What is the new process of incorporation of One Person Company (OPC) in India?

author portrait

Hiral Vakil

OPC
Start & Run Business

The concept of One Person Company (OPC) was introduced in companies act, 2013. One Person Company is suitable for one founder/ promoter who wishes to start a company. For incorporation of OPC one promoter/ member and one nominee is required. Read about the process of incorporation of One Person Company (OPC) through SPICe Form on MCA Portal with two different methods.

One Person Company Incorporation through SPICe – Without filing RUN Form

  1. DSC of Promoter / Founder

    Apply for DSC i.e. Digital Signature Certificate of promoter/ founder

  2. File SPICe Form

    File SPICe forms for Incorporation i.e. Form INC-32, Form INC-33, Form INC-34. One can avail service of name reservation, allotment of DIN, incorporation of new company, allotment of PAN and TAN through INC-32 form. And e-MOA, e-AOA can be submitted in INC- 33 and INC-34 respectively as linked forms

  3. Nominee Details INC-3

    In case of OPC, since nominee is compulsory details of nominee can be filed in Form INC-3 and can be filed as an attachment to INC-32 form

  4. No Name Reservation through RUN

    The Company need not file name reservation through RUN Form on MCA

  5. Payment of Fees

    The proposed director and certified professional should digitally sign the SPICe Forms along with form filing fees. MCA will then start processing the forms.

  6. Observation Report by MCA

    If any issues are found in the forms by the MCA, it sends an Observation Report to the applicant’s email as per SPICe Form. The applicant can make necessary changes and file forms again

  7. Certificate of Incorporation

    Once MCA successfully processes the forms, it issues a Certificate of Incorporation along with PAN and TAN on email

One Person Company Incorporation Process through SPICe – With RUN Form

What are documents required for Incorporation of One Person Company (OPC)?
Read list of documents required for the incorporation of One Person Company on MCA
Read More
What are documents required for Incorporation of One Person Company (OPC)?
Read list of documents required for the incorporation of One Person Company on MCA
Read More

FAQs

Should OPC hold an AGM?

An OPC is not required to hold an Annual General Meeting (AGM). Section 173 and 174 (Quorum of Meeting of BoD) will not apply to an OPC as there is only one director on its Board.

Is Audit compulsory for OPC?

Yes. OPC is mandatorily required to get its books of accounts audited by a CA just like any other limited company. However, the provision relating to the rotation of auditors is not applicable to an OPC.

Who is eligible to act as a member of an OPC?

Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC.

Who can be nominated by the member of OPC as nominee?

A nominee is a person appointed by the member of the one person company (OPC) who shall, in the event of subscriber’s death or his incapacity to contract becomes a member/shareholder of the OPC.

What tax rate is applicable for an OPC?

Tax rates on an OPC are the same as of a Private Limited company. Thus OPC is liable to pay tax at the flat rate of 30% plus 2% education cess and 1% secondary higher education cess. Also, surcharge at 5% is levied if the turnover exceeds Rs. 1 Cr. similar to a Private company.

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    Close Bitnami banner
    Bitnami