About One Person Company
One Person Company is a company that has only one person as a member. One Person Company
(OPC) was came into effect to encourage individuals who are potential holders for starting their own businesses. OPC enables a sole proprietor to convert his firm into a Limited Liability Company and also avails the benefit related to the Company.
OPC is a kind of business structure that enjoys the benefits of both forms of business i.e. a sole proprietorship and a company. It also eliminates the complications related to finding the right kind of co-partners for starting a business as a registered entity. As Per Section 2(62) of the Companies Act, 2013, One Person Company means a company that has only one person as a member. One Person Company is bringing the unstructured Proprietorship Business into the structured version of a private company. OPC is opening the path for sole proprietors and start-ups.
One Person Company feature is such that it has only one shareholder who owns a 100% stake in the company. To understand one person’s company definition, we first need to get into the identity it creates. Registration not only provides corporate status but also provides many benefits to the members and the directors. In the case of a Private Company, at least two members are required which is not the same in the case of OPC. To eliminate this drawback and allow a single person to get the advantages of One Person Company, this sort of company structure is introduced through the Companies Act, of 2013.
One Person Company registration is simplified with online filing and process. The structure of the one-person company (OPC) in recent times was launched as a refinement of the structure of a sole proprietorship firm.
In an 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 carrying on). Also, there can be no opportunity for contributing to employee stock options or equity funding. Additionally, if an OPC has an average turnover of ₹2 crores thrice in a row and over or acquires a paid-up fund of ₹50 lahks and over, it has to be converted to a private limited company or public limited company within six months.
Table of Contents
Documents required for one person company (OPC)
- PAN Card -it must be of shareholders, nominees, and directors.
- Identity Proof –Aadhar card and Voter ID card/Passport/Driving License of shareholder
- , nominee, and director.
- Director’s Address Proof– Latest Telephone bill/Electricity bill/Bank Account Statement of shareholder, nominee, and director
- Photograph– latest passport-size photograph of shareholder, nominee, and director.
- Business Address Proof- latest Electricity Bills/Telephonic Bills of the Registered Office address.
- NOC from the owner- No objection certificate (NOC) is to be obtained from the owner of the registered office.
- Rent Agreement- The rent agreement of the registered office should be provided.
Please Note: The OPC director must self-attest the first three documents. All paperwork for a foreign citizen or NRI must be notarised (if they are currently residing in India or a non-commonwealth country) or apostilled (if living in a commonwealth country at present).
Documents required for registered office
- Scanned copy of current bank account statement/phone or mobile invoice/gas or electricity invoice
- Scanned copy of the rental agreement written in the English language
- Scanned copy of a no-objection certificate from the concerned property landowner
- Scanned copy of the property or sale deed printed in English (if the property is owned).
Note: Your registered office space needs to be a commercial premise; however, it can be the sole director’s place of residence as well.
Benefits of one person company registration in India:
- No minimum Capital requirement: for the registration of One Person Company there is no minimum capital required. However, the maximum authorized capital in case of one person or company shall not anyhow exceed the thrush hold limit of Rs. 50 lakh at any point in time.
- Limited liability: another significant benefit connected with the concept of registration of One Person Company is limited liability. This means that the liability of the concerned directors is limited to the extent of capital contributed by him or her to the business. Hence, the personal asset and belongings of the Director will not be attached in case of any loss incurred by the business.
- Fewer Compliances: The compliances that are to be adhered to for an OPC registration are very less in comparison to any other company. Hence, the registration of an OPC can be done easily that too with minimum paperwork.
- Perpetual Succession: The term perpetual succession means that the death or illness or incapacity of the director will not affect the ongoing affairs of the company as the nominee will hold the position of member and director in the business in that case.
- Greater Credibility: One Person Company is obligated to get its books of account audited annually. This will, in return, increase the business credibility and consumer, and vendor satisfaction.
- No legal Disputes: It is significant to note that whenever a company registers itself as a One Person Company, it ends the chances of any future legal disputes between the director or any third party.
- Privileges for small-scale industries: An OPC can avail of all the benefits that are offered to small-scale industries. These benefits include easy funding that too without depositing collateral security to certain prescribed limits, lower-interest loans, privileges under the foreign trade policy, etc. Therefore, these benefits play a significant role in the progress and development of the One Person Company in its initial days of incorporation.
WHY TO CHOOSE LEGALTAX FOR ONE PERSON COMPANY REGISTRATION?- We submit an application for name approval for One Person Company registration.
- We draft the Memorandum of Association (MoA) and Article of Association (AOA)
- We file the incorporation documents with the MCA. The PAN and TAN are allocated simultaneously.
- We will keep you updated about the status of OPC registration.
We provide one of the best and easiest ways to register the One Person Company
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