Looking to start a business by yourself ? Then incorporating an OPC might seem a viable option. OPC is a legal entity separate from its member, offering limited liability protection to its sole member.
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.
Step 1: Apply for DSC & DIN (Digital Signature Certificate).
Step 2: Apply for the name availability.
Step 3: Filing of documents
Step 4: Apply for PAN, TAN and bank account.
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.
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.
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.