2022-06-14T05:00:32+00:00

One Person Company Registration

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OVERVIEW

What is One Person Company?

To understand one person company definition, we first need to get into the identity it creates. A registration provides corporate status and many benefits to the members and 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 reap the advantages of One Person Company, this sort of a company structure is introduced through the Companies Act, 2013. One Person Company registration is simplified with online filing and process.

One Person Company feature is such that it has only one shareholder who owns 100% stake of the company. To maintain the character of perpetuity, the appointment of the nominee is compulsory, who will take place of the owner in case of death or his inability. One person company is a type of Private Limited Company.

BENEFITS

Benefits of One Person Company Registration

ONLINE REGISTRATION

Documents Required for Online OPC Registration

One Person Company Name Format and Formulation

Unique Name

One Person Company name should be unique as it forms the company brand, preferably a coined word.

Business Object

The OPC name format shall have the second part of name suggesting the business activity of the company.

Constitution Type

Name of the company must end with “(OPC) Private Limited” as a suffix.

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Online Registration

One Person Company Registration

*Subject to Government processing time

The Process

Process to register OPC online

Compare Related Services

Compare different business structures to choose the right entity type

    Private Limited Company One Person Company Limited Liability Partnership Partnership Firm Proprietorship Firm
  Applicable Law Companies Act, 2013 Companies Act, 2013 Limited Liability Partnership Act, 2008 Indian Partnership Act, 1932 No specified Act
 
Registration Mandatory Mandatory Mandatory Optional No
    PLC must be registered with MCA under the Companies Act Same as Private Limited Company LLP must be registered with MCA under the LLP Act Partnerships can be registerd or Unregistered, there are obvious benefits to register with the State ROF No registration required. Registration under MSME or GST act are considered valid for Proprietor Firms
 
Number of Owners 2 – 200 Only 1 2 – Unlimited 2 – 50 Only 1
    Minimum of 2 to maximum of 200 shareholders excluding present or former employees who are members Only one shareholder Minimum 2 Designated Partners are required. No limit on the number of maximum partners Minimum 2 partners, and maximum 50 partners The proprietor can be the only owner of the firm
 
Separate Legal Entity Yes Yes Yes No No
    PLC is a separate legal entity, and can enter into contracts or own assets in it’s own name Same as Private Limited Comapany Same as Private Limited Comapany Partnership firm does not have any separate identity from its partners Proprietor and business are the same, and hold same PAN number
 
Liability Protection Limited Limited Limited Unlimited Unlimited
    Limited to the share capital subscribed (may vary if defined as limited by guarantee or unlimited liability in the MOA) Same as Private Limited Company Limited to the capital contribution agreed by the partner in the LLP Agreement Partners are jointly and severally liable to pay the debts of the Partnership Firm Paying off the liabilities of the firm is the proprietor’s responsibility
 
Statutory Audit Mandatory Mandatory Based On Applicability Not Mandatory Not Mandatory
    Required to appoint a statutory auditor within 30 days of company incorporation Same as Private Limited Company Statutory audit required when turnover exceeds INR 40 Lac or contribution exceeds INR 25 Lac No statutory audit required. Tax audit applicable on basis of total turnover Same as Partnership Firm
 
Ownership Transferability Yes Yes (Restricted) Yes Yes (Restricted) No
    Shares are easily transferable, so it makes it a most preferred option for raising capital through external investors There is only one owner in OPC. 100% shares need to be tranferred to change ownership Ownership can be changed with consent of other partners, by drafting a supplementary agreement Ownership is not easily transferable. Partnership deed outlines the restriction for transfer of ownership Ownership of the proprietorship is not transferable
 
Perpetual Existence Yes Yes Yes No No
    Private Company prevails with change in ownership or management OPC has a perpetual succession, but can only have one owner at any time Change in Partners or Designated Partners does not affect the existence of an LLP Change in partner leads to dissolution or formation of another partnership firm Death or insolvency of proprietor dissolves the business
 
Foreign Ownership Allowed Not Allowed Allowed Allowed Not Allowed
    Foreign nationals can invest as per RBI and FEMA guidelines, usually under the Automatic Route Member, nominee and director must be an Indian resident Foreign nationals can invest as per RBI and FEMA guidelines, usually under the Automatic Route Nnon Resident Indian (NRI) can be a partner in the Partnership Firm, subject to RBI regulations Foreign Nationals cannot own proprietorship business in India
 
Taxability Moderate Moderate High High Low
    Lower rate of 25% for companies with gross turnover of INR 400 Crore. Additional dividend distribution tax may apply Same as Private Limited Company Tax rate of 30% on business profits, tax benefits to partners on profit distribution is high Same as LLP Tax rates for individuals apply to Proprietorship Firm, as per the Income Tax slab
 
Compliance Requirement High High Moderate Low Low
    Private company has the highest compliance requirements, both annual and event based OPC compliance requirements are similar to PLC, except conducting an Annual General Meeting (AGM) Annual filing and few event based filings are necessary, but lesser compliance requirements as compared to company structure ITR of partnership needs to be filed annually, no major compliance requirements otherwise No requirement to file a separate ITR. Very less to no compliance hassle
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Frequently Asked Questions

Explore One Person Company Registration

2018-07-24T11:20:42+00:00

Below mentioned are the pre-requisites to register an OPC in India:
1. The shareholder must be individual and Indian resident
2. At least one director is appointed, who shall be an Indian resident
3. A nominee who is above the age of 18 years and Indian resident must be appointed as Nominee on registration
4. A place of business must be provided as the registered office address of OPC.

