Documents Required for Opc Company Registration

A scanned replica of a current bank statement

You can access bank statements online through internet banking or by visiting a bank location. Account statements and transaction summary statements are other names for them that are frequently used.

An electricity or gas bill, a phone bill, and a mobile bill

Utilities costs typically cover electricity, gas, water/sewage, and rubbish disposal. Since they are now considered ordinary in the majority of Indian households, other services like internet, cable TV, and phone services are occasionally regarded as extra utilities. The price of utilities can vary widely, largely depending on your region, the temperature where you live, and your usage patterns. Hence these are also submitted as important documents for registration of OPC.

Rental agreement in English transcribed in a digital format

Rental agreements are usually handed over as hard copies to the tenants. This has to be scanned and provided to the authority for documentation.

A landowner's no-objection certificate transcribed in a digital format

This document is from the landowner of the specific land. Every company must always maintain a registered address for the corporation under Section 12 of The Companies Act, 2013 When a business is incorporated in India, the registered address is provided as an attachment to the Spice+ form. However, if the business's address changes after incorporation, a Form INC-22 notification of the new registration address of the company must be submitted to the ROC.

A property or sale deeds scanned copy in English language (if the property is owned)

A sale deed is a legal document used in real estate transactions to prove the purchase and transfer of property ownership from the seller to the buyer. This is the primary ownership transfer paperwork. A sale deed is sometimes known as the conveyance deed or the final deed.

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.

Compliances for a One Person Company

The Companies Act of 2013 specifies several compliances that must be met by the given deadlines. The ROC, shareholders, directors, investors, and tax authorities are just a few of the parties whose interests are protected by these regulations, which also promote transparency and good governance. These compliances can be broken down into annual compliances, ongoing compliances, one-time compliances following incorporation, and compliances based on occurrences. This article has gone into great detail to discuss the first category of one-time compliances.

One Time Compliance

A one-person business must immediately adhere to the special legal obligations outlined by the Companies Act of 2013 and, if necessary, obtain local registrations in accordance with the state legislation of the region in where the OPC is operating. Below is a list of all compliances and their associated due dates. Get in touch with one of our startup advisors for detailed conversations.

Note: The due date for Compliance Requirement 4 is a bit more complex, so we have broken it down into its component parts to provide clarity.

Restrictions on One Person Company

Despite having major advantages, one person company registration also comes with a certain set of restrictions.

Not Apt for Scalability

Registering your business as an OPC is a perfect option for a small business structure. However, if you are planning to scale it up on greater levels then this might not work.at any given time the total number of people in an OPC is always one. If you are planning to add more members and have more shareholders you cannot register your business as OPC. So OPC registration is not apt to raise further capital. This will inhibit the expansion and growth of businesses.

Higher Restrictions on Business Activities

As per the rules and regulations, OPC is not permitted to conduct non-banking financial investment activities. Registering yourself as an OPC will not provide freedom to invest in the security of other corporations.

No Clear Distinction Between Ownership and Management

Since the one-person company has a single person to act as both the director of the company and the management there is no clear distinction between both roles. A single person is permitted to take and approve all the decisions. So, there are higher chances of unethical practices.

Advantages Of OPC Company in India

Legal Standing

The member grants the OPC registration a separate legal entity status. The sole person who incorporated the OPC is protected by its distinct legal status. The member is not personally liable for the company's loss; instead, his or her liability is limited to the value of the shares that he or she owns. Therefore, the OPC and not the member or director may be sued by the creditors.

Easy Access to Funding

One person company registration in India can easily raise money through venture capital, angel investors, incubators, and other sources because it is a private company. Getting money is now simple.

Less Conformity

One person company registration is given some exemptions from compliance requirements under the Companies Act of 2013. The OPC is not required to prepare the cash flow statement. The secretary of the company is not required to provide any annual reports and maintain any account books.

Easy Integration

And one person company in India can be easily integrated without any legal hassles. A member also serving as a director should provide the approval for integration. There is no minimum paid up capital requirement.

Easy to Manage

Administration of the OPC can be made simple by allowing a single person to both find and lead it. Making decisions is straightforward, and it happens quickly. The member can easily pass both ordinary and special resolutions by writing them down in the minutes book and getting just one other member to sign them. Because there won't be any internal disputes or delays, managing the company will be easy.

Constant Repetition

The OPC has the function of perpetual succession even with only one member. A nominee must be chosen by the single-member when incorporating the OPC. The candidate will take over operation of the company in the event that a member passes away.

Disadvantages Of OPC Company in India

• Limited Liability:
•  One of the significant advantages of forming a company is limited liability, which means that the personal assets of the owner are protected in case of any financial liabilities of the business. However, in an OPC, this limited liability may not hold true in certain situations. If the director fails to fulfill their statutory obligations, the corporate veil can be lifted, and the owner's personal assets may be at risk.
• Compliance Burden:
•  OPCs are required to comply with several legal and regulatory requirements, similar to any other type of company. This includes maintaining proper books of accounts, conducting annual audits, filing annual returns, and fulfilling other statutory obligations. This compliance burden can be time-consuming and may require professional assistance, resulting in additional costs for the business.
• Limited Capital Infusion:
• OPCs have limitations on raising funds through external sources such as venture capitalists, private equity investors, or angel investors. The company's ability to raise capital is restricted to the personal resources of the owner, which may limit its growth potential compared to other types of companies.
• Sole Decision-Making:
•  In an OPC, there is only one director/shareholder who makes all the decisions. While this offers autonomy and control, it can also be a disadvantage as the business relies solely on the owner's expertise, skills, and decision-making abilities. This may lead to a lack of diverse perspectives and potential limitations in managing complex business situations.
• Succession and Continuity Challenges:
•  Unlike other forms of companies, OPCs face challenges related to succession planning and continuity. Since there can be only one director/shareholder, it becomes crucial to plan for contingencies such as the death or incapacity of the owner. Without proper succession planning, the future of the business may be uncertain, leading to potential disruptions.
• Limited Business Activities:
•  OPCs are not allowed to engage in certain activities, such as non-banking financial investment activities, as per the Companies Act, 2013. This restriction limits the scope of business operations for an OPC and may hinder its ability to diversify into different sectors or industries.