What is One Person Company?
It’s a kind of firm in which there is a single owner. Now Registration of One Person Company is very easy. India Financial is one call away from your OPC Registration.
One Person Company Registration in India?
Over the sole proprietorship, one person company has grown as the strong improvements in the nation. As there is only a single owner who has full control over the company while limiting its liability or duties to contribute to the business.
In One Person Company, no equity funds and no employee stock option are raised in the early stage of the period. Into the bargain, The title of private limited company or public limited company applies when One person company hits an average three- year turnover of over Rs 2 crore or has paid- up capital of over Rs 50 lakhs.
India Financial has a track record of registering thousands of One Person Company in India. India Financial is working round the clock to serve their client the best consultancy and service.
Registration of One Person Company under Companies Act 2013
OPC is defined under Section 2 (62) of the Companies Act, 2013 as a company which is operated by one person as a member.
OPC can be registered only as a private limited company which indicates that all the provisions which are applicable to the private company will be applicable to OPC too unless otherwise stated in the act or rules made there under.
Procedure for Registration of One Person Company in India
Apply for Digital Signature Certificate
First Step is to apply for Digital Signature Certificate to register One Person Company in India. In order to file the electronic documents at ROC, DSC is required. Scanned documents and details are required to be provided in order to obtain DSC and our team will get back to you and fill your form and submit the same through online mode.
Obtain the Director Identification Number
The Director Identification Number of the proposed director is obtained in next step when you get the Digital Signature Certificate in SPICe Form along with the sole director’s name and address proof.
Name Approval Application Filing
Choosing a name for the company will be the next step while incorporating the company. The name shall be as “ABC” (OPC) Private Limited Company.
Register the Company’s name in two ways-
- First option is to file an application in the Spice Form or
- In the second option you are allowed to give two proposed names by using RUN Form web service and one re-submission while Reserving Unique Name (RUN) for the company.
We can move to the next step once the name is approved by the Ministry of Corporate Affairs.
Memorandum of Association and Article of Association Drafting
The two important documents are the Memorandum of Association (MOA) and Article of Association (AOA) which are required to be prepared for registration of One Person Company.
The objective and power of the company is stated in Memorandum of Association, while, details regarding the rights and duties, rules and regulation are stated in Article of Association that will be followed during the operation of business.
These documents demand professional research and knowledge of the law, so professionals would be required for drafting such documents. India Financial has the back of the highly professional team who will draft your documents with deep research and expertise.
The signing of Memorandum and Article of Association
Sole member of the company signs and subscribes the Memorandum of Association and Article of Association which contains the details like his name, address, description, and occupation. At least one witness must be there while signing the documents by the Sole member who will also attest his signature.
Documents needed for Registration of One Person Company
Memorandum of Association and Article of Association Submission
Submissions of such documents are required for registering the One Person Company.
Subscriber and the Director’s Affidavit
The consent of the person who has subscribed to the memorandum and article of association in the Form INC- 9 and DIR-2 is required while submitting the affidavit by the proposed director.
A nominee on the behalf of that One Person who is the single owner of the company is appointed in order to avoid any future chaos as the life is not certain. Furthermore, the nominee will perform the same duties as the owner is required to perform on the behalf of him in case sole member becomes incapacitated or cannot perform duties.
In Form INC-3 along with the PAN Card and Aadhar Card, Nominee consent will be filed to perform the duties on behalf of the sole member.
Registered Office Proof
Identity Proof such as Aadhar Card, Electricity bill; Phone Bill is required to be submitted along with the proof ownership, registered office of the proposed company and a NOC from the owner is to be submitted. Rental agreement is required when the property is on rent.
Filing Forms with Ministry of Corporate Affairs
Digital Signature Certificate (DSC) & Director Identification Number (DIN) of the Director and all the documents those are attached to SPICe Form- MOA and SPICe-AoA will be uploaded for approval to the Ministry of Corporate Affairs (MCA) site. MCA will automatically provide PAN and TAN after successful submission of SPICE form. In order to obtain PAN and TAN, no separate form is required to be filed.
All documents shall be certified by the professionals indicating that all are made properly.
Certificate of Incorporation Issuance
Commencement of business begins when the Registrar of Companies issues certificate of incorporation after duly verifying the documents.
Registration of One Person Company is easy. All you have to do is prepare your all documents and contact us. We will do after work.
