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What is One Person Company?
A one person company is a company which contains exactly one member.It is a separate legal entity from its promoter and the promoter has limited liability.
Entrepreneurs who are capable of starting a venture on their own can make use of one person company (OPC) in India. In one person company, there is only one shareholder who is an Indian citizen and Indian resident i.e. stayed in India for at least 182 days in the preceding year.
Shareholder nominates another person as a nominee in case of death or incapacity of the shareholder. One person company was introduced in the companies act 2013 to encourage self-employment.You can not incorporate more than one person company or be a nominee of more than one OPC. Rules of OPC company do not permit Non-Banking Financial Institutions.
An affidavit from every subscriber of the memorandum (i.e. members) and first directors, if any, that they have not been convicted of any offence in relation to the formation or management of any company, or have not been found guilty of any fraud or any breach of duty to any company during preceding five years.One Person Company in India is a separate legal entity from its promoter, offering limited liability protection to its sole shareholder.
Additional Read : What is One Person Company?
Timeline
Free Consultation and Documentation
Our Expert team resolve your queries. Our consultation is completely free.
Action Required by you
You Need to fill up the draft, Make Payment and Submit Documents to LegalDocs
Action By Legaldocs
Once the Documents are uploaded we'll start the step -by-step process of Incorporation
Digital Signature Certificate
Digital Signature certificate also known as DSC is used to sign the document digital insted of traditional signature. DSC is necessry for incorporation. With set of documents or with aadhar based e-kyc DSC can be obtained. All directors of company should have DSC.
Action Required by you
You need to share the OTP for e-KYC during DSC
Action By Legaldocs
Once the Documents are uploaded we'll start the step -by-step process of Incorporation
Director Identification Number
Director Identification number or DIN is allocated to each and every director who has formed company. Without DIN, incorporation is not possible.
Action Required by you
You sit Back and Relax
Action By Legaldocs
We'll take care of the whole process in swift manner.
Name Approval
Name Approval or Name Reservation is the process to reserve unique name through Submission of RUN form (Reserve Unique Name)
Action Required by you
You need to sit Back and Relax, In case of Rejection in the names given by you, you need to suggest alternate names.
Action By Legaldocs
we'll take care of End-to-End Name Reservation Process
MOA, AOA and Incorporation
Memorandum of Association, Article of association and incorporation process will be initited upon sucessful name reservation.
Action Required by you
Need to Sign few Drafts and affidavits as in when required.
Action By Legaldocs
Once the Name is approved we'll do the incorporation, MOA and AOA process.
Company Incorporated
Congratulation, your company is incorporated Sucessfully.
Action Required by you
You can Start your Business, also you can start application for your business bank account.
Action By Legaldocs
We'll Dispatch the Documents, DSC on your Given Address, Also we'll for PAN and TAN
Documents Required for OPC Registration
- Identity proof of director and nominee(PAN card)
- Address proof of director and nominee(Aadhar card, Driving Licence, Electricity bill, Passport)
- Address proof of office (Rent agreement or sale deed, electricity bill, property tax receipt)
- NOC from landlord
- DSC and DIN of director
- Passport photo of director
Additional Read : OPC Registration Process
Current Account Opening
A current account is a type of deposit account that helps the professionals and businessmen to run their business. Businessmen can avail various benefits by Online Current Account such as:
- Unlimited transactions
- Customized features
- Online banking services
Online current account reduces the hassle and provides the benefit to complete the banking process anytime and anywhere.
Are you Ready to Grow your Business?
- Zero Balance Current Account
- In just 5 mins
- Free Current Account Powered by ICICI Bank
Entity Comparison Guide
| TYPE | PROPRIETORSHIP | PARTNERSHIP | LLP | PVT | OPC |
|---|---|---|---|---|---|
| Members | Maximum 1 | 2-20 | 2- Unlimited | 2-200 | 1 |
| Legal Status of Entity | Not Considered as separate Legal entity | Not Considered as separate Legal entity | Considered as separate Legal entity | Considered as separate Legal entity | Considered as separate Legal entity |
| Members Liability | Unlimited Liability | Unlimited Liability | Liability of its members is limited | Limited to the extent of share capital | Limited to the extent of share capital |
| Registration | Not Compulsory | Optional/ Can be Registered under partnership Act 1932 | Registered Under MCA | Registered Under MCA | Registered Under MCA and Companies Act 2013 |
| Transferability Option | Not Allowed | Not Allowed | Can Be Transferred | Can Be Transferred | Allowed to only one person |
| Taxation | As in Individual | 30% of Company Profit | 30% of Profit Plus CESS and Surcharges applicable | 30% of Profit Plus CESS and Surcharges applicable | 30% of Profit Plus CESS and Surcharges applicable |
| Annual Filings | Income Tax Returns with the Registrar of companies | Income Tax Returns with the Registrar of companies | Filed with the registrar of the company | Filed with the registrar of the company | Filed with the registrar of the company |
Eligibility for one person company Registration
- 1. A person is eligible for exactly 1 one person company.
- 2. A minor can not be a member or nominee
- 3. An OPC company cannot carry out Non-Banking Financial Investment activities including investment in securities of any body corporate.
- 4. If paid up capital of an OPC reaches over Rs 50 lakh or average turnover of consecutive 3 years reaches over 2 crores it must be converted into private or public limited company within six months.
Advantages of One Person Company
There is list of features and advantages of OPC Registration in India.
- Limited liabilities
OPC gives limited liability to business owner i.e.liability is limited to the amount you have invested. - Better than Sole Proprietorship:
A sole proprietorship ceases to exist on the death of its promoter. In the case of an OPC, the nominee director takes over and the entity continues to exist. - Easy transfer of ownership:
In a one person company, the ownership can be transferred by altering the shareholding, directorship and nominee director information. - Ability to own property:
A company can own property like buildings, godowns and can be considered a legal entity.
What is included in our OPC Registration Package?
| 1-Digital Signature Certificate (DSC) | 1-Director Identification Number (DIN) | Company Name Approval By Ministry |
| Memorandum of association (MoA) & | Articles of association(AoA) | OPC Registration Certificate |
| Permanent Account Number (PAN) | Tax Account Number (TAN) |
