| Company Details | |
| Act | Companies Act, 2013 |
| Registration Requirement | Mandatory |
| Number of members | Only 1 |
| Separate Legal Entity | Yes |
| Liability Protection | Limited |
| Statutory Audit | Mandatory |
| Ownership Transferability | No |
| Uninterrupted Existence | Yes |
| Foreign Participation | Not Allowed |
| Tax Rates | Moderate |
| Statutory Compliances | Moderate |
Tags: one, person, company, registration, starting, business, india
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.
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.
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.
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.
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.
It is a company is a private company, OPC can raise funds through venture capital, financial institutions, angel investors, etc. An OPC can raise funds thus graduating itself to a private limited company.
You, only the owner helpful in quick decision-making, controlling and managing the business without following any elongated processes and methodologies as adopted in other companies. The sense of belonging inspires me to grow the business further.
PAN Card of shareholders and Directors. Foreign nationals must provide a valid passport.
Aadhar card and Voter ID/ Passport/ Driving License of Shareholders and Directors.
Latest Telephone Bill /Electricity Bill/ Bank Account Statement of Shareholders and Directors.
Latest Passport size photograph of Shareholders and Directors.
Latest Electricity Bill/ Telephone Bill of the registered office address
No Objection Certificate to be obtained from the owner(s) of registered office
Rent Agreement of the registered office should be provided if any
Aadhar, PAN, Bank Statement of Nominee
| One Person Company Registration | LLP Registration | Private Limited Company | Sole Proprietorship Firm Registration | Partnership Firm Registration | Section 8 Company | Public Limited Company Registration | Nidhi Company Registration | |
| Act | Companies Act, 2013 | Limited Liability Partnership Act, 2008 | Companies Act, 2013 | No specified Act | Indian Partnership Act, 1932 | No specified Act | Companies Act, 2013 | Companies Act, 2013 |
| Registration Requirement | Mandatory | Mandatory | Mandatory | No | Optional | No | Mandatory | Mandatory |
| Number of members | Only 1 | 2 – Unlimited | 2 – 200 | Only 1 | 2 – 50 | Only 1 | Unlimited | Unlimited |
| Separate Legal Entity | Yes | Yes | Yes | No | No | No | Yes | Yes |
| Liability Protection | Limited | Limited | Limited | Unlimited | Unlimited | Unlimited | Limited | Limited |
| Statutory Audit | Mandatory | Dependent | Mandatory | Not mandatory | Not mandatory | Not mandatory | Mandatory | Mandatory |
| Ownership Transferability | No | Yes | Restricted | No | No | No | Unrestricted | Unrestricted |
| Uninterrupted Existence | Yes | Yes | Yes | No | No | No | Yes | Yes |
| Foreign Participation | Not Allowed | Allowed | Allowed | Not Allowed | Not Allowed | Not Allowed | Allowed | Allowed |
| Tax Rates | Moderate | High | Moderate | Low | High | Low | Moderate | Moderate |
| Statutory Compliances | Moderate | Moderate | High | Less | Less | Less | High | High |
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?
Who can become the member of One Person Company?
Who can become Nominee in a One Person Company?
What is the role of Accountants and Auditors in One Person Company?
Who can become director in One Person Company?
What is Director Identification Number (DIN)?
What is a Digital Signature Certificate and who shall procure it?
What is Authorized Capital and Paid-up Capital?
Can a One Person Company be registered for multiple businesses?
Is it possible to obtain One Person Company registration at a residential place?
Whether a body corporate can become member or nominee to register OPC?
Can NRIs / Foreigners register OPC in India?
Does anyone have to be physically present while online registration process?
Can I convert One Person Company into Private Limited Company after registration of One Person Company (OPC)?
When is it required to convert OPC into Private Company?
What are the statutory requirements to be fulfilled after registration process is completed?
What are the Annual Compliance requirements to be fulfilled by a One Person Company?
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