One Person Company
Empowering solo entrepreneurs to incorporate with ease – One Person Company registration made simple.
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About this Plan
Our One Person Company (OPC) registration service is designed to make the process of registering your business as easy and hassle-free as possible. We understand that starting a business can be daunting, and that’s why we’re here to help you every step of the way.
Overview
An One Person Company (OPC) is a type of company in which only one person holds the entire shareholding and control over the affairs of the company. OPC was introduced in India through the Companies Act, 2013 as a new form of business entity.
Benefits
Limited Liability: The biggest benefit of OPC registration is that the liability of the sole member is limited to the extent of the capital invested in the company. In case of any losses or debts incurred by the company, the personal assets of the sole member are not liable to be seized to pay off the debts.
Separate Legal Entity: OPC is a separate legal entity from its sole member, which means that the company can own property, enter into contracts, sue or be sued in its own name, and conduct business independently.
Easy to Set Up: OPC registration is relatively easy and straightforward as compared to other types of companies. It requires only one director and one shareholder, and the incorporation process can be completed online with minimal paperwork.
Perpetual Existence: OPC enjoys perpetual existence, which means that the company will continue to exist even if the sole member passes away or becomes incapacitated. This is beneficial for the continuity of the business and its operations.
Improved Credibility: OPC registration enhances the credibility of the business, as it is recognized as a separate legal entity and is subject to the same compliance requirements as other types of companies. This makes it easier to obtain loans, enter into contracts, and conduct business with other companies.
Steps to Incorporate an One Person Company in India
- Step 1: Check the eligibility and documentation
- Step 2: Request DSCs and DINs for each director
- Step 3: Submit a request for a name reservation Form Spice+ for company incorporation
- Step 4: Apply for PAN and TAN for your new business
- Step 5: RoC issues an incorporation certificate with a PAN and TAN
- Step 6: Open a bank account and start your business.
The whole process for registering a one person company can be completed in a time span of just 20 days. All you have to do is reach out to Vakilsearch and complete the process with no delay.
Documents Required
To register a One Person Company (OPC) in India, the following documents are generally required:
Identity proof: The identity proof of the sole member and nominee of the OPC is required. It can be a PAN card, passport, driving license, Aadhaar card or voter ID card.
Address proof: The address proof of the sole member and nominee of the OPC is required. It can be a bank statement, electricity bill, telephone bill or any other utility bill.
Registered office proof: A proof of the registered office address is required, which can be a rental agreement or a utility bill.
NOC from the owner: If the registered office of the OPC is not owned by the sole member, then a No Objection Certificate (NOC) from the owner of the property is required.
Memorandum of Association (MoA): The MoA is a legal document that contains the objectives, scope and powers of the OPC.
Articles of Association (AoA): The AoA is a legal document that contains the rules and regulations governing the internal management of the OPC.
Consent of nominee: The consent of the nominee is required, who will take over the management of the OPC in case of the death or incapacity of the sole member.
Digital signature certificate (DSC): A DSC is required for the sole member and the nominee of the OPC.
Director identification number (DIN): The DIN is a unique identification number required for the sole member and nominee of the OPC.
Restrictions on One-Person Company
In India, One Person Companies (OPCs) are subject to certain restrictions, which are as follows:
Only one shareholder: An OPC can have only one shareholder, who must be a natural person and not a company or other entity.
One director: An OPC can have only one director, who can also be the sole shareholder. However, a nominee director must be appointed in case the sole director becomes incapacitated or dies.
Limited to certain types of businesses: An OPC cannot engage in non-banking financial activities, investment in securities or carry out non-charitable activities. Further, an OPC cannot carry out activities that involve more than one person or require an annual turnover of more than Rs. 2 crore.
Mandatory conversion: If the annual turnover of an OPC exceeds Rs. 2 crore or its paid-up capital exceeds Rs. 50 lakh, it must be converted into a private limited company or a public limited company within six months.
Limited options for foreign investment: Foreign investment in an OPC is allowed only with prior government approval and is subject to certain conditions.
