Now Starting your bussiness is fast and easy with caadvocatecs.com


ONE PERSON COMPANY

About One Person Company

 

In a nation which has an immense number of entrepreneurs striving to set up their business empire, one of the best ways to start is by starting alone. The One Person Company or the OPC is a type of firm which allows only one single person to make decisions for his Company. A business venture which costs less and has the is easy to establish is also less risky and is different from the sole proprietorships. 

 

In this OPC the founder is the key person who is the director of the Company and drives the Company. In general, One person Company registration cost in India is about 1 lakhs but can be varied from region to region. Also, this was made in order to eradicate the practice of Sole Proprietorships.

 

How to register one person Company in India

 

The one person Company registration pROCess is an easy task if you go by these pROCedures which are mentioned below. These steps are as follows: 

 

  1. Apply for DSC or the Digital Signature Certificate of the person who is the proposed director.
  2. Next step is to apply for the DIN in the SPICe form with the correct name and the address of the director.
  3. Then the name of the organisation is to be approved by the MCA and should be in the format of “ABC (OPC) Private Limited”.
  4. The documents are then submitted to the ROC or Registrar of ComPANies, including the MOA and AOA.
  5. The MCA is now sent all the documents for one person Company registration online,  such as the SPICe Form, SPICe-MOA and SPICe-AOA along with the DSC of the Director and other important documents.
  6. Lastly, as the form gets approved the ROC you would get the certificate of incorporation after which you can start your business.

 

One Person Company has the following features and restrictions:

 

.The benefits of this kind of firm are as follows:

 

  1. Less compliance is required
  2. It is a type of private Company mentioned under Section 3(1)(c) of the ComPANies Act.
  3. It requires a minimum of a single director but can be headed by others also if they fulfil the criteria.
  4. There is financial support from the banks to a Company rather than a proprietary firm.
  5. Decision making is faster and efficient as it depends upon a single director.
  6. The OPC can be converted into a Private limited Company as and when the owner wants.
  7. There isn’t any perpetual succession of the firm
  8. There isn’t any minimum amount which is required for OPC.

Get the Best Price For Your Service

Select State

Select Ratings

Search By Name/Location

Close
Filters

Get an instant best price for your services

FAQ - Frequently asked questions

What is a One Person Company(OPC) and how is it different from an ordinary private limited company?

One Person Company is a new type of business entity. A private limited company can be formed with a minimum of two directors and shareholders. The directors and shareholders can be same individuals. One person company does away with the requirement of minimum two shareholders. It allows a single entrepreneur to get his business registered as a company and get limited liability protection.


Who can register for an OPC?

OPC company registration can be done only by Indian residents, and that, too, only one at a time, as per the specifications of the Ministry of Corporate Affairs.


What is the minimum capital requirement to start an OPC?

An OPC can be started with a minimum authorised capital of Rs. 1 lakh. There is no mandatory requirement for a minimum paid up capital. Hence, you can start as an OPC with a capital contribution as low as Rs. 2. However when the paid up capital exceeds Rs. 50 lakh, OPC must mandatorily convert to a private limited company( pvt. ltd.). Also, when the average turnover for 3 consecutive years becomes Rs. 2 crore or more, there is a need to convert into a pvt. ltd.


Is there any tax advantage on forming an OPC?

There is no specific tax advantage to an OPC over any other form. The tax rate is flat 30%, other tax provisions like MAT & Dividend Distribution Tax applies as they apply to any other form of company.


What are the mandatory compliance that an OPC needs to observe?

The basic mandatory compliance are: Maintenance of proper books of accounts Statutory audit of Financial Statements Filing of business Income tax return every year before 30th Sep Filing Annual ROC return which includes form MGT-7 - Statement of Disclosure of ShareHolders and Directors


What is the eligibility criteria for a member of OPC?

A natural person who is resident in India and Indian Citizen who is living in India for a period of 182 Days is eligible to act as a member and nominee of an OPC A person can be only being a member of one OPC. If a person becomes a member or nominee of 2 or more than 2 OPC’s then he has to withdraw his membership from the OPC within 182 days.


Do I need to be physically present during this process?

The Ministry of Corporate Affairs (MCA) has made the new OPC registration a completely online process. All the document flow happens in electronic form and there is no need of any physical presence.


My details on my documents have a difference. Can I still incorporate my company using them?

You will need to have exactly the same details on all your documents to incorporate your company.


How many directors can there by in an OPC?

An OPC has certain limitations. The person starting the business is its only director and shareholder. There is also a nominee director, but this person has no power whatsoever for raising equity funds or offer employee stock options. The nominee exists only to take over in case of the death or incapacitation of the director. The nominee is chosen by the director, and can be anyone, such as your spouse, parents or siblings. The nominee will need to provide identity proof during registration.


Can I start more than one OPC at a time?

No, an individual can form only one OPC at a time. This rule applies to the nominee in an OPC, too