimal Compliance
OPCs have fewer compliance requirements compared to a Private Limited Company, making it ideal for solo entrepreneurs looking for a simpler regulatory framework.
5. Perpetual Succession
The OPC has perpetual succession, and it will continue to exist through its nominee even if the owner dies or is incapacitated.
6. Easy Access to Credit and Funding
An OPC can raise capital more easily compared to a sole proprietorship, and can apply for loans, credit, and other financial facilities available to corporate entities.
7. Tax Benefits
OPCs enjoy the same tax benefits as Private Limited Companies, including eligibility for various corporate tax exemptions and credits.
Documents Required for OPC Registration
To register an OPC, the following documents are required from the sole member and nominee:
- Identity Proof of Member : Aadhaar card, Passport, Voter ID, or Driver License.
- Address Proof of Member : Utility bill, bank statement, rent agreement (not older than 2 months).
- Photographs of Member : Passport-sized photos of all the Member.
- Proof of Registered Office Address : A utility bill (electricity, water, or gas bill),NOC (No Objection Certificate) from the landlord if the office is rented.
- Director Identification Number (DIN)
- Digital Signature Certificate (DSC)
- Nominee’s Consent
- Memorandum of Association (MOA) and Articles of Association (AOA)
Step-by-Step Process for OPC Registration
1. Obtain Digital Signature Certificate (DSC)
2. Apply for Director Identification Number (DIN)
3. Choose a Unique Name for the OPC
4. Draft the MOA and AOA
5. File the Incorporation Application
6. Obtain Certificate of Incorporation
7. PAN and TAN Registration
8. GST Registration (if applicable)
Frequently Asked Questions
What is an OPC?
Why register an OPC?
What are the steps to register an OPC?
What documents are required for OPC registration?
How long does OPC registration take?
What is the minimum capital requirement?
Can a foreign national form an OPC?
Who can be the sole member in an OPC?
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