One Person Company

You too can open a One Person Company - Here’s how!

If you think you are a one-man army, and can handle situations single-handedly, you are truly one of a kind. If you truly possess a burning desire to succeed, you are bound to reach the summit. In a generations of startups and entrepreneurs, starting out on a business venture alone is the trend.

You will be glad to learn that you can now establish a One Person Company (OPC) in India, that too with the minimum cost and hassle. Among all other provisions of the new Companies Act, entrepreneurs and start-ups seemed to sit on the edge of their seats for this one. Let us tell you why.

One Person Company is a type of business entity in which there is only one owner with limited liabilities. This one person act both as a shareholder as well as the director. The purpose of OPC concept is basically to eradicate the limitation of a sole proprietorship, which is the most popular form for small businesses in India. In a One Person Company, the liability of owner is limited to the invested capital in this form.

If you are the independent entrepreneur types, and want to establish your business without involving any other person, then choosing to establish a One Person Company (OPC) will be the right thing to do.

Before the OPC concept was introduced in India, people would invariably choose Proprietorship as their form of business. Proprietorship has its own share of disadvantages, and this kind of business is not trustworthy in India anymore. But don’t lose heart yet, One Person Company (OPC) is the perfect answer to the problems associated with Proprietorship.

One Person Company has following features and restrictions:

  • It allows a significant degree of separation between operations and ownership.
  • Less compliance is needed as compared to a private limited company.
  • It proves useful for small entrepreneurs who directly access target market.
  • Banking and financial institutions prefer to lend money to the company instead of proprietary firms.
  • It makes decision-making process much faster because of single ownership.
  • The owner can anytime convert OPC to a private limited company with ease.

Basic requirements for One Person Company:

1. Minimum 1 Shareholder is necessary.

2. Minimum 1 Director is necessary.

3. The director and shareholder is the same person.

4. Minimum 1 Nominee is required.

5. Only an Indian resident can be a Shareholder & Nominee.

6. Minimum 1 Director must be an Indian Resident.

7. Minimum Authorised Share Capital to be Rs. 1 Lakh is required.

8. DIN (Director Identification Number) for the Director is mandatory.

9. DSC (Digital Signature Certificate) for 1 Promoter & 1 witness is mandatory.

Benefits of One Person Company

Limited Liability Protection to Director’s personal assets

In case of a One Person Company, your liability, in case the business fails, is limited to only the business assets. In case of a proprietorship, the liability is unlimited and the creditors of your business can even take hold of your home and personal assets, which can be used to settle the business liabilities.

Helps for Testing of Business Model and Enables Funding

Setting up a One Person Company helps startups and entrepreneurs test their business model easily, and once they build a marketable product, they approach Angel investors, Venture capitalists for funding and easily convert their OPC into a Private Limited Company.

Better image and credibility in Market

In India, OPC is viewed as a Private limited company, which is a popular and well-known business structure. Corporate customers, vendors and government agencies prefer to deal with a Private Limited Company rather than proprietorship firms.

Complete Control of the Company with a Single Owner

This leads to fast decision making and execution. Also, OPC can appoint up to 15 directors for administrative functions, without giving any share to them.

Easy to Manage and Freedom from Compliances

OPC is one of the easiest forms of corporate entities to manage. Very less filing with the Registrar of Companies (ROC) is necessary. Also, there is no mandate to conduct Annual General Meeting (AGM) and other regular compliances.

Easy to Sell OPC

A One Person Company is quite easy to sell, incurs very less documentation and the cost involved is quite less.

Necessary Documents for One Person Company Registration

PAN Card

PAN card of each
Director and Shareholder
(Valid and should Correspond with Id/Address proof)

Identity Proof

Identity Proof of each Director and Shareholder
(Valid not expired)

Any One of
1). Passport Copy
2).Aadhaar Card
3). Voter ID Card
4). Driving License

Address Proof

Residence proof of each Director and Shareholder
(not older than 2 months)

Any One of
1). Electricity Bill
2). Telephone Bill
3). Bank Statement

Registered Office

Registered address proof of the Company Office
(not older than 2 months)

1). Ownership Proof
Any One of
~Electricity Bill
~Water Bill
~House Tax Receipt
~Registered Sale Deed

2). NOC from the Owner

Question? Call us 8447037100

Check out what's in the kit for you.

  •   COI - Company's Incorporation Certificate
  •   eMoA - Memorandum/Article of Association
  •   DIN - DIN Approval Letter for Director
  •   DSC - Digital Signature Certificate Token
  •   PAN - Company's PAN Card
  •   TAN - Company's TAN/TDS Certificate
  •   1 RUN web form name approval
  •   Bank Account Opening Assistance
  •   Accounting Software Assistance

RS. 12,999/-
RS. 8,499/- All Inclusive

Get Started

* The above mentioned cost is based on calculation of Rs. 1lakh as minimum contribution. Price will change on increasing the contribution and state stamp duty.

Question? Call us 8447037100

Why choose us

Technology Driven Platform

100% Technology driven platform to speed up your company registration process and make your life ezee.

100% Satisfaction

We deliver the complete kit on time and ensure 100% satisfaction to startups.

Best Pricing

We understand the value of money for startups. We offer complete transparency and affordable cost to startups.

Startup's First Choice

We ensure startups to focus on their project and leave all the legalities and documentations to us. From our technology driven platform and on time delivery startups prefer us to do company registration.

 

 

FAQ's on Registration of One Person Company

A person can be a member of only one OPC.

As per the Act, Only Indian born citizens can form a One Person Company. Non-resident Indians or individuals who do not reside in India for over 182 days cannot incorporate an OPC.

The Act has not made any restriction for a One Person Company to become a member of another Private Limited Company.

The OPC shall inform ROC in form INC-5, if the threshold limits is exceeded and is required to be converted into private or public company.

In case the Paid up Share Capital of an OPC exceeds fifty lakh rupees or its Average Annual Turnover exceeds during the relevant period exceeds two crore rupees, then the OPC has to mandatorily convert into private or public company.

Get an instant free consultancy from industry experts

Submit Query