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One Person Company Registration in Delhi NCR

The concept of a One Person Company (OPC) was introduced in India under the Companies Act, 2013, to promote individual entrepreneurship while offering the benefits of limited liability and simplified compliance. For entrepreneurs who want to venture into business without the complexities of traditional structures like partnerships or private limited companies, One Person Company Registration in Delhi NCR , India is an ideal solution. This guide provides a comprehensive overview of the process, eligibility, and benefits of registering a One Person Company in India.

What is a One Person Company Registration in Delhi NCR?


A One Person Company (OPC) is a type of company that allows a single individual to own and operate a business with limited liability. OPC combines the flexibility of sole proprietorship with the legal protections typically associated with a One Person Company Registration in Delhi NCR , India . The owner, referred to as the sole shareholder, is solely responsible for the company’s management and operations. However, the OPC is treated as a separate legal entity, meaning that the personal assets of the shareholder are protected in case of any liabilities or debts.

Eligibility Criteria for Registering One Person Company Registration in Delhi NCR


Before One Person Company Registration in Delhi NCR, India the entrepreneur must ensure that they meet the eligibility criteria:

  • Number of Shareholders: As the name suggests, an One Person Company Registration in Delhi NCR , India can have only one shareholder. That person must be an Indian citizen and a resident of India.
  • Nominee: Since an OPC is a one-person business, the shareholder must appoint a nominee in case of death or incapacity. The nominee must also be an Indian citizen and a resident of India.
  • Age Requirement: Both the shareholder and nominee must be above 18 years of age.
  • Business Nature: OPCs cannot engage in non-banking financial investment activities or any business associated with investments in securities. Additionally, an OPC cannot be converted into a Section 8 company (non-profit).
  • Annual Turnover Limit: If an OPC exceeds a turnover of ₹2 crores in any financial year or has a paid-up capital of more than ₹50 lakhs, it is required to convert into a private limited company.

Step-by-Step Process for Registering an OPC in Delhi NCR


One Person Company Registration in Delhi NCR , India involves several steps that ensure legal compliance and proper documentation. Here’s a step-by-step breakdown:

  1. Obtain Digital Signature Certificate (DSC)
    The first step in One Person Company Registration in Delhi NCR , India is acquiring a Digital Signature Certificate (DSC) for the proposed director. A DSC is necessary for signing electronic documents while submitting the registration forms to the Ministry of Corporate Affairs (MCA). You can obtain a DSC from any certifying authority in India, such as eMudhra or Sify Safescrypt.
    Documents required for DSC:
    • Passport-sized photograph
    • PAN card (mandatory)
    • Address proof (such as Aadhar, passport, or utility bill)
  2. Apply for Director Identification Number (DIN)
    Once the DSC is obtained, the next step is to apply for a Director Identification Number (DIN) for the proposed director. This is done by submitting the SPICe+ Form (discussed later). DIN is a unique identification number for every director, and it is mandatory for any individual who wants to become a director of a company.
  3. Name Reservation
    Choosing an appropriate name for your company is a crucial step. You need to ensure that the name is unique and follows the naming conventions prescribed by the MCA. The name should not be identical to any existing company or trademark.
    To reserve the name:
    • Submit the RUN (Reserve Unique Name) form through the MCA portal.
    • The name of the company should end with the words “Private Limited” and “(OPC)” for recognition as an One Person Company Registration in Delhi NCR , India . For example: “ABC Technologies (OPC) Private Limited.”
    • Once approved, the name will be reserved for 20 days, during which you must complete the registration process.
  4. Drafting the Memorandum and Articles of Association (MOA & AOA)
    The Memorandum of Association (MOA) outlines the scope of the business activities, objectives, and powers of the company, while the Articles of Association (AOA) defines the rules for internal management and governance.
    For an OPC, the MOA and AOA must also contain a clause specifying the nominee’s details, who will take over the company in case the shareholder becomes incapacitated or passes away.
  5. File SPICe+ Form
    The SPICe+ form (Simplified Proforma for Incorporating a Company Electronically Plus) is an integrated web form introduced by the MCA for company incorporation. This form allows you to apply for:
    • Company registration
    • Director Identification Number (DIN)
    • PAN (Permanent Account Number)
    • TAN (Tax Deduction and Collection Account Number)
    • EPFO (Employees’ Provident Fund Organization)
    • ESIC (Employees’ State Insurance Corporation)
    • GSTIN (Goods and Services Tax Identification Number)
    The SPICe+ form is divided into two parts:
    • Part A: For name reservation
    • Part B: For incorporation and related services (including obtaining PAN, TAN, etc.)
    After filling in all the necessary details and attaching the required documents, submit the SPICe+ form on the MCA portal along with the prescribed fees.
  6. Verification and Incorporation Certificate
    Once the SPICe+ form is submitted, the MCA will verify the documents. If everything is in order, the MCA will issue the Certificate of Incorporation (COI) within 7-10 business days. The COI will include the Corporate Identification Number (CIN) of the One Person Company Registration in Delhi NCR, officially making it a registered entity.
  7. Post-Incorporation Formalities
    Once the OPC is incorporated, there are a few additional formalities to be completed:
    • Open a bank account in the name of the company.
    • File for GST registration, if applicable.
    • If your company has employees, register with the EPFO and ESIC for employee benefits.
    • Conduct the first board meeting within 30 days of incorporation.

Key Benefits of Registering a One Person Company Registration in Delhi NCR

  • Limited Liability: The biggest advantage of an OPC is that the shareholder’s personal assets are protected. In the event of financial trouble, only the company’s assets can be used to settle debts.
  • Single Ownership: Unlike a private limited company that requires a minimum of two directors, an OPC allows a single individual to own and operate the company.
  • Separate Legal Entity: The OPC is a separate legal entity from its owner, giving it the ability to sue, be sued, own assets, and enter into contracts.
  • Fewer Compliance Requirements: Compared to private limited companies, OPCs enjoy reduced compliance requirements. For example, there’s no need to hold an annual general meeting or maintain a quorum of members.
  • Tax Benefits: OPCs can avail themselves of several tax benefits applicable to companies, unlike sole proprietorships, where the individual’s income is taxed.

Conclusion

One Person Company Registration in Delhi NCR , India is a straightforward process that allows entrepreneurs to establish a legal entity with limited liability while retaining full control over their business. By following the necessary steps, from acquiring a DSC and DIN to filing the SPICe+ form and obtaining the Certificate of Incorporation, entrepreneurs can enjoy the advantages of an OPC, including legal protection, tax benefits, and simplified compliance. For individuals looking to formalize their business with the benefits of a corporate structure, One Person Company Registration in Delhi NCR , India offers a viable and efficient solution.