One Person Company Registration
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One Person Company (OPC) Registration
One Person Company (OPC) is a business entity in which there is only one owner with limited liabilities who can act both as a shareholder as well as the director. One Person Company (OPC) 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. The concept of OPC is basically to eradicate the limitation of a sole proprietorship, which is the most popular form for small businesses in India. The liability of owner is limited to the invested capital in this form..
One Person Company Registration
If an OPC exceeds a turnover of over Rs. 2 crore or has a paid-up capital above Rs. 50 lakhs, it must be turned into a private or public limited company within six months.
Documents Required
for OPC Registration
Passport Size Photo
Director Pan Card
Director Identity Proof
DL / Passport / Aadhar Card / Voter card
Director Adress Proof
Bank Statement / Mobile Bill / Telephone Bill / Electricity
Registered office address Proof
Electricity Bill / Water Bill / Phone Bill / Gas Line Bill / Property Ownership Document
No Objection Certificate (NOC) from the owner
4 Simple Steps
for OPC Registration
Advantages
Of OPC
A Separate legal entity
One Person company is a separate legal entity and capable of doing everything that an entrepreneur would do.
Easy Funding
Like aPrivate company, One Person Company can raise funds through venture capital, financial institutions, angel investors etc. A One Person Company can raise funds thus graduating itself to a private limited company.
More opportunities, Limited liability
Since the liability of the One Person Company is limited to the extent of the value of the share you hold, the individual could take more risk in business without affecting or suffering loss of personal assets. It is the encouragement to new, young and innovative start-ups.
Minimum compliances
One Person Company have to face little compliance burden as compared to private limited companies , hence One Person Company can more focus on other functional and core areas.
Benefits of being a Small Scale Industries (S S I)
An One Person Company can avail the various benefits provided to Small Scale Industries like lower rate of Interest on loans, easy funding from bank without depositing any security to a certain limit, manifold benefits under Foreign Trade policy and others. All these benefits can be boon to any business in initial years.
The Only Owner
You, only the owner helpful in quick decision-making, controlling and managing the business without following any elongated processes and methodologies as adopted in other companies. The sense of belonging inspires to grow the business further.
Credit rating
The One Person company with bad credit rating may even get the loan. Credit rating of One person company will not be material if the rating of One person company is as per norms.
Benefits under Income Tax Law
Any remuneration paid to the director will be allowed as deduction as per income tax law unlike proprietorship. Other benefits of presumptive taxation are also available subject to income tax act. Read more differences in our article OPC vs Sole Proprietorship.
Receive interest on any late Payment
One Person company avails all the benefits under Enterprises development Act, 2006. The newly start-up One Person company is micro, small, or medium, hence they are covered under this act . As per the Act, if buyer or receiver receives any late payment (receives payment after specified period) , then he is entitled to receive interest which is three times the bank rate.
Increased Trust and prestige
Any business entity that runs in the form of company always enjoys an increased trust and prestige.
Frequently Asked Questions (FAQs)
How can I register a One Person Company?
One Person Company can be registered like Private Limited Company, where all the rules and regulation are laid down by the Ministry of Corporate Affairs.
How many Directors can we have in One Person Company?
A minimum of one is required while starting a One Person Company, but you can have up to 15 Directors for your OPC
Who can be a nominee for a One Person Company?
Nominee can be anyone, such as your spouse, father, mother, daughter, brothers, sisters etc., but they should hold proper identity proofs such as PAN card, Voter id or Passport or Driving License etc., in order to be appointed as Nominees for One Person Company.
How can I change a nominee for my company?
A Nominee can be changed with the proper intimation and filing of necessary forms with Registrar of Companies
How can a One Person Company converts itself into Private Limited Company?
One Person company can convert itself to Private Company, when the paid up capital exceeds Rs. 50 lacs or its average turnover exceeds Rs. 2crores for the relevant period.
Does One Person Company conduct Board Meeting like Private Limited Company?
No, a One Person Company does not required to hold Board meeting like Private Limited Company, but it has to hold Board Meeting once in every half year calender, the gap between the two Board Meeting shall not be less than 90 days.
Can a One Person Company converted into Private Limited Company?
Yes, it can be converted into Private Limited Company, if the One Person Company has exceeded the threshold limit by filing necessary forms.
What happens in case of death of member of the company?
If the member dies, the nominee undertakes the affairs of the company and within 15 days of time, the company has to intimate the Registrar of Companies by filing Form INC-4 with prescribed fee.
What happens in case of death of member of the company?
If the member dies, the nominee undertakes the affairs of the company and within 15 days of time, the company has to intimate the Registrar of Companies by filing Form INC-4 with prescribed fee.
Who cannot form a One Person Company?
A Minor, Foreign citizen, Indian Non resident, a person incapacitate to contract are restricted from Forming a One Person Company.
Can Foreign Direct Investment allowed for One Person Company?
No, FDI is not allowed for One Person Company, if it does then it will lose its very nature of One Person Company.
How can I change a nominee for my company?
A Nominee can be changed with the proper intimation and filing of necessary forms with Registrar of Companies
How much capital do I invest to start a One Person Company?
The minimum capital requirement is Rs. 1,00,000/- but this amount differ from your investment. Authorised capital and investment are not one and the same. You can invest as many as you can, but when you want to incorporate a company legally, it has to be started with Rs. One lakh as capital.