Quick Contact

One Peroson Company Registration Consultants

A business entity where individual is allowed to operate a corporate firm with limited liability protection is a One Person Company.


ONE PERSON COMPANY

To enable entrepreneurs in the process of starting a venture by providing a means to create a single person economic entity, the concept of a One Person Company (OPC) was introduced via Companies Act in 2013.

Permitting a single individual to create a company is a major advantage of OPC. On the contrast, Limited Liability Partnership (LLP) or a Private Limited Company (PLC) must have at least 2 members to establish a company. The single shareholder of a One Person Company will have limited liability protection alike PLC or LLP which ensures ease of incorporation and continuity of the business.

There are certain limitations in an OPC, although it enables the Entrepreneur to have the protection of an incorporation with limited liability.

  • At the end of each Financial Year, an OPC must file audited financial statements with the Ministry of Corporate Affairs alike all types of companies.
  • In the event of the sole Director being disabled, nominee Director in the MOA and AOA of the company must be nominated by OPC.
  • If a company (OPC) crosses an annual turnover of Rs.2 crores. Then it is supposed to be converted into a Private Limited Company.

Advantages of registering an One Person Company:

One individual in the OPC

In an OPC, ownership can be transferred easily and it allows single existence. It is the only type of entity which permits single promoter with an additional benefit of limited liability protection in India.

Unlimited Existence

OPC remains in existence until it gets legally dissolved because it has perpetual succession. Demise or departure of any partner will not affect the OPC as it is a separate legal person. Regardless of any modifications in ownership, OPC remains in continuation or uninterrupted existence.

Can Transfer Easily

The ownership of the company can be transferred with a simple transfer of shares and the process of singing and filing the share certificates and share transfer form. Also, by altering the directorship, shareholding and nominee director information, the ownership of an OPC can be transferred.

Borrowing Limit

The individual in the OPC must solely own the security equity against loans. This is advantageous to Financial Institutions and Banks as it will not involve disputes in ownership which secures capital for an OPC easily.

Owning Property

The company can obtain, buy and sell, enjoy properties on its name as an artificial person. Property can be tangible and intangible assets which are owned by a company like land, machinery, building property- commercial or residential, etc. Further, while serving as the nominee director, the individual cannot claim for the ownership of these assets.

One Person Company Registration Process:
  1. Digital Signature & DIN
    To form an OPC, Digital Signature Certificate (DSC) and Director Identification Number (DIN) are required by proposed company director. The DSC and DIN can be acquired within 2-3 working days.
  2. Name Approval
    Government requires submission of maximum six name choices for approval. Subject to availability and processing time, name approval can be obtained in 2-3 working days.
  3. Company Registration
    The incorporation documents and application fee must be submitted for registration. On approval of the Company name, subject to processing time, the duration is usually 5-7 working days.

Documents Required for One Person Company:

Pan Card & Address Proof

Identity and Address proof of the main Director and Nominee Director must be supplied. In order to incorporate an OPC, electricity bill or bank Statement which include Address proof documents must be no older than 2 months. Only valid documents are meant to be submitted.

Registered Office Proof

In order to prove access to the registered office, tax receipt or electricity bill along with rental agreement or sale deed, a letter from the landlord with his/her permission to utilize the office as a registered office of a company and a recent copy of water bill must be submitted. Every company must have a registered office in India.