One is All It Takes: A Guide to Starting a One Person Company

In recent years, One Person Company (OPC) has emerged as a popular form of business in India. It allows entrepreneurs to start a company with only one director and shareholder, providing them with the benefits of a private limited company without the requirement of having multiple directors and shareholders.

If you are planning to start an OPC, this step-by-step guide will help you navigate through the registration process and legal requirements.

Step 1: Choosing the right name and objective

The first step in starting an OPC is to choose a unique name for your company. Make sure to check the Ministry of Corporate Affairs (MCA) website to ensure that your desired name is available. You should also finalize your company's objectives, which will be mentioned in the Memorandum of Association (MOA) and Articles of Association (AOA).

Step 2: Obtaining Digital Signature Certificate (DSC) and Director Identification Number (DIN)

As an OPC can only have one director, you will need to obtain a DSC and DIN for yourself. A DSC is used to digitally sign documents, while a DIN is a unique identification number assigned to directors by the MCA.

Step 3: Filing of Incorporation Documents

Once you have obtained your DSC and DIN, the next step is to file the incorporation documents with the Registrar of Companies (ROC). The documents required for incorporation include the MOA, AOA, and the consent of the nominee director.

Step 4: Payment of Fees

You will need to pay the necessary fees for incorporation at the time of filing the incorporation documents. The fees depend on the authorized capital of your company.

Step 5: Obtaining Certificate of Incorporation

After verifying the documents, the ROC will issue a Certificate of Incorporation (COI) for your OPC. The COI serves as proof of the existence of your company.

Step 6: Opening a Bank Account and Registering for Taxes

Once you have obtained the COI, you can open a bank account in the name of your company. You will also need to register for taxes such as GST, PAN, and TAN.

Step 7: Maintaining Compliance

As an OPC, you are required to comply with various legal and regulatory requirements such as filing annual returns, maintaining proper books of accounts, and conducting annual general meetings.

Starting an OPC is a straightforward process that can be completed in a few weeks. With the benefits of limited liability and separate legal entity, an OPC can help you establish your business with ease.

Key Points to Remember

• Choose a unique name and finalize your company's objectives before proceeding with the registration process.

• Obtain a DSC and DIN for yourself, as an OPC can only have one director.

• File the incorporation documents and pay the necessary fees.

• Obtain the COI from the ROC to prove the existence of your company.

• Open a bank account and register for taxes such as GST, PAN, and TAN.

• Maintain compliance with legal and regulatory requirements.

Starting an OPC can be a smart choice for entrepreneurs who want to establish their own business with limited liability and ease of compliance.

Conclusion

We hope this guide has helped you understand the steps involved in starting a One Person Company. By following these steps, you can set up your company in a few weeks and enjoy the benefits of limited liability and separate legal entity. Remember to maintain compliance with legal and regulatory requirements to ensure the smooth functioning of your OPC.