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 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.
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.
Documents Required for Online OPC Registration
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.
Director’s Address Proof
Latest Telephone Bill /Electricity Bill/ Bank Account Statement of Shareholders and Directors.
Latest Passport size photograph of Shareholders 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 of the registered office should be provided if any
Aadhar, PAN, Bank Statement of Nominee
Register a Company in 3 Easy Steps
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*
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 different business structures to choose the right entity type
One Person Company Registration
Private Limited Company
Sole Proprietorship Firm Registration
Partnership Firm Registration
Section 8 Company
Public Limited Company Registration
Nidhi Company Registration
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
Number of members
2 – Unlimited
2 – 200
2 – 50
Separate Legal Entity
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: TaxClue.co.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?
The amount of capital contribution is taken into consideration in deciding the stamp duty on the LLP Agreement in India. The rate of stamp duty varies from State to State. The State Stamp Act will be applied depending on where the registered office is situated. The amount of ₹ 500 is included in our package cost. Further, the Notary on the Agreement is not a statutory requirement and not required by the MCA. A notary can be required by the bank officials but is not mandatory for incorporation of an LLP.
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.
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