One Person Company

Get a business face.

Incorporate an entity to Law, an identity to business & limit liability.

It was launched as a good refinement over the sole proprietorship. In OPC, a single promoter gains full authority over the company thereby restricting his/her liability towards their contributions to the enterprise. Therefore, the said person will be the sole shareholder and director (however, a director nominee is present, but has zero power until the real director proves incapable of getting into the contract). Also, there can be no opportunity for contributing to employee stock options or equity funding.

When it comes to scripts, we write happy endings. When it comes to business, we script happy starting.

happy-business, One Person Company

Benefits

A company, not a company.

There is No minimum capital is required to form a One Person Company.  It can be registered even with Rs. 10,000 as total Authorized Share capital.

An OPC enjoys the benefit of Separate Legal Identity which clearly states that assets and liabilities of the business are not the assets and liabilities of the Directors or shareholders.

A shareholder or the owner of a Company has a limited liability towards the company. His/her liability is limited up to the shares subscribed by him/her.

For the purpose of Annual filing and other compliances, One Person Company is treated as a Private Limited Company. However, it is exempted from many compliances. It does not have to hold AGM every year.

All the information relating to the one person company are made available in a public database. This feature makes it easy to authenticate the existence of the business that ultimately helps in improving business credibility.

The company keeps on existing in the eyes of law even in the case of death, insolvency, the bankruptcy of any of its member or shareholder. It continues as a legal person until it is legally dissolved.

benefits2, One Person Company

Procedure ​

A few single steps.

procedure, One Person Company

Documents required

Different personal documents. One corporate identity.

To Be Given By One Person Company Director

Note: The OPC director as a mandate should self-attest the first three documents. If an NRI or a foreign national, all the document sheets should be notarized without fail (if at present in India or a non-Commonwealth nation) or apostilled (that is, living in a Commonwealth country).

Documents Necessary for the Registered Office

Note: Your office space which is registered needs to be a commercial area; however, it can be your house of residence as well

group-people-with-laptop-landscape_24911-54430-removebg-preview, One Person Company

How LawDocs can help?

Centered around you.

employees-giving-hands-helping-colleagues-walk-upstairs_74855-5236-removebg-preview, One Person Company

Prices start with 6499/- (inclusive all)

FAQs

An OPC is a type of company which have only one member. It is classify as a Private Limited Company, and it is having paid up share capital less than 50 lakh or Average Annual Turnover is less than Rs. 2 Crore for  for three consecutive years.

  • Unique name of Company
  • Number of Directors
  • Objects of Company
  • Amount of Capital
  • Ratio of Contribution of Capital
  • Number of Shareholders

OPC is one of the easiest forms of corporate form of business.

  • Apply for DSC *
  • Apply for DIN **
  • Name Approval Application
  • Documents Required
  • Filing Forms with MCA
  • Issue of certificate of Incorporation

* For the name availability under RUN Web service, there is not any prior requirement to obtain DSC and DIN. It can be done with account login on MCA portal.

 

A nominee is a person who is selected by the subscriber, in the event of death or disability of the One Person Company the nominee shall take over his position. Memorandum of Association of a One Person Company will mandatorily prescribe name of the person. Anyone can be appointed as a nominee, provided he or she holds a correct PAN in his or her name.

Yes. A nominee can be changed at anytime, with due intimation to the Registrar.

Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company.

Yes. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number.

No, FDI is not allowed for One Person Company. If it does then it will lose its very nature of One Person Company.

Yes, there is no Act that have made any restriction for a One Person Company to become a member of another Private or Public Limited Company.

No, you need not have to be present for registering of an OPC. OPC incorporation is a completely an online process.

An OPC is a good alternative of a sole proprietorship, largely because it gives limited liability to the business owner. This means that your liabilities are limited to the amount you’ve invested in the business, any business debts cannot be recovered from personal assets. In the case of an OPC, the nominee director takes over and the entity continues to exist. A single entrepreneurs who do not have another partner to start a private limited company, may also consider it.

Only by Indian residents can register for OPC and that too, only one at a time, as per the specifications of the Ministry of Corporate Affairs.

  • Corporate Stationary
  • OPC PAN Application
  • Opening OPC Bank Account
  • Appointment of Auditor
  • OPC Annual General Meeting
  • OPC Financial Statements

Capital requirement for an OPC is not specific. This means that you don’t really need to invest much money into the business. But the cost of an OPC is only marginally lower than that of a private limited company. It needs an authorised capital of Rs. 1 lakh to begin with, but none of this actually needs to be paid-up.

There are no general tax advantages; though some industry-specific advantages are available. Like, tax is to be paid at flat rate of 30% profit, Dividend Distribution Tax applies.

  • Higher tax rates
  • If the turnover crosses Rs. 2 crore, on average, for three consecutive years, the OPC have to be converted to a private limited company, public limited company or LLP.
  • A person can only register only one OPC, until and unless it loses its status.

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

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

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