One Person Company Registration

One Person Company (OPC) Registration in Gujarat

Meaning of One Person Company

According to Section 2(62) of the Companies Act, 2013, a One Person Company (OPC) is a business entity that has only one individual as its member. The company’s member is either the sole shareholder or the subscriber to the company’s Memorandum of Association (MOA).

In simple terms, an OPC is a company with a single shareholder as its sole member. This concept was introduced to support entrepreneurs and small businesses by providing a corporate structure without the complexities of multiple partners.

An OPC combines the advantages of a sole proprietorship with the benefits of a private limited company. It allows entrepreneurs in Gujarat to start their business with limited liability protection and minimal regulatory compliance.

Why Choose One Person Company (OPC)?

• Limited Liability Protection – The liability of the member is limited to the extent of their share in the company.

• Independent Legal Entity – An OPC has a separate legal existence, distinct from its owner.

• Ease of Management – The sole owner has complete control over decision-making, allowing quick execution of business strategies.

• Lower Compliance Requirements – Compared to a Private Limited Company, an OPC requires fewer compliances.

• No Minimum Capital Requirement – There is no mandatory minimum capital requirement for an OPC under the Companies Act, 2013.

• Perpetual Succession – The OPC continues to exist even in case of the owner’s demise, with the nominee taking over.

Benefits of OPC Registration in Gujarat

• Limited Liability – The personal assets of the business owner remain protected.

• Less Tax Burden – OPCs can avail tax deductions such as directors’ remuneration, rent, and interest on loans.

• Quick Decision Making – Since only one person manages the OPC, business decisions can be executed swiftly.

• Mandatory Audit Exemptions – Audit is only required when the turnover exceeds ₹2 crores or paid-up capital exceeds ₹50 lakhs.

Eligibility Criteria for Incorporation of an OPC

• The person incorporating an OPC must be:

  • A natural person

  • An Indian citizen

  • A resident of India (i.e., has stayed in India for at least 182 days in the preceding calendar year)

• A person cannot incorporate more than one OPC or be a nominee in more than one OPC.

Other Provisions Related to OPC

• An OPC can be started with a minimum authorized capital of ₹1 lakh.

• When the paid-up capital exceeds ₹50 lakh or the turnover exceeds ₹2 crores for three consecutive years, the OPC must be converted into a Private Limited Company.

• OPCs cannot be incorporated or converted under Section 8 of the Companies Act (i.e., non-profit organizations).

• An OPC cannot engage in non-banking financial activities or invest in securities of other corporate entities.

Mandatory Conversion of OPC

An OPC must convert into a Private or Public Limited Company within 6 months if:

• The paid-up share capital exceeds ₹50 lakh

• The annual turnover exceeds ₹2 crores for three consecutive financial years

Documents Required for OPC Registration

1. Director Details:

   • Self-attested PAN Card

   • Identity Proof (Aadhaar Card/Voter ID/Driving License/Passport)

   • Address Proof (Bank Statement/Electricity Bill/Telephone Bill, not older than 2 months)

   • Passport-size Photographs

2. Business Address Proof:

   • NOC from property owner

   • Property ownership proof (Title Deed) or Rent/Lease Agreement

   • Utility Bill (Electricity/Telephone Bill, not older than 2 months)

3. Other Information Required:

   • Authorized and Paid-up Share Capital

   • Occupation and Educational Qualification of Sole Member & Nominee

   • Email ID and Contact Number

   • Business Objectives

Step-by-Step OPC Registration Process in Gujarat

1. Obtain Digital Signature Certificate (DSC)

• The proposed OPC director must obtain a Digital Signature Certificate (DSC) for filing online forms with the Ministry of Corporate Affairs (MCA).

2. Name Reservation through SPICe+

• Apply for the proposed company name using SPICe+ Part A on the MCA portal.

• Ensure the name is unique and does not infringe on any registered trademarks.

3. Filing of SPICe+ Part B

• Complete SPICe+ Part B for company incorporation.

• Attach required documents, including consent forms, identity/address proofs, and business address verification.

4. Drafting and Submitting MOA & AOA

• Prepare Memorandum of Association (MOA) and Articles of Association (AOA) electronically.

• Attach Form INC-3 (Nominee Consent Form).

5. Filing AGILE-PRO Form

• This step includes:

  • Mandatory EPFO & ESIC registration

  • Mandatory Bank Account Opening

  • Option to apply for GST Registration

6. Uploading Forms on MCA Portal

• Upload all signed and DSC-affixed forms on the MCA portal.

• Payment of registration fees.

7. Declaration by Subscribers and First Directors (INC-9)

• The declaration form (INC-9) must be submitted electronically.

Once the application is successfully processed, MCA will issue the Certificate of Incorporation (COI) along with the Corporate Identification Number (CIN).

Register Your OPC with L & C TechFin Advisory Pvt Ltd

Starting your One Person Company in Gujarat is now easier than ever with L & C TechFin Advisory Pvt Ltd. We provide end-to-end assistance in OPC registration, ensuring seamless compliance and hassle-free processing.

📞 Contact us today for expert guidance on OPC Registration in Gujarat!