5 Things You Should know About OPC Registration Process

OPC, known as One Person Company, is the latest concept introduced under Companies Act 2013. The Company can be started and operated by a single member who needs to appoint a nominee on his behalf. OPC can be formed by only Indian resident and provisions of FDI do not apply to OPCs.

The applicant shall know several points discussed henceforth in this article before getting the OPC registered.

Basic key-Points for OPC Registration

Following 4 basic requirements to be kept in mind before getting OPC registered:

·         Just One person required: OPC can be registered with only one person who can be a director and member of such OPC. However, OPC can have 15 directors at max, and for shareholders, such a limit cannot go beyond one.

·        Capital: There is no such minimum requirement for capital investment in OPC, nor the OPC requires maintaining any minimum capital. However maximum limit of capital investment cannot exceed INR 50 Lakhs. 

·         One resident director: At least one director shall be an Indian resident. An Indian resident is a person who has stayed in India for more than 182 days during the preceding financial year. 

·         Company Name: OPC shall have a unique name that shall not be similar to any registered company or trademark. 

·         Nominee: Applicant of OPC who is a member shall appoint the nominee who will act on his behalf in case the sole member of OPC is deceased or becomes insolvent.

OPC Registration Process

Following are the simple 5 steps of OPC Registration Process to get OPC registered in India:

·         Obtain DSC: Applicant shall get the DSC issued before filling the application as the form of OPC Registration is digitally signed through DSC. The proposed director shall apply to certify authority along with following documents such as:

ü  Aadhar card

ü  PAN

ü  Passport size photograph

ü  Email id & Mobile Number

·         Name Application: Applicant shall apply for the name reservation through MCA web service RUN, or it can also directly apply in SPICe form. The only difference between two is that up to two names are applied in RUN whereas one name can be applied in SPICe form.

·         OPC Registration Application: File the e-form SPICe online on the MCA portal along with documents attached and affixing the DSC for digitally signing such form. Following is the list of documents needs to be annexed with the form:

ü  Memorandum of Association

ü  AOA stating the bye-laws for the operation of the company

ü  Consent form from the nominee in form INC-3

ü  Aadhar & PAN card of director

ü  Aadhar card & PAN of Nominee

ü  Affidavit in form INC-9 by director

ü  Consent to act as the director of OPC in form DIR-2

ü  Declaration by professional certifying the form

ü  Registered office proof such as registry and electricity bill, if owned and NOC from the landlord, if rented.

·         Issue of COI: Upon the receipt of application & after a thorough inspection of the same, Registrar shall grant the Certificate of Incorporation.

Conversion of OPC to Private Limited

OPC shall get compulsorily converted into private limited in the following case:

a)      the Paid-up Capital of OPC reached beyond INR 50 Lakhs

OR

b)      The average turnover exceeds INR 2 Crore for three financial years.

In this circumstance, OPC shall be compulsorily converted into Private Limited and shall make necessary amendments in MOA & AOA and shall thereafter, comply with every provision applicable on Private Limited. Other than the above-quoted reasons, OPC can voluntary convert itself into a Private Company.

Wrapping up the Article

In the present context of corporatisation, the concept of OPC is expected to become popular amongst other corporate structures. Single entrepreneurs willing to commence their small venture can start with choosing OPC due to its simplified registration process and easy compliances.