2022-06-11T07:04:53+00:00

No. The requirement to provide minimum paid-up capital for OPC registration is now removed. The amount required for starting a business must be subscribed while registering OPC. Further, the subscriber must hold at least one share for registration. It is important to note that the minimum amount of INR 1 Lakh must be kept as Authorized Capital.

2022-06-11T07:04:29+00:00

Only an individual can become a member of OPC. One needs to be an Indian resident above the age of 18 years to be eligible to form One Person Company. To refer one as an Indian resident, he/she must have spent at least 182 days in India in the immediate previous calendar. An additional condition is that a person can become member of only 1 OPC at any time during or after registration.

2022-06-11T07:04:09+00:00

A person who is a minimum of 18 years i.e.; major, and is an Indian resident. Additionally, the nominee must provide his consent to the company for his/ her appointment.

2022-06-11T07:03:47+00:00

Any natural person above the age of 18 years can become a director in the company after procuring Director Identification Number (DIN). As there are no criteria provided in terms of citizenship or residency, a foreign national can also become a director. The application of DIN Allotment is now merged with the application for the formation of a company, subject to a limit of maximum 3 DIN.

2022-06-11T07:03:28+00:00

Director Identification Number is a unique number assigned by the Ministry of Corporate Affairs to Individuals on application made. This allows any individual to be a Director in any Company or Designated Partner in LLP.

2022-06-11T07:03:12+00:00

Digital Signature Certificate is provided in the form of a token issued by Certified Authorities. Any form that is filed for an online OPC registration in India shall be submitted after affixing the DSC of an Applicant. Also, the directors will require a DSC for DIN application and the nominee and shareholder shall possess DSC for submitting e-forms for incorporation.

2022-06-11T07:02:55+00:00

Authorised capital shows the maximum amount of capital that a company can raise by way of issuing shares at present or in the future. The Paid-up Capital refers to the actual amount raised by the company i.e. amount paid by shareholders upon issuance of shares. One can register One Person Company in India by any amount of paid-up capital, which can be less than authorized capital but not exceeding such.

2022-06-11T07:02:24+00:00

Yes, an OPC can carry multiple businesses if it is mentioned in the MoA of the company and approved by the registrar. The company can mention more than one business which is related and from the same field. Activities which are unrelated such as fashion designing and event management or construction cannot be registered under the same company.

2022-06-11T07:02:03+00:00

Yes, a company can be registered at a commercial or a residential place by furnishing necessary proof. A registered office is a place where communication, if any, from MCA and other concerned authorities, will be received. The address will also be displayed at the portal of Ministry.

2022-06-11T07:01:45+00:00

No, only an individual can obtain membership or become the nominee in OPC. If a body corporate wants a 100% stake of any company, it can register a wholly owned subsidiary.

2022-06-11T07:01:21+00:00

No, the shareholder must be an Indian resident for OPC company registration.

2022-06-11T07:01:04+00:00

No, none of the member or director is required to be present as the whole process of OPC registration is online. All the forms are filed on the web portal and are digitally signed. Also, the required documents can be sent through an e-mail or uploaded on our portal for filing.

2022-06-11T07:00:46+00:00

An OPC can be converted into Private or Public Company upon completing 2 years from the date of Incorporation unless it is a mandatory conversion.

2022-06-11T07:00:28+00:00

It is required to convert an OPC into a Private or Public Company when the paid-up capital of the OPC exceeds 50 lakh Rupees, or the Average Annual Turnover during the relevant period exceeds 2 Crore Rupees. The mandatory conversion will take effect irrespective of the period of existence of OPC.

2022-06-11T07:00:10+00:00

Once, the company is registered, it must fulfill below-mentioned requirements on priority:
• Opening a current account of the company
• Appointing of the Statutory auditor
• Depositing the paid-up capital mentioned while registration
• Issuance and allotment of shares

2022-06-11T06:59:50+00:00

During every financial year, the company must hold board meetings in case of more than 1 director. Furthermore, the accounts and financial statements must be audited by an independent auditor. Subsequently, it shall file form AOC – 4 and MGT – 7 as a part of Annual Compliance within the given time.

2020-03-18T04:45:50+00:00

Daily transactions of the business are recorded in the Books of Accounts of the Company by the Accountant/s. The Accounts hence recorded are verified by an Independent Auditor to make sure that no statutory compliance are missed and provide an Audit Report for the same.
(Note: LegalWiz.in shall only take the accountability of the Accounting Service provided by them but however shall help in appointment of Independent Auditor for your business.)

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ONE PERSON COMPANY REGISTRATION
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