One Person Company Registration
Do you want to be the sole shareholder of your firm and enjoy complete ownership of your business?
We will assist you in building your own OPC in less than 10-15 working days!
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What is an OPC ?
Section 2(62) of Companies Act defines a one-person company as a company that has only one person as to its member. So, an OPC is effectively a company that has only one shareholder as its member.
If there is only one promoter/founder, One Person Company (OPC) is the best way to start a company. OPC is one of the significant milestones of the Companies Act, 2013, introduced to encourage self-employment.
An OPC gives the advantage of limited liability to entrepreneurs, whereby the liability of the member will be limited to the unpaid subscription money. This benefit is not available in case of a sole proprietorship.
Table Of Contents
An Overview
One person company (‘OPC’) is a fairly new concept in India introduced in the Companies Bill 2013. OPC is a hybrid form of Proprietorship and Company form of business. OPC supports entrepreneurs who are capable of starting a venture on their own by giving them the freedom to create a single person economic entity. The biggest advantage of OPC is that it requires only one person who will act as a member, shareholder, and a director and thus the entrepreneur does not have to face the problem of finding another partner.
Advantages
- Minimum 1 member.
- Minimum 1 director & maximum 15 directors.
- Only 1 shareholder and hence, full control.
- Separate Legal entity status.
- Limited Liability of member and perpetual succession.
- Exempt from holding an annual general meeting or extraordinary general meetings.
- Cash flow statement not required to be filed.
- Lesser compliance requirements.
- No minimum Paid up capital.
- Builds credibility due to Corporate structure.
Related read: How To Register A Company In India: A Step By Step Guide
Checklist
- Only a natural person who is a Resident Indian-Citizen can incorporate OPC.
- Legal entities like Company or LLP cannot incorporate an OPC.
- The minimum authorised capital is Rs 1,00,000.
- A nominee must be appointed by the promoter during incorporation.
- Businesses involved in financial activities cannot be incorporated as a OPC.
- OPC must be converted to a private limited company when paid-up share capital exceeds Rs. 50 lakh or turnover crosses Rs. 2 crore.
- A minor is not allowed to be a member of an OPC.
- A person cannot form more than 1 OPC.
- Limitation in Conversion i.e OPC cannot be Converted into Section 8 Company as per Companies Act, 2013.
Steps to Incorporate an One Person Company
Step 1: Apply for DSC (Digital Signature Certificate) & DIN (Digital Signature Certificate).
Step 2: Apply for the name availability.
Step 3: Filing of documents
Requisite Documents
- For Directors
- Identify the director and submit their documents as given to the below.
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Identity Proof
- PAN (Indian Nationals) or Passport (Foreign nationals) And
- Passport / Driver’s License / Election ID / Ration Card / Aadhar ID -
Address Proof
- Bank Statement / Electricity Bill / Mobile Bill(latest 1 month old) - Passport size photographs
- For Registered Office
-
Rent Agreement & NOC
Registered document of the title of the premises or notarized copy of lease/ rent agreement in the name of the company along with a copy of rent paid receipt not older than one month.
NOC from Landlord to use the premises by the company as its registered office. -
Address Proof
Utility bills like telephone, gas, electricity, etc. showing the address of the premises in the name of the owner (latest 1 month old)
- For Nominee
-
Identity Proof
Pan card / Aadhaar card/ Passport / Driving license -
Address Proof
Electricity bill/ Bank Statement / Mobile bill (latest 1 month old)
Compliances post Company Formation
All companies registered in India are required to comply with various rules and regulations. Failure to comply can lead to penalty or disqualification of the directors.
We at ICI can help you in maintaining Statutory compliances for your company at a very affordable price point.
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Statutory Auditor Appointment
The board of directors must appoint a practicing Chartered Accountant as their auditor within 30 days of incorporation. -
Annual Return
OPC must file their annual return in forms AOC-4 and MGT-7 on or before 31st October. -
Income Tax Filing
OPC must file their Annual income tax return each year on or before 30th September.
Related read:How To Save More Taxes Using An Income Tax Calculator?
