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What Is One Person Company?
In Companies Act, 2013 a new concept was introduced that is ONE PERSON COMPANY which means a single person can run his business in a proper legal entity form. One Person Company is a legal entity which is registered with the Ministry of Corporate Affairs (MCA). It is a kind of private limited company but with single person ownership. There is no profit or dividend sharing concept. It is bone for a single person who wants to run his business in the form of a registered entity. One person company shall have only one member, but there can be a maximum of 15 directors. One Person Company has features of both sole proprietorship as well as private limited, the member of the company has ownership like a sole proprietor, but the liabilities are limited as the members have in the private limited company. It has all the features like a private limited entity with few exceptions provided under Companies Act, 2013. It is a hybrid version of the sole proprietorship firm and private limited company.
Once the OPC company is registered there are few annual compliances which the OPC has to do like ITR of the company and director, Annual filing to the ROC, preparation of balance sheet, profit & loss a/c, KYC of the director, etc. The OPC doesn’t need to hold AGM but the filing has to be done every year on time, financial statement shall be filed to the ROC within 180 days from the end of the financial year and annual return shall be filed within 60 days from the completion of 6 months from the end of the financial year
Once the OPC company is registered there are few annual compliances which the OPC has to do like ITR of the company and director, Annual filing to the ROC, preparation of balance sheet, profit & loss a/c, KYC of the director, etc. The OPC doesn’t need to hold AGM but the filing has to be done every year on time, financial statement shall be filed to the ROC within 180 days from the end of the financial year and annual return shall be filed within 60 days from the completion of 6 months from the end of the financial year
Documents Required For One Person Company Registration
Passport Size Photograph
Copy of Aadhar Crad
Copy of PAN Card
Address Proof(Bank Statement / Mobile / Telephone Bill)
Copy of Electricity Bill
Copy of Rent Agreement(if rented)
Sale Deed (if owned)
Sale Deed (if owned)
Comparison
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Private Limited Company
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One Person Company
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Limited Liability Partnership
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Partnership Firm
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Proprietorship Firm
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How we work?
- Fill our Registration Form & Make the Payment
- Expert Will Call You & Receive All the Necessary Documents.
- Will Create DSC & the DIN Number of Director
- LLP Deed Drafting & Submit
- Your Documents will be Filed & Submitted to the ROC
- Congratulations! You’ve registered your company.Certificates will be sent by post.
Advantages of Becoming One Person Company
Limited Liability
The directors personal property is forever safe in no matter the debts of the business. In OPC only investment in the company is lost, personal assets of the directors are saved.
Continuous Existence
An OPC has a seperate legal identity, it would pass on the nominee director, therefore, it has continued existence.
Greater Credibility
An OPC requires to have its books audited yearly, it has credibility between vendors and lending institutions.
Easy to Sell OPC
OPC Company is simple to sell because of limited documentation work.
Full Control Over the company
The fact helps in fast decision making and execution.Yet OPC can select as many as 15 directors for official functions, without providing any share to them.
Easy to Raise Funds And Loans
OPC is 1 of the easiest forms of corporate entities to operate.Very few ROC filing is to be registered with the Registrar of Companies.
Why Us?
- Recognized by Govt. of India
- Data Security & Trust
- Super Fast Service
- 1 Lakh+ Happy Clients Across India
- Trained & Professional Experts
- Quick Response Team
- ISO Certified
- On Time Service
- Affordable Than Other Professionals
FAQ
What is a one person company?
One Person Company is a category of company where the shareholder is a single person. These companies are created when the founder or owner is a single individual. The owner is not liable to the losses incurred by the company.
How long will it take to incorporate a One Person Company?
Online Legal India can incorporate a One Person Company in 7-15 days. The time taken for incorporation will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy incorporation, please choose a unique name for your Company and ensure you have all the required documents prior to starting the incorporation process.
What is the minimum number of a director to form OPC?
As the name suggests, a One Person Company can be started with one director.
Who is a nominee in a One Person Company?
A nominee is a person who in the event of death or disability of the subscriber of the One Person Company shall assume his position. Memorandum of Association of a One Person Company will mandatorily prescribe the name of the person.
Can OPC become a member of another private Limited company?
Yes, the Act has not made any restriction for a One Person Company to become a member of another Private Limited Company.
How long is the incorporation of the Company valid for?
Once a Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant Company and maybe struck off from the register after a period of time. A struck-off Company can be revived for a period of upto 20 years.
What is authorized capital fee?
Authorized capital of a Company is the amount of shares a company can issue to it shareholders. Companies have to pay the Government an authorized capital fee to issue shares in a Company. Companies have to pay authorized capital fee for a minimum of Rs.1 lakh.
Can a nominee of a One Person Company be changed after incorporating the company?
A nominee can be changed at any time with due intimation to the Registrar.
What is the Director Identification Number (DIN)?
Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. 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.
Is Foreign Direct Investment allowed for One Person Company?
No, FDI is not allowed for One Person Company. You may consider incorporating a Private Limited Company if you desire to bring FDI.
Whether an OPC can be converted to a Public Limited Company and vice versa?
A One person company can easily be converted to a Public or Private Limited Company.
What are the requirements to be a Director or Nominee in a OPC?
Only a natural person who is an Indian citizen and a resident in India is eligible to incorporate a One Person Company or be a nominee member. The Director or Nominee must also be over 18 years of age. A person can incorporate upto five One Person Companies.
Is an office required for starting a One Person Company?
An address in India where the registered office of the One Person Company will be situated is required. The premises can be a commercial / industrial / residential where communication from the MCA will be received.
Do I have to be present in person to incorporate a One Person Company?
No, you will not have to be present at our office or appear at any office for the incorporation of a One Person Company. All the documents can be scanned and sent through email to our office. Some documents will also have to be couriered to our office.
What do I need to quickly incorporate my One Person Company?
To incorporate a One Person Company quickly, make sure the proposed name of the Company is very unique. Names that are similar to an existing company / limited liability partnership / trademark can be rejected and additional time will be required for resubmission of names.