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One Person Company
Taxchakara – one of the best Legal Services Platform for one person company registration, incorporation of the OPC. One Person Company (OPC) can be formed with a single owner, who acts as both the director as well as a shareholder of the company. Register an OPC online with Taxchakara.
One Person Company is a separate legal entity that holds a perpetual succession. As per the abidance and regulatory rules and guidelines of the Ministry of Corporate Affairs (MCA), it is required to apply for One Person Company registration online under the Companies Act, 2013. OPC Company is an entity that can be organized with only 1 owner, who can act as both the shareholder as well as a director of the company.
One Person Company is a separate legal entity that holds a perpetual succession. As per the abidance and regulatory rules and guidelines of the Ministry of Corporate Affairs (MCA), it is required to apply for One Person Company registration online under the Companies Act, 2013. OPC Company is an entity that can be organized with only 1 owner, who can act as both the shareholder as well as a director of the company.
A new concept in starting up a company has been introduced by Companies Act 2013 and the concept named as One Person Company. As per Section 2(62) of Companies Act, One Person Company is a company owned and run by a single person who will play the role of both shareholder and director of the company at the same time. One Person Company Registration in India has lower abidance when compared to a Private Limited Company.
What is OPC or One Person Company??
OPC or One Person Company is a type of a company formed by a single person who is the director and owner of the company. According to the Company’s Act, 2013, OPC Registration in India in India is a type of sole proprietorship business structure in the form of a company which provides complete authority to the owner to run the business as limiting his duties and financial liabilities for the business.
Benefits
Most of the business personnel choose a Private Limited Company to register because of its exclusive advantages but the hidden truth is OPC Registration can offer them better opportunities and exclusive advantages with very less compliance. Following are some of the benefits of One Person Company Registration in India.
Limited Liability
OPC Company Registration provides you more opportunities to take risks, research and explore better business opportunities without any pressure of shedding on any personal property. Therefore, one man company is a recommended option for the new, young and innovative entrepreneurs.
Existence Continues
Single Person Company will come to an end with the death of the owner or proprietor whereas in the case of an OPC company, it has a separate legal identity and it would go on to the nominee director and, hence, the company continues to exist.
Greater Credibility
A business that is owned by one person needs to have its accounts audited annually, which in turn has greater credibility and believability among traffickers and lending institutions.
Ease In Funding
Like a private limited company, One Person Company can also bring up its fund through angel investors, financial institutions, venture capitals, and so on. A One Person Company can also upgrade itself into a Private Limited Company to bring up its funds from outside.
Registration with Least Requirements
Not any type of company can beat OPC when it comes to the registration process as it can be done with the least requirements.
Benefits of Small Scale Industries
An OPC can use all the benefits offered to small scale industries like easy investment without depositing security to certain levels, financial help or loans at lower interest rates, advantages under foreign trade policy, and many more on the list. These are some of the important advantages which play a vital role in the development of the company in its starting days.
Acknowledged As a Trustful Separate Legal Business Structure
Any business structure which is registered under the Company Act, 2013 is recognized as a separate legal entity and it comes under more trustworthy company registration when compared to the non-registered companies.
Anyone can start an OPC or One Person Company by satisfying the below requirements. OPC Registration Requirements are below:
- A shareholder or director is required as both can be the same person
- The owner or director of the company should be a citizen of India.
- Few little compliances of required documents
- Due to this less burden, a person or the owner of the company can spend more time focusing on his company development and its functional areas.
Documents required for OPC registration in India
- Register opc is an easy process but to achieve it the mentioned below documents are required.
- Identity proof of the director and nominee, it can be their aadhar card, voter card, PAN card, driving license, etc.
- Drafting the Memorandum of Association (MOA) And Article of Association (AOA) of the company. Both of these are very important and should be submitted during the registration procedure. Don’t forget to highlight all the aims and objectives of your company.
- Consent of the designated nominee is required and it is filed through the form INC-3.The nominee of the OPC has to submit their PAN card and Aadhar card for registration proceedings.