Minimum Requirements for registration of One Person Company
Eligibility Criteria for OPC Registration
The eligibility criteria for OPC Registration in India are as follows: Only a natural person who is a resident as well as citizen of India-
- is a person who is eligible to incorporate an OPC
- is eligible to be a nominee for the sole member of an OPC
- A resident of India is a person who has stayed in India for at least 182 days in the preceding one year
- Private or Public company titles applies when the turnover of One Person Company exceeds Rs 2 crores or has a paid-up capital above Rs 50 lakhs and such conversion must be done within the six months.
Benefits of Registration of One Person Company in India
Registration with Minimum Capital
One Person Company is registered with no minimum capital requirement. However, the maximum Authorize capital of One Person Company is the Rs 50 lakhs which should not exceed at any point of time.
Directors have Limited Liability
Director has the limited liability and the personal asset of the Director won’t be seized to pay the debt of the business and as a result the property of the director is safe.
To register the One Person Company, compliance procedures are not complicated as compared to any other company. Paperwork is done at minimum level.
Existence remain in continuity
The Life of the company is independent of the death or illness or incapacity of the director and as a result the ongoing process of the business will not be affected as the nominee director will step forward to continue the business.
One Person Company is required to get its books of accounts audited annually due to which it has huge credibility among the vendors and the lending institution.
No hard work to Set up and maintain the Company
India Financial registers the One Person Company in the blink of the eye.
No law Disputes
When the company is registered as a One Person Company, chances of arising of legal disputes or any chance of ego clashes which usually happen are less.
Difference between One Person Company and Sole Proprietorship
|Separate legal entity||No Separate Legal Entity concept is followed and the firm and owner are the same.|
|Shareholder’s limited is limited||Liability of the Owner is not limited as in case of any loss incurred by the business, the property of the owner will be seized.|
|Compliances for registering the company is higher as compared to sole proprietorship||Tax Implications are less.|
|Nominee will step forward in case of any unforeseen circumstances in the future.||Succession of the business is done through execution of WILL|
Conversion of an OPC to a Private Limited Company
Conversion of One Person Company is compulsory when such company incurs any of the following situations-
- The paid-up share capital of a OPC exceeds INR 50 lakhs or
- The annual receipt of the company in preceding three consecutive financial years exceeds INR 2 cr.
Voluntary Conversion of One Person Company into Private Limited Company
Conversion of One Person Company into Private Limited Company cannot take place until and unless 2 years has been passed from the date of incorporation of One Person Company.
- When the above mentioned period has been lapsed, then the OPC can be converted into Private Limited Company.
- According to the rules and regulations that are laid down by the Companies Act, 2013 under section 18 and Rule 7(4) of the Companies (Incorporation) Rules, 2014, conversion shall be proceed.
Mandatory Compliances for registration of OPC in India
Compliances which are compulsory for registering the One Person Company are as follows:-
- In each half of the calendar year, there should be at least one Board Meeting be and 90 days gap must be there between the 2 board meetings.
- Proper books of accounts are required to be maintained.
- Statutory audit is done on the Financial Statements.
- Corporate ITR must be filed by the company by 30th September.
- In Form AOC-4, filing of Financial Statements is done and in Form MGT 7, ROC Annual return is filed
Non-Compliance Penalty for One Person Company in India
Fine which may extend to Rs. 10,000/- and with a further fine which may extend to Rs. 1000 for every day for which such contravention continues is levied on the contravening party who contravenes the provisions of Co. Incorporation Rules, 2014.
Frequently Asked Questions about One Person Company
In order to be a single owner of the company, One Person Company is a good option keeping in the mind of turnover limit and paid up capital limit.
Indian Resident is the only person who is eligible to register One Person Companies because as per the specification of the MCA, such company has only one director.
Books of accounts are required to be maintained by the company which complies with statutory audit requirements and income tax returns and annual filings are required to submit with the Registrar of Companies.
Flat tax @ 30% is to be paid; no such tax advantages are available to OPC.
Around INR 12,000 is required for formation of the company and for compliance fees or an auditor fees who will inspect the books of account will charge separately and that is around INR 15,000 a year is needed.
Only one OPC at a time is formed. Moreover, the same law applies to nominee too.
Registration of One Person Company does not require your presence as it is a 100% online process. For document signature, We will send our personnel to your home or office.
Minimum 7 business days are required for the same.
Until you are meeting applicable compliant, the business certificate issued by the registrar of the business remains valid.
As we all know, future is uncertain and so to avoid the discontinuity of the business, nominee is appointed. He will not interfere into the operation of business until or unless the director met unforeseen circumstances.
Authorized share capital Rs. 1, 00,000 only is required to commence your One Person Company. Capital structure of the One Person Company is same as Private Limited Company.