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One Particular person Firm or OPC is a brand new type of enterprise entity launched in India by the Ministry of Company Affairs in 2020. An OPC permits a person to arrange an organization as a separate authorized entity with restricted legal responsibility. On this weblog put up, we are going to talk about all of the essential points of establishing an opc one particular person firm registration in India together with eligibility, registration course of, compliance necessities and extra.
What’s an OPC?
An OPC is an organization with just one member or promoter. It supplies a person with all the advantages of doing enterprise in company type akin to restricted legal responsibility, perpetual succession, simple switch of possession and so forth. however with comparatively low compliance necessities as in comparison with a personal restricted firm. The important thing characteristic of an OPC is that it may be shaped by just one particular person with out another particular person.
To arrange an OPC, the person promoter must be a resident of India and above 18 years of age. There aren’t any restrictions on the nationality. Any particular person together with NRIs can arrange an OPC in India.
Eligibility for OPC registration
As talked about earlier, the important thing eligibility standards to type an OPC is that it should have just one member. This member will be a person who’s a resident of India and above 18 years of age.
Another eligibility circumstances are:
- The person shouldn’t be a minor i.e. under 18 years of age.
- He/She shouldn’t be of unsound thoughts and has not utilized to be adjudicated as an bancrupt or is an undischarged bancrupt.
- The person shouldn’t be a convicted particular person.
Paperwork required for registration
To register an OPC, the promoter must file sure paperwork with the Registrar of Corporations (ROC). The important thing paperwork required are:
- DIN (Director Identification Quantity) of the promoter if he/she desires to be the director.
- Title availability letter issued by the ROC.
- Memorandum of Affiliation (MOA) and Articles of Affiliation (AOA)
- Declaration of eligibility by the promoter.
- Proof of handle and identification paperwork.
Fee of registration charges.
The paperwork should be filed on-line by the MCA portal within the prescribed e-forms together with digital signatures. Often, the method of OPC registration takes round 14 days from the date of submitting.
Title of the OPC
The identify proposed for the OPC needs to be distinctive and never resemble the identify of another current firm. It should finish with the suffix ‘Personal Restricted’ (OPC Pvt Ltd). The identify wants clearance from the ROC earlier than adoption and use.
Some key factors concerning the identify:
- It shouldn’t be similar to an current firm.
- Shouldn’t be deceptive or comprise any objectionable phrase.
- Title reservation is legitimate for 60 days from the date of approval.
- Title will be modified later by passing a particular decision and submitting the requisite varieties.
So the promoter must do a radical identify search and get clearance earlier than finalizing the identify for the OPC.
Approved capital of an OPC
The utmost licensed capital that may be specified for an OPC on the time of registration is ₹50 lakhs solely. This capital will be elevated later as per enterprise wants by following the method of alteration of MOA.
The minimal paid-up capital for an OPC is ₹1 lakh. This capital must be subscribed by the promoter on the time of incorporation. It may be within the type of money or different belongings. No additional capital is required to be issued or allotted subsequently.
Administrators of an OPC
As per the Corporations Act, 2013, an OPC should have at the least one director who’s appointed by the member. The member has the pliability to change into the director himself or appoint another eligible particular person.
Some key factors about administrators in an OPC:
- The member can act because the director himself. There isn’t any requirement of separate director.
- A most of 15 administrators together with nominee administrators are allowed in an OPC.
- The administrators are usually not required to carry qualification shares.
- Minimal one board assembly must be carried out every year.
So, the member has full flexibility to change into the director or appoint another particular person so long as the eligibility standards are met.
Annual compliance necessities
Like another firm, an OPC can also be required to adjust to sure annual filings and compliances. A few of the key compliances are:
- File annual monetary statements and annual return.
- Appoint an auditor if annual turnover exceeds ₹40 lakhs or ₹20 lakhs capital.
- Maintain one board assembly and put together minutes.
- File type DIR-12 for modifications in administrators/KMP if any.
- Preserve statutory registers like register of members and minutes.
Pay annual submitting charges to ROC
The compliances are comparatively much less onerous as in comparison with non-public restricted firms. Late submitting attracts penalties.
Conversion of OPC
An OPC has the pliability to transform into another sort of firm as per enterprise wants. It may convert into a personal restricted firm or public restricted firm by following the relevant course of.
Some key factors concerning conversion:
- Board decision and particular decision by member is required.
- File e-form INC-22 together with alteration charges.
- Adjust to necessities of goal firm on conversion like minimal variety of members and so forth.
- Recent certificates of incorporation issued on conversion.
So an OPC supplies the pliability to develop and convert into another type because the enterprise scales up over a time period.
Advantages of OPC
Some key advantages of incorporating a enterprise as an OPC are:
- Separate authorized entity with perpetual succession.
- Straightforward formation with just one member and low compliance burden.
- Restricted legal responsibility protects private belongings.
- Flexibility to induct professionals later as administrators.
- Develop into another type like non-public or public restricted firm.
- Avail tax advantages out there to firms.
- Entice extra buyers and clients with formal construction.
- Continuity of enterprise even when promoter isn’t round.
So an OPC supplies some great benefits of each sole proprietorship in addition to non-public restricted firm.
Conclusion
An opc firm registration is a useful enterprise construction for people to start out their ventures with restricted funding and compliance. It supplies flexibility to scale up over a time period. Correct documentation and compliance with annual filings is essential. General, an OPC is a straightforward and efficient approach for people to include their enterprise concepts.