One Person Company Registration in Mumbai

One Person Company Registration in Mumbai

Mumbai is the financial capital of India. It is home to many dreamers, creators, and innovators. From Marine Drive to Powai’s startup hubs, the city has thousands of entrepreneurs. But when you are starting solo, incorporating a business entity and doing all the legal compliance can be tricky. This is where an OPC registration becomes a perfect choice. It allows you to operate as an independent entrepreneur while giving your business a legal identity separate from you. An OPC in Mumbai not only helps you protect your personal assets but also adds credibility to your business. For anyone looking to start small but think big, an OPC registration in Mumbai is the best choice for you!

What is a One Person Company (OPC)?

A One Person Company (OPC) is a type of private limited company incorporated under the Companies Act, 2013, in which only a single individual manages and runs the company. An OPC is completely different from a sole proprietorship because here, the business and the owner are not legally the same. The company itself becomes a separate legal entity. It can own property, sign contracts, have its own bank account, and handle legal matters independently under its own name.

OPCs in India are governed by the Companies Act, 2013, which sets the rules for registration, management, and compliance.

In Mumbai, an OPC is best for:

• Individuals
• Freelancers
• Professionals
• Small business owners who run shops, online stores, or service-based businesses
• Tech entrepreneurs
• Traders and retailers
• Consultants and Trainers
• Aspiring Entrepreneurs

Eligibility Criteria for OPC Registration in Mumbai

To form an OPC in Mumbai, the following eligibility criteria must be met:

• The owner must be a resident of India. It means the owner must have stayed in India for at least 120 days during the previous financial year.
• The owner must be at least 18 years old and legally capable of entering into a contract.
• Only one person can be the director and shareholder of the OPC.
• The company must also have one nominee, who will take over the company in
• A company cannot be a shareholder of an OPC.
• The annual turnover of the OPC must not exceed ₹2 crore.
• You cannot form more than one OPC at a time.

Advantages of OPC Registration in Mumbai

1. Limited liability: Personal assets of the owner are protected from business losses.
2. Single ownership:  No need for a partner to start the company.
3. Separate legal identity: The company can own property, open bank accounts, and enter into contracts in its own name.
4. Credibility: Since the company is registered, it gains trust from banks, clients, and investors, and becomes eligible to obtain a loan.
5. Simpler compliance: Very few compliances as compared to a private limited company.
6. Continuity: The Company continues even if the owner passes away; the nominee takes over the business.
7. Growth: An OPC can be converted into a private or public limited company if turnover or business size increases.
8. Tax benefits: OPCs enjoy similar tax benefits as private limited companies under Indian law.

Limitations of OPC Registration in Mumbai

1. Can have only one director and one shareholder.
2. Cannot raise funds from the public.
3. Annual turnover must not exceed ₹2 crore.
4. Must convert into a private limited company if turnover exceeds the limit.
5. Cannot carry multiple unrelated business activities outside the approved MOA.
6. Foreign citizens cannot form an OPC in India.

Documents Required for OPC Registration in Mumbai

1. PAN card, Aadhaar card, Passport of the director and nominee.
2. Utility bills, rental agreement/lease agreement/ or sale deed or any other property ownership proof of the director and nominee
3. Recent passport-sized photographs of the director and the nominee.
4. Proof of registered office of the company in Mumbai. You can attach a utility bill or an NOC from the property owner if rented.
5. Memorandum of Association (MOA)
6. Articles of Association (AOA).
7. Digital Signature Certificate (DSC) of the director and the nominee.
8. Director Identification Number (DIN) of the director.

Online Process for OPC Registration in Mumbai

Step 1: Obtain a Digital Signature Certificate (DSC)

The DSC is used to sign documents that need to be submitted online. It is obtained from the government-recognised certifying authorities.

Step 2: Obtain a Director Identification Number (DIN)

The MCA assigns each director of a firm a unique identification number known as a DIN.  Each director has a different and new number. The SPICe+ Form on the MCA portal is used to submit the DIN application.

Step 3: Reserve a Company Name

Once you obtain DSC and DIN, you need to apply to reserve the company’s name. The name must be new, unique, and not similar to any existing company. An application in the form SPICe+ form for name reservation must be submitted after proposing 2 names in the priority order online at the MCA portal. The name will be reserved for 20 days from the date of approval by the MCA.

Step 4: Prepare the Memorandum of Association (MoA)

Once the name of your company is approved, the next step is to prepare the Memorandum of Association (MoA). The MoA defined the goal, objectives, and scope of activities of the company. It explains what your company is formed to do and how it plans to function.

Step 5: Draft the Articles of Association (AoA)

The Articles of Association (AoA) act as a rulebook for your company. It sets out how the company will be managed internally. It defines the power of the director over how meetings and decision-making will take place. It also covers important details such as share capital, voting rights, and administration.

 Step 6: Submit the incorporation documents with the Registrar of Companies (ROC)

After drafting the MoA and AoA, you will need to file them online with the Registrar of Companies (ROC) through the MCA portal.

• The MoA is filed in Form INC-33.
• The AoA is filed in Form INC-34.

You also need to attach the following documents, pay the government fees, and upload the nominee’s consent form.

• Identity and Address Proof of Director and Shareholder(s)
• Proof of the Registered Office Address
• Consent and declaration by the director and the shareholder – Form INC- 9

Step 7: Appoint a Nominee

In an OPC, it is mandatory to appoint a nominee.

A nominee is someone who will take over the company if the sole owner passes away or becomes unable to run the business.

Before being appointed, the nominee must give their written consent in the Form INC-3 confirming their willingness to act as a nominee. This consent is then submitted along with the incorporation documents to the MCA.

Step 8: Obtain a Certificate of Incorporation

When RoC verifies all the compliance requirements of the company and all the documents. A Certificate of Incorporation will be issued by the ROC. The certificate officially states that the OPC is incorporated, officially marking the formation of your OPC. The certificate includes the Corporate Identification Number (CIN), which is the unique Identification number for each company. 

Step 9: Open a Bank Account

After applying for a PAN and TAN number, a new bank account in the company's name must be opened to enable the company to conduct monetary transactions.

Compliances for OPC Post-Incorporation

Incorporating an OPC is not enough; it has to file the following every year to legally operate in India:

• File the financial statements
• Conduct a statutory audit
• File the Annual Return
• File the DIR-3 KYC form
• File the Tax returns
• File the GST returns (if registered)

Why Choose Kanakkupillai for OPC Registration in Mumbai?

Starting a One Person Company in Mumbai is simple when you have the right guidance. At Kanakkupillai, we make the registration process fast and completely transparent. We provide:

• End-to-End Support: From name approval to incorporation and post-registration compliance, we take care of everything for you.
• Experienced Professionals: Our team of Chartered Accountants, Company Secretaries, and tax consultants ensures that every step complies with the Companies Act, 2013.
• Transparent Pricing: No hidden charges, no confusion, you pay only for what’s necessary.
• Post-Incorporation Assistance: Our support continues beyond registration. We help you with the GST registration, GST return filing, OPC annual compliance, and accounting and legal advisory.