WHAT IS ONE PERSON COMPANY


A One Person Company (OPC) is a Private Limited Company with single member. It was introduced by the Companies Act 2013. OPC extends the concept of limited liability to a company run by a single person. It is similar in respects to a Private Limited Company with certain differences like fewer compliances and relaxation of certain complainces. 

WHAT INCLUDES OUR ONE PERSON COMPANY REGISTRATION PACKAGE


  Digital Signature Certificate (DSCs) for 1 Director             

   Director Identification Number (DINs)  for 1 Director        

   Certificate of Incorporation                  

   Company Registration Master File    

   Requirements for Opening  Bank Account  of Company      

   PAN Card & TAN           

PROCEDURE FOR ONE PERSON COMPANY REGISTRATION


Step-1down 

Obtain DSC & DINs for Proposed Director cum Prom: (Usually 2-3 working days)

Obtain Digital Signature for the proposed Director cum Promoter – A One Person Company will have only One Director, the proposed director must apply for Digital Signature and  obtain Director Identification Number (DIN).

Note: If the proposed Director is already having DIN and Digital signature then there is no requirement of obtaining DIN & DSC.

 

Step-2down 

Selection & Approval of Proposed Name : (Usually 2-3 working days)

We have to choose Unique Names which are not identical or similar to any other companies or registered Trade Marks. We request you to furnish at least 3 different and unique names. Based on the names given, we will file application (Form INC -1) for name approval. Usually it takes 2-3 working days for name approval.              

Step-3down 

 

Preparation of Incorporation  Docs, Forms & Submission : (Usually 2-3 working Days)

Based on the name approved, we prepare incorporation docs and forms, such as MOA, AOA, Forms INC-9 & others and will be sent to you for signatures.

You have to sign the required documents and send to us for filing the forms for Registration.

Based on signed documents received from you, we will prepare incorporation forms and file with the department for approval of Company Registration, PAN and TAN.

   Step-4down        

Obtain Certificate of Incorporation :  (Usually 1-2 working Days)

Based on the forms we submit along with Information & Documents, the department will scrutinize the forms along with attachments and approve if it is in order. If any Additional Information is required by department, we have to resubmit the documents and information as required by department.

Up on Approval, we receive, Certificate of Incorporation.

 

DOCUMENTS REQUIRED FOR ONE PERSON REGISTRATION


hand_1     Name of the Proposed Company (min 3 alternative names required & Name must be unique and should not similar to existing limited companies’ names)

 hand_1     Main business activities of the proposed company

 hand_1     There must be minimum of 2 persons (One Director cum promoter and One Nominee)

 hand_1     Address of the company to be registered (Municipal Tax Receipt and Power Bill (recent) both are required and address must be clearly visible)

 hand_1     Rental Deed if rented premises and No Objection Letter, if it is not owned from the owner of the premises to be used as registered office

 hand_1     DIN numbers of promoter and  Pan card for nominee

 hand_1     Digital Signature Certificate for promoter if already had

 hand_1     Passport Photos – 3 of promoter 

 hand_1     Email & Mobile no of the promoter and nominee (for mentioning in DSC & DIN applications)

 hand_1     Educational Qualification and place of birth of promoter and nominee

 hand_1     ID & Address Proofs of proposed promoter and nominee (mandatory under companies act 2013)

                                             ADVANTAGES OF A ONE PERSON COMPANY


 A Separate Legal Entity

OPC is a separate legal entity and capable of doing everything that an entrepreneur would do.

 Easy Funding

If a company is a Private Company, OPC can raise funds through venture capital, financial institutions, angel investors, etc. An OPC can raise funds thus graduating itself to a private limited company.

 More Opportunities, Limited Liability

One of the advantages of One Person Company is that it has more opportunities, limited liability since the liability of the OPC 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 the loss of personal assets. It is the encouragement to new, young and innovative start-ups.

 Minimum Requirements:

  1. Minimum 1 Shareholder
  2. Minimum 1 Director
  3. The director and shareholder can be the same person
  4. Minimum 1 Nominee
  5. Letters ‘OPC’ to be suffixed with the name of OPCs to distinguish it from other companies

 Benefits of Being Small Scale Industries (SSI)

An OPC can avail the various benefits provided to small scale industries like the lower rate of interest on loans, easy funding from the 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.

 Single 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 OPC with bad credit rating may even get the loan. The credit rating of OPC will not be material if the rating of OPC 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.

 Receive Interest on Any Late Payment

OPC avails all the benefits under Enterprises Development Act, 2006. The newly start-up OPC is micro, small, and medium, hence they are covered under this act. As per the Act, if buyer or receiver receives any late payment (receives payment after a 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 the company always enjoys an increased trust and prestige.

One Person Company

Rs. 11,999 all-inclusive


Frequently Asked Questions (FAQ's)?

At least one nominee is required to start an One Person Company who can act as shareholder as well as director.

Any Individual/Organization can become the member of One Person Company including foreigners/NRI’s.

The entire procedure is 100% online and you don’t have to be present at our office or any other office for incorporation. A scanned copy of documents has to be sent via mail.

There is absolutely no other payment. We will send you an invoice that is all-inclusive, with no hidden charges.

You need to have a bank account with a minimum balance. This could be as little as Rs. 5000. You don’t need to invest any more capital to start the business.

A lot of people considering an One Person Registration go with the Private Limited Company structure because it is mandatory to convert an OPC to a Private or Public Limited Company if turnover is over Rs. 2 Crore or paid up capital is over 50 Lakhs.

An OPC limited by shares must comply with following requirements:

Must have a minimum [paid up share capital of INR 1 Lac.

Shares will not be allowed to be transferred to anyone else.

An OPC is prohibited from giving any invitations to public to subscribe for the securities of the company.

When an OPC limited by shares or by guarantee enters into a contract with the sole member of the company, who is also the director of the company, the terms of contract or offer must be recorded in writing or contained in a memorandum or recorded in the minutes of the board meeting held next after entering into the contact.

An OPC must inform the Registrar about every contract entered into by the company with the sole member of the company within a period of fifteen days from the date of approval.

An OPC is exempted from doing the following compliances:

  • Sign on Annual Returns.
  • Hold Annual General Meetings and Board Meetings.
  • Sign on Financial Statements.
  • Option to dispense with the requirement of holding an AGM.
  • Power of tribunal to call meetings of members.
  • Calling of extraordinary general meeting.
  • Notice of meeting.
  • Statement to be annexed to notice.
  • Quorum for meetings.
  • Chairman of meetings.
  • Proxies.
  • Restriction on voting rights.
  • Voting by show of hands
  • Voting through electronic means.
  • Demand for poll.
  • Postal ballot.
  • Circulation of members’ resolution