What is One Person Company (OPC) Registration?
One Person Company (OPC) is comparatively a new concept in India and can be called as an improvised version of the sole proprietorship business structure. Only one member is required (as compared to two for a private limited company) to run and manage the operations of the OPC. In an OPC, such a person will be the director as well as the shareholder. The OPC will be a separate legal entity from its director. Alongside, a nominee director must also be named while forming an OPC, although such a nominee director will not have any powers unless the original director becomes incapable of running the business.
Although, if an OPC achieves an turnover of over Rs. 2 crore (average of three years) or has a paid-up capital of over Rs. 50 lakh, then as per law, it is mandatory for such an OPC to convert into a private limited company or public limited company and file audited financials. So, OPC’s expecting any breach of the above limits must set up a private limited company or public limited company prior to incorporating an OPC. Further, no future equity funding can be raised by an OPC.
An OPC cannot be incorporated or converted into a company under Section 8 of the Act nor it can carry out Non-Banking Financial Investment activities including investment in securities of any body corporate.
Time taken for an OPC registration is about 10 – 15 working days, subject to government processing time and client document submission.
Documents Required for OPC Registration
TO BE SUBMITTED BY DIRECTORS & SHAREHOLDER
- Scanned copy of Pan Card or Passport (Foreign Nationals and NRI’s)
- Scanned Copy of Aadhaar Card/ Passport/ Voter’s id
- Scanned passport sized photograph
- Scanned copy of latest Bank Statement/Mobile Bill/ Gas Bill or Electricity Bill.
FOR THE REGISTERED OFFICE
- Scanned copy of notarized rental agreement by the director on behalf of the proposed company. (After name approval process)
- Scanned copy of NOC from Landlord.
- Scanned copy of Latest Electricity bill/ Telephone(Landline) Bill/ Gas Bill.
Note : Your registered office need to be a commercial space; it can be your residence, too.
OPC Registration Process
1 WORKING DAY
All directors must apply for the Digital Signature Certificate (DSC), which is necessary to file the company registration documents by applying for a Director Identification number (DIN).
2 WORKING DAYS
As soon as we apply for the DSC and DIN, we will ask you to pick a name for your company, and send us some scanned documents regarding it and its directors. Our suggestion is to give a minimum of 3 names. The Registrar of Companies shall select the appropriate name.
6 WORKING DAYS
Once the name is approved, the final form preparation will begin which shall include the rent agreement for the proposed registered office of the company.
1 WORKING DAY
Every company needs a registered Permanent Account Number (PAN) and Tax Account Number (TAN). We will make the application online ourselves. The PAN and TAN will be couriered to your registered office address in 21 working days.
|Private Limited Company||Limited Liability Partnership||One Person Company|
|Start-ups and growing companies||Professional services firms||Sole promoters|
Ease of Accommodating Investment
|Very easy to accommodate||Possible, but unlikely||Possible, but severely unlikely|
Limited Liability Protection
|Few benefits||Most efficient||Few benefits|
|Know More »||Know More »||Know More »|
IS ONE PERSON COMPANY A PRIVATE LIMITED COMPANY?
Yes, One Person Company will be formed as similar as a “Private Limited Company”. It can be formed as company limited by share capital or limited by guarantee or unlimited company. The words “One Person Company” will have to be mentioned in brackets below the name of such company, wherever its name is affixed.
DOES ONE PERSON COMPANY HAVE LESS COMPLIANCES THAN A PRIVATE LIMITED COMPANY?
OPC is one of the easiest forms of corporate entities to manage making it a cheaper option than incorporating a private limited company. There is minutely lesser compliance requirements for an OPC. For instance, no Annual General Meeting (AGM) is required for an OPC.
WHO CAN INCORPORATE AN ONE PERSON COMPANY?
Only a person, who is an Indian citizen and resident in India, shall be eligible to incorporate a One Person Company. Any individual can become a shareholder in a one person company. Although, while forming an OPC, one needs to nominate a nominee director as well.
HOW MUCH MINIMUM CAPITAL REQUIRED TO INCORPOATE A ONE PERSON COMPANY?
The minimum capital shall be Rs. 1,00,000/- for incorporation of OPC.
WHAT ARE THE REQUIREMENTS TO BECOME A NOMINEE IN A ONE PERSON COMPANY?
Only a natural person who is an Indian citizen and a resident in India over 18 years of age is eligible to be a nominee member.
HOW MANY ONE PERSON COMPANY A PERSON CAN INCORPORATE?
A person shall not be eligible to incorporate more than a One Person Company or become nominee in more than one such company.