Ideal for start-ups going for funding & growing business
Under companies act 1956 minimum two members were required for the formation of Private Limited Company Registration. This was a hindrance to entrepreneurs who wanted to go solo or do business alone. So, the only option available was sole proprietorship firm. The major problem with doing business as a sole proprietorship firm is that it does not have a separate legal entity and has unlimited liability. OPC is a legitimate way to form a company with only one member. It can work like proprietorship, but it holds the status of the company and of course, it enjoys the benefit that comes with it i.e. limited liability. Although an OPC comes under a private company, it has been given many exemptions and thus has a comparatively lesser compliance burden.
The Minimum number of directors is limited to one and only one director can sign the financial statement and the Board’s report
The process of incorporation of a one-person company is a very simple one.
1) First the sole shareholder shall get a Director Identification Number (DIN) as well as a digital signature certificate.
2) Then he should apply for the name of the company
3) After that he should get the consent of the nominee in the prescribed forms.
4) Then he shall file the consent along with the final incorporation forms with the Memorandum and Articles and other required documents
5) After that he shall receive the final incorporation certificate from the register of companies. Now he can commence business under the name.
6) Apply for the PAN Number and open a current bank account on the name of one person company.
a) Copy of passport/Pan card/Voter ID/ Driver’s License of the Director
b) Copy of statement of current bank account/ mobile or electricity invoice of Director
c) Passport size photo of director
d) Copy of autograph of director
e) No objection certificate for registered office of OPC
f) Rental Agreement/ Sale deed of the Registered office of the Company
DIN for 1 Directors
DSC for 1 Directors
Name search & approval
MOA/AOA
ROC Fees, TAN Card & Pan card
GST Registration
MSME Registration
ESI
Under companies act 1956 minimum two members were required for the formation of Private Limited Company Registration. This was a hindrance to entrepreneurs who wanted to go solo or do business alone. So, the only option available was sole proprietorship firm. The major problem with doing business as a sole proprietorship firm is that it does not have a separate legal entity and has unlimited liability. OPC is a legitimate way to form a company with only one member. It can work like proprietorship, but it holds the status of the company and of course, it enjoys the benefit that comes with it i.e. limited liability. Although an OPC comes under a private company, it has been given many exemptions and thus has a comparatively lesser compliance burden.
The Minimum number of directors is limited to one and only one director can sign the financial statement and the Board’s report
The process of incorporation of a one-person company is a very simple one.
1) First the sole shareholder shall get a Director Identification Number (DIN) as well as a digital signature certificate.
2) Then he should apply for the name of the company
3) After that he should get the consent of the nominee in the prescribed forms.
4) Then he shall file the consent along with the final incorporation forms with the Memorandum and Articles and other required documents
5) After that he shall receive the final incorporation certificate from the register of companies. Now he can commence business under the name.
6) Apply for the PAN Number and open a current bank account on the name of one person company.
a) Copy of passport/Pan card/Voter ID/ Driver’s License of the Director
b) Copy of statement of current bank account/ mobile or electricity invoice of Director
c) Passport size photo of director
d) Copy of autograph of director
e) No objection certificate for registered office of OPC
f) Rental Agreement/ Sale deed of the Registered office of the Company
DIN for 1 Directors
DSC for 1 Directors
Name search & approval
MOA/AOA
ROC Fees, TAN Card & Pan card
GST Registration
MSME Registration
ESI
We at TEAMVAMA offers an awesome package for the startups to register your pvt ltd company in India.
Pricing : 9999/- INR ( All Inclusive)
Include :
#1 1 Directors DIN + DSC
#2 Name Approval of Company + MOA & AOA Drafting & Printing
#3 Certificate of Incorporation + PAN & TAN of the Company
Free with above package :
#1 MSME Registration Certificate to avail govt benefits
#2 10+ Premium Legal Agreements Template
Limited Offer for Instant CheckOut User : Get Free GST Registration with above Package
In case of OPC having nominal share capital more than Rs. 10,00,000 fees of Rs. 2000 and Rs. 200 for every 10,000 of nominal share capital after first 10,00,000 to Rs. 50,00,000. The registration of OPC generally takes 20-30 days approximately and after registration, you receive a certificate of incorporation of OPC.
a) Minimum 1 shareholder
b) Minimum 1 director (director and shareholder can be same person)
c) Minimum 1 nominee
d) Shareholder/nominee to be Indian resident
e) Minimum authorized share capitals. 1 lakh
f) Digital signature certificate for director
g) Director identification number for the director
1) The memorandum of OPC shall indicate the name of the other person who has given his consent in the prescribed form to be so named and who shall, in the event of the member becoming incapacitated due to death or incapacity to contract, become the member of the company.
