Launching a business in India might be challenging, especially if you’re working alone. However, by establishing the idea of a Person Company (OPC), the Indian government has made it simpler for owners of small businesses to launch and run their businesses. We will walk you through each stage of the OPC registration in India in this article.
What is an OPC (Person Company)?
It’s crucial to comprehend an OPC before starting the registration process. The Indian government first launched the OPC business structure type in 2013. It enables one individual to establish and manage a business, creating a distinct legal entity for the enterprise. Any debts or legal troubles the company may encounter will not be the owner’s responsibility.
Step1: Obtain a Digital Signature Certificate (DSC)
Getting a Digital Signature Certificate (DSC) is the first step in the OPC registration process. A digital signature certificate (DSC) is an electronic signature used to sign documents digitally. It is a prerequisite for electronically submitting forms to the Ministry of Corporate Affairs (MCA).
The business owner must speak with a certifying organization recognized by the Controller of Certification Agencies (CCA) to receive a DSC. The certifying organization will ask the business owner to present specific documents, such as evidence of identification and proof of address, to establish their identity.
Step2: Obtain a Director Identification Number (DIN)
The following step is to obtain a Director Identification Number (DIN). Every company director is given a DIN, which is a unique identifying number, by the Ministry of Corporate Affairs. The firm owner must get a DIN for themselves because there is only one director on an OPC.
The business owner must submit an online application to the Ministry of Corporate Affairs for a DIN. Personal information, including name, address, and date of birth, should be included on the application, along with any supporting documentation that may be required.
Step 3: Pick an Original Name for the Business
The next stage is to give the business a unique name. The name must not be the same as or confusingly similar to any existing Indian corporation or brand that has been registered. The title shouldn’t be offensive or contravene any rules or laws.
The company owner may see if the name is still available on the MCA website. The business owner can reserve a word once it has been decided upon by submitting an online application to the Ministry of Corporate Affairs.
Step 4: Submit the incorporation paperwork
The firm owner must file the documents for incorporation with the Ministry of Corporate Affairs as soon as the name is authorized. The following papers are needed for OPC registration:
The Memorandum of Association (MOA) and the Articles of Association (AOA)
Affidavit of the Nominee’s Consent and Director’s Declaration
The corporation’s business goals, standards, and regulations are outlined in the MOA and AOA. According to the Companies Act of 2013, the nominee must consent. The nominee is designated to run the business in case of the business owner’s disease or disability. The director’s affidavit and declaration are necessary to verify that the documents are authentic and accurate.
Step 5: Pay the registration fees
The business owner must pay the registration fees when the paperwork has been filed. The company’s authorized capital determines the charges and the most money it can distribute to its shareholders.
The registration fees may be paid online through the Ministry of Corporate Affairs portal. After receiving payment of the costs, the MCA will verify the paperwork and grant permission for the company’s incorporation.
Step 6:Obtain the Certificate of Incorporation
Getting the Certificate of Incorporation is the last step in the OPC registration process. The Ministry of Corporate Affairs issues the Certificate of Incorporation, a legal document attesting to the company’s status as a distinct legal entity.
The MCA will issue the Certificate of Incorporation once those documents have been approved and the registration fees have been paid. The name of the business, the location of its registered office, its incorporation date, and its Corporate Identity Number (CIN) are all listed on the certificate of incorporation.
Step7:Apply for PAN and TAN
After receiving the Certificate of Incorporation, the firm owner must apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN). PANs are unique identifying numbers that the Income Tax Department issues to keep track of transactions involving taxes. For the purpose of withholding or collecting tax at source, the Income Tax Department issues 10-digit alphanumeric numbers called TANs.
Through the NSDL or UTIITSL websites, applicants for PAN and TAN can submit their applications online. To receive a PAN and TAN, the business owner must present the required paperwork, such as a certificate of incorporation.
Entrepreneurs who wish to launch a firm with limited liability and a distinct legal entity may find the Single Person Company registration process in India is attractive. Review a few of the main advantages of SPC registration in this section.
Small Liability
Limited liability is one of the critical benefits of SPC registration. The owner’s assets are safeguarded if the company runs into financial or legal problems because the corporation is a separate legal entity from its owner. The business owner will feel more secure and at ease due to this.
Distinct legal entity
The corporation is considered a distinct legal entity, another advantage of SPC registration. It can enter into contracts, possess property, and bring or receive legal action in its name. It adds an extra layer of security to the business owner’s assets and enables them to operate more effectively and credibly.
Simple to Control
Since there is only one director in an SPC, management is simple. Decision-making is, therefore, quicker and more effective, and the business owner can do it without seeking input from others. This allows them to react to changing market conditions more quickly.
Conclusion
OPC registration in India is a quick and easy process that takes a few weeks to complete. A single individual can benefit from restricted liability and a separate legal entity by signing up as an OPC, which attracts small business owners as a viable choice. The detailed instructions in this article might assist business owners in India to complete the registration process and launch their own companies.
