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

Separate Legal Existence

A One Person Company would obtain the status of a separate legal entity. Such OPC registration ensures that the entity is separate from the owner, unlike a proprietorship firm. OPC can own the assets in its own name and enter into a contract with the parties. The actions of the company are independent of the owner. This is the main benefit of OPC registration.

Lower Compliance Requirements

A Single Person Company is benefited with an exemption to many compliances unlike a private company. Compliances like holding General and Board Meeting, etc. are not applicable to OPC. However, Board Meeting must be held if more than one director is on Board.

Limited Liability of Owners

One of the benefits of registering OPC lies in the separate legal entity of the company where the liability and obligations are not charged over the personal assets of the sole member. The liability of a member is limited to the unpaid amount of the capital subscribed by the member. Even in the case of liquidation, the personal assets of the member are protected, except in certain specified cases.

Separation of Management and Ownership

Even if the OPC is owned by sole personnel, the owner may appoint a director owing up to the responsibility to operate and run a company. The operational duties are assigned to the director(s) whereas the member would be able to fetch profits channeling efforts towards other businesses. However, in One Person Company, the shareholder holds complete control over being a stakeholder.

ONLINE REGISTRATION

Documents Required for Online OPC Registration

PAN Card

PAN Card of shareholder, nominee, and Directors.

Identity Proof

Aadhar card and Voter ID/ Passport/ Driving License of Shareholder, Nominee, and Directors.

Director’s Address Proof

Latest Telephone Bill /Electricity Bill/ Bank Account Statement of Shareholder, Nominee, and Directors.

Photograph

Latest Passport size photograph of Shareholder, Nominee and Directors

Business Address Proof

Latest Electricity Bill/ Telephone Bill of the registered office address

NOC from owner

No Objection Certificate to be obtained from the owner(s) of registered office

Rent Agreement

Rent Agreement of the registered office should be provided, if any

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.

Learn More

Online Registration

One Person Company Registration

1. Answer Quick Questions

Pick a Package that best fits your requirements
Nearly 10 minutes to fill in our Questionnaire
Provide basic details & documents required for registration
Make payment through secured payment gateways

2. Experts are Here to Help

Assigned Relationship Manager to help you with OPC registration.
Procurement of Digital Signatures (DSC)
Application for OPC Name Reservation under SPICe
Documents drafting including MOA and AOA
Certificate of Incorporation
Application for PAN and TAN

3. Your OPC is Registered

All it takes is 12 – 15 working days*

*Subject to Government processing time

The Process

Process to register OPC online

Day 1 - 2

Review of documents and information provided
Application for Digital Signature Certificate

Day 3 - 6

Checking Name availability
Drafting of MoA, AoA & other required documents

Day 7 - 9

Name reservation application under SPICe
Filing company registration application
DIN allotment application
Application for PAN and TAN of company

