How to Register One Person Company in 5 Steps

Posted by Subrato Mukherjee on February 5th, 2019

This article will help you to register your one person company in 5 easy steps along with it will answer all your queries related to One Person Company.  

Before diving deep into one person company registration procedure.

Let’s first understand, what is One Person Company(OPC)?

Let me tell you a story.

Ritika wants to start her fashion business where she can sell her well-designed clothes and wants to operate all her operations all by herself.

In this case, she chooses One Person Company.

You may be thinking why not Sole Proprietorship?

Well, there is a difference between One Person Company and Proprietorship.

One Person Company means it consists of an only single member unlike Private Limited Company or LLP where it is required to have minimum two members. The concept of One Person Company started to allow entrepreneurs in starting their own ventures without worrying about partners. The advantages of One Person Company is it has a separate existence from its members that means it offers limited liability protection to the sole shareholder.

Step by Step Procedure on How to Register One Person Company

Step 1:  Obtain a Digital Signature Certificate (DSC)

The first step is to obtain DSC i.e Digital Signature Certificate for the directors involved in the private limited company. The main purpose of the DSC is to sign the eforms . According to, The Information Technology Act, 2000 has provisions for use of Digital Signatures on the documents submitted in electronic form in order to ensure the security and authenticity of the documents filed electronically. This is a secure and authentic way to submit a document electronically. DSC is mandatory for all the directors in the company.

How You Can Obtain DSC?

You can obtain DSC by directly approaching Certifying Authorities (CAs) with original supporting documents, and self-attested copies will be sufficient.

Working Days: 1 to 3 Days.

Step 2: Obtain DIN 

DIN number is a Unique Identification Number given by the MC. DIN must be obtained for promoter and nominee. No document is required for this step.

Step 3: Filing of MOA & AOA, SPICe INC-32

After registering DSC, You need to verify your company name on MCA Portal -> MCA Services -> Check Company Name

Note: Your Company name should not be registered and should not be taken.

Care should be taken regarding the pre-existing trademark so that name doesn’t get rejected.  That’s why It is advisable to check the company name.

If taken, ensure that your company name should not be same as brand name.

next, for name approval there are 2 options:

1. Run approval:  With run (Reserve Unique Name) approval you can ensure whether the name is available or not. But this method doesn’t allow you to resubmit once it is submitted. In case name gets rejected you can resubmit by paying Rs.1000 for each submission.
2. File through SPICe INCE -32 forms:  Incorporating a company through Simplified Proforma for Incorporating Company electronically (SPICe -INC-32), with eMoA (INC-33), eAOA (INC-34), is the default option and most companies are required to be incorporated through SPICe only.

In SPICE you will have to submit the PAN & TAN information according to area wise code. 

With SPICe INC-32 you can resubmit 2 times.

Working Days: 7 – 9 Days.

Step 4: Pay ROC Fees & Stamp Duty

After filing up the SPICE for, you have to make payment of ROC fees & Stamp duty. 

Step 4: Fill Form INC-3 Form 

In INC- 3 forms you have to fill Nominee information which includes the information such name, nationality, place of birth, Educational Qualification, Occupation, Residential address information.

Once the INC-3 is filled you need to attach with Spice-32 Form. 

Step 5: Issue the Incorporation Certificate:

You will get Incorporation Certificate along with PAN & TAN information and you will also get PAN Number of the company. 

Conclusion 

Small businesses who are just starting out, can register Sole Propiertorship firm  because of it’s less cost and least legal compliance requirement. But if your businesses requirement deals with clients where you need to present yourself, then registration of One Person Company is recommended because of its advantages like easy funding, tax benefits, uninterrupted existence.

For assistance, you can contact support@incfo.in