- The designated director and nominee of the One Person Company have to submit the affidavit in form INC-9 and DIR-2
- Residential proof of the registered office place where business related activities and communication are executed has to be submitted during the registration process. It can be any utility bill such as electricity bill, gas bill; telephone bill etc. and these bills should not be older than two months.
- No Objection Certificate
- Rent agreement is required in case you are running your business on a rented property.
- A copy of the PAN card of the designated director and nominee
- Passport size photographs of the director and nominee along with the form.
- DSC and DIN of the director are essential for the OPC registration purpose
- What is the Eligibility Criterion for Obtaining OPC Registration in India?
For OPC Registration the applicant has to fulfil the following considerations:
The applicant must be a citizen of India can start a One Person Company and he/she should be staying in India for at least 182 days preceding one year. If the turnover limit of One Person Company exceeds Rs 2 crores then the company has to be upgraded into a Private limited or a Public Limited company within 6 months of time duration.
For OPC Registration You Have To Fulfil The Following Conditions:
Only a person who is a citizen of India
- Can incorporate an OPC
- Can be a nominee for the member of the company
- He/ She should be staying in India for at least 182 days from the prior one year.
- In case the turnover limit of OPC exceeds Rs. 2 crores, it has to be turned into a Private limited or a Public Limited company within a time duration of 6 months
Salient Features of One Person Company Registration
- New Concept
OPC is a new concept governed by the Ministry of Corporation under the Companies Act, 2013.
- One Shareholder
It requires only one shareholder to establish a One Person Company in India. The shareholder must have stayed in India for the minimum period of 182 days, hence should be an Indian resident.
- An Immediate Nominee
Though the company can be started with a single person there should be a nominee who can take the responsibility of the shareholder in extreme case of death or incapacity. The nominee should be an Indian citizen and has to give his/her consent as a nominee of the OPC shareholder. Under OPC registration a company acts like a separate legal entity.
- One Director
A private limited company requires a minimum number of two directors while public limited requires 7 but OPC can be formed with minimum one director who himself can be the shareholder and owner of the company. An OPC can appoint a maximum number of 15 directors.
- Fewer Compliances
As per the act, one person company can be formed with one single member and director, therefore, has less compliance as compared to a private limited company.
- Separate Legal Entity
Just like private and public limited companies, OPC is also a separate legal entity.
- Limited Liability
Under One Person Company registration a company enjoys benefits with the limited liability of its directors according to which there personal assets and funds cannot be used to incur the debt of the company.
Registration Procedure of One Person Company in India
One Person Company registration is an online process and done according to the provisions of Companies Act, 2013.
Following are the stepwise procedure to register opc online:
- Applying for DSC or Digital Signature Certificate
- Applying for DIN or Directors Identification Number, it can be filed with the SPICe+ form.
- Selecting unique name for the company and getting company’s name approval
- Re-checking all the documents and proofs before submission such as address proof, ID proof, etc.
- Submitting of application form along with all needed documents
- Obtaining PAN and TAN for the company using Form 49A and Form 49B.
- Opening a new bank account for the company.
- After all the documents and forms are verified by the authorities, the Registrar of Companies would grant a certificate of Incorporation which contains the CIN number.
Difference between OPC and Sole Proprietorship
A One Person Company may seem similar to a sole proprietor business in many modes but there are really some differences between these two business structures.
Open Person Company | Sole Proprietorship |
Separate Legal entity | Not a Separate Legal Entity |
Perpetual succession | No perpetual succession |
Limited Liability | Unlimited liability |
Registration required | Registration not required |
Quittance of Loan is not the sole responsibility of the OPC | Quittance of Loan is the sole responsibility of the of the proprietor |
Financing depends on the credit score of the OPC | Financing depends on the credit record of the proprietor |
Income Tax is 30% of profits | Income Tax rate is between 5% – 30% based on the income tax slab the proprietor of the business falls under |
