Overview of LLP Registration Online in India

Before the enactment of the Companies Act of 2013, only two individuals could establish a company. The Companies Act of 2013 introduced provisions for forming One Person Companies (OPCs) in India. This law governs the registration and operations of OPCs within the country. While private companies typically require a minimum of two directors and two members, OPCs are distinct in that they can be established by a single person.

In accordance with Section 262 of the Companies Act of 2013, the official registration of OPCs in India is fully authorized. The process of OPC registration in India involves a solitary director and a single member, encompassing the entire entity. This corporate structure entails fewer compliance obligations compared to private corporations.

Steps for Registration of OPC

• Step 1: Check the eligibility and documentation

• Step 2: Request DSCs and DINs for each director

• Step 3: Submit a request for a name reservation Form Spice+ for company incorporation

• Step 4: Apply for PAN and TAN for your new business

• Step 5:RoC issues an incorporation certificate with a PAN and TAN

• Step 6:Open a bank account and start your business.

The whole process for one person company registration can be completed in a time span of just 20 days. All you have to do is reach out to Legalitis and complete the process with no delay.

Checklist for One Person Company Registration

• Meeting Membership Criteria:Both the maximum and minimum membership prerequisites must be adhered to.

• Nominee Selection: A nominee should be identified prior to incorporation.

• Nominee Approval: Employ Form INC-3 to seek the nominee’s consent.

• Name Selection: In line with the Companies (Incorporation Rules) 2014, the OPC’s name must be chosen appropriately.

• uthorized Capital:Maintain a minimum authorized capital of ₹1 Lakh.

• Director’s DSC:Obtain the Digital Signature Certificate (DSC) of the potential director.

• Registered Office Proof:Provide evidence of the OPC’s registered office location.

Features of One Person Company

• Smooth Continuity

  While a single individual manages daily operations, OPC ensures seamless succession. In case of the member’s demise, the appointed nominee takes charge, ensuring continuity.

• Number of directors

  As stipulated by the Act, a private limited company is mandated to have a minimum of two directors, with the upper cap set at 15 directors.

• Liability Constraint

  OPC membership comes with limited liability. Being a separate legal entity, OPC safeguards its members. Member liability is confined to their shares, exempting them from losses incurred by the company. In bankruptcy situations, creditors can pursue the company but not the director for debt settlement.

• Sole Leadership and Shareholding

  In one person company registration, a sole member serves as the director, taking charge of day-to-day operations. This obviates the requirement for an additional executive director. A single member effectively acts as both the director and shareholder, assuming all responsibilities.

• Asset Ownership:

  As an independent legal entity, an OPC has the authority to possess business-related property and assets. Machinery, factories, residential or commercial real estate, and other assets remain under its exclusive ownership. Legal provisions grant the OPC the ability to directly acquire property in its name.

Restrictions on One Person Company

• While one person company registration offers notable advantages, it does present certain limitations:

• Limited Scalability

  OPCs suit small business models, but they’re not conducive for extensive scaling. An OPC can only have one person at any given time, inhibiting the addition of members and shareholders for substantial expansion or capital raising.

• Business Activity Restrictions:

  OPCs are restricted from engaging in non-banking financial investment activities. This curtails the freedom to invest in other companies’ securities.

• Ownership and Management Ambiguity

  With a single individual serving as both the director and manager, the roles lack clear distinction. This setup allows a solitary person to make and authorize decisions, potentially leading to ethical concerns.

Advantages Of OPC Company in India

• Legal Entity

  OPC registration establishes a separate legal entity, shielding the sole member from personal liability. The member’s responsibility is confined to their share value, safeguarding personal assets. Creditors can pursue the OPC, not the member.

• Accessible Funding

  OPCs can secure funding from venture capital, angel investors, etc., as private companies.

• Reduced Compliance

  OPCs have certain exemptions from Companies Act 2013 compliance. No cash flow statement is required, and the secretary avoids annual reports and account book maintenance.

• Simplified Integration

  Integrating an OPC is straightforward, needing member-director’s approval, without minimum paid-up capital.

• Effortless Management

  A single person can efficiently lead an OPC, making quick decisions. Passing resolutions is simple, and conflicts are minimized, ensuring smooth management.

• Continued Succession

  OPCs enjoy perpetual succession with a nominated successor to ensure continuity in case of the member’s demise.

Documents Required for OPC Company Registration

• Scanned Copy of Current Bank Statement

  Accessible through internet banking or in-person at a bank branch. Also known as account or transaction summary statements.

• Utility Bills

  Provide copies of electricity, gas, phone, and mobile bills. Utility costs encompass various services like electricity, gas, water/sewage, and sometimes internet, cable TV, and phone services. These documents are crucial for OPC registration.

• Transcribed Digital Copy of Rental Agreement in English

  If you have a physical rental agreement, scan it for digital documentation.

• Landowner’s No-Objection Certificate in Digital Format

  If applicable, provide a digital version of the landowner’s no-objection certificate. This document is crucial as every company must maintain a registered address under the Companies Act, 2013. Any changes to the address post-incorporation must be notified to the ROC using Form INC-22.

• Scanned Copy of Property or Sale Deeds in English (if the property is owned)

  A single person can efficiently lead an OPC, making quick decisions. Passing resolutions is simple, and conflicts are minimized, ensuring smooth management.A sale deed is a significant legal document used in real estate transactions to validate the transfer of property ownership from the seller to the buyer. It serves as essential proof of ownership transfer, often referred to as a conveyance deed or final deed.