ONE PERSON COMPANY

The concept of One Person Company in India was introduced through the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity. One of the biggest advantages of a One Person Company (OPC) is that there can be only one member in an OPC, while a minimum of two members are required for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership (LLP). Similar to a Private Limited Company, a One Person Company is a separate legal entity from its promoter, offering limited liability protection to its sole shareholder, while having continuity of business and being easy to incorporate.

Though a One Person Company allows a lone Entrepreneur to operate a corporate entity with limited liability protection, an OPC does have a few limitations. For instance, every One Person Company (OPC) must nominate a nominee Director in the MOA and AOA of the Company - who will become the owner of the OPC in case the sole Director is disabled. Also, a One Person Company must be converted into a Private Limited Company if it crosses an annual turnover of Rs.2 crores and must file audited financial statements with the Ministry of Corporate Affairs at the end of each Financial Year like all types of Companies. Therefore, it is essential for the Entrepreneur to carefully consider the features of a One Person Company before incorporation.

​

• Only a person who is a citizen of India and resident in India. Resident in India refers to a person who had lived in India for a time not less than 182 days in the preceding one year
• Legal entities like the company or LLP cannot join an OPC.
• A nominee must be selected by the promoter while the incorporation.
• An OPC is restrained from operating a minor as its member.
• If an OPC crosses a turnover of over Rs 2 crores or has a paid-up capital more than Rs 50 lakhs. It must be converted into a private or public within 6 months.
• Least 1 Shareholder/Nominee/Directors
• Minimum Capital shall be ₹100,000
• DIN for a person who is proposed to be the owner of Company
• Digital Signature (DSC) for one person
• Consent From the owner & nominee
• Proof of Registered Address (like light bill / Rent agreement etc.)

​

Advantages of One person company Registration

​

Easy to start: Starting an OPC is a quick mechanism and can be done within a period of 6-7 Days. It provides a quick start from legal procedural point of view. You can get an OPC registered with Ministry of Corporate Affairs very quickly.

​

Distinct legal entity: Like any Company whether Private Limited or a Public Company, One Person Company has a distinct legal entity from its members which are capable of doing everything that an entrepreneur would do. In many aspects, it has similar features to that of a Private Limited Company

​

Minimal Compliance requirements: OPC will also be required to comply with the provisions as applicable to Private Companies. However, OPC still enjoys a number of exemptions and therefore, has lesser compliance burden as compared to a Private Limited Company.

​

Sole Owner: Being the sole owner is the best advantage for incorporating an OPC which in turn makes the decision making of the business more quickly without much unnecessary intervention making the functioning of business more smooth.

​

Easy Access to loans from banks: Generally Banks prefer to lend loans to One Person Company rather than Proprietary Firms or Partnership Firms. In certain circumstances, it is advisable for many entrepreneurs to start-up business as One Person Company rather than Proprietary Firm and Partnership Firm.

​

What We Offer in One Person Company Registration

​

Name Approval

MOA and AOA

DIN for Director

DSC for Director

Certificate of Incorporation

PAN Registration

TAN Registration

​

Documents Required For One Person Company Registration

​

ID PROOF (DIRECTORS DETAILS)

• PAN card copy with Self-attestation.
• Voter Id copy or Passport copy or Aadhar card copy or Driving license copy with self-attestation
• Latest passport size photo in jpg.
• Email ID, Cell No., and qualification details

​

REGISTER OFFICE DETAILS(IF OWNED)

A copy of the Sale Deed and Electricity bill is sufficient.

​

REGISTER OFFICE DETAILS(IF RENTED)

• A copy of a rental agreement or lease agreement is required.
• Copy of Latest Electricity bill or Property Tax receipt or Water Tax receipt.
• Copy of No Objection Certificate from the owner of the property (We shall share the format)