Day 10 - 12

Government processing time

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
Act	Companies Act, 2013	Companies Act, 2013	Limited Liability Partnership Act, 2008	Indian Partnership Act, 1932	No specified Act
Registration Requirement	Mandatory	Mandatory	Mandatory	Optional	No
	Registration under the Act is mandatory to set up business as a Private Limited Company	Registration under the Act is mandatory to set up business as One Person Company	Registration under the Act is mandatory to set up business as a Limited Liability Partnership	Both registered and unregistered partnerships are legal, but registered entity is preferred	There is no registration criteria prescribed. But, registration to establish a legal identity is recommended
Number of members	2 – 200	Only 1	2 – Unlimited	2 – 50	Only 1
	Requires minimum 2 and not more than 200 shareholders	Only an individual,and an Indian resident can be the shareholder	No bar on maximum number of partners, but minimum 2 Designated Partners are required	It is formed with minimum 2 partners, but not exceeding 50	The proprietor is the only owner of the firm
Separate Legal Entity	Yes	Yes	Yes	No	No
	Private Company is separate entity and can own assets in its name	OPC is separate entity and can own assets in its name	LLP is separate entity from partners and can own assets in its name	Partnership firm does not have any separate identity from its partners	Proprietor and business are the same and not different
Liability Protection	Limited	Limited	Limited	Unlimited	Unlimited
	Liability of members is limited to the extent of unpaid value of shares subscribed	Liability of member is limited to the extent of unpaid value of shares subscribed	Liability of partners is limited to the capital amount agreed to introduce	Partners are jointly and severally liable to pay the debts of the Partnership Firm	Proprietor’s liability is to pay-off all the debts and obligation of a firm
Statutory Audit	Mandatory	Mandatory	Dependent	Not mandatory	Not mandatory
	Auditor must be appointed within the 30 days of incorporation	Auditor must be appointed within the 30 days of incorporation	Applicable when turnover exceeds INR 40 Lakh or contribution exceeds INR 25 Lakh	Statutory audit not applicable. Tax audit may be applicable based on turnover	Statutory audit not applicable. Tax audit may be applicable based on turnover
Ownership Transferability	Restricted	No	Yes	No	No
	Shares can be transferred with the consent of other Shareholders	Shares are not transferable easily	Ownership can be changed with consent of other partners	Ownership is not transferable easily, clause of partnership deed should be referred	Firm is no different from proprietor and so ownership is not transferable
Uninterrupted Existence	Yes	Yes	Yes	No	No
	Change in members or director does not affect the existence of Private Company	Change in members or director does not affect the existence of OPC. The nominee will take place of member	Change in Partners or Designated Partners does not affect the existence of LLP	Change in partner leads to dissolution or formation of another partnership firm	Death or insolvency of proprietor directly affects the firm
Foreign Participation	Allowed	Not Allowed	Allowed	Not Allowed	Not Allowed
	Foreign national are allowed to invest under the Automatic Route	Member, nominee and director must be an Indian resident	Foreign nationals are allowed, subject to FDI Guidelines	Foreign nationals are not allowed to be a partner	Foreign Nationals cannot commence proprietorship business
Tax Rates	Moderate	Moderate	High	High	Low
	Tax rate applicable for small companies is reduced to 22%	Tax rate applicable for small companies is reduced to 22%	With tax rate of 30% on business profit, tax benefits to partners is high	With tax rate of 30% on business profit, tax benefits to partners is high	Tax rates of individual applied to Proprietorship Firm
Statutory Compliances	High	Moderate	Moderate	Less	Less
	Apart from Annual filings, it has to comply with various provision laid down, but less compared to public company	Apart from Annual filing, compliances are less compared to Private Company	Annual filing and few event based filings are necessary	Separate ITR of partnership is filed, else there is no filing requirement	No compliances and no requirement to file a separate ITR
	Know More	Get Started	Know More	Know More	Know More

Frequently Asked Questions

Explore One Person Company Registration

What are the pre-requisites for One Person Company Registration?

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.

Is there any minimum capital requirement to register OPC?

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.

Who can become the member of One Person Company?

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.

Who can become Nominee in a One Person Company?

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.

What is the role of Accountants and Auditors in One Person Company?

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.)

Who can become director in One Person Company?

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.

What is Director Identification Number (DIN)?

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.

What is a Digital Signature Certificate and who shall procure it?

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.

What is Authorized Capital and Paid-up Capital?

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.

Can a One Person Company be registered for multiple businesses?

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.

Is it possible to obtain One Person Company registration at a residential place?

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.

Whether a body corporate can become member or nominee to register OPC?

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.

Can NRIs / Foreigners register OPC in India?

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

Does anyone have to be physically present while online registration process?

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.

Can I convert One Person Company into Private Limited Company after registration of One Person Company (OPC)?

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.

When is it required to convert OPC into Private Company?

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.

What are the statutory requirements to be fulfilled after registration process is completed?

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

What are the Annual Compliance requirements to be fulfilled by a One Person Company?

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.