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Commencement of Business
Any company incorporated after November, 2018 is mandatorily required to obtain Commencement of Business Certificate. This declaration for commencement of business must be filled within 180 days from the date of getting CERTIFICATE OF INCORPORATION.
Share capital mentioned in the MOA [Memorandum of Association] must be deposited in a bank and commencement certificate must be obtained from MCA. -
Board Meeting
At least one Board Meeting in each half of the calendar year and the time gap between the two Board Meetings should not be less than 90 days. -
Bookkeeping
An OPC must maintain proper books of account relating to its affairs each year on cash or accrual basis. The book of accounts must be kept as per double entry system of accounting at the registered office. - In addition to the above, GST registration, GST return filing, TDS return filing and other labour law compliances would be required for an OPC - based on the sales turnover and various other criteria.
Related read: What’s The Difference Between Sole Proprietorship And OPC?
Incorporating an One Person Company
At ICI, we will help you start your own OPC in less than 10-15 working days, subject to government processing times, and availability of all documents.
- Following the steps listed below to start your own Company,
- Submit a request by clicking here.
- Our Corporate Manager (CM) will get in touch with you to collect your documents along with a simple checklist.
- Submit the filled checklist along-with your documents for verification. Your documents will be verified by our team of expert’s here at ICI and we shall take the process further. The CM shall keep you informed throughout the process.
- Once your documents along with the Checklist are submitted and verified, we shall proceed with the application of your DSC and DIN. In parallel to the DSC application, the application for name reservation shall be submitted to the MCA. You may suggest up to 3-4 names of your choice. The suggested name must conform to the naming standards as per MCA, and the name of the OPC must end or include the words (OPC).
- We will draft the MOA (Memorandum of association) and AOA (Articles of association). We will file the incorporation documents with MCA in part B of a form called “SPICe Plus (SPICe +)” along with the subscription statement. Usually, MCA approves the forms within 4-5 days once filed and issues Incorporation Certificate with CIN.
- Once the approval is obtained, the OPC would be incorporated, and we would begin the process of helping you obtain PAN and TAN for the OPC and opening a bank account in the name of the OPC.
FAQs
One Person Company is a relatively new form of business entity. A private limited company can be formed with a minimum of two directors and shareholders. The directors and shareholders can be the same individuals however, One person company has no requirement of minimum two shareholders. It allows a single entrepreneur/person to get his business registered as a company and get limited liability protection.
A nominee is a person who, in the event of death or disability of the subscriber of the One Person Company, shall assume his position. Memorandum of Association of One Person Company will mandatorily prescribe the name of the nominee.
Yes. You can appoint your husband/wife as a nominee, provided that he or she holds a PAN in his or her name.
Yes. A nominee can be changed at any time with due intimation to the Registrar.
In case the paid-up share capital of an OPC exceeds 50 lakh rupees or its average annual turnover of immediately preceding three consecutive financial years exceeds two crore rupees, then the OPC has to mandatorily convert itself into a private or public company.
DIN is allotted by the Central Government to any person intending to be a Director of a company. It is an 8-digit unique identification number which has lifetime validity. DIN is specific to a person, which means even if he is a director in 2 or more companies, he has to obtain only 1 DIN.
Whenever a return, an application, or any information related to a company will be submitted under any law, the director signing such return, application or information will mention his DIN underneath his signature.
FDI is not allowed for an OPC
Yes, the Act has not laid down any restriction for OPC to become a member of another Private Limited Company.
An OPC can be easily converted into a Public or Private Limited Company.
No, OPC incorporation is a completely online process.
There is no specific tax advantage. Like any other form of company, OPC has to pay Corporate tax at a rate of 30% (concessional rates subject to certain conditions). Other tax provisions like MAT would continue to apply as they apply to any other forms of company.
Yes, you can show your own residential or rented home address as the registered office address of the Company. If you take a place for rent, and the bills are in the owner’s name, a ‘No Objection Certificate’ is required from the owner of the property.
Speak to our experts who shall solve all your doubts. Call us at +91 7738 066 334 or Mail us at info@indiacompanyincorporation.com
What Our Clients Say About Us!
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