2) The written consent of such other person shall also be filed along with the incorporation documents while forming OPC.
3) The memorandum of the company shall state the name of the person who in the event of the death of the subscriber shall become a member of the company.
4) The member has powers at any time to change the name of the nominee by giving notice in the prescribed form.
5) The new nominee should also give his consent to his name so appearing and any change in the nominee shall require amendment in the memorandum of association.
6) He must be a natural person Indian citizen resident in India and not a minor
A nominee can withdraw his nomination by giving his consent to the member and the OPC. In that case, the member shall nominate another person within 15 days of the notice of withdrawal after obtaining his written consent and send intimation of such nomination to the company. The OPC is required to file the notice of withdrawal of consent and fresh nomination within a period of 30 days from the notice of withdrawal
The process of incorporation of a one-person company is a very simple one.
1) First the sole shareholder shall get a Director Identification Number (DIN) as well as a digital signature certificate.
2) Then he should apply for the name of the company
3) After that he should get the consent of the nominee in the prescribed forms.
4) Then he shall file the consent along with the final incorporation forms with the Memorandum and Articles and other required documents
5) After that he shall receive the final incorporation certificate from the register of companies. Now he can commence business under the name.
6) Apply for the PAN Number and open a current bank account on the name of one person company.
As you can in the above article that you can choose a name for your one person company during its registration by way of filing an incorporation form or you can take service of WEB-RUN services available on the website of Ministry of corporate affairs. Here is the guide on One Person Company Name Example.
One Person Company takes minimum 10-15 days of the Incorporation. Its a general timeline for the OPC Registration in India.
Income Tax act, 1961 does not provide any special recognition of OPC and is considers as a private company for the purposes of taxation. Thus, under the tax rate slab, OPC’s income is taxed at 30% of its total income in financial year. This is somewhat higher than the tax slab rate for individuals which is 10% to 30% of the income depending upon the income of such individual.
1) Form AOC-4 for financial statement
2) MGT-7 for an annual return
3) Meeting of board at least twice in a year
for the more details on the Compliance you can check here about Annual Compliance for One Person Company
It can encourage business venture and makes better use of market resources. This new concept may lead to people forming companies to generate profits themselves leaving the liability to the company and washing their hands of any liability.
Though the one-person company will help a lot of individual entrepreneurs who want to open their own firm, it certainly has some loopholes. To implement it fully and beneficially we must correct the law and implement it. The silver lining of OPC, however, is that most restrictive clauses exist not in the Companies Act but the Rules, allowing for the possibility of quick amendments from the government.
In simple, it is just a characteristic attached to sole proprietorship business by registering it to search for better market, economic and management opportunities despite many disadvantages
Any individual can become a partner in One Person Company unless of unsound mind, insolvent person or proceeding for insolvency is pending against a person.
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.
OPC registration is an important thing, without registration you are not allowed to incorporate a One Person Company. As you can see in the above article that registration is important for legal proof and registration will make your OPC as legal entity. The registration process is above mentioned you can check above. The process is very simple and you can apply online for its registration.
As above mentioned, One Person can start with minimum of 1 person.
a) Compliances are low
b) Easy to incorporate
c) Fee and expenses are less
d) Body corporate
e) Limited liability
Yes incorporating a private company involves more cost and compliances to be followed under the companies act, 2013.
MOA is a memorandum of association and AOA is an article of association, these are important documents of a company.
Only a natural person who is an Indian citizen and resident in India shall be eligible to incorporate a One Person Company and shall be a nominee for the sole member of a One Person Company.
“RESIDENT IN INDIA” means a person who has stayed in India for a period of not less than 182 days during the immediately preceding 1 